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Block XYZ reported third-quarter 2025 adjusted earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 63 cents. However, the figure compared favorably with the prior-year quarter’s 53 cents per share.
Net revenues of $6.11 billion missed the consensus mark of $6.34 billion. However, the top line increased 2.3% year over year.
XYZ continues to launch new products across Square and Cash App, accelerating Gross Payment Volume (“GPV”) growth in Square and gross profit per monthly transacting active in Cash App. Based on strong execution, the company also raised its full-year guidance.
Transaction-based (30.6% of third-quarter 2025 net revenues) revenues were $1.87 billion, up 9.4% year over year. The Square ecosystem accounted for $1.82 billion in transaction revenues, up 10.7% year over year. Cash App contributed $56.1 million to transaction revenues, down 19.8% year over year.
Subscription and services-based (36.1% of net revenues) revenues were $2.2 billion, up 22.6% year over year.
Hardware (1.1% of net revenues) revenues rose 90.5% year over year to $70.2 million.
Bitcoin (32.2% of net revenues) revenues declined 19% year over year to $1.97 billion.
GPV was $69.28 billion, up 10.9% year over year. Square’s GPV was $67.15 billion, up 12.2% year over year. U.S. GPV grew 8.9%, while international GPV increased 26% (25% on constant currency). The company observed strength in food and beverage and retail sellers.
Cash App’s GPV was $2.13 billion, down 18.6% year over year.
BNPL platform’s Gross Merchandise Value grew 17% year over year to $9.7 billion in the reported quarter.
The gross profit grew 18.3% year over year to $2.66 billion. Square generated a gross profit of $1.02 billion, up 9.2% year over year. Cash App generated a gross profit of $1.62 billion, up 24.3% year over year. Square’s gross profit rose on strong growth in software and integrated payments and banking products. Cash App’s gross profit increase was driven by growth across Cash App Borrow, Cash App Card and BNPL.
Cash App’s gross profit per monthly transacting active grew 25.3% year over year to $94. Cash App monthly transacting actives grew to 58 million. It continues to invest in Cash App Borrow and BNPL to deepen engagement.
Adjusted EBITDA was $832.7 million, up 3.1% year over year.
Operating expenses were $2.25 billion, up 16.9% year over year.
The adjusted operating income was $480.2 million in the reported quarter, up 8.3% year over year. The adjusted operating margin was 18%, expanding 200 basis points on a year-over-year basis.
XYZ closed the quarter with $10.5 billion in liquidity, including $9.7 billion in cash and securities plus $775 million available in a credit facility.
The long-term debt was $5.71 billion as of Sept. 30, 2025, up from $3.54 billion as of June 30, 2025.
In the third quarter of 2025, Block repurchased 5.3 million shares of its Class A common stock for a total amount of $403 million. As of Sept. 30, 2025, $1.1 billion remained available under the current authorization.
For the fourth quarter of 2025, Block expects gross profit of $2.755 billion, suggesting year-over-year growth of 19%. The adjusted operating income is expected to be $560 million, with an operating margin of 20%.
The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $6.48 billion, suggesting 7.4% growth over the figure reported in the year-ago quarter. The consensus mark for fourth-quarter 2025 earnings is pegged at 76 cents per share, indicating a 7% year-over-year rise.
For 2025, XYZ expects a gross profit of $10.243 billion, indicating growth of 15% from the 2024 reported figure. The adjusted operating income is now expected to be $2.056 billion, with an operating margin of 20%.
The Zacks Consensus Estimate for 2025 revenues is pegged at $24.65 billion, suggesting 2.2% growth over the figure reported in the year-ago quarter. The consensus mark for 2025 earnings is pegged at $2.56 per share, indicating a 24% year-over-year drop.
Currently, Block has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Block, Inc. price-consensus-eps-surprise-chart | Block, Inc. Quote
PayPal Holdings PYPL reported third-quarter 2025 non-GAAP earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate of $1.19 and jumped 11.7% year over year.
PayPal witnessed an uptick in both total payment volume and revenues year over year, along with another quarter of high single-digit growth in transaction margin dollars. With such results, the company raised its full-year guidance for non-GAAP EPS and transaction margin dollars. However, its total number of payment transactions declined in the reported quarter. Currently, PayPal carries a Zacks Rank #3 (Hold).
We now look forward to the earnings release of another stock in the Zacks Internet-Software industry, Autodesk ADSK, which is slated to report on Nov. 25.
The Zacks Consensus Estimate for Autodesk’s third-quarter 2025 EPS stands at $2.49, up 14.8% from the prior-year quarter. Autodesk carries a Zacks Rank #3.
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This article originally published on Zacks Investment Research (zacks.com).
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