Block Shares Plunge 7% After Disappointing Q3 Earnings Miss Analysts’ Expectations
Block Inc., the fintech giant founded by Jack Dorsey, saw its shares drop nearly 8% on Friday following weaker-than-expected third-quarter results that highlighted a slowdown in profit growth from its Square business segment.
Here’s how the company performed compared with LSEG analyst estimates:
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Earnings per share (adjusted): $0.54 vs. $0.67 expected
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Revenue: $6.11 billion vs. $6.31 billion expected
Quarterly revenue rose 2% year-over-year, but the results disappointed investors as overall growth momentum appeared to be slowing. So far in 2025, Block’s stock has fallen about 24%, reflecting ongoing investor concerns over profitability trends and competition in the payments market.
Square’s gross payment volume (GPV) increased 12% from last year, yet gross profit growth for the division rose only 9%, down from 11% in the previous quarter. The company attributed this moderation to a shift in processing partners and lower-margin hardware sales.
“Our product and go-to-market strategies continue to deliver, as we expand profitably in key verticals such as food and beverage, large sellers, and markets beyond the U.S.,”
said Amrita Ahuja, Block’s Chief Financial Officer.
Meanwhile, Cash App remained a bright spot for Block, posting a 24% year-over-year increase in gross profit to $1.62 billion. The app’s user base reached 58 million monthly active users, fueled by strong adoption of Cash App Borrow, Cash App Card, and Buy Now, Pay Later features.
Analysts at Morgan Stanley expressed optimism about Cash App’s credit expansion, noting it could boost inflows per active user and increase direct deposit adoption in the future.
Overall, Block reported $2.66 billion in gross profit for the quarter, an 18% jump from the same period last year — slightly above FactSet’s projection of $2.60 billion. The company also raised its full-year guidance, forecasting $10.2 billion in total gross profit for 2025, up from its earlier estimate.
Block’s net income climbed to $461.5 million ($0.74 per share), marking a significant improvement from $283.7 million ($0.45 per share) a year earlier.
Despite the mixed quarter, analysts believe Block’s diversified fintech ecosystem — spanning payments, banking, and lending — positions it well for long-term growth, provided it can maintain user engagement and margin stability across its platforms.
