Block Gears Up to Report Q2 Earnings: What's in the Offing?

Block XYZ is set to report second-quarter 2025 results on Aug. 7, after market close.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $6.32 billion, indicating an increase of 2.64% from the year-ago quarter’s reported figure.

The consensus mark for earnings stands at 60 cents per share, up by a penny over the past week. However, it suggests a decline of 35.5% from the figure reported in the year-ago quarter.

For 2025, the Zacks Consensus Estimate for Block’s revenues is pegged at $24.94 billion, implying a year-over-year rise of 3.4%. The consensus mark for full-year EPS stands at $2.45, calling for a 27.3% year-over-year decline.

In the trailing four quarters, this fintech company’s earnings surpassed the Zacks Consensus Estimate on one occasion, met in another and missed in the remaining two periods. This is depicted in the graph below:

Block, Inc. Price and EPS Surprise

 

Block, Inc. price-eps-surprise | Block, Inc. Quote

Q2 Earnings Whispers for XYZ

Our proprietary model predicts an earnings beat for Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Block has an Earnings ESP of +0.84% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors Shaping Block’s Q2 Results

For the second quarter of 2025, Block expects a gross profit of $2.45 billion, suggesting year-over-year growth of 9.5%. Adjusted operating income is expected to be $450 million with an operating margin of 18%. 

For Square, the company expects high-single-digit Gross Payment Volume (GPV) growth in the second quarter, with April global GPV growth projected to be 9.6% on a year-over-year basis.

Block is strengthening its fintech ecosystem through its two key platforms — Square and Cash App — offering integrated solutions across payments, commerce, lending and banking. Square is regaining market share, reflecting effective product innovation and strategic seller acquisition.

There has been a spate of positive news for Block during the second quarter, including the launch of Square Handheld in the United Kingdom, the official partnership of Square and Live Nation Canada for the extension of seamless commerce to Rogers Stadium and beyond, the teaming up of Cash App and WNBA All-Star Angel Reese and its partnership with Bambu Dessert Drinks to streamline and centralize operations.

The consensus mark for Block’s Transaction revenues is pegged at $1.81 billion, up from $1.55 billion in the prior quarter and $1.71 billion in the year-ago period. Square’s ecosystem is expected to contribute $1.74 billion, while Cash App is expected to provide $69.47 million to transaction revenues.

Estimates for Subscription and Services revenues are $2.03 billion for the second quarter, up from $1.89 billion in the prior quarter and $1.79 billion in the year-ago period. The consensus estimate for Bitcoin revenues is $2.52 billion, up from $2.30 billion in the prior quarter but down from $2.61 billion in the prior-year quarter.

However, macroeconomic challenges like trade tariffs and softer discretionary spending are dampening activity on the Cash App Card. While near-term softness is apparent, gross profit is expected to accelerate in the second half of the year as Block deepens user engagement and expands features like Borrow and retroactive BNPL.

Other Stocks That Warrant a Look

Here are two other stocks from the broader Financial Services industry — StepStone Group STEP and Marex Group PLC MRX — which you may want to consider, as our model shows that these, too, have the right combination of elements to report a surprise this quarter.

STEP, scheduled to report quarterly numbers on Aug. 7, currently has an Earnings ESP of +7.63% and a Zacks Rank of 3.

Marex is slated to report quarterly numbers on Aug. 13. MRX has an Earnings ESP of +3.97% and flaunts a Zacks Rank of 1 at present.

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This article originally published on Zacks Investment Research (zacks.com).

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