# Mastercard Inc (MA)

Informational only - not investment advice.

CIK: 0001141391
SIC: 7389 Services-Business Services, NEC
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7389 Services-Business Services, NEC](/industry/7389/)
Latest 10-K filed: 2026-02-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=1141391
Filing source: https://www.sec.gov/Archives/edgar/data/1141391/000114139126000013/ma-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-11 · accession 0001141391-26-000013 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001141391.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 32,791,000,000 USD | 2025 | verified |
| Net income | 14,968,000,000 USD | 2025 | verified |
| Assets | 54,157,000,000 USD | 2025 | verified |
| Free cash flow | 17,159,000,000 USD | 2025 | computed |
| Net margin | 45.65% | 2025 | computed |
| Operating margin | 57.63% | 2025 | computed |
| Revenue YoY | +16.42% | 2025 | computed |
| ROE | 193.46% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Payment networks and processors](/compare/payments/) · SIC 7389 Services-Business Services, NEC

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including MA

- Payment networks and processors: [peer review](/compare/payments/) · [market-risk page](/compare/payments/risk/)

### Peer percentile fingerprint

| Ratio | MA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 45.6% | 5.8% | 98 | 59 |
| Operating margin | 57.6% | 9.2% | 98 | 56 |
| Revenue growth | 16.4% | 8.4% | 72 | 58 |
| FCF margin | 52.3% | 14.2% | 96 | 58 |
| ROE | 193.5% | 8.7% | 98 | 52 |
| ROA | 27.6% | 2.9% | 95 | 59 |
| Liabilities / equity | 6.00 | 1.52 | 85 | 54 |
| Current ratio | 1.03 | 1.34 | 21 | 57 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7389 Services-Business Services, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 32791000000 | USD | 2025 | 2026-02-11 |
| Net income | 14968000000 | USD | 2025 | 2026-02-11 |
| Assets | 54157000000 | USD | 2025 | 2026-02-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001141391.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 9,473,000,000 |  |  | 12,497,000,000 | 14,950,000,000 | 16,883,000,000 | 15,301,000,000 | 18,884,000,000 | 22,237,000,000 | 25,098,000,000 | 28,167,000,000 | 32,791,000,000 |
| Net income |  |  | 4,059,000,000 | 3,915,000,000 | 5,859,000,000 | 8,118,000,000 | 6,411,000,000 | 8,687,000,000 | 9,930,000,000 | 11,195,000,000 | 12,874,000,000 | 14,968,000,000 |
| Operating income |  |  | 5,761,000,000 | 6,622,000,000 | 7,282,000,000 | 9,664,000,000 | 8,081,000,000 | 10,082,000,000 | 12,264,000,000 | 14,008,000,000 | 15,582,000,000 | 18,897,000,000 |
| Diluted EPS |  |  | 3.69 | 3.65 | 5.60 | 7.94 | 6.37 | 8.76 | 10.22 | 11.83 | 13.89 | 16.52 |
| Operating cash flow |  |  | 4,484,000,000 | 5,664,000,000 | 6,223,000,000 | 8,183,000,000 | 7,224,000,000 | 9,463,000,000 | 11,195,000,000 | 11,980,000,000 | 14,780,000,000 | 17,648,000,000 |
| Capital expenditures |  |  | 215,000,000 | 300,000,000 | 330,000,000 | 422,000,000 | 339,000,000 | 407,000,000 | 442,000,000 | 371,000,000 | 474,000,000 | 489,000,000 |
| Dividends paid |  |  | 837,000,000 | 942,000,000 | 1,044,000,000 | 1,345,000,000 | 1,605,000,000 | 1,741,000,000 | 1,903,000,000 | 2,158,000,000 | 2,448,000,000 | 2,756,000,000 |
| Share buybacks |  |  | 3,511,000,000 | 3,762,000,000 | 4,933,000,000 | 6,497,000,000 | 4,473,000,000 | 5,904,000,000 | 8,753,000,000 | 9,032,000,000 | 10,954,000,000 | 11,727,000,000 |
| Assets |  | 16,250,000,000 | 18,675,000,000 |  | 24,860,000,000 | 29,236,000,000 | 33,584,000,000 | 37,669,000,000 | 38,724,000,000 | 42,448,000,000 | 48,081,000,000 | 54,157,000,000 |
| Liabilities |  | 10,188,000,000 | 12,991,000,000 |  | 19,371,000,000 | 23,245,000,000 | 27,067,000,000 | 30,257,000,000 | 32,347,000,000 | 35,451,000,000 | 41,566,000,000 | 46,411,000,000 |
| Stockholders' equity |  | 6,028,000,000 | 5,656,000,000 |  | 5,395,000,000 | 5,893,000,000 | 6,391,000,000 | 7,312,000,000 | 6,298,000,000 | 6,929,000,000 | 6,485,000,000 | 7,737,000,000 |
| Cash and cash equivalents |  |  | 6,721,000,000 | 5,933,000,000 | 6,682,000,000 | 6,988,000,000 | 10,113,000,000 | 7,421,000,000 | 7,008,000,000 | 8,588,000,000 | 8,442,000,000 | 10,566,000,000 |
| Free cash flow |  |  | 4,269,000,000 | 5,364,000,000 | 5,893,000,000 | 7,761,000,000 | 6,885,000,000 | 9,056,000,000 | 10,753,000,000 | 11,609,000,000 | 14,306,000,000 | 17,159,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 31.33% | 39.19% | 48.08% | 41.90% | 46.00% | 44.66% | 44.61% | 45.71% | 45.65% |
| Operating margin |  |  |  | 52.99% | 48.71% | 57.24% | 52.81% | 53.39% | 55.15% | 55.81% | 55.32% | 57.63% |
| Return on equity |  |  | 71.76% |  | 108.60% | 137.76% | 100.31% | 118.80% | 157.67% | 161.57% | 198.52% | 193.46% |
| Return on assets |  |  | 21.73% |  | 23.57% | 27.77% | 19.09% | 23.06% | 25.64% | 26.37% | 26.78% | 27.64% |
| Liabilities / equity |  | 1.69 | 2.30 |  | 3.59 | 3.94 | 4.24 | 4.14 | 5.14 | 5.12 | 6.41 | 6.00 |
| Current ratio |  | 1.75 | 1.84 |  | 1.39 | 1.42 | 1.61 | 1.29 | 1.17 | 1.17 | 1.03 | 1.03 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001141391.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 2.58 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 2.47 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 3.00 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 6,533,000,000 | 3,198,000,000 | 3.39 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 6,548,000,000 | 2,791,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 6,348,000,000 | 3,011,000,000 | 3.22 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 6,961,000,000 | 3,258,000,000 | 3.50 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 7,369,000,000 | 3,263,000,000 | 3.53 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 7,489,000,000 | 3,342,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 7,250,000,000 | 3,280,000,000 | 3.59 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 8,133,000,000 | 3,701,000,000 | 4.07 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 8,602,000,000 | 3,927,000,000 | 4.34 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 8,806,000,000 | 4,060,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 8,398,000,000 | 3,882,000,000 | 4.35 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 9,277,000,000 | 4,388,000,000 | 4.97 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MA's latest 10-K: [/company/MA/business/](/company/MA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MA's latest 10-K: [/company/MA/risk-factors/](/company/MA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1141391/000114139126000083/ma-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Key highlights for the three and six months ended June 30, 2026, versus the comparable periods in 2025:

[[GREPCENT_TABLE]]
[["Net revenue"],["Three Months Ended June 30, 2026"],["GAAP","","Non-GAAP (currency-neutral)","Both the as-reported and currency-neutral net revenue increases were attributable to growth in our payment network and value-added services and solutions."],["up 14%","","up 12%"],["Six Months Ended June 30, 2026"],["GAAP","","Non-GAAP (currency-neutral)","Both the as-reported and currency-neutral net revenue increases were attributable to growth in our payment network and value-added services and solutions."],["up 15%","","up 12%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Operating expenses","","Adjusted operating expenses"],["Three Months Ended June 30, 2026"],["GAAP","","Non-GAAP (currency-neutral)","Both the as-reported and as-adjusted operating expenses increases were primarily due to higher general and administrative expenses."],["up 10%","","up 10%"],["Six Months Ended June 30, 2026"],["GAAP","","Non-GAAP (currency-neutral)","The as-reported operating expenses increase was primarily due to higher general and administrative expenses (which included a restructuring charge in the first quarter of 2026), partially offset by lower litigation provisions. The as-adjusted operating expense increase was primarily due to higher general and administrative expenses."],["up 11%","","up 9%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Effective income tax rate","","Adjusted effective income tax rate"],["Three Months Ended June 30, 2026","Both the as-reported and as-adjusted income tax rates were lower versus the comparable period in 2025 due to partially offsetting tax impacts in 2026, including discrete tax benefits in the periods."],["GAAP","","Non-GAAP"],["20.0%","","20.0%"],["down 0.8 ppt","","down 0.8 ppt"],["Six Months Ended June 30, 2026","Both the as-reported and as-adjusted income tax rates were lower versus the comparable period in 2025 due to partially offsetting tax impacts in 2026, including discrete tax benefits in the periods."],["GAAP","","Non-GAAP"],["19.7%","","19.7%"],["down 0.1 ppt","","down 0.4 ppt"]]
[[/GREPCENT_TABLE]]

Other financial highlights for the six months ended June 30, 2026 were as follows:

•We generated net cash flows from operations of $6.8 billion.

•We repurchased 17.6 million shares of our common stock for $8.9 billion and paid dividends of $1.5 billion.

•We completed a debt offering in June 2026 for an aggregate principal amount of $5.0 billion.

•We issued commercial paper and at June 30, 2026 had $0.7 billion outstanding.

MASTERCARD JUNE 30, 2026 FORM 10-Q 31

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Non-GAAP Financial Information

Non-GAAP financial information is defined as a numerical measure of a company’s performance that excludes or includes amounts so as to be different than the most comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). As described more fully below, our non-GAAP financial measures exclude (where applicable) the impact of gains and losses on our equity investments, which includes mark-to-market fair value adjustments, impairments and gains and losses upon disposition, as well as the related tax impacts. Our non-GAAP financial measures also exclude (where applicable) the impact of special items, which represent litigation judgments and settlements and/or certain one-time items, as well as the related tax impacts (“Special Items”). We also present growth rates adjusted for the impact of currency, which is a non-GAAP financial measure. We believe that the non-GAAP financial measures presented facilitate an understanding of our operating performance and provide a meaningful comparison of our results between periods. We use non-GAAP financial measures to evaluate our ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation, among other things. We excluded these items because management evaluates the underlying operations and performance of the Company separately from these recurring and nonrecurring items. Operating expenses, operating margin, other income (expense), effective income tax rate, net income and diluted earnings per share, each as adjusted for the impact of gains and losses on our equity investments, Special Items and/or the impact of currency, should not be relied upon as substitutes for measures calculated in accordance with GAAP.

Our non-GAAP financial measures for the comparable periods exclude the impact of the following:

Gains and Losses on Equity Investments

•In the three and six months ended June 30, 2026, we recorded net losses of $2 million ($5 million after tax, or $0.01 per diluted share) and $68 million ($69 million after tax, or $0.08 per diluted share), respectively, primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities.

•In the three and six months ended June 30, 2025, we recorded net gains of $4 million ($5 million after tax, or $0.01 per diluted share) and net losses of $25 million ($19 million after tax, or $0.02 per diluted share), respectively, primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities.

Special Items

Litigation provisions

•In the three and six months ended June 30, 2026, we recorded charges of $82 million ($59 million after tax, or $0.07 per diluted share), which includes a legal provision associated with the ATM non-discrimination rule surcharge complaints, a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and provisions associated with various other legal matters.

•In the three months ended June 30, 2025, we recorded charges of $96 million ($73 million after tax, or $0.08 per diluted share), primarily due to a legal provision associated with the ATM non-discrimination rule surcharge complaints. In the six months ended June 30, 2025, we recorded charges of $247 million ($174 million after tax, or $0.19 per diluted share), 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 and a legal provision associated with the ATM non-discrimination rule surcharge complaints.

Restructuring charge

•In the six months ended June 30, 2026, we recorded a restructuring charge of $202 million ($158 million after tax, or $0.18 per diluted share). The savings from the restructuring action are primarily intended to enable reinvestment to support the realization of our long-term growth opportunities.

See Note 5 (Investments) and Note 14 (Legal and Regulatory Proceedings) to the consolidated financial statements included in Part I, Item 1 of this Report for further discussion related to certain of the items discussed above.

Currency-neutral Growth Rates

Currency-neutral growth rates are non-GAAP financial measures and are calculated by remeasuring the prior period’s results using the current period’s exchange rates for both the translational and transactional impacts on operating results. The impact of currency translation represents the effect of translating operating results where the functional currency is different from our U.S. dollar reporting currency. The impact of the transactional currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency of the entity. The impact of the related realized gains and losses resulting from our 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) is recognized in the respective financial statement line item on the consolidated statements of operations when the underlying forecasted transactions impact earnings.

The translational and transactional impact of currency and the related impact of our foreign exchange derivative contracts designated as cash flow hedging instruments as specified in the preceding paragraph (collectively, the “Currency Impact”) has been excluded from our currency-neutral growth rates and has been identified in the “Non-GAAP Reconciliations” tables below and our “Drivers of Change” tables.

32 MASTERCARD JUNE 30, 2026 FORM 10-Q

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

See “Foreign Currency - Currency Impact” for further information on our currency impacts and “Financial Results - Net Revenue” and “Financial Results - Operating Expenses” for our "Drivers of Change” tables.

Non-GAAP Reconciliations

The following tables reconcile our reported financial measures calculated in accordance with GAAP to the respective adjusted non-GAAP financial measures:

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30, 2026"],["","","Operating expenses","","Operating margin","","Other income (expense)","","Effective income tax rate","","Net income","","Diluted earnings per share"],["","","($ in millions, except per share data)"],["Reported - GAAP","","$","3,690","","","60.2","%","","$","(101)","","","20.0","%","","$","4,388","","","$","4.97"],["(Gains) losses on equity investments","","**","","**","","2","","","(0.1)","%","","5","","","0.01"],["Litigation provisions","","(82)","","","0.9","%","","**","","0.1","%","","59","","","0.07"],["Adjusted - Non-GAAP","","$","3,608","","","61.1","%","","$","(100)","","","20.0","%","","$","4,453","","","$","5.04"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","Six Months Ended June 30, 2026"],["","","Operating expenses","","Operating margin","","Other income (expense)","","Effective income tax rate","","Net income","","Diluted earnings per share"],["","","($ in millions, except per share data)"],["Reported - GAAP","","$","7,181","","","59.4","%","","$","(196)","","","19.7","%","","$","8,270","","","$","9.32"],["(Gains) losses on equity investments","","**","","**","","68","","","(0.1)","%","","69","","","0.08"],["Litigation provisions","","(82)","","","0.5","%","","**","","0.1","%","","59","","","0.07"],["Restructuring charge","","(202)","","","1.1","%","","**","","\u2014","%","","158","","","0.18"],["Adjusted - Non-GAAP","","$","6,897","","","61.0","%","","$","(128)","","","19.7","%","","$","8,556","","","$","9.64"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30, 2025"],["","","Operating expenses","","Operating margin","","Other income (expense)","","Effective income tax rate","","Net income","","Diluted earnings per share"],["","","($ in millions, except per share data)"],["Reported - GAAP","","$","3,356","","","58.7","%","","$","(105)","","","20.8","%","","$","3,701","","","$","4.07"],["(Gains) losses on equity investments","","**","","**","","(4)","","","0.1","%","","(5)","","","(0.01)"],["Litigation provisions","","(96)","","","1.2","%","","**","","0.1","%","","73","","","0.08"],["Adjusted - Non-GAAP","","$","3,260","","","59.9","%","","$","(109)","","","20.9","%","","$","3,769","","","$","4.15"]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1141391/000114139126000013/ma-20251231.htm
Complete FY 2025 MD&A: /company/MA/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-11
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 7. Management’s discussion and analysis of financial condition and results of operations

The following discussion should be read in conjunction with the consolidated financial statements and notes of Mastercard Incorporated and its consolidated subsidiaries, including Mastercard International Incorporated (together, “Mastercard” or the “Company”), included elsewhere in this Report. Percentage changes provided throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations” were calculated on amounts rounded to the nearest thousand. For discussion related to the results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, please see Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Business Overview

Mastercard is a technology company in the global payments industry. We connect consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic payments and making those payment transactions secure, simple, smart and accessible. We make payments easier and more efficient by providing a wide range of payment solutions and services using our family of well-known and trusted brands, including our primary brand Mastercard®, as well as our Maestro® and Cirrus® brands. We operate a payments network that provides choice and flexibility for consumers, merchants and our customers. Through our unique and proprietary global payments network, we switch (authorize, clear and settle) payment transactions. We have additional payments capabilities that include automated clearing house (“ACH”) transactions (both batch and real-time account-based payments). Using these capabilities, we offer consumer and commercial payment products, capture new payment flows and provide services and solutions. These services and solutions include, among others, security solutions, consumer acquisition and engagement services, business and market insights, digital and authentication, processing and gateway and other solutions, all of which draw on our principled and responsible use of secure data. Our capabilities strengthen, reinforce and complement each other and are fundamentally interdependent. For our global payments network, our franchise model sets the standards and ground-rules that balance value and risk across (and allow for interoperability among) all stakeholders. We employ a multi-layered approach to help protect the global payments ecosystem in which we operate.

Mastercard is not a financial institution. We do not issue cards, extend credit, determine or receive revenue from interest rates or other fees charged to account holders by issuers (the account holders’ financial institutions), nor do we establish the rates charged by acquirers (the merchants’ financial institutions) in connection with merchants’ acceptance of our products. In most cases, account holder relationships belong to, and are managed by, our customers.

Financial Results Overview

The following table provides a summary of our key GAAP operating results, as reported: 

[[GREPCENT_TABLE]]
[["","","Years ended December 31,","","2025Increase/(Decrease)","","2024Increase/(Decrease)"],["","","2025","","2024","","2023"],["","","(in millions, except percentages and per share data)"],["Net revenue","","$","32,791","","","$","28,167","","","$","25,098","","","16%","","12%"],["Operating expenses","","$","13,894","","","$","12,585","","","$","11,090","","","10%","","13%"],["Operating income","","$","18,897","","","$","15,582","","","$","14,008","","","21%","","11%"],["Operating margin","","57.6","%","","55.3","%","","55.8","%","","2.3 ppt","","(0.5) ppt"],["Income tax expense","","$","3,610","","","$","2,380","","","$","2,444","","","52%","","(3)%"],["Effective income tax rate","","19.4","%","","15.6","%","","17.9","%","","3.8 ppt","","(2.3) ppt"],["Net income","","$","14,968","","","$","12,874","","","$","11,195","","","16%","","15%"],["Diluted earnings per share","","$","16.52","","","$","13.89","","","$","11.83","","","19%","","17%"],["Diluted weighted-average shares outstanding","","906","","","927","","","946","","","(2)%","","(2)%"]]
[[/GREPCENT_TABLE]]
Note: Table may not sum due to rounding.

49 MASTERCARD 2025 FORM 10-K

PART II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table provides a summary of our key non-GAAP operating results1, adjusted to exclude the impact of gains and losses on our equity investments, Special Items (which represent litigation judgments and settlements and certain one-time items) and the related tax impacts on our non-GAAP adjustments. In addition, we have presented growth rates adjusted for the impact of currency:

[[GREPCENT_TABLE]]
[["","","Years ended December 31,","","2025 Increase/(Decrease)","","2024Increase/(Decrease)"],["","","2025","","2024","","2023","","As adjusted","","Currency-neutral","","As adjusted","","Currency-neutral"],["","","(in millions, except percentages and per share data)"],["Net revenue","","$","32,791","","","$","28,167","","","$","25,098","","","16%","","15%","","12%","","13%"],["Adjusted operating expenses","","$","13,389","","","$","11,714","","","$","10,551","","","14%","","14%","","11%","","11%"],["Adjusted operating margin","","59.2","%","","58.4","%","","58.0","%","","0.8 ppt","","0.7 ppt","","0.4 ppt","","0.7 ppt"],["Adjusted effective income tax rate","","19.6","%","","16.2","%","","18.5","%","","3.4 ppt","","3.4 ppt","","(2.3) ppt","","(2.2) ppt"],["Adjusted net income","","$","15,415","","","$","13,541","","","$","11,607","","","14%","","13%","","17%","","18%"],["Adjusted diluted earnings per share","","$","17.01","","","$","14.60","","","$","12.26","","","17%","","15%","","19%","","21%"]]
[[/GREPCENT_TABLE]]

Note: Table may not sum due to rounding.

1 See “Non-GAAP Financial Information” for further information on our non-GAAP adjustments and the reconciliation to GAAP reported amounts.

Key highlights for 2025 as compared to 2024 were as follows:

[[GREPCENT_TABLE]]
[["Net revenue"],["GAAP","","Non-GAAP (currency-neutral)","Both the as-reported and currency-neutral net revenue increases were attributable to growth in our payment network and value-added services and solutions."],["up 16%","","up 15%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Operating expenses","","Adjusted operating expenses"],["GAAP","","Non-GAAP (currency-neutral)","Both the as-reported and as-adjusted operating expenses increases were primarily due to higher general and administrative expenses."],["up 10%","","up 14%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Effective income tax rate","","Adjusted effective income tax rate"],["GAAP","","Non-GAAP","Both the as-reported and as-adjusted effective income tax rates were higher versus the comparable period in 2024, primarily due to a change in the net tax effect of our Singapore operations, which includes the 15% global minimum tax rate (Pillar 2 Rules) that took effect in 2025. Additionally, a change in our geographic mix of earnings contributed to the higher effective income tax rates, partially offset by net discrete tax benefits."],["19.4%","","19.6%"],["up 3.8 ppt","","up 3.4 ppt"]]
[[/GREPCENT_TABLE]]

Other 2025 financial highlights were as follows:

•We generated net cash flows from operations of $17.6 billion.

•We repurchased 21.1 million shares of our common stock for $11.7 billion and paid dividends of $2.8 billion.

•We completed a debt offering in February 2025 for an aggregate principal amount of $1.25 billion.

MASTERCARD 2025 FORM 10-K 50

PART II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Non-GAAP Financial Information

Non-GAAP financial information is defined as a numerical measure of a company’s performance that excludes or includes amounts so as to be different than the most comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). As described more fully below, our non-GAAP financial measures exclude, where applicable, the impact of gains and losses on our equity investments, which includes mark-to-market fair value adjustments, impairments and gains and losses upon disposition, as well as the related tax impacts. Our non-GAAP financial measures also exclude, where applicable, the impact of special items, which represent litigation judgments and settlements and/or certain one-time items, as well as the related tax impacts (“Special Items”). We also present growth rates adjusted for the impact of currency, which is a non-GAAP financial measure. We believe that the non-GAAP financial measures presented facilitate an understanding of our operating performance and provide a meaningful comparison of our results between periods. We use non-GAAP financial measures to evaluate our ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation, among other things. We excluded these items because management evaluates the underlying operations and performance of the Company separately from these recurring and nonrecurring items. Operating expenses, operating margin, other income (expense), effective income tax rate, net income and diluted earnings per share, each as adjusted for the impact of gains and losses on our equity investments, Special Items and/or the impact of currency, should not be relied upon as substitutes for measures calculated in accordance with GAAP.

Our non-GAAP financial measures for the comparable periods exclude the impact of the following:

Gains and Losses on Equity Investments

•During 2025, 2024 and 2023, we recorded net pre-tax losses of $88 million ($90 million after tax, or $0.10 per diluted share), $29 million ($25 million after tax, or $0.03 per diluted share) and $61 million ($36 million after tax, or $0.04 per diluted share), respectively. These net losses were primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities.

Special Items

Litigation provisions

•During 2025, we recorded pre-tax charges of $504 million ($357 million after tax, or $0.39 per diluted share), 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, a legal provision associated with the U.S. liability shift litigation and a legal provision associated with the ATM non-discrimination rule surcharge complaints.

•During 2024, we recorded pre-tax charges of $680 million ($495 million after tax, or $0.53 per diluted share), primarily as a result of a legal provision associated with the U.K. consumer class action settlement, settlements with a number of U.K. merchants and a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation.

•During 2023, we recorded pre-tax charges of $539 million ($376 million after tax, or $0.40 per diluted share), primarily as a result of changes in the estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and settlements with a number of U.K. and Pan-European merchants.

Restructuring charge

•During 2024, we recorded a restructuring charge of $190 million ($147 million after tax, or $0.16 per diluted share). The restructuring action was intended to streamline our organization, delivering efficiencies to enable reinvestment in our business to support the realization of our long-term growth opportunities.

See Note 5 (Investments) and Note 19 (Legal and Regulatory Proceedings) to the consolidated financial statements included in Part II, Item 8 of this Report for further discussion related to certain of t

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MA/mda/fy2025/
All MD&A years: /company/MA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MA/mda/fy2024/): filed 2025-02-12; accession 0001141391-25-000011 (https://www.sec.gov/Archives/edgar/data/1141391/000114139125000011/ma-20241231.htm)
- [FY 2023 MD&A](/company/MA/mda/fy2023/): filed 2024-02-13; accession 0001141391-24-000022 (https://www.sec.gov/Archives/edgar/data/1141391/000114139124000022/ma-20231231.htm)
- [FY 2022 MD&A](/company/MA/mda/fy2022/): filed 2023-02-14; accession 0001141391-23-000020 (https://www.sec.gov/Archives/edgar/data/1141391/000114139123000020/ma-20221231.htm)
- [FY 2021 MD&A](/company/MA/mda/fy2021/): filed 2022-02-11; accession 0001141391-22-000023 (https://www.sec.gov/Archives/edgar/data/1141391/000114139122000023/ma-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7389 Services-Business Services, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MA.md · JSON record: /company/MA.json · verified financials: /company/MA/financials.json / /company/MA/financials.csv · machine TOC for the whole site: /llms.txt