Shares of Marqeta Inc. (MQ) soared 6.43% on November 5, 2024, as the financial technology company slashed its fourth-quarter guidance, citing heightened regulatory scrutiny on its bank partners as a key factor behind the reduced outlook.

The Oakland, California-based company, 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%. It 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." According to Marqeta's Chief Financial Officer Mike Milotich, the increased regulatory scrutiny has delayed the timelines for getting clients' card programs up and running.