Block's Q3 Earnings Miss Expectations as Bitcoin Revenue Reaches $1.97 Billion

Block, the FinTech firm led by Jack Dorsey, reported disappointing third-quarter 2025 results on November 6, 2025, failing to meet Wall Street estimates for key financial metrics. The company's adjusted earnings per share (EPS) came in at $0.54, a 14% miss compared to the analyst consensus of $0.63, while revenue totaled $6.11 billion, falling short of the projected $6.33 billion.

Following the announcement, Block's stock (XYZ) plunged by nearly 12% in after-hours trading, adding to a year-to-date decline of over 18%. Bitcoin revenue was a standout, accounting for $1.97 billion or nearly one-third of total revenue, though it decreased from $2.4 billion in Q3 2024. Block's bitcoin holdings grew to 8,780 BTC, valued at over $1 billion, but the company recorded a negative remeasurement of $59 million in Q3 due to market volatility.

Despite the quarterly miss, Block raised its full-year 2025 guidance, forecasting gross profit of $10.24 billion, reflecting more than 15% year-over-year growth, and adjusted operating income of $2.06 billion at a 20% margin. Operationally, Cash App gross profit surged 24% to $1.62 billion, while Square's merchant payments business rose 9% to $1.02 billion, with Square's Gross Payment Volume (GPV) increasing by 12%.

CEO Jack Dorsey highlighted the company's performance, stating, "We had another strong quarter delivering for our customers with high quality and high velocity. Square GPV growth accelerated to 12%, and we gained profitable market share through product innovation and expanded distribution." He also detailed Block's AI integration efforts, including voice ordering and procurement tools, aimed at enhancing seller efficiency.

Block's bitcoin mining arm, Proto, generated its first revenue in Q3 through sales of ASICs, hashboards, and mining rigs, with CFO Amrita Ahuja noting a "robust pipeline for 2026." The company repurchased about $1.5 billion in stock and plans to discuss capital allocation at its Investor Day, projecting Q4 2025 adjusted operating income of $560 million and aiming to approach the "rule of 40" in 2026.