Block's ASX-listed shares slide after earnings downgrade
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More news: ASX-listed shares in Block slumped more than 25% to $68.92 in early trading after the US payments giant, which owns Afterpay, missed estimates for first-quarter earnings and downgraded its full-year profit growth forecast amid muted consumer spending.
March quarter net income slumped 60% from a year ago on the back of a US$93.4 million remeasurement loss on its Bitcoin investments. Block flagged a lower-than expected second-quarter gross profit of US$2.45 billion, and also cut the forecast for full-year 2025 gross profit growth to 12% from 15%.
Block cuts forecast after weak results, shares slide
The news: Digital payments giant Block, which owns Afterpay, missed estimates for first-quarter earnings amid muted consumer spending, sending its US-listed shares lower.
The numbers: The company said net income for the March quarter slumped 60% from a year ago to USD189.9 million ($298 million), on the back of a USD93.4 million remeasurement loss on its bitcoin investments. Total net revenue dropped 3% to USD5.77 billion while Bitcoin revenue fell 15.7% to USD2.30 billion. Block’s New York-listed shares tumbled 19% in after-market trading.
The context: The company’s Cash App, which includes Afterpay, reported gross profit growth of about 10% in the first-quarter, down from 25% a year ago. Block, formerly known as Square, expects second-quarter gross profit at USD2.45 billion, below analyst estimates of USD2.54 billion. It also cut the forecast for full-year 2025 gross profit growth to 12% from 15%.
"We are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year," the company said in a statement.
