Block Inc.’s third-quarter earnings missed analyst expectations on the top and bottom lines despite strong profit growth in its Cash App and Square businesses.
Jack Dorsey’s Block Inc.’s shares slid by nearly 12% in after-market hours on Thursday as the company's third-quarter earnings went below analyst expectations.
The cryptocurrency-supporting fintech firm posted an EPS of 54 cents in Q3, which fell short of the estimated 63 cents by 14%. In other news, the firm also posted Q3 revenues of $6.11 billion, which was higher than last year by 2.3% but also missed estimates of $6.33 billion.
The shares of Block Inc. (XYZ) declined by 11.53% in the extended hours session to $70.93, having ended the session down 3.7% at $62.75
The shares of Block declined in price after the close of the markets, extending the fall registered on Thursday’s trading session. Source: Google Finance
This is in addition to the fall of Block’s stock price, which is down 18.24% so far in 2025.
Although the reaction from the markets was severe, some aspects of Block’s Q3 earnings report revealed outstanding growth for the company.
The company reported an annual growth in gross profit of 18% with gross profits totaling $2.66 billion, while its forecast for profits in 2025 stands at 15% growth with profits reaching $10.24 billion.
The cash payments service involving peers, cash app, generated the highest profits with $1.62 billion, registering an annual growth rate of 24%. The other service, Square, contributed $1.018 billion, registering an annual growth rate of 9%.
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Relative to total net profits, the Operating Income of Block was reported to be 409 million, registering an increase of 26% YOY.
Block’s Bitcoin Mining Initiatives
The company’s Bitcoin mining division, Proto, had begun to pay off, said the company’s Chief Financial Officer, Amrita Ahuja, on the conference call with investors.
“We've created our own revenue streams, planting the seeds of the potential for the next big ecosystem,” said Ahuja. “We've capitalized on Proto's innovation in hardware and software by selling hardware components, starting from ASIC, mining hash board, to full mining rig, facilitating the necessary components for Bitcoin miners,” he explained.
Proto was launched in November 2024, but the first mining rig installations were only announced in August. “Our Q3 revenue was modest, but we are actively pursuing a strong pipeline for 2026,” said Ahuja.
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