Block, Inc. (XYZ) Earnings History

Block, Inc. - Q4 2025 EarningsMet

Filed at: Feb 26, 2026, 4:06 PM EST|Read from source

EXECUTIVE SUMMARY

Block, Inc. reported a strong finish to 2025, characterized by accelerating gross profit growth and improved profitability, driven by strategic investments in AI and product development. The company announced a significant workforce reduction to enhance agility and efficiency, positioning itself as a leaner, intelligence-native organization for future growth.

POSITIVE HIGHLIGHTS

  • •

    Gross profit grew 24% year-over-year in Q4 2025, accelerating from prior quarters.

    positive
  • •

    Adjusted Operating Income grew 46% year-over-year in Q4 2025, demonstrating improved profitability.

    positive
  • •

    Cash App gross profit increased 33% year-over-year, driven by strong performance in lending products and card services.

    positive
  • •

    Financial Solutions gross profit growth accelerated to 51% year-over-year in Q4 2025.

    positive
  • •

    Square GPV grew 10% year-over-year in Q4 2025, with international GPV growing 24%.

    positive
  • •

    Raised full-year 2026 guidance for gross profit to $12.20 billion (18% YoY growth) and Adjusted Operating Income to $3.20 billion (26% margin).

    positive

CONCERNS & RISKS

  • •

    Diluted EPS was $0.19 in Q4 2025, significantly down from $3.05 in Q4 2024, impacted by a $234 million bitcoin remeasurement loss.

    attention
  • •

    Transaction, loan, and consumer receivable losses increased 108% year-over-year on a GAAP basis, driven by growth in loan volumes.

    attention
  • •

    Square gross profit growth slowed to 7% year-over-year in Q4 2025, down from 9% in Q3 2025.

    attention
  • •

    Bitcoin Ecosystem gross profit grew only 10% year-over-year in Q4 2025, a deceleration from previous quarters.

    attention
  • •

    Non-GAAP Cash Flow was negative $342 million in Q4 2025, a significant decline from positive $239 million in Q3 2025.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$6.25B
+3.6%
Prior year: $6.03B
Annual (YTD)
$24.19B
N/A
Prior year: $24.12B
Net Income
Quarterly
$116.00M
-94.0%
Prior year: $1.95B
Annual (YTD)
$1.30B
N/A
Prior year: $2.87B
EPS (Diluted)
Quarterly
$0.19
-93.8%
Prior year: $3.05
Operating Income
Quarterly
$485.00M
+3623.1%
Prior year: $13.00M
Annual (YTD)
$1.71B
N/A
Prior year: $892.33M
EPS (Basic)
Quarterly
$0.19
-93.8%
Prior year: $3.05

MARGIN ANALYSIS

Gross Margin
Current Quarter
46.1%
Prior Year
38.3%
YoY Change
+780 bps
Operating Margin
Current Quarter
7.9%
Prior Year
0.2%
YoY Change
+772 bps
Net Margin
Current Quarter
1.9%
Prior Year
32.3%
YoY Change
-3040 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 2025 2025

VISUAL OVERVIEW

|
Cash App
0.0%
N/A
Square
0.0%
N/A
Corporate and Other
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Cash App
N/A———
Square
N/A———
Corporate and Other
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

Gross Profit
12,200,000,000—12,200,000,000
Mid-point: 12,200,000,000
"18% year over year growth"
Adjusted Operating Income
3,200,000,000—3,200,000,000
Mid-point: 3,200,000,000
"26% margin, 54% year over year growth"
Adjusted Diluted EPS
$3.66—$3.66
Mid-point: $3.66
"54% year over year growth"

Q1 2026

Gross Profit
2,800,000,000—2,800,000,000
Mid-point: 2,800,000,000
"22% year over year growth"
Adjusted Operating Income
600,000,000—600,000,000
Mid-point: 600,000,000
"21% margins"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Bitcoin remeasurement loss
Impacted GAAP diluted EPS.
+$234M
$0.38 per share
Q4 2024
Bitcoin remeasurement gain
Benefited GAAP diluted EPS.
+$252M
$0.40 per share
FY 2024
Benefits from income taxes related to valuation allowance release and deferred tax assets recognition
Significant one-time benefit to FY2024 net income.
+$1,900M
Total Impact
+$2,386M$0.02 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Intelligence tools have changed what it means to build and run a company, enabling a significantly smaller team to do more and do it better.

— Block, Inc., Q4 2025 2025 Earnings Call

We are making a significant change to our organizational structure today, reducing our workforce by over 40% to position Block for its next phase of long-term growth.

— Block, Inc., Q4 2025 2025 Earnings Call

Our number one priority is product velocity. We are in a moment where AI is transforming how software products are built and changing the way we deliver value to our customers.

— Block, Inc., Q4 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Cash App Monthly Transacting Actives (M)
59
+3.0% YoY
Prior year: 57
millions
Cash App Primary Banking Actives (M)
9.3
+22.4% YoY
Prior year: 7.6
millions
Commerce Enablement Volume ($B)
54.7
+17.1% YoY
Prior year: 46.7
billions
Consumer Lending Origination Volume ($B)
18.5
+69.7% YoY
Prior year: 10.9
billions
Square GPV ($M)
65.0K
+10.3% YoY
Prior year: 58.9K
millions

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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