Block (XYZ Quick QuoteXYZ - Free Report) reported second-quarter 2025 adjusted earnings of 62 cents per share, which outpaced the Zacks Consensus Estimate by 3.3%. However, the figure decreased 33.3% year over year. 

Net revenues of $6.05 billion missed the consensus mark by 4.2%. The top line declined 1.6% year over year. 

XYZ continues to launch new products across Square and Cash App, accelerating Gross Payment Volume (“GPV”) growth in Square and gross profit per monthly transacting active in Cash App. Based on strong execution, the company also raised its full-year guidance.

Reflecting positive sentiments, XYZ shares have risen more than 6% in pre-market trading.

XYZ’s Q2 in Details

Transaction (30.0% of second-quarter 2025 net revenues) revenues were $1.82 billion, up 6.1% year over year. The Strong Square ecosystem accounted for $1.76 billion in transaction revenues, up 8.8% year over year. Cash App contributed $60.5 million to transaction revenues, down 38.8% year over year.

Subscription and Services (33.9% of net revenues) revenues were $2.05 billion, up 14.8% year over year.

Hardware (0.7% of net revenues) revenues fell 5.9% year over year to $40.4 million.
Bitcoin (35.4% of net revenues) revenues declined 17.9% year over year to $2.14 billion.

GPV was $66.6 billion, up 7.5% year over year. Square’s GPV was $64.2 billion, up 10.1% year over year. U.S. GPV grew 7%, while international GPV increased 25% (24% on constant currency). The company observed strength in food and beverage and retail.

Cash App’s GPV was $2.37 billion, down 33.7% year over year.

BNPL platform’s Gross Merchandise Value grew 17% year over year to $9.11 billion in the reported quarter.

Block’s Operating Details

The gross profit grew 13.6% year over year to $2.54 billion. Square generated a gross profit of $1.03 billion, up 11.3% year over year. Cash App generated a gross profit of $1.50 billion, up 15.6% year over year. Square’s gross profit rose on strong growth in software and integrated payments and banking products. Cash App’s gross profit increase was driven by growth across Cash App Borrow, Cash App Card and BNPL.

Cash App’s gross profit per monthly transacting active grew 15% year over year to $87. The company increased engagement of its 57 million active users, and drove Borrow and BNPL attach rates higher while growing Cash App Card actives to 26 million.

Adjusted EBITDA was $891.4 million, up 17.4% year over year.

Operating expenses were $2.05 billion, up 6.5% year over year.

The adjusted operating income was $549.6 million in the reported quarter, up 37.7% year over year. The adjusted operating margin was 22%, expanding 400 basis points on a year-over-year basis.

Block’s Balance Sheet Details

XYZ closed the quarter with $8.5 billion in liquidity, including $7.7 billion in cash and securities plus $775 million in credit capacity.

The long-term debt was $3.5 billion as of June 30, 2025, down from $5.1 billion as of March 31, 2025.

In the second quarter of 2025, Block repurchased 12.5 million shares of its Class A common stock for a total amount of $692 million. As of June 30, 2025, $1.5 billion remained available under the current authorization.

XYZ’s Guidance

For the third quarter of 2025, Block expects gross profit of $2.60 billion, suggesting year-over-year growth of 16%. The adjusted operating income is expected to be $460 million, with an operating margin of 18%.

The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $6.38 billion, suggesting 6.7% growth over the figure reported in the year-ago quarter. The consensus mark for third-quarter 2025 earnings is pegged at 65 cents per share, indicating a 26.14% year-over-year decline. 

For 2025, XYZ expects a gross profit of $10.17 billion, indicating growth of 14.4% from the 2024 reported figure. The adjusted operating income is now expected to be $2.03 billion, with an operating margin of 20%.

The Zacks Consensus Estimate for 2025 revenues is pegged at $24.94 billion, suggesting 3.4% growth over the figure reported in the year-ago quarter. The consensus mark for 2025 earnings is pegged at $2.45 per share, indicating a 27.3% year-over-year drop. 

Currently, Block has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Block, Inc. Price, Consensus and EPS Surprise

Block, Inc. price-consensus-eps-surprise-chart | Block, Inc. Quote

A Stock to Consider

PayPal Holdings (PYPL Quick QuotePYPL - Free Report) reported second-quarter 2025 non-GAAP earnings of $1.40 per share, which surpassed the Zacks Consensus Estimate by 7.7% and jumped 17.6% year over year. Results reflected better-than-expected growth in revenues.

PayPal saw an uptick in both total payment volume and revenues compared to the first quarter, along with another quarter of high single-digit growth in transaction margin dollars. Reflecting this momentum, the company raised its full-year guidance for transaction margin dollars and EPS while maintaining its outlook for free cash flow. Currently, PayPal carries a Zacks Rank #2 (Buy).

Upcoming Earnings Release

We now look forward to the earnings release of another stock in the Fintech industry — Affirm Holdings, Inc. (AFRM Quick QuoteAFRM - Free Report) , which is slated to report on Aug. 28.

The Zacks Consensus Estimate for Affirm’s fiscal fourth-quarter 2025 EPS stands at 11 cents on revenues of $839.88 million. Affirm carries a Zacks Rank #3.