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]

Financial Data and Key Metrics Changes - Gross profit grew 18% year over year to $2.66 billion, accelerating from 14% growth last quarter [6] - Adjusted operating income was $480 million, with adjusted operating income margins at 18% [13][15] - Adjusted EBITDA was $833 million in the third quarter [13] - Full-year guidance for gross profit is set at $10.243 billion, reflecting over 15% year-over-year 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 [7][8] - Square's gross profit grew 9% year over year, with GPV growing 12% [8] - Cash-up's gross profit per monthly transacting active grew 25% year over year to $94 [7] - New products like post-purchase buy now, pay later reached $3 billion in annualized originations [7] Market Data and Key Metrics Changes - GPV from sellers above half a million dollars in volume grew 20% year over year [11] - International markets saw GPV growth of 26% year over year [11] - Cash-up's inflows per active grew 10% year over year [23] Company Strategy and Development Direction - The company is focused on connecting sellers and consumers at scale, delivering AI tools to sellers, and making selling easier with integrated solutions [9][10] - The strategy includes leveraging Cash-up's network to enhance seller visibility and engagement [9] - The company aims to expand its lending products while maintaining healthy risk loss rates [39] 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 [55] - The company expects to deliver its strongest NVA performance ever in 2025 through expanding field sales and targeted marketing [11] - Management highlighted the importance of product innovation and customer engagement in driving future growth [40] Other Important Information - The company repurchased approximately $1.5 billion of stock this year and intends to continue returning capital to shareholders [14] - The Bitcoin mining business, Proto, generated its first revenue, indicating potential for future growth [12] Q&A Session Summary Question: Progress on Cash-up active growth and network density - Management reported strong progress with 58 million monthly actives in September, with continued acceleration in growth [20] Question: Field sales team productivity and GPV contributions - The field sales teams have shown strong paybacks and are expected to continue scaling, contributing to GPV growth [28][30] Question: Concerns about credit quality of borrow products - Management emphasized the importance of AI and ML in underwriting, maintaining healthy risk loss rates while expanding borrow [39][41] Question: Growth drivers for Cash-up beyond borrow - Management highlighted the ecosystem approach, with diverse products driving durable growth [46][48] Question: Competitive momentum and pricing environment - Management noted strong performance against competitors, with no significant pricing changes impacting the business [66][70] Question: Unique opportunities with Afterpay - Management discussed strong growth in Afterpay, particularly with post-purchase offerings, and plans for further expansion [75]

The payments company behind Cash App and Square said revenue rose to $6.11 billion, short of the $6.3 billion projected by analysts. ...

Q3 2025 Block Investor Presentation investors.block.xyz Block Investor Presentation 2 Forward-looking statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as "anticipate,ˮ "believe,ˮ estimate,ˮ "expect,ˮ "goal,ˮ "intend,ˮ "likely,ˮ "may,ˮ "plan,ˮ "project,ˮ "seek,ˮ "should,ˮ "strategy,ˮ "will,ˮ ...

Hey, John. So, it's a miss on the top and bottom line for Block. Those shares down more than 8% right now.Adjusted EPS coming in at 54 cents versus the 67 cent estimate. That is on revenue of 6.11% billion for the quarter versus 6.31% billion expected. This is the fourth straight quarter the company has reported a double miss and its sixth straight quarter that it's missed on revenue.Adjusted Ibida also coming in light at 833 million versus a street estimate of 840 million. I did just talk catch up with CFO ...

Block has freshened up its product offerings enough to drive its best growth in over two years on a key metric, but that wasn't enough to lift its stock in Thursday's extended session. ...

Core Insights - Block reported a miss on both top and bottom lines, with shares down more than 8% following the announcement [1] - Adjusted EPS was 54 cents, falling short of the 67 cent estimate, while revenue was $6.11 billion compared to the expected $6.31 billion [1] - This marks the fourth consecutive quarter of double misses and the sixth straight quarter of revenue misses [1] Financial Performance - Adjusted EBITDA was reported at $833 million, below the street estimate of $840 million [2] - The CFO highlighted gross profit as a positive aspect, noting back-to-back quarters of double-digit growth [2] - The company is guiding for $10.2 billion in gross profit for the upcoming period [2]

Financial Performance - In Q3 2025, the company generated gross profit of $2.7 billion, an 18% increase year over year, with Cash App contributing $1.6 billion (up 24%) and Square contributing $1.0 billion (up 9%) to this growth[139]. - Total net revenue for Q3 2025 was $6.1 billion, a 2% increase from Q3 2024, while revenue for the nine months ended September 30, 2025, decreased by 1% to $17.9 billion compared to the same period in 2024[145][146]. - The company recorded operating income of $409.4 million in Q3 2025, compared to $323.0 million in Q3 2024, and Adjusted Operating Income increased to $480.2 million from $443.5 million[140]. - Net income attributable to common stockholders for Q3 2025 was $461.5 million, a 62.7% increase from $283.8 million in Q3 2024[180]. - Adjusted Net Income for Q3 2025 was $336.6 million, compared to $337.0 million in Q3 2024, reflecting a slight decrease of 0.1%[180]. Revenue Breakdown - Bitcoin revenue decreased by $462.2 million (19%) in Q3 2025 and $1.4 billion (17%) for the nine months ended September 30, 2025, primarily due to a decrease in trading volume[149]. - Subscription and services-based revenue increased by $407.0 million (23%) in Q3 2025 and $880.3 million (17%) for the nine months ended September 30, 2025, driven by growth in Cash App's financial services[148]. - Transaction-based revenue increased by $161.1 million (9%) in Q3 2025, with Gross Payment Volume (GPV) growing by 11%[147]. - Square segment net revenue increased by $239.1 million, or 12%, to $2.24 billion for the three months ended September 30, 2025, and by $548.0 million, or 10%, to $6.26 billion for the nine months[162]. - Cash App segment net revenue decreased by $130.1 million, or 3%, for the three months ended September 30, 2025, compared to the same period in 2024[166]. Expenses and Costs - Total cost of revenue for Q3 2025 decreased by $272.7 million (7%) compared to Q3 2024, primarily due to a $469.3 million (20%) decrease in bitcoin costs[150][146]. - Sales and marketing expenses rose by $87.6 million, or 17%, for the three months ended September 30, 2025, and by $190.3 million, or 13%, for the nine months, driven by higher marketing costs of $91.4 million and $205.7 million, respectively[155]. - General and administrative expenses increased by $68.1 million, or 14%, for the three months ended September 30, 2025, and by $64.3 million, or 5%, for the nine months, primarily due to higher personnel costs of $92.9 million and $79.5 million, respectively[156]. - Product development expenses for the three months ended September 30, 2025, were $711.2 million, relatively flat compared to $711.0 million for the same period in 2024, while for the nine months, expenses increased by $52.5 million, or 2%, to $2.2 billion from $2.1 billion[154]. Cash and Liquidity - The company ended Q3 2025 with $10.5 billion in available liquidity, including $9.7 billion in cash and cash equivalents, a decrease of $234.2 million from December 31, 2024[143]. - Cash and cash equivalents increased to $8.3 billion as of September 30, 2025, up from $8.1 billion at the end of 2024[183]. - The company reported a net increase in cash, cash equivalents, restricted cash, and customer funds of $714.5 million for the nine months ended September 30, 2025[196]. - The company has $775.0 million available under its revolving credit facility, maturing in June 2028[189]. Investments and Debt - The company held $7.4 billion in aggregate principal amount of debt as of September 30, 2025, including $1.0 billion in senior unsecured notes maturing in June 2026[187]. - Cash used in investing activities for the nine months ended September 30, 2025, was $671.8 million, primarily due to net outflows of $2.0 billion related to Cash App Borrow loans[200]. - Cash used in financing activities for the nine months ended September 30, 2025, was $652.9 million, primarily due to $1.5 billion in share repurchases and a $1.0 billion cash payment for the settlement of convertible notes[202]. Asset Valuation - The fair value of the company's bitcoin investment was $1.0 billion as of September 30, 2025, with gains of $59.6 million recognized in Q3 2025 from remeasurement[185]. - As of September 30, 2025, the fair value of the company's bitcoin investment was $1.0 billion, with recognized gains of $178.4 million for the nine months ended September 30, 2025[207]. Employee and Operational Efficiency - The company implemented a cap of 12,000 employees in 2023 and continued to focus on cost efficiency, recording $10.0 million in severance expenses in Q3 2025[142]. - Transaction, loan, and consumer receivable losses surged by $171.4 million, or 89%, for the three months ended September 30, 2025, and by $277.6 million, or 51%, for the nine months, attributed to increased loan losses of $158.8 million and $238.1 million, respectively[157].