Block, Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.36%.
Did XYZ Beat Earnings? Q2 2025 Results
Block delivered a mixed second quarter for fiscal 2025, falling short of Wall Street expectations on both the top and bottom lines even as the underlying business showed meaningful momentum. Adjusted diluted EPS came in at $0.62, missing the $0.68 consensus estimate by 8.78%, while revenue of $6.05 billion trailed the $6.29 billion forecast by 3.79% and slipped 1.6% from the year-ago period. The headline revenue softness masked a more compelling gross profit story, with total gross profit growing 14% year over year to $2.54 billion, driven by Cash App's 16% gross profit expansion and a 95% surge in Borrow origination volume to $18 billion annualized, a product management flagged as the most meaningful driver of second-half acceleration. <a href="https://247wallst.com/investing/2025/08/07/live-will-block-inc-xyz-soar-after-q2-earnings-today/">Investors weighing the results</a> also noted Block's raised full-year 2025 guidance, with gross profit now expected at $10.17 billion and Adjusted Operating Income at $2.03 billion, reflecting a 20% margin, as the company expects to exit the year with 19% gross profit growth.
- Cash App gross profit growth driven by Borrow, Cash App Card, and BNPL
- Square gross profit growth driven by software and integrated payments and banking products
- Borrow origination volume grew 95% YoY to $18 billion annualized
- Cash App Pay volume grew 2x year over year
- BNPL GMV reached $9.11 billion, up 17% YoY
- Gross profit per monthly transacting active grew 15% YoY to $87
- Strong food and beverage GPV growth of 15% and retail GPV up 10%
- Monetization rate expanded to 1.62% with 10 bps YoY improvement
“We had a strong second quarter. Square GPV grew 10% year over year and Cash App gross profit grew 16% year over year, accelerating as we exited Q2. Our focus on products that can drive network expansion is already paying off as we started rolling out Pools on Cash App in July, just four months after kicking off development work. Our shipping velocity has accelerated and I'm confident in our ability to sustain strong growth at scale.”
Block CEO, on the earnings call
Forward Guidance & Outlook
Block raised its full-year 2025 guidance: gross profit now expected at $10.17 billion (over 14% YoY growth), up from prior guidance, and Adjusted Operating Income at $2.03 billion (20% margin), representing 2% margin expansion year over year. For Q3 2025, gross profit is expected to grow 16% YoY to $2.60 billion with Adjusted Operating Income of $460 million (18% margin). The company expects to exit 2025 with 19% gross profit growth, with Borrow as the most meaningful contributor to second-half acceleration, alongside post-purchase BNPL expansion on Cash App Card, Square GPV acceleration from product and go-to-market investment, and Proto chip deliveries. Management continues to be mindful of the dynamic macro backdrop.
XYZ YoY Financials
XYZ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.