Block Q3 2025 Earnings Miss Estimates
Block Q3 2025 earnings missed revenue and EPS estimates even as gross profit rose; the company raised full-year profit guidance and continued buybacks.
KEY TAKEAWAYS
- Q3 revenue and adjusted EPS missed analyst expectations; revenue was $6.1 billion and EPS $0.54.
- Full-year gross-profit guidance rose to $10.2 billion and adjusted operating income to $2.1 billion.
- Gross profit rose 18.0% to $2.7 billion while Cash App gross profit grew 24.0%.
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Block, Inc. (NYSE: XYZ) reported third-quarter 2025 earnings on Nov. 6 that missed analyst expectations for revenue and adjusted earnings per share (EPS), despite rising gross profit and an upward revision to its full-year profit guidance.
Third-Quarter Results and Outlook
Block’s revenue in Q3 2025 reached $6.11 billion, up 2.3% year over year but below the analyst consensus near $6.33 billion. Adjusted EPS came in at $0.54, missing the expected $0.63 and down from $0.88 a year earlier. Management cited competitive and macroeconomic pressures as headwinds to near-term results.
Gross profit rose 18.0% to $2.66 billion, driven by growth in Cash App and Square. Cash App’s gross profit increased 24.0% to $1.62 billion, while Square’s gross profit grew 9.0% to $1.02 billion. Square’s gross payment volume expanded 12.0% year over year, and Cash App reported 58 million monthly active users as of September 2025. Executives attributed these gains to broader distribution and product innovation.
The company’s Proto ecosystem generated revenue for the first time in Q3, though no detailed breakdown was provided. Block continues to invest in artificial intelligence (AI) features across Cash App and Square. Jack Dorsey wrote in the shareholder letter that the company’s vertically integrated platform allows it to move quickly and offers unique advantages in launching AI tools for sellers.
Block raised its full-year 2025 gross profit guidance to $10.24 billion and adjusted operating income guidance to $2.06 billion, targeting a 20.0% operating margin. For Q4, management forecast gross profit of $2.76 billion and adjusted operating income of $560 million. The company expects a long-term tax rate in the mid-20% range and Q4 net interest expense of about $45 million. It also anticipates approaching the “rule of 40,” a benchmark combining growth rate and profit margin, heading into 2026.
By Sept. 30, Block had repurchased $1.5 billion of its stock, with buybacks remaining a capital-allocation priority. Further capital deployment strategy will be outlined at an upcoming Investor Day.
No new regulatory or compliance events were disclosed for the quarter. The earnings report and shareholder letter were released at 5:00 p.m. ET on Nov. 6, followed by an earnings call. Shares declined in after-hours and pre-market trading as investors digested the results.
