Mastercard Incorporated (MA) Q3 2025 Financial Results Summary
Mastercard Incorporated (NYSE: MA) released its financial results for the third quarter of 2025 on October 30, 2025. Here’s a summary of the key highlights from the report:
Financial Highlights
- Net Income: $3.9 billion, up 20% from $3.3 billion in Q3 2024.
- Diluted Earnings Per Share (EPS): $4.34, reflecting a 23% increase from $3.53 in the same period last year.
- Adjusted Net Income: $4.0 billion, a growth of 10% compared to $3.6 billion in Q3 2024.
- Adjusted Diluted EPS: $4.38, up 13% from $3.89 in Q3 2024.
- Net Revenue: $8.6 billion, a rise of 17%, or 15% on a currency-neutral basis, compared to $7.4 billion in Q3 2024.
Operating Metrics
- Operating Expenses: Increased to $3.5 billion, a 5% rise from $3.4 billion in Q3 2024.
- Operating Income: Reached $5.1 billion, up 26% from $4.0 billion in the prior year.
- Operating Margin: 58.8%, an increase of 4.5 percentage points from 54.3% in Q3 2024.
- Effective Income Tax Rate: 21.5%, up 5.9 percentage points from 15.6% in Q3 2024.
Business Growth Drivers
- Gross Dollar Volume Growth: Up 9% on a local currency basis to $2.7 trillion.
- Cross-Border Volume Growth: Increased by 15% on a local currency basis.
- Switched Transactions Growth: Up 10% on a local currency basis.
- Payment Network Net Revenue: Grew by 12%, or 10% on a currency-neutral basis.
- Rebates and Incentives Growth: Increased by 16%, or 15% on a currency-neutral basis.
Value-Added Services
- Value-Added Services and Solutions Net Revenue: Increased by 25%, or 22% on a currency-neutral basis, significantly contributing to the overall growth.
Year-to-Date Performance
- Total Net Revenue for 2025 (YTD): $24.0 billion, up 16% compared to $20.7 billion for the same period in 2024.
- Net Income (YTD): $10.9 billion, a 14% increase from $9.5 billion in 2024.
- Diluted EPS (YTD): $12.00, reflecting a 17% growth compared to $10.25 in 2024.
Capital Returns to Shareholders
- Dividends Paid: $687 million in Q3 2025.
- Share Repurchases: 5.8 million shares at a cost of $3.3 billion in Q3 2025. An additional 2.1 million shares were repurchased at a cost of $1.2 billion as of October 27, 2025.
Summary
Mastercard’s Q3 2025 results exhibit strong growth in revenues and earnings compared to Q3 2024, powered by increased transaction volumes and value-added service revenues. The company’s strategic investments in technology and innovation have been significant drivers of its performance, underscoring the robustness of consumer and business spending within its network.
These results are reflective of Mastercard’s continued commitment to delivering value to its shareholders while navigating a dynamic economic environment.
| 2025 | 2024 | 2025 | 2024 | ||
|---|---|---|---|---|---|
| Net Revenue | 8,602 | 7,369 | 23,985 | 20,678 | |
| Operating Expenses: | |||||
| General and administrative | 2,923 | 2,744 | 8,212 | 7,448 | |
| Advertising and marketing | 245 | 220 | 610 | 520 | |
| Depreciation and amortization | 290 | 225 | 846 | 666 | |
| Provision for litigation | 83 | 176 | 330 | 400 | |
| Total operating expenses | 3,541 | 3,365 | 9,998 | 9,034 | |
| Operating income | 5,061 | 4,004 | 13,987 | 11,644 | |
| Other Income (Expense): | |||||
| Investment income | 81 | 76 | 239 | 231 | |
| Gains (losses) on equity investments, | 41 | -62 | 16 | -69 | |
| net | |||||
| Interest expense | -186 | -159 | -563 | -462 | |
| Other income (expense), net | 2 | 7 | 23 | 19 | |
| Total other income (expense) | -62 | -138 | -285 | -281 | |
| Income before income taxes | 4,999 | 3,866 | 13,702 | 11,363 | |
| Income tax expense | 1,072 | 603 | 2,794 | 1,831 | |
| Net Income | 3,927 | 3,263 | 10,908 | 9,532 | |
| Basic Earnings per Share | 4.35 | 3.54 | 12.02 | 10.27 | |
| Basic weighted-average shares | 903 | 923 | 908 | 928 | |
| outstanding | |||||
| Diluted Earnings per Share | 4.34 | 3.53 | 12.00 | 10.25 | |
| Diluted weighted-average shares | 905 | 925 | 909 | 930 | |
| outstanding |
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | 10,313 | 8,442 |
| Restricted cash and restricted cash equivalents | 478 | 492 |
| Restricted security deposits held for customers | 2,054 | 1,874 |
| Investments | 335 | 330 |
| Accounts receivable | 4,247 | 3,773 |
| Settlement assets | 1,842 | 1,821 |
| Prepaid expenses and other current assets | 3,954 | 2,992 |
| Total current assets | 23,223 | 19,724 |
| Property, equipment and right-of-use assets, net | 2,299 | 2,138 |
| Deferred income taxes | 1,546 | 1,614 |
| Goodwill | 9,574 | 9,193 |
| Other intangible assets, net of accumulated amortization | 5,591 | 5,453 |
| Other assets | 11,056 | 9,959 |
| Total Assets | 53,289 | 48,081 |
| Liabilities and Equity | ||
| Current liabilities: | ||
| Accounts payable | 935 | 929 |
| Settlement obligations | 2,422 | 2,316 |
| Restricted security deposits held for customers | 2,054 | 1,874 |
| Accrued litigation | 943 | 930 |
| Accrued expenses | 11,979 | 10,393 |
| Short-term debt | — | 750 |
| Other current liabilities | 2,360 | 2,028 |
| Total current liabilities | 20,693 | 19,220 |
| Long-term debt | 18,983 | 17,476 |
| Deferred income taxes | 326 | 317 |
| Other liabilities | 5,368 | 4,553 |
| Total Liabilities | 45,370 | 41,566 |
| Commitments and Contingencies | ||
| Stockholders’ Equity | ||
| Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,405 and 1,404 shares issued and 893 and 907 shares outstanding, respectively | — | — |
| Class B common stock, $0.0001 par value; authorized 1,200 shares,7 shares issued and outstanding | — | — |
| Additional paid-in-capital | 6,757 | 6,442 |
| Class A treasury stock, at cost, 512 and 497 shares | -79,670 | -71,431 |
| Retained earnings | 81,752 | 72,907 |
| Accumulated other comprehensive income (loss) | -935 | -1,433 |
| Mastercard Incorporated Stockholders’ Equity | 7,904 | 6,485 |
| Non-controlling interests | 15 | 30 |
| Total Equity | 7,919 | 6,515 |
| Total Liabilities and Equity | 53,289 | 48,081 |
