BLOCK(US:SQ) ZACKSยท2025-11-07 18:15Core Insights - Block (XYZ) reported Q3 2025 adjusted earnings of 54 cents per share, missing the Zacks Consensus Estimate of 63 cents, but showing a slight increase from 53 cents in the prior-year quarter [1][10] - Net revenues for the quarter were $6.11 billion, falling short of the consensus estimate of $6.34 billion, yet representing a 2.3% year-over-year increase [1][10] Revenue Breakdown - Transaction-based revenues, accounting for 30.6% of net revenues, reached $1.87 billion, up 9.4% year over year, with Square contributing $1.82 billion (up 10.7%) and Cash App contributing $56.1 million (down 19.8%) [3] - Subscription and services-based revenues made up 36.1% of net revenues, totaling $2.2 billion, reflecting a 22.6% year-over-year growth [3] - Hardware revenues increased significantly by 90.5% year over year to $70.2 million, representing 1.1% of net revenues [3] Gross Payment Volume (GPV) and Profitability - Bitcoin revenues, which constituted 32.2% of net revenues, declined by 19% year over year to $1.97 billion [4] - Total GPV was $69.28 billion, marking a 10.9% year-over-year increase, with Square's GPV at $67.15 billion (up 12.2%) and Cash App's GPV at $2.13 billion (down 18.6%) [4] - Gross profit for the quarter grew 18.3% year over year to $2.66 billion, with Square generating $1.02 billion (up 9.2%) and Cash App generating $1.62 billion (up 24.3%) [6] Operating Performance - Adjusted EBITDA was reported at $832.7 million, reflecting a 3.1% year-over-year increase [7] - Operating expenses rose by 16.9% year over year to $2.25 billion [7] - Adjusted operating income was $480.2 million, up 8.3% year over year, with an adjusted operating margin of 18%, expanding 200 basis points year over year [8] Balance Sheet and Liquidity - As of September 30, 2025, Block had $10.5 billion in liquidity, including $9.7 billion in cash and securities, and $775 million available in a credit facility [11] - Long-term debt increased to $5.71 billion from $3.54 billion as of June 30, 2025 [11] - In Q3 2025, Block repurchased 5.3 million shares of its Class A common stock for $403 million, with $1.1 billion remaining under the current authorization [11] Guidance - For Q4 2025, Block expects gross profit of $2.755 billion, indicating a 19% year-over-year growth, and an adjusted operating income of $560 million with a 20% operating margin [12] - For the full year 2025, the company anticipates a gross profit of $10.243 billion (15% growth) and adjusted operating income of $2.056 billion [13]