Block Stock Soars as Q4 Earnings Meet Estimates, Revenues Increase Y/Y

Block XYZ reported fourth-quarter 2025 adjusted earnings of 65 cents per share, which met the Zacks Consensus Estimate. The figure compared favorably with the prior-year quarter’s 47 cents per share.

The company announced more than 4000 layoffs as part of a restructuring initiative aimed at improving efficiency. Investors responded positively to the cost-cutting measures, sending the stock up nearly 20% in today’s pre-market trading session.

Net revenues of $6.25 billion missed the consensus mark marginally. However, the top line increased 3.6% year over year.

XYZ continues to launch new products across Square and Cash App, accelerating Gross Payment Volume (“GPV”) growth in Square and significant gross profit growth in Cash App. Based on strong execution, the company also raised its 2026 full-year guidance.

XYZ’s Q4 in Details

Commerce enablement revenues grew 11.1% to $3.05 billion. Financial solutions revenues increased significantly to $1.22 billion. However, bitcoin ecosystem revenues were down 19.6% to $1.98 billion.

GPV was $66.94 billion, up 8% year over year. Square’s GPV was $65 billion, up 10.3% year over year. U.S. GPV grew 7%, while international GPV increased 24% (25% in constant currency). The company observed strength in food, beverage, retail and services sellers.

Cash App’s GPV was $1.98 billion, down significantly year over year.

Block’s Operating Details

Gross profit grew 24.3% year over year to $2.87 billion. Square generated a gross profit of $992.7 million, up 7.5% year over year. Cash App generated a gross profit of $1.83 billion, up 33.1% year over year. Square’s gross profit rose on strong growth in financial solutions, most notable in Square Loans. Cash App’s gross profit increase was driven by growth across Cash App Borrow, Cash App Card and BNPL.

Cash App’s primary banking actives grew 22% year over year to 9.3 million as of Dec. 31, 2025. Cash App monthly transacting actives grew to 59 million. It continues to invest in Cash App Borrow and BNPL to deepen engagement.

Adjusted EBITDA was $929.7 million, up 22.8% year over year.

Operating expenses were $2.39 billion, up 3.9% year over year.

Adjusted operating income was $587.8 million in the reported quarter, up significantly year over year. Adjusted operating margin was 20%, expanding 300 basis points on a year-over-year basis.

Block’s Balance Sheet Details

XYZ closed the quarter with $9.2 billion in liquidity, including $8.4 billion in cash and securities plus $775 million available in a credit facility and $324 million available under its warehouse funding facilities.

The long-term debt was $5.72 billion as of Dec. 31, 2025, a tad up from $5.71 billion as of Sept. 30, 2025.

In the fourth quarter of 2025, Block repurchased 11.9 million shares of its Class A common stock for a total amount of $790 million. In November 2025, its board of directors authorized an increase to the share repurchase program of up to an additional $5 billion of its Class A common stock. As of Dec. 31, 2025, $5.3 billion remained available under the current authorization.

XYZ’s 2026 Guidance

For the first quarter of 2026, Block expects gross profit of $2.80 billion, suggesting year-over-year growth of 22%. Adjusted operating income is expected to be $600 million with an operating margin of 21%.

For 2026, XYZ expects a gross profit of $12.20 billion, indicating growth of 18% from the 2025 reported figure. The guidance for 2026 adjusted operating income is $3.2 billion, with an operating margin of 26%.

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 and EPS Surprise

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

Performance of Other Fintech Stocks

PayPal Holdings PYPL reported fourth-quarter 2025 non-GAAP earnings per share (EPS) of $1.23, which missed the Zacks Consensus Estimate of $1.29. However, the metric jumped 3.4% year over year.

Results reflected lower-than-expected growth in revenues. Its payment transactions per active account declined in the reported quarter. However, PayPal witnessed an uptick in both total payment volume (TPV) and revenues year over year, along with another quarter of single-digit growth in transaction margin dollars.

BILL Holdings BILL reported earnings of 64 cents per share in the second quarter of fiscal 2026, surpassing the Zacks Consensus Estimate of 56 cents. The figure increased from 56 cents reported in the year-ago quarter.

The quarter benefited from strong customer adoption and rising payment volumes. Core revenues, comprising subscription and transaction fees, remained the primary growth driver. However, float revenues, consisting of interest on funds held for customers, declined year over year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research