Slides
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Mastercard Incorporated Fourth Quarter and Full Year 2025 Financial Results Conference Call January 29, 2026
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©2026 Mastercard January 29, 2026 2 Business Update Michael Miebach: FINAL Financial Overview Business Highlights
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©2026 Mastercard January 29, 2026 3 4th Quarter Selected Financial Performance ($ in millions, except per share data) 4Q 25 4Q 24 YOY Growth Non-GAAP Non-GAAP As adjusted Currency-neutral Net revenue $ 8,806 $ 7,489 18% 15% Adjusted operating expenses 3,721 3,270 14% 12% Adjusted operating income 5,085 4,219 21% 17% Adjusted operating margin 57.7 % 56.3 % 1.4 ppt 1.0 ppt Adjusted net income $ 4,278 $ 3,513 22% 17% Adjusted diluted EPS $ 4.76 $ 3.82 25% 20% Adjusted effective tax rate 17.0% 14.9 % Note: See Appendix A for Non-GAAP reconciliation. Figures may not sum due to rounding. Thanks, Michael. Turning to page 3, which shows our financial performance for the fourth quarter on a currency-neutral basis, excluding, where applicable, special items and the impact of gains and losses on our equity investments. • Net Revenue was up 15%, reflecting continued growth in our payment network and our value-added services and solutions. Acquisitions contributed 1 ppt to this growth. • Before discussing expenses, I am pleased to share that, in late December, the company secured various new multi-year government grants related to investments in select geographies. These grants benefit both Operating Expenses and Other Income and Expense. We expect to realize the Operating Expense benefit primarily in 2025 and 2026, while the Other Income and Expense benefit will extend multiple years beyond 2026. The Q4 2025 impact reflects the full-year value of the 2025 grants, with Operating Expenses growth improving by around 5.5 ppt and Other Income and Expense benefiting by approximately $135M in the quarter. These positively impacted each of the following metrics that I will discuss on this page. • Operating Expenses increased 12%, including a 5 ppt increase from acquisitions. • And, Operating Income was up 17%, which includes a 1 ppt headwind from acquisitions. • Net Income and EPS increased 17% and 20% respectively, driven primarily by the strong operating income growth and a positive discrete tax item, which primarily benefited the effective tax rate. • EPS was $4.76 cents, which includes a 10 cent contribution from share repurchases. • During the quarter, we repurchased $3.6 billion worth of stock and an additional $715 million through January 26, 2026.
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©2026 Mastercard January 29, 2026 4 $2,568 $2,819 $793 $825 $1,775 $1,994 $1,194 $1,301 $412 $438 $783 $864 $1,374 $1,518 $382 $388 $992 $1,130 Credit Debit / Prepaid 4Q24 4Q25 4Q24 4Q25 4Q24 4Q25 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Worldwide United States Rest of World 7% Growth 4% Growth 9% Growth Notes: Growth rates are shown in local currency. Figures may not sum due to rounding. ($ in billions) 4th Quarter Gross Dollar Volume (GDV) Now turning to page 4. Let's first look at some of our key volume drivers for the fourth quarter on a local currency basis. Worldwide Gross Dollar Volume, or GDV, increased by 7% year-over-year. • In the U.S., GDV increased by 4%, with Credit growth of 6%, and Debit growth of 2%. The growth of our debit portfolio was impacted by the Capital One debit migration which continued through Q4. • Outside of the U.S., volume increased 9%, with Credit growth of 9%, and Debit growth of 9%. Overall, Cross-border volume increased 14% globally for the quarter reflecting continued growth in both travel and non-travel related cross-border spending.
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©2026 Mastercard January 29, 2026 5 Turning to page 5. Switched transactions grew 10% year-over-year in Q4. We continue to drive contactless penetration, which in Q4 stood at 77% of all in-person switched purchase transactions. This is up 5 ppt since the same period last year. In addition, card growth was 6%. Globally, there are 3.7 billion Mastercard and Maestro-branded cards issued. 4th Quarter Switched Transactions and Cards Transactions (in billions) 42.2 46.5 4Q24 4Q250 10 20 30 40 50 Cards (in millions) 3,473 3,696 3,127 3,391 345 305 Mastercard Cards Maestro Cards 4Q24 4Q250 1,000 2,000 3,000 4,000 Switched Transactions Cards 10% Growth 6% Growth Note: Figures may not sum due to rounding.
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©2026 Mastercard January 29, 2026 6 Growth Payment Network1 Value-added Services and Solutions Total Net Revenue GAAP 12% 26% 18% Currency-neutral 9% 22% 15% 1 Payment Network is presented net of rebates and incentives of $5,631 million and $4,677 million for Q4'25 and Q4'24, respectively, which grew year-over-year by 20%, or 17% on a currency-neutral basis. 4th Quarter Net Revenue ($ in millions) $4,411 $3,078 $7,489 $4,920 $3,886 $8,806 4Q24 4Q25 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Turning to Slide 6 for a look into our Net Revenue growth rates for the fourth quarter, discussed on a currency-neutral basis. • Payment Network net revenue increased 9%, primarily driven by domestic and cross-border transaction and volume growth. It also includes growth in rebates and incentives. • Value-added Services and Solutions net revenue increased 22%. Acquisitions contributed approximately 3 ppt to this growth. • The remaining 19% increase was primarily driven by: • growth in our underlying drivers, • strong demand across Digital & Authentication, Security Solutions, Consumer Acquisition & Engagement, and Business & Market Insights, • as well as pricing. As we reflect on VASS growth for the full year 2025, we continued to see strong, broad-based growth, as Michael mentioned earlier. Looking at our organic growth rates: • Both APEMEA and the Americas delivered high teens growth. • And we also saw at least high-teens growth across all the services product areas apart from "other solutions". value
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©2026 Mastercard January 29, 2026 7 Domestic Assessments Cross-Border Assessments Transaction Processing Assessments Other Network Assessments Increase/(Decrease) 9% 21% 18% 14% Increase/(Decrease) Currency-neutral 8% 17% 14% 12% 4th Quarter Key Metrics related to the Payment Network ($ in millions) $2,538 $2,706 $3,605 $239 $2,773 $3,265 $4,241 $272 4Q24 4Q25 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Now let’s turn to page 7 to discuss key metrics related to the Payment Network. Again, all growth rates are described on a currency-neutral basis unless otherwise noted. Looking quickly at each key metric: • Domestic Assessments were up 8%, while worldwide GDV grew 7%. The difference is primarily driven by pricing, offset by mix. • Cross-Border Assessments increased 17%, while cross-border volumes increased 14%. The 3 ppt difference is driven primarily by pricing in international markets partially offset by mix. • Transaction Processing Assessments were up 14%, while switched transactions grew 10%. The 4 ppt difference is primarily due to favorable mix and pricing, partially offset by a decline in revenue from FX volatility. Towards the end of Q4 and month to date January, we saw FX volatility well below historical norms. • Other Network Assessments were $272 million this quarter.
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©2026 Mastercard January 29, 2026 8 4th Quarter Adjusted Operating Expenses $2,745 $295 $231 $3,270$3,106 $319 $297 $3,721 4Q24 4Q25 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 ($ in millions) Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 13% 9% 28% 14% Currency-neutral 11% 5% 26% 12% Note: See Appendix A for Non-GAAP reconciliation. Figures may not sum due to rounding. Moving on to page 8, you can see that on a non-GAAP, currency-neutral basis, excluding special items, Total Adjusted Operating Expenses increased 12%, which includes a 5 ppt impact from acquisitions. Excluding acquisitions, the growth of Total Adjusted Operating Expenses was primarily driven by increased spending to support various strategic initiatives, including investing in our infrastructure, geographic expansion, and enhancing and delivering our products and services. This was partially offset by the benefit of the government grants I described earlier.
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©2026 Mastercard January 29, 2026 9 Turning to page 9, let me comment on the operating metric trends. Starting with Q4, and looking at the metrics on a sequential basis: • US switched volume growth declined primarily due to the migration of the Capital One debit portfolio. • Worldwide less US switched volume saw a slight deceleration driven primarily by tougher comps including the lapping of portfolio wins in Europe. • Switched transactions were in line with Q3. • XB volume remained strong ◦ Of note, we saw a sequential decline in XB CNP ex travel, primarily driven by tougher comps from the lapping of share wins in Europe and higher growth from crypto purchases a year ago. As we look to the first three weeks of January, our metrics continue to remain strong, generally inline with the fourth quarter. Of note: – US switched volume was flat sequentially as the Capital One debit roll off was mostly offset by easier comps due to weather impacts in the prior year. – We saw a decline in XB Travel volumes primarily due to weather related impacts in Europe this year. – XB CNP ex travel continued to be impacted by higher growth from crypto purchases a year ago. Overall, we continue to see healthy consumer and business spending. Business Update Through January 21st 1. Mastercard-branded programs only; on a local currency basis. Year-over-year growth % 2025 2026 Q3 Oct Nov Dec Q4 Jan 21 MTD Switched volume1 11% 9% 9% 9% 9% 9% United States 8% 5% 4% 5% 5% 5% Worldwide less U.S. 13% 12% 12% 12% 12% 12% Switched transactions 10% 10% 10% 10% 10% 10% Cross-border volume1 15% 14% 15% 14% 14% 13% Intra-Europe 16% 16% 16% 14% 15% 13% Other Cross-border 13% 13% 13% 14% 13% 13% XB CNP ex travel 21% 20% 18% 18% 19% 18% XB Travel (CP + CNP travel) 11% 10% 11% 11% 11% 9%
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©2026 Mastercard January 29, 2026 10 Looking Ahead Thoughts on 2026
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Appendices
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©2026 Mastercard January 29, 2026 12 Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Note: Figures may not sum due to rounding. ** Not applicable. 1 Represents Q4’25 net pre-tax losses of $104 million and Q4'24 net pre-tax gains of $40 million primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. 2 Represents Q4’25 pre-tax charges of $174 million primarily as a result of a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation. 3 Represents Q4’24 pre-tax charges of $280 million primarily as a result of a legal provision associated with the U.K. consumer class action settlement and settlements with a number of U.K. merchants. Three Months Ended December 31, 2025 Operating expenses Operating income Operating margin Other income (expense) Effective income tax rate Net income Diluted earnings per share Reported - GAAP $ 3,896 $ 4,910 55.8 % $ (34) 16.7 % $ 4,060 $ 4.52 (Gains) losses on equity investments 1 ** ** ** 104 (0.3) % 101 0.11 Litigation provisions 2 (174) 174 2.0 % ** 0.6 % 117 0.13 Adjusted - Non-GAAP $ 3,721 $ 5,085 57.7 % $ 69 17.0 % $ 4,278 $ 4.76 Three Months Ended December 31, 2024 Operating expenses Operating income Operating margin Other income (expense) Effective income tax rate Net income Diluted earnings per share Reported - GAAP $ 3,551 $ 3,938 52.6 % $ (47) 14.1 % $ 3,342 $ 3.64 (Gains) losses on equity investments 1 ** ** ** (40) 0.2 % (42) (0.05) Litigation provisions 3 (280) 280 3.7 % ** 0.6 % 214 0.23 Adjusted - Non-GAAP $ 3,270 $ 4,219 56.3 % $ (88) 14.9 % $ 3,513 $ 3.82
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©2026 Mastercard January 29, 2026 13 Note: Figures may not sum due to rounding. ** Not applicable. 1 Represents Q4’25 net pre-tax losses of $104 million and Q4'24 net pre-tax gains of $40 million primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. 2 Represents Q4’25 pre-tax charges of $174 million primarily as a result of a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation. 3 Represents Q4’24 pre-tax charges of $280 million primarily as a result of a legal provision associated with the U.K. consumer class action settlement and settlements with a number of U.K. merchants. 4 Represents the translational and transactional impact of currency and the related impact of the Company's foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). Appendix A (continued) Non-GAAP Reconciliation Three Months Ended December 31, 2025 as compared to the Three Months Ended December 31, 2024 Increase/(Decrease) Operating expenses Operating income Operating margin Effective income tax rate Net income Diluted earnings per share Reported - GAAP 10 % 25 % 3.2 ppt 2.6 ppt 22 % 24 % (Gains) losses on equity investments 1 ** ** ** (0.5) ppt 5 % 5 % Litigation provisions 2,3 4 % (4) % (1.8) ppt (0.1) ppt (4) % (4) % Adjusted - Non-GAAP 14 % 21 % 1.4 ppt 2.1 ppt 22 % 25 % Currency impact 4 (2) % (4) % (0.4) ppt 0.3 ppt (4) % (5) % Adjusted - Non-GAAP - currency-neutral 12 % 17 % 1.0 ppt 2.4 ppt 17 % 20 %
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©2026 Mastercard January 29, 2026 14 Appendix B Non-GAAP Reconciliation 2026 financial outlook 2026 vs. 2025 Increase/(Decrease) Net Revenue Operating Expenses Forecasted Growth - GAAP 1 High end of low double digits High end of high single digits Litigation provisions 2 ** ~4% Restructuring charge 3 ** ~(1)% Non-GAAP Growth High end of low double digits Low double digits Currency impact 4 (1-1.5)% (0.5-1)% Acquisitions and Dispositions 5 ~0% ~0% Non-GAAP Growth, currency-neutral, excluding acquisitions and dispositions High end of low double digits Low end of low double digits ** Not applicable. 1 GAAP - FY2026 forecast versus FY2025 reported results. Full Year Special Items 2 Impact of FY2025 litigation provisions ($504M). 3 Impact of forecasted Q1'26 restructuring charge of approximately $200M, the anticipated savings of which are primarily intended to enable reinvestment to support the realization of our long-term growth opportunities. Other Notes 4 Represents the projected translational and transactional impact of currency and the related impact of the company’s foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). 5 Acquisitions and Dispositions completed after the beginning of 2025.
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©2026 Mastercard January 29, 2026 15 Appendix C Non-GAAP Reconciliation First quarter 2026 financial outlook Q1'26 vs. Q1'25 Increase/(Decrease) Net Revenue Operating Expenses Forecasted Growth - GAAP 1 Low teens High end of low double digits Litigation provisions 2 ** ~5% Restructuring charge 3 ** ~(7)% Non-GAAP Growth Low teens Low double digits Currency impact 4 (3.5-4)% ~(2.5)% Acquisitions and Dispositions 5 ~0% ~0% Non-GAAP Growth, currency-neutral, excluding acquisitions and dispositions Low end of low double digits High end of high single digits ** Not applicable. 1 GAAP - Q1'26 forecast versus Q1'25 reported results. First Quarter Special Items 2 Impact of Q1'25 litigation provisions ($151M). 3 Impact of forecasted Q1'26 restructuring charge of approximately $200M, the anticipated savings of which are primarily intended to enable reinvestment to support the realization of our long-term growth opportunities. Other Notes 4 Represents the projected translational and transactional impact of currency and the related impact of the company’s foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). 5 Acquisitions and Dispositions completed after the beginning of 2025.
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©2026 Mastercard January 29, 2026 16 Appendix D Revenue Growth Drivers Note: Figures may not sum due to rounding. ** Not applicable 1 Represents the translational and transactional impact of currency and the related impact of the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). 2 See Appendix A for Non-GAAP reconciliation. Three Months Ended December 31, 2025 as compared to the Three Months Ended December 31, 2024 Operational Acquisitions Currency Impact 1,2 Total Payment network 9 % ** 2 % 12 % Value-added services and solutions 19 % 3 % 4 % 26 % Net revenue 13 % 1 % 3 % 18 %
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©2026 Mastercard January 29, 2026 17 Appendix E Operating Expense Growth Drivers (Non-GAAP)1 Note: Figures may not sum due to rounding. ** Not applicable 1 See Appendix A for Non-GAAP reconciliation. 2 Represents the translational and transactional impact of currency and the related impact of the Company’s foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). Three Months Ended December 31, 2025 as compared to the Three Months Ended December 31, 2024 Operational Acquisitions Currency Impact 2 Total General and administrative 8 % 4 % 2 % 13 % Advertising and marketing (4) % 10 % 3 % 9 % Depreciation and amortization 13 % 13 % 2 % 28 % Total operating expenses 7 % 5 % 2 % 14 %
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©2026 Mastercard January 29, 2026 18 Appendix F 4th Quarter G&A Detail ($ in millions) Note: Figures may not sum due to rounding. 1 Foreign exchange activity includes the impact of remeasurement of assets and liabilities denominated in foreign currencies net of the impact of gains and losses on foreign exchange derivative contracts. Increase/(Decrease) 4Q 25 4Q 24 $ % Personnel $ 1,818 $ 1,653 $ 165 10 % Professional fees 189 191 (2) (1) % Data processing and telecommunications 342 299 43 14 % Foreign exchange activity 1 45 16 29 ** Other 712 586 126 21 % Total general and administrative expenses $ 3,106 $ 2,745 $ 361 13 %
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©2026 Mastercard January 29, 2026 19 Forward-Looking Statements This earnings presentation contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. When used in this earnings presentation, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements that relate to the company’s future prospects, developments and business strategies. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made. Except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this earnings presentation or to reflect the occurrence of any unanticipated events. Many factors and uncertainties relating to our operations and business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward- looking statements can or will be achieved. Any one of those factors could cause our actual results to differ materially from those expressed or implied in writing in any forward-looking statements made by Mastercard or on its behalf, including, but not limited to, the following factors: For additional information on these and other factors that could cause the company’s actual results to differ materially from expected results, please see the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent reports on Forms 10-Q and 8-K. • regulation related to the payments industry (including regulatory, legislative and litigation activity with respect to interchange rates and surcharging) • the impact of preferential or protective government actions • regulation of privacy, data, AI, information security and the digital economy • regulation that directly or indirectly applies to us based on our participation in the global payments industry (including anti-money laundering, countering the financing of terrorism, economic sanctions and anti-corruption, account-based payments systems, and issuer and acquirer practices regulation) • the impact of changes in tax laws, as well as regulations and interpretations of such laws or challenges to our tax positions • potential or incurred liability and limitations on business related to any litigation or litigation settlements • the impact of competition in the global payments industry (including disintermediation and pricing pressure) • the challenges relating to rapid technological developments and changes • the challenges relating to operating a real-time account-based payments system and to working with new customers and end users • the impact of information security incidents, account data breaches or service disruptions • issues related to our relationships with our stakeholders (including loss of substantial business from significant customers, competitor relationships with our customers, consolidation amongst our customers, merchants’ continued focus on acceptance costs and unique risks from our work with governments) • the impact of global economic, political, financial and societal events and conditions, including adverse currency fluctuations and foreign exchange controls • reputational impact, including impact related to brand perception and lack of visibility of our brands in products and services • the impact of environmental, social and governance matters and related stakeholder reaction • the inability to attract and retain a highly qualified workforce, or maintain our corporate culture • issues related to acquisition integration, strategic investments and entry into new businesses • exposure to loss or illiquidity due to our role as guarantor as well as other contractual obligations and discretionary actions we may take • issues related to our Class A common stock and corporate governance structure