Block Reports Lower-Than-Expected Q1 Earnings and Revenue, Cuts 2025 Forecast

Block Inc., the parent company of Square, reported disappointing first-quarter 2025 results, missing Wall Street expectations for earnings, revenue, and gross profit. The company posted adjusted earnings of 56 cents per share, below the anticipated 97 cents, and revenue of $5.77 billion, missing estimates of $6.19 billion. A key contributor to the shortfall was weaker performance in the Cash App business, which faced headwinds from lower consumer spending and macroeconomic uncertainty. Bitcoin-related revenue also showed slower growth. Gross profit rose 9% to $2.29 billion, missing the $2.32 billion estimate, while gross payment volume grew 7% to $54.1 billion, below the projected $57.99 billion. As a result, Block lowered its full-year 2025 gross profit guidance to $9.96 billion, reflecting 12% growth instead of the previously forecasted 15%. The company’s stock (recently changed to ticker XYZ from SQ) plunged over 21% following the announcement. Analysts expressed concerns over Block’s visibility into Cash App profitability and its lending strategy, although some remain optimistic about the platform’s long-term value. The earnings also included data from Afterpay, its consumer lending arm. Block’s performance raises doubts about its short-term growth while emphasizing the need for strategic clarity and execution.