TLDR
Block’s Bitcoin ecosystem gross profit fell 50% to $52 million after it cut fees on some Cash App Bitcoin trades.
Total gross profit rose 22% to $3.24 billion, and net income climbed to $566 million.
Cash App gross profit grew 27% to $2.07 billion, with 60 million monthly transacting users.
Block raised its full-year gross profit forecast to $12.63 billion.
Shares closed at $76 on Tuesday, then rose more than 6% in after-hours trading.
Block Inc. earned half as much gross profit from Bitcoin in the third quarter as it did a year ago. The drop came from a choice the company made to lower fees on some Bitcoin trades in Cash App, and the rest of the business still posted strong results.
Bitcoin ecosystem gross profit fell 50% from a year earlier to $52 million. Block said the decline came from its “strategic decision to reduce the fee” charged on certain Bitcoin transactions.
The Bitcoin segment still brought in a large amount of revenue. Cash App generated $4.07 billion in revenue in the quarter, and $1.77 billion of that came from the Bitcoin ecosystem.
Block’s Bitcoin ecosystem mainly covers customer purchases of Bitcoin inside Cash App, its Proto business, and Bitcoin withdrawal fees. Lower gross profit in this unit does not mean trading volume fell by half.
Cash App and Square Carry the Quarter
Outside of Bitcoin, the company’s numbers rose across the board. Block posted net income of $566 million, up from $462 million a year earlier, on total revenue of $6.72 billion, up from $6.12 billion.
Total gross profit grew 22% to $3.24 billion, beating management’s guidance. Cash App delivered $2.07 billion of that, a 27% increase from the same quarter last year.
Cash App had 60 million monthly transacting users in September. Block credited part of that to Neighborhoods, a product that links customers who shop at Square merchants to the Cash App network.
Lending also grew quickly. Loan originations rose 40% from a year earlier, driven by Cash App Borrow and Afterpay Post-Purchase. Gross profit for Financial Solutions, the unit tied to consumer lending, climbed 32%.
Square’s gross payment volume rose 14%, its fastest yearly growth since the first quarter of 2023. U.S. volume grew 10.4%, while international volume jumped 26%.
Square gross profit increased 14%. Commerce Enablement gross profit rose 19% on stronger payment activity across Square and Cash App.
Adjusted earnings per share reached $1.13, up 109% from a year earlier. The adjusted operating income margin hit 29%, a company record.
Block Raises Its Full-Year Outlook
Block lifted its full-year gross profit forecast to $12.63 billion, which would mean 22% growth from last year. It also expects adjusted operating income to rise 69% and adjusted diluted earnings per share to grow 75%.
“We expect Block to perform meaningfully better in 2026 than the expectations we outlined at Investor Day in November 2025,” Jack Dorsey and CFO Amrita Ahuja wrote in their shareholder letter.
For 2027, Block expects gross profit to grow at least 15%. It forecasts adjusted operating income will rise 30% to $4.575 billion.
The company also expects a third straight year of faster growth in Square payment volume in 2027. It sees Cash App active customers growing in the low single digits.
Before the report, Zacks rated the stock #3 (Hold) due to mixed estimate revisions. Analysts expect earnings of $1.16 per share for the next quarter on revenue of $6.76 billion, and $4.05 per share for the full year on revenue of $26.09 billion.
Block shares closed down 1.4% at $76 on Tuesday. After the earnings release, the stock rose between 6.2% and more than 8% in after-hours trading, according to separate reports.
The post Block Stock Jumps as Cash App Booms While Bitcoin Profit Halves appeared first on Blockonomi.
