Shares of Marqeta, Inc. (MQ) plummeted over 40% on Tuesday, November 5th, 2024, as the financial technology company slashed its fourth-quarter guidance and cited heightened regulatory scrutiny on its bank partners as a key factor behind the reduced outlook.

Marqeta, which provides payment card services to companies like Block (SQ) and Affirm, now expects fourth-quarter revenue growth of just 10% to 12%, down significantly from its previous forecast of 16% to 18%. The company also guided for gross profit growth of 13% to 15% in the fourth quarter, well below its prior estimate of around 25% to 27%.

In a statement, Marqeta attributed the weaker guidance to "several changes that became apparent over the last few months with regards to the heightened scrutiny of the banking environment and specific customer program changes."