Core Viewpoint - Shares of fintech Block experienced a significant decline of 14.5% in premarket trading, attributed to investor concerns over profit growth not keeping pace with the increase in transaction volume at its payments unit, Square [1] Company Summary - Block's stock performance indicates a negative market reaction, highlighting investor skepticism regarding the company's ability to translate increased transaction volume into profit growth [1]

🔥 LATEST: Jack Dorsey’s Block, Inc. reported Q3 revenue below expectations, and its shares dropped about 12% after the announcement. https://t.co/WRFUVp5xP1 ...

Block Inc. (NYSE:SQ) CEO Jack Dorsey said Thursday that the company has high expectations for the upcoming launch of Bitcoin (CRYPTO: BTC) payments on its Square point-of-sale system.Dorsey Says Company ‘Excited’ About The ProspectDuring Block’s third-quarter earnings call, Dorsey said the firm is “really excited” about the rollout next week.“It's going to be available to everyone, and they just have to make a simple switch in their settings, and they'll be able to start accepting Bitcoin,” he added. “We ha ...

Core Insights - Block is focusing on artificial intelligence (AI) to enhance fraud detection, customer insights, and connectivity across its platforms, including Cash App and Square [1][11] - Square's gross payment volume (GPV) increased by 12% year-over-year (YoY), with nearly half of this volume coming from mid-market businesses, indicating a successful upmarket strategy [1][7] - The company reported a revenue of $6.11 billion for Q3 2025, which fell short of analyst expectations, leading to a 13% drop in share price after hours [5] Financial Performance - Block achieved an 18% YoY growth in gross profit, up from 14% in the previous quarter, demonstrating strong performance in both Cash App and Square segments [4] - Square's GPV from mid-market sellers, those generating over $500,000 in annualized GPV, now constitutes 45% of total GPV, up from 41% two years ago, reflecting a strategic shift towards larger businesses [7][8] - Despite a slight slowdown in Square's gross profit growth to 9% YoY, the overall GPV growth indicates a compelling strategic narrative [6] Market Positioning - Block is transitioning from a small merchant enabler to a robust business operating platform that integrates commerce, customer relationships, and financial services [8][10] - The company is leveraging AI for automated fraud detection and customer insights, positioning itself as a leader in FinTech innovation [11] - The focus is on creating integrated ecosystems where different business arms support each other, enhancing customer and merchant interactions [9][10] Strategic Direction - Block's approach emphasizes building infrastructure rather than chasing speculative trading volumes, particularly in the context of Cash App's growth narrative [12] - The company is not only responding to the demand from larger businesses but is actively shaping that demand through its offerings [11]

Jack Dorsey’s Block sees nearly $2 billion in bitcoin revenue in Q3, nearly 1/3 of its total revenues https://t.co/SYXbArcJjk ...

Core Insights - Block reported revenue of $6.11 billion for the quarter ended September 2025, reflecting a 2.3% increase year-over-year, but fell short of the Zacks Consensus Estimate by 3.58% [1] - Earnings per share (EPS) was $0.54, down from $0.88 in the same quarter last year, representing a surprise of -14.29% against the consensus estimate of $0.63 [1] Financial Performance Metrics - Gross Payment Volume (GPV) reached $69.28 billion, exceeding the average estimate of $68.62 billion [4] - GPV for Square was $67.15 billion, surpassing the average estimate of $66.51 billion [4] - GPV for Cash App was $2.13 billion, slightly below the estimated $2.16 billion [4] - Cash App Monthly Transacting Actives totaled 58 million, exceeding the estimate of 57.59 million [4] - Bitcoin revenue was reported at $1.97 billion, significantly lower than the average estimate of $2.32 billion, marking a 19% year-over-year decline [4] - Subscription and services-based revenue was $2.2 billion, slightly above the estimate of $2.17 billion, reflecting a 22.6% year-over-year increase [4] - Hardware revenue reached $70.19 million, well above the average estimate of $37.02 million, indicating a 90.5% year-over-year growth [4] - Transaction-based revenue was $1.87 billion, matching the average estimate and showing a 9.4% increase year-over-year [4] - Total revenue for Square was $2.24 billion, slightly above the estimate of $2.22 billion, with a year-over-year change of 12% [4] - Total revenue for Cash App was $3.8 billion, below the estimate of $4.06 billion, reflecting a 3.3% year-over-year decline [4] - Square hardware revenue was $40.65 million, exceeding the estimate of $37.3 million, with a year-over-year change of 10.7% [4] - Square subscription and services-based revenue was $382.18 million, above the estimate of $369.25 million, indicating an 18.5% year-over-year increase [4] Stock Performance - Block's shares have returned -9.2% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Block reported quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.63 per share, and down from $0.88 per share a year ago, representing an earnings surprise of -14.29% [1] - The company posted revenues of $6.11 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.58%, and an increase from $5.98 billion year-over-year [2] - Block has surpassed consensus EPS estimates only once in the last four quarters and has not beaten consensus revenue estimates during the same period [2] 分组2 - The stock has underperformed the market, losing about 13.3% since the beginning of the year compared to the S&P 500's gain of 15.6% [3] - The current consensus EPS estimate for the coming quarter is $0.76 on revenues of $6.48 billion, and for the current fiscal year, it is $2.56 on revenues of $24.65 billion [7] - The Zacks Industry Rank for Internet - Software is in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - Gross profit grew 18% year-over-year to $2.66 billion, accelerating from 14% growth last quarter [8] - Adjusted operating income was $480 million, with adjusted operating income margins at 18% [15] - Adjusted EBITDA was $833 million, reflecting strong profitability despite investments for long-term growth [15] - Full-year guidance for gross profit is set at $10.243 billion, indicating over 15% year-over-year growth [16] Business Line Data and Key Metrics Changes - Cash-up's gross profit grew 24% year-over-year, with monthly active users reaching 58 million [9] - Square's gross profit grew 9% year-over-year, with GPV growing 12% [10] - Cash-up borrow origination volume increased 134% year-over-year, reaching nearly $22 billion on an annualized basis [42] Market Data and Key Metrics Changes - GPV from sellers above half a million dollars grew 20% year-over-year, marking the strongest growth rate since Q1 2023 [13] - International markets saw GPV growth of 26% year-over-year, particularly strong in the telesales channel [13] Company Strategy and Development Direction - The company is focused on connecting sellers and consumers at scale, leveraging AI tools for operational efficiency, and enhancing software solutions for sellers [11][12] - The strategy includes expanding Cash-up's capabilities and integrating new products to drive engagement and growth [10][12] - The company aims to enhance its lending products and maintain healthy risk loss rates while expanding credit access [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges, with strong performance metrics observed in Q3 and October [58] - The company anticipates continued growth in gross profit and adjusted operating income margins, approaching Rule of 40 by 2026 [16][17] - Management highlighted the importance of data-driven decision-making and flexibility in operations to adapt to changing market conditions [60] Other Important Information - The company repurchased approximately $1.5 billion of stock this year, indicating a commitment to returning capital to shareholders [15] - The Bitcoin mining business, Proto, generated its first revenue, indicating potential for future growth [14] Q&A Session Summary Question: Update on Cash-up active growth and network density - Management reported strong progress with 58 million monthly actives and continued investments in engagement strategies [22][24] Question: Field sales team productivity and GPV contributions - The field sales team has scaled significantly, with strong paybacks and expectations for continued growth in GPV [29][32] Question: Concerns about credit quality of borrow products - Management emphasized the importance of AI-driven underwriting and strong product-market fit for borrow products, maintaining healthy risk loss rates [41][42] Question: Visibility on macroeconomic impacts and guidance - Management noted strong performance metrics and healthy returns on investments, with a data-driven approach to guide future expectations [58][60] Question: Square Bitcoin integration and testing - Management expressed excitement about the upcoming launch of Bitcoin payments, highlighting ease of use and potential for seller adoption [68][69] Question: Competitive momentum and pricing environment - Management indicated strong performance against competitors, with no significant pricing changes impacting the business [73][78] Question: Unique opportunities with Afterpay - Management highlighted significant growth in post-purchase Afterpay, with expectations for continued expansion and adoption [81]

Financial Data and Key Metrics Changes - Gross profit grew 18% year over year to $2.66 billion, accelerating from 14% growth last quarter [8] - Adjusted operating income was $480 million, with adjusted operating income margins at 18% for the quarter [15][16] - Adjusted EBITDA was $833 million, reflecting strong profitability despite investments for long-term growth [15] Business Line Data and Key Metrics Changes - Cash-up's gross profit grew 24% year over year, with primary banking actives increasing 18% to 8.3 million [9][10] - Square's gross profit grew 9% year over year, with GPV growing 12% [10] - Cash-up borrow origination volume increased 134% year over year, reaching nearly $22 billion on an annualized basis [43] Market Data and Key Metrics Changes - GPV from sellers above half a million dollars grew 20% year over year, indicating strong performance in larger seller segments [13] - International markets saw GPV growth of 26% year over year, particularly strong in the telesales channel [13] Company Strategy and Development Direction - The company is focused on connecting sellers and consumers at scale, leveraging AI tools for operational efficiency, and enhancing software solutions for sellers [11][12] - The strategy includes expanding Cash-up's capabilities and integrating new products to drive engagement and growth [10][12] - The company aims to enhance its market position by offering a comprehensive ecosystem that includes payment processing, banking, and lending products [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic conditions, with strong performance indicators observed in Q3 and October [58][59] - The company anticipates continued growth in gross profit and adjusted operating income for Q4, with expectations of approaching Rule of 40 by 2026 [16][17] - Management highlighted the importance of ongoing investments in marketing and product development to sustain growth momentum [15][59] Other Important Information - The company repurchased approximately $1.5 billion of stock this year and plans to continue returning capital to shareholders [15] - The upcoming Investor Day on November 19 will provide further insights into long-term financial performance and strategic priorities [18] Q&A Session Summary Question: Update on Cash-up active growth and network density - Management reported strong progress with 58 million monthly actives in September, with continued acceleration in growth [22] Question: Field sales team productivity and GPV contributions - The field sales team has scaled to over 100 reps, with strong paybacks and expected growth in NVA [32][33] Question: Concerns about credit quality of borrow products - Management emphasized the importance of AI-driven underwriting, with borrow performance showing strong metrics and healthy risk loss rates [41][44] Question: Insights on Square's competitive momentum - Management noted strong growth from both new and returning sellers, with a focus on simplifying pricing structures to enhance competitiveness [72][76] Question: Unique opportunities with Afterpay - Management highlighted significant growth in post-purchase Afterpay, with adoption trending ahead of expectations [80]

Financial Data and Key Metrics Changes - Gross profit grew 18% year over year to $2,660 million, accelerating from 14% growth in the previous quarter [9] - Adjusted operating income was $480 million, showing strong profitability despite increased investments for long-term growth [9] - Adjusted EBITDA was $833 million, with adjusted operating income margins at 18% for the quarter [19] Business Line Data and Key Metrics Changes - Cash App's gross profit grew 24% year over year, up from 16% in the second quarter, with 58 million monthly active users [10] - Square's gross profit grew 9% year over year, with GPV growing 12% [12] - Cash App Borrow saw a 134% year-over-year growth in originations, reaching $22 billion annualized [52] Market Data and Key Metrics Changes - International markets saw GPV grow 26% year over year, particularly strong in the telesales channel [17] - GPV from sellers above $5 million in volume grew 20% year over year, marking the strongest growth rate since Q1 2023 [16] Company Strategy and Development Direction - The company is focused on three key opportunities: connecting sellers and consumers, delivering AI tools to sellers, and simplifying selling with software solutions [13][14] - The strategy includes leveraging the Cash App's network to enhance seller visibility and engagement through features like Neighborhoods [13] - The company aims to expand its field sales team and improve marketing effectiveness to drive growth [16][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macroeconomic environment, citing strong performance metrics and healthy returns on investments [72] - The company raised its full-year guidance, expecting gross profit growth of over 19% year over year for 2025 [21] - Management highlighted the importance of ongoing investments in product development and marketing to sustain growth momentum [76] Other Important Information - The company repurchased approximately $1.5 billion of stock this year and plans to continue returning capital to shareholders [20] - The company is excited about the upcoming Investor Day, where it will provide deeper insights into its long-term financial performance [23] Q&A Session Summary Question: Update on Cash App Actives Growth - Management reported strong progress with 58 million monthly active users and continued acceleration in year-over-year growth [28] Question: Field Sales Team Productivity - The field sales teams are performing well, with a year-to-date sales-driven NVA growth of 28% [40] Question: Concerns about Borrow Product Credit Quality - Management emphasized the importance of the borrow product in expanding credit access and reported strong performance metrics, including a 134% year-over-year growth in originations [52] Question: Square Bitcoin Integration - The company is excited about launching Bitcoin payments for sellers, with positive feedback from beta merchants [84] Question: Competitive Momentum on Square Side - Management noted strong win rates against both legacy point-of-sale systems and direct competitors, with a focus on expanding market share [95]