Block, Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did XYZ Beat Earnings? Q1 2025 Results
Block delivered a disappointing first quarter, missing on both top and bottom lines as softening consumer behavior weighed on its core Cash App business. Adjusted EPS came in at $0.56, falling short of the $0.94 consensus estimate by 40.68%, while revenue of $5.77 billion trailed expectations by 6.63% and slipped 3.1% year over year, hurt largely by declining Bitcoin revenue and weaker Cash App inflows and Card spending that deteriorated as the quarter progressed. The stock tumbled more than 20% in pre-market trading following the report, extending a steep year-to-date decline. Bright spots included record Adjusted Operating Income of $466.27 million, up 28% year over year, and gross profit growth of 9% to $2.29 billion, though even those figures fell short of management's own bar. Looking ahead, Block trimmed its full-year 2025 gross profit guidance to $9.96 billion, reflecting macro caution, but maintained its $1.90 billion Adjusted Operating Income target, with management forecasting growth to accelerate toward mid-teens by the fourth quarter as Cash App Borrow expands and the Cash App Afterpay launch gains traction.
- Cash App gross profit growth driven by Cash App Borrow, Cash App Card, and BNPL
- Square gross profit growth driven by banking products and software and integrated payments
- Adjusted Operating Income grew 28% YoY to record $466 million
- Square GPV grew 8.2% YoY on constant currency basis
- BNPL GMV reached $7.89 billion, growing 16% YoY on constant currency basis
- Gross profit per Cash App transacting active reached $81, up 9% YoY
- Inflows per transacting active reached $1,355, up 8% YoY
“Our growth in the first half of this year does not meet our bar, and we remain confident in our ability to accelerate Block's gross profit growth in the second half of 2025 and beyond.”
Block CEO, on the earnings call
Forward Guidance & Outlook
Block lowered its full-year 2025 gross profit guidance to $9.96 billion (12% YoY growth), reflecting a more cautious macro outlook. Q2 2025 gross profit is expected at $2.45 billion (9.5% YoY growth) with $450 million in Adjusted Operating Income (18% margin). The company expects gross profit growth to accelerate meaningfully in H2 2025, with low-double-digit growth in Q3 and mid-teens growth in Q4. Full-year Adjusted Operating Income guidance is maintained at $1.90 billion (19% margin). Growth acceleration is expected to be driven by Cash App Borrow expansion via FDIC-approved Square Financial Services, Cash App Afterpay rollout, increased marketing spend (nearly 50% higher in Q2 vs Q1), and first gross profit contributions from Proto in H2. The company continues to target Rule of 40 as its guiding financial framework entering 2026.
XYZ YoY Financials
XYZ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.