BLOCK(US:SQ)2025-05-01 20:16Financial Performance - In Q1 2025, the company generated gross profit of $2.3 billion, a 9% increase year over year, with Cash App contributing $1.4 billion (up 10%) and Square contributing $897.9 million (up 9%) to this growth [124]. - Total net revenue for Q1 2025 was $5.77 billion, a decrease of $185.3 million (3%) compared to Q1 2024, primarily due to a $429.7 million (16%) decline in bitcoin revenue [130]. - Excluding bitcoin revenue, total net revenue increased by $244.4 million (8%) in Q1 2025 compared to Q1 2024 [130]. - Operating income for Q1 2025 was $329.3 million, up from $249.7 million in Q1 2024, while net income attributable to common stockholders was $189.9 million, down from $472.0 million in the prior year [125]. - Adjusted Operating Income for Q1 2025 was $466.3 million, compared to $364.3 million in Q1 2024, reflecting a 28% growth [164]. - Adjusted EBITDA for Q1 2025 was $812.8 million, an increase of 15% from $705.1 million in Q1 2024 [164]. - Basic Adjusted Net Income Per Share increased to $0.57 in Q1 2025 from $0.49 in Q1 2024 [165]. - Net income for the three months ended March 31, 2025, was $188.7 million, influenced by non-cash expenses totaling $689.3 million [181]. Revenue Breakdown - Subscription and services-based revenue increased by $208.7 million (12%) in Q1 2025, primarily due to growth in Cash App's financial services products [132]. - Transaction-based revenue rose by $39.5 million (3%) in Q1 2025, supported by a 4% increase in Gross Payment Volume (GPV) [131]. - Square segment net revenue increased by $122.1 million, or 7%, to $1.85 billion for the three months ended March 31, 2025, compared to $1.73 billion in 2024 [146][147]. - Cash App segment net revenue decreased by $293.9 million, or 7%, to $3.88 billion for the three months ended March 31, 2025, compared to $4.17 billion in 2024 [149][150]. - Excluding bitcoin revenue, Cash App revenue increased by $135.8 million, or 9%, for the three months ended March 31, 2025 [151]. Expenses and Costs - Total operating expenses for Q1 2025 increased by $115.6 million (6%) to $1.96 billion, driven by higher product development and sales and marketing expenses [138]. - The company recorded $66.9 million in severance and other expenses related to cost efficiency initiatives during Q1 2025 [127]. - Interest expense for the three months ended March 31, 2025, was $17.2 million, a $35.988 million increase, or 192%, compared to a net interest income of $18.7 million in 2024 [143]. - Amortization of customer and other acquired intangible assets decreased by $9.6 million, or 22%, for the three months ended March 31, 2025, compared to the same period in 2024 [142]. Cash and Liquidity - The company ended Q1 2025 with $9.2 billion in available liquidity, a decrease of $1.5 billion from December 31, 2024, mainly due to a $1.0 billion cash payment for convertible notes and $445.3 million in share repurchases [128]. - Total liquidity as of March 31, 2025, was approximately $9.2 billion, down from $10.7 billion as of December 31, 2024 [168]. - Cash and cash equivalents decreased to $7.1 billion as of March 31, 2025, from $8.1 billion as of December 31, 2024 [168]. - The company experienced significant fluctuations in cash and cash equivalents due to timing of period end and daily GPV variations [179]. Investments and Debt - The company has $5.2 billion in total debt, including $1.0 billion in senior unsecured notes maturing in 2026 and 2031 [171]. - The company held approximately 8,584 bitcoins valued at $708.5 million as of March 31, 2025, with a remeasurement loss of $93.4 million in Q1 2025 [169]. - The fair value of the company's bitcoin investment as of March 31, 2025, was $708.5 million, with a remeasurement loss of $93.4 million recognized during the period [190]. Share Repurchase and Capital Management - The board authorized a total share repurchase program of up to $4 billion, with $1.8 billion repurchased as of March 31, 2025, including $445.3 million in Q1 2025 [129]. Cash Flow Activities - For the three months ended March 31, 2025, net cash provided by operating activities was $133.3 million, a decrease from $489.4 million in the same period of 2024 [180][182]. - Cash provided by investing activities for the three months ended March 31, 2025, was $914.7 million, compared to $1.0 billion in the same period of 2024 [183][184]. - Cash used in financing activities for the three months ended March 31, 2025, was $1.2 billion, significantly higher than the $32.4 million provided in the same period of 2024 [185][186]. - Customer funds obligations increased by $1.1 billion during the three months ended March 31, 2025 [185].