Block shares dive despite quarterly profit surge
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More news: Block shares tanked in morning trade as the Afterpay owner missed expectations for the September quarter, despite an 18% jump in profit compared to the prior corresponding period.
Shares were down 13.9% to $97.20 at 10:50am AEDT. The stock is down 18.3% over the last 12 months.
Block posts 18% gross profit growth, lifts 2025 guidance
The news: ASX- and Nasdaq-listed fintech group Block has posted 18% year-on-year growth in profit for the September quarter, with the company increasing its gross profit guidance for the full calendar year.
The numbers: Block’s September quarter gross profit came in at USD2.66 billion, higher than the USD2.25 billion delivered in the previous corresponding period.
Net income improved by 63% year on year to USD462 million but fell 14% quarter on quarter. Adjusted net income was USD1 million lower at USD337 million but 12.5% lower quarter on quarter.
Meanwhile, operating income grew by 15% to USD409 million compared to the previous corresponding period and adjusted operating income improved by 18% to USD480 million. Both measures had slipped on a quarter-by-quarter basis by 15% and 13% million respectively.
Guidance for gross profit was increased to USD10.243 billion, which would reflect 15% growth year on year. In August, Block raised its gross profit guidance for the full year to USD10.17 billion.
Adjusted operating income is guided to be $2.056 billion.
In the December quarter, Block is expecting gross profit of USD2.755 billion, reflecting 19% year on year growth, and adjusted operating income of USD560 million.
The context: Square CEO Jack Dorsey said the company had “another strong quarter” and outlined plans to connect the group’s payments service Square and Cash App “to deliver more value to our sellers, their employees, and their customers”.
He also said the company would deliver “AI tools” to help sellers automate more of their operations and finances. Other software solutions and commerce tools would also be made available.
The source: Block Q3 2025 earnings shareholder letter
