Thu, May 1, 2:15 PM (16 days ago)
**Mastercard Incorporated (MA) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $7.25 billion, up 14% YoY (17% currency-neutral). - **Operating Income:** $4.15 billion, up 15% YoY. - **Net Income:** $3.28 billion, up 9% YoY. - **Earnings per Share (EPS):** $3.59, up 11% YoY. **Profit Margins:** - **Operating Margin:** 57.2%, up 0.4 percentage points YoY. - **Net Margin:** 45.3%, down from 47.5% YoY. **Cash Flow:** - **Operating Cash Flow:** $2.38 billion, up $708 million YoY. - **Investing Cash Flow:** -$340 million, down $166 million YoY. - **Financing Cash Flow:** -$2.99 billion, down $306 million YoY. **Earnings Changes:** - **Operating Expenses:** $3.10 billion, up 13% YoY. - **Effective Tax Rate:** 18.6%, up 3.3 percentage points YoY. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by payment network (13% YoY) and value-added services (16% YoY). - **Expense Growth:** Primarily due to higher general and administrative and advertising expenses. - **Tax Rate Increase:** Due to the 15% global minimum tax (Pillar 2 Rules) in Singapore and other jurisdictions. **Trends and Uncertainties:** - **Global Economic Factors:** Monitoring government actions and policies, including tariffs. - **Legal and Regulatory Proceedings:** Ongoing litigation and regulatory challenges, particularly related to interchange fees and surcharging. - **Currency Impact:** Foreign exchange fluctuations affect revenue and expenses. **Future Operations Impact:** - **Debt and Credit Availability:** Issued $1.25 billion in debt in February 2025. - **Share Repurchases:** Repurchased $2.55 billion of Class A common stock in Q1 2025. - **Dividends:** Paid $694 million in dividends in Q1 2025. **Key Metrics:** - **Gross Dollar Volume (GDV):** Up 6% in USD and 9% in local currency YoY. - **Cross-border Volume Growth:** Up 12% in USD and 15% in local currency YoY. - **Switched Transactions:** Up 9% YoY. **Segment Performance:** - **Payment Network:** Strong growth in domestic and cross-border volumes. - **Value-added Services:** Growth driven by security, digital, and authentication solutions. **Risk Management:** - **Settlement Exposure:** Managed through risk mitigation arrangements and monitoring. - **Derivative Instruments:** Used to hedge foreign currency and interest rate exposures. **Outlook:** - **Liquidity and Capital Resources:** Sufficient to meet operating needs and potential obligations. - **Future Growth:** Continued investment in strategic initiatives and monitoring of global economic conditions.