Back to top

Image: Shutterstock

Block Gears Up to Report Q3 Earnings: What's in the Offing?

Read MoreHide Full Article

Key Takeaways

  • Block is set to report Q3 2025 results on Nov. 6, with revenues projected at $6.34 billion.
  • Q3 earnings is expected at $0.63 per share, indicating a 28.4% decline from last year.
  • Gross profit is forecast at $2.6 billion, up 16% year over year, driven by Square and Cash App growth.

Block (XYZ - Free Report) is set to report third-quarter 2025 results on Nov. 6, after market close.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $6.34 billion, indicating an increase of 6.1% from the year-ago quarter’s reported figure.

The consensus mark for earnings stands at 63 cents per share, down by two cents over the past three months. It suggests a decline of 28.4% from the figure reported in the year-ago quarter.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

For 2025, the Zacks Consensus Estimate for Block’s revenues is pegged at $24.65 billion, implying a year-over-year rise of 2.2%. The consensus mark for full-year EPS stands at $2.56, calling for a 24% year-over-year decline.

In the trailing four quarters, this fintech company’s earnings surpassed the Zacks Consensus Estimate on one occasion, met in another and missed in the remaining two periods. This is depicted in the graph below:

 

Block, Inc. Price and EPS Surprise

Block, Inc. Price and EPS Surprise

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

 

Q3 Earnings Whispers for XYZ

Our proprietary model does not conclusively predict an earnings beat for Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Block has an Earnings ESP of -0.18% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors Shaping Block’s Q3 Results

Block is strengthening its fintech ecosystem through its two key platforms — Square and Cash App — offering integrated solutions across payments, commerce, lending and banking. Square is regaining market share, reflecting effective product innovation and strategic seller acquisition.

There has been a spate of positive news for Block during the third quarter, including the launch of Square Cash Advance in the U.K., the partnership of Square and Live Nation Canada for the extension of seamless commerce to Rogers Stadium and the teaming up of Cash App Afterpay with Caleres, to bring flexible payment options to Caleres shoppers. Square was also chosen for a partnership by Purdys Chocolatier to manage POS and business operations. Moreover, Cash App launched pools that enable group payments and Tap to Pay on iPhone for Business sellers to accept contactless payments.

For the third quarter of 2025, Block expects a gross profit of $2.60 billion, suggesting year-over-year growth of 16%. Adjusted operating income is expected to be $460 million with an operating margin of 18%. For Square, the company expects low double-digit Gross Payment Volume growth in the third quarter.

The consensus mark for Block’s Transaction revenues is pegged at $1.87 billion, up from $1.82 billion in the prior quarter and $1.71 billion in the year-ago period. Square’s ecosystem is expected to contribute $1.81 billion, while Cash App is expected to provide $58 million to transaction revenues.

Estimates for Subscription and Services revenues are $2.17 billion for the third quarter, up from $2.05 billion in the prior quarter and $1.8 billion in the year-ago period. The consensus estimate for Bitcoin revenues is $2.32 billion, up from $2.14 billion in the prior quarter but down from $2.43 billion in the prior-year quarter.

However, macroeconomic challenges like trade tariffs and softer discretionary spending are dampening activity on the Cash App Card. While near-term softness is apparent, gross profit is expected to accelerate in the remaining part of the year as Block deepens user engagement and expands features like Cash App Borrow and retroactive Buy Now Pay Later.

Other Stocks That Warrant a Look

Here are two other stocks from the Zacks Internet-Software industry — StoneCo (STNE - Free Report) and Bill Holdings, Inc. (BILL - Free Report) — which you may want to consider, as our model shows that these, too, have the right combination of elements to report a surprise this quarter.

STNE, scheduled to report quarterly numbers on Nov. 6, currently has an Earnings ESP of +7.81% and flaunts a Zacks Rank of 1 at present.

Bill Holdings is slated to report quarterly numbers on Nov. 6. BILL has an Earnings ESP of +0.85% and a Zacks Rank of 2.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


StoneCo Ltd. (STNE) - free report >>

BILL Holdings, Inc. (BILL) - free report >>

Block, Inc. (XYZ) - free report >>

Published in