Core Insights - Block, Inc. participated in the J.P. Morgan 53rd Annual Technology, Media and Communications Conference, highlighting its ongoing engagement with investors and analysts [1][2]. Company Overview - Jack Dorsey serves as the Head, Chairman, and Co-Founder of Block, while Amrita Ahuja is the Foundational Lead overseeing finance, legal, and personnel matters [1][2]. Financial Performance Expectations - During the conference, forward-looking statements regarding Block's preliminary financial performance for the second quarter were anticipated, which may be influenced by macroeconomic conditions [3].

Block (SQ) FY Conference May 13, 2025 12:30 PM ET Speaker0 Alright. Let's, we I think we can get started. Thanks everybody for, for joining. Hope the lunch was was good and and tasty. My name is Tien Tsin Huang. I follow the payments and IT services sector here at at JPMorgan, and, super grateful to have the Block team back with us. Jack Dorsey, Block head, chairman, cofounder of Block. And I'm Rita Ahuja, foundational lead, who oversees finance, legal, and people at Block. Welcome. Thanks for joining us ag ...

Core Insights - H&R Block, Inc. reported strong third-quarter results for fiscal 2025, with adjusted earnings of $5.38 per share, exceeding the Zacks Consensus Estimate by 5.1% and increasing 8.9% year-over-year. Total revenues reached $2.28 billion, slightly surpassing the estimate by 1.4% and growing 4.2% year-over-year [1] Financial Performance - Revenues from U.S. tax preparation and related services were $2.14 billion, down 5.2% year-over-year. Financial services revenues were $54.5 million, a decline of 12.6%. International revenues decreased by 11.5% to $60.4 million, while Wave revenues increased by 13.3% to $26.7 million [3] - The company ended the quarter with cash and cash equivalents of $773 million, down from $794.6 million year-over-year. Long-term debt decreased to $1.14 billion from $1.5 billion in the previous year. Operating activities used $429.3 million in cash, with capital expenditures at $71.8 million [4] FY25 Outlook - For fiscal 2025, H&R Block expects revenues between $3.69 billion and $3.75 billion, with a midpoint of $3.72 billion aligning with the Zacks Consensus Estimate. Adjusted EPS is projected in the range of $5.15 to $5.35, with a midpoint of $5.25 above the consensus estimate of $5.23. EBITDA is expected to be between $975 million and $1.02 billion, with an effective tax rate of 13% [5] Stock Performance - H&R Block shares have increased by 25.3% over the past year, significantly outperforming the industry, which has seen an 18% decline [2]

H&R Block, Inc. (NYSE: HRB ) provides do-it-yourself and assisted tax assistance services. The company generates its revenues primarily from tax preparation in the U.S., but also from franchise royalties, related services, and international operations in CanadaI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securiti ...

Block (XYZ 0.36%) got blocked by a number of potential investors after the fintech company's first-quarter earnings disappointed the market. The stock is now trading down more than 46% on the year as of this writing, following its recent sell-off. While best known for its original Square business, it was Block's Cash App business that led to the sell-off. Square was originally developed to allow merchants to accept credit card payments from their phones and tablets and has since become a platform that lets ...

Group 1 - The Pragmatic Investor focuses on global macro, international equities, commodities, tech, and cryptocurrencies, aiming to guide investors of all levels [1] - The platform offers features such as a portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for investor engagement [1] - James Foord, an economist with a decade of experience in global market analysis, leads The Pragmatic Investor, emphasizing the creation of diversified portfolios to preserve and increase wealth [1]

Core Viewpoint - Block Inc's shares have significantly declined following the announcement of disappointing first-quarter results, which have raised concerns among analysts regarding the company's performance and future guidance [1][18]. Group 1: Analyst Ratings and Revisions - Analyst Mark Palmer downgraded Block's rating from Buy to Hold, citing Cash App's gross profits of $1.38 billion, which fell short of the $1.42 billion estimate, contributing to overall shortfalls [2]. - KeyBanc Capital Markets' analyst Alex Markgraff maintained an Overweight rating but reduced the price target from $65 to $60, noting that Block's adjusted EBITDA of $812.8 million missed the consensus of $783.4 million [4]. - RBC Capital Markets' analyst Daniel Perlin reiterated an Outperform rating while lowering the price target from $86 to $63, highlighting a 32% year-on-year decline in Cash App's GPV to $2.7 billion, which missed expectations [6]. Group 2: Financial Performance and Guidance - Block reported a gross payment volume (GPV) of $54.1 billion, which was below the consensus estimate of $58 billion, and adjusted earnings of 56 cents per share, missing the consensus of 97 cents [2]. - Management has revised their full-year guidance lower, reflecting a more cautious macroeconomic outlook, although they still expect gross profit growth to accelerate in the latter half of the year [5][9]. - Cash App's gross profit growth decelerated to 10% year-on-year in Q1, down from 16% in the previous quarter, and the company lowered its 2025 gross profit projection to $9.9 billion from $10.22 billion [13][14]. Group 3: Market Reactions and Future Outlook - Shares of Block declined by 19.70% to $46.96 following the earnings announcement, indicating a negative market reaction to the results [18]. - Analysts expressed concerns about the overall growth trajectory of both Cash App and Square, with some suggesting that the current macro environment may continue to exert pressure on the company's performance [17][11].

Shares of Block (XYZ -20.90%) are falling on Friday. The stock dropped 20.7% as of 12:55 p.m. ET and was down as much as 24.3% earlier in the day. The move comes as the S&P 500 (^GSPC 1.44%) and Nasdaq Composite (^IXIC 1.59%) gained 1.5% and 1.8%, respectively.A big miss for BlockBlock reported its Q1 2025 numbers yesterday, underperforming across the board. Revenue for the quarter was down 3% year over year (YOY), coming in at $5.77 billion when $6.2 billion was expected. While its earnings per share (EPS) ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Financial Performance - Block reported first-quarter 2025 adjusted earnings of 56 cents per share, missing the Zacks Consensus Estimate by 36.36%, but showing a year-over-year increase of 19.1% [1] - Net revenues were $5.77 billion, missing the consensus mark by 6.65%, and decreased 3.1% year over year [1] Revenue Breakdown - Transaction revenues, accounting for 26.9% of net revenues, were $1.55 billion, up 2.6% year over year, with the Square ecosystem contributing $1.48 billion (up 5.9% year over year) and Cash App contributing $66.2 million (down 39.4% year over year) [2] - Subscription and Services revenues, making up 32.8% of net revenues, were $1.89 billion, up 12.4% year over year [3] - Hardware revenues fell 11.7% year over year to $28.7 million, while Bitcoin revenues declined 15.7% year over year to $2.30 billion [3] Gross Payment Volume (GPV) - Gross Payment Volume (GPV) was $56.8 billion, up 4.4% year over year, with Square's GPV at $54.1 billion (up 7.2% year over year) [3] - Cash App's GPV was $2.7 billion, down 32% year over year [4] Operating Details - Gross profit grew 9.3% year over year to $2.29 billion, with Square generating $897.9 million (up 9.5% year over year) and Cash App generating $1.38 billion (up 9.6% year over year) [5] - Adjusted EBITDA was $812.8 million, up 15.3% year over year [5] - Operating expenses were $1.84 billion, up 5.1% year over year, with adjusted operating income at $466.3 million and an operating margin of 8.1%, expanding 200 basis points year over year [6] Balance Sheet - As of March 31, 2024, cash and cash equivalents were $7.09 billion, down from $8.1 billion as of December 31, 2024 [7] - Long-term debt remained unchanged at $5.1 billion [7] - In Q1 2025, Block repurchased 6.8 million shares for $445 million, with $4 billion remaining under the current authorization [7] Guidance - For Q2 2025, Block expects gross profit of $2.45 billion, indicating year-over-year growth of 9.5%, and adjusted operating income of $450 million with an operating margin of 18% [8] - The Zacks Consensus Estimate for Q2 2025 revenues is $6.59 billion, suggesting 7.07% growth year over year, with earnings expected at $1 per share, indicating 7.53% year-over-year growth [9] - For 2025, Block anticipates gross profit of $9.96 billion, indicating growth of 12% from 2024, with unfavorable forex expected to impact gross profit by 50 basis points [9][10]