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Mar 31

Mastercard Q1 2025 Earnings Report

Mastercard reported strong results with robust revenue and earnings growth.

Key Takeaways

Mastercard delivered a solid Q1 2025, driven by double-digit growth in revenue and EPS, with strong cross-border volume performance and ongoing expansion in value-added services.

Net revenue grew 14% to $7.25B, driven by strong performance in both payment network and value-added services.

Adjusted EPS rose to $3.73, up 13% year-over-year.

Cross-border volume increased 15%, boosting international transaction revenue.

Mastercard launched new AI-powered initiatives, including partnerships with Microsoft and OpenAI.

Total Revenue
$7.25B
Previous year: $6.35B
+14.2%
EPS
$3.73
Previous year: $3.31
+12.7%
Gross Dollar Volume
9%
Previous year: 10%
-10.0%
Cross-Border Volume
15%
Previous year: 18%
-16.7%
Switched Transactions
9%
Previous year: 13%
-30.8%
Gross Profit
$6.97B
Previous year: $6.14B
+13.6%
Cash and Equivalents
$7.58B
Previous year: $7.29B
+3.9%
Free Cash Flow
$2.2B
Previous year: $1.5B
+46.4%
Total Assets
$48.5B
Previous year: $42.6B
+13.8%

Mastercard

Mastercard

Mastercard Revenue by Geographic Location

Forward Guidance

Mastercard remains confident in its diversified business model and innovation strategy despite global uncertainties.

Positive Outlook

  • Strong growth in cross-border volume.
  • Continued innovation with Agentic Payments Program.
  • Strategic partnerships with Microsoft and OpenAI.
  • Expanded value-added services portfolio.
  • Robust share repurchase program activity.

Challenges Ahead

  • Higher effective tax rate due to global minimum tax changes.
  • Negative impact from equity investment losses.
  • Increased operating expenses.
  • Unfavorable interest expense trends.
  • Macroeconomic and geopolitical uncertainties affecting global markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income