Core Insights - Block reported a revenue of $5.77 billion for the quarter ended March 2025, reflecting a 3.1% decline year-over-year and a surprise of -6.65% compared to the Zacks Consensus Estimate of $6.18 billion [1] - The earnings per share (EPS) was $0.56, down from $0.85 in the same quarter last year, resulting in an EPS surprise of -36.36% against the consensus estimate of $0.88 [1] Financial Performance Metrics - Gross Payment Volume (GPV) was reported at $56.80 billion, below the estimated $57.92 billion [4] - Square's GPV was $54.10 billion, slightly below the average estimate of $54.34 billion [4] - Cash App's GPV was $2.70 billion, significantly lower than the estimated $3.54 billion [4] - Cash App Monthly Transacting Actives stood at 57 million, slightly below the estimate of 57.34 million [4] - Hardware revenue was $28.69 million, compared to the average estimate of $32.20 million, marking an 11.7% decline year-over-year [4] - Subscription and services-based revenue was $1.89 billion, matching the average estimate and showing a 12.4% increase year-over-year [4] - Transaction-based revenue was $1.55 billion, slightly below the estimate of $1.58 billion, with a year-over-year increase of 2.6% [4] - Bitcoin revenue was $2.30 billion, below the estimate of $2.70 billion, representing a 15.7% decline year-over-year [4] - Total revenue for Square was $1.85 billion, slightly below the estimate of $1.86 billion, with a year-over-year increase of 7.1% [4] - Square's hardware revenue was $28.52 million, below the estimate of $33.48 million, reflecting a 10.4% decline year-over-year [4] - Corporate and Other revenue totaled $40.62 million, significantly below the estimate of $52.71 million, marking a 25% decline year-over-year [4] - Square's subscription and services-based revenue was $339.15 million, slightly above the estimate of $338.32 million, with a year-over-year increase of 14.5% [4] Stock Performance - Block's shares returned +1.1% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Shares of Fintech Block, Inc. (NYSE: XYZ ) cratered after the company reported weaker than expected earnings and slashed guidance . The report is definitely weaker than bulls like myself had hoped for, but it is illustrativeRetail investor researching mostly semiconductors and fintech. Some general macro musings. My goal is to bring you timely and digestible research on the stocks that I cover.Analyst’s Disclosure: I/we have a beneficial long position in the shares of XYZ either through stock ownership, opt ...

Block (XYZ) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -36.36%. A quarter ago, it was expected that this mobile payments services provider would post earnings of $0.83 per share when it actually produced earnings of $0.71, delivering a surprise of -14.46%.Over the last four quart ...

Financial Objectives and Performance - Block aims to enhance shareholder returns through disciplined capital return strategy and amplifying the long-term value of its business[9] - The company delivered year-over-year gross profit growth of 9% in Q1[14, 15] - Adjusted Operating Income reached $466 million in Q1, a 28% year-over-year increase[14] - The company expects 12% gross profit growth year-over-year for the full year 2025[13, 82] - The company expects Adjusted Operating Income of $1.90 billion for the full year 2025, with a margin of approximately 19% on gross profit[82] Cash App Performance - Cash App's gross profit per monthly transacting active was $81 in Q1 on an annualized basis, up 9% year-over-year[13] - Cash App gross profit grew 10% year-over-year, driven by Cash App Borrow, Cash App Card, and BNPL[34] - Cash App inflows per transacting active grew 8% year-over-year in Q1[40] - Cash App Card monthly actives have grown as a percentage of overall Cash App actives, reaching 45%[43, 44] Square Performance - Square's gross profit grew 9% year-over-year, driven by banking products, software, and integrated payments[69] - Total Square GPV grew 7.2% in Q1, with U S GPV growing 5 6% and International GPV growing 15%[71] - GPV from mid-market sellers (generating over $500,000 in annualized GPV) accounted for 41% of Square's GPV in Q1[77]

Financial Data and Key Metrics Changes - Total Block gross profit was $2,290 million, up 9% year over year [11] - Adjusted EBITDA was $813 million, up 15% year over year, and adjusted operating income was $466 million, up 28% year over year [14] - Adjusted free cash flow for the trailing twelve months ending in March was $1,530 million compared to $1,070 million a year ago [15] - Adjusted operating income margin is expected to be approximately 19% for the year [21] Business Line Data and Key Metrics Changes - Square's gross profit grew by 9% year over year, driven by GPV growth of 7.2% [12] - Cash App gross profit was up 10% year over year, with gross profit per monthly transacting active reaching $81 [13] - Cash App's growth was impacted by changes in consumer spending behavior, particularly in discretionary spending areas [14] Market Data and Key Metrics Changes - Global GPV growth for April was expected to be 9.6% year over year [20] - High single-digit GPV growth is expected in the second quarter [20] Company Strategy and Development Direction - The company aims to accelerate growth in the second half of the year, focusing on product velocity and market expansion [9] - Plans to expand Cash App's network, particularly targeting teens and families, and increasing marketing spend [9][30] - The company is prioritizing AI automation to enhance productivity and customer engagement [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more dynamic macro environment and reflected a cautious stance in guidance [15][40] - The company expects gross profit growth of 12% for 2025, with a more cautious approach embedded in the guidance [16][40] - Management expressed confidence in the ability to navigate potential short-term volatility while building for long-term growth [23] Other Important Information - The company received FDIC approval to issue consumer loans for Cash App Borrow nationwide, which is expected to double the number of eligible actives [16][18] - The launch of Cash App Afterpay is anticipated to drive growth and enhance customer engagement [19][50] Q&A Session Summary Question: Insights on macro uncertainty and Cash App performance - Management discussed internal changes and improvements in Square, leading to market share gains, while acknowledging the need for more focus on Cash App's network density [28][30] Question: Changes in consumer behavior and macro assumptions - Management noted a shift in consumer behavior during tax refund season, leading to a more cautious outlook for guidance [39] Question: Cash Card Afterpay functionality and adoption - Management highlighted strong early results from the integration of Cash App and Afterpay, with plans to scale thoughtfully [48][50] Question: Confidence in expanding Borrow and underwriting models - Management expressed confidence in the underwriting models and the ability to manage risk effectively while expanding Borrow [55][56] Question: Expectations for Square GPV growth - Management expects Square GPV growth to accelerate to high single digits in the second quarter, with cautious guidance reflecting broader macro conditions [105]

Block (SQ) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 Good day, ladies and gentlemen, and welcome to the Block First Quarter twenty twenty five Earnings Conference Call. Today's call will be forty five minutes. I would now like to turn the call over to your host, Nikhil Dixit, Head of Investor Relations. Please go ahead. Speaker1 Hi, everyone. Thanks for joining our first quarter twenty twenty five earnings call. We have Jack Namrito with us today. We will begin this call with some short remark ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q ______________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-37622 ______________________ Block, Inc. (I.R.S Employer Identi ...

Exhibit 99.1 Q1 2025 Shareholder Letter investors.block.xyz To Our Shareholders Our growth in the first half of this year does not meet our bar, and we remain confident in our ability to accelerate Block's gross profit growth in the second half of 2025 and beyond. Cash App gross profit growth came in below our expectations, largely driven by softer inflows and Cash App Card spend than we had forecasted. We saw changes to consumer spending as the quarter progressed that we believe drove the majority of our f ...

Square has debuted banking tools designed to help sellers gain instant access to their funds.The expansion of the platform’s banking service lets business owners sign up for a Square payments account and a free Square Checking account through one application from Square’s website and point-of-sale app, according to a Wednesday (April 30) news release.In addition, Square has updated its savings account to include new personalized savings recommendations, using cash flow data and industry insights, to make it ...

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