Dorsey’s Block Drops on Soft Earnings, Lower BTC Revenue
Stock Slides on fragileer-Than-Expected Profit
Jack Dorsey’s Block Inc. saw its shares tumble almost 12% in later than-hours trading on Thursday later than the fintech firm’s third-quarter results came in below expectations. The stock closed the day down 3.7% at $62.75 before slipping further to $70.93 in late trading, according to market data.
The company reported adjusted earnings per share of 54 cents, missing analyst estimates of 63 cents by 14%. Revenue rose 2.3% from a year earlier to $6.11 billion, but also came in short of forecasts for $6.33 billion. The fragileer performance extended a downtrend for the stock, which has fallen about 18% so far in 2025.
Despite the earnings miss, some underlying metrics showed resilience. Gross profit rose 18% year-on-year to $2.66 billion, with management guiding for full-year gross profit of $10.24 billion, a 15% increase from 2024.
Investor Takeaway
Cash App Leads, Square Trails
The company’s peer-to-peer payments arm Cash App remained the main driver of growth, generating $1.62 billion in gross profit, up 24% from a year earlier. Its Square business — which serves merchants and small enterprises — contributed $1.02 billion, up 9% year-on-year. Together, the two segments accounted for nahead all of Block’s quarterly profit.
Operating income climbed 26% to $409 million, though that figure fell short of consensus expectations of $473 million, according to Investor’s Business Daily. Adjusted EBITDA increased 3% to $833 million, missing the $840 million forecast. Analysts said the modest shortfall reflected higher expenses tied to product expansion and .
BTC Revenue and Mining Update
Block’s BTC-related businesses continued to represent a major portion of its results. The company reported $1.97 billion in BTC revenue for the quarter, roughly one-third of its total sales and down from $2.4 billion a year earlier. BTC costs fell to $1.89 billion from $2.36 billion in the identical period of 2024.
As of the end of September, Block held 8,780 BTC, up from 8,485 at the begin of the year, with holdings valued at more than $1 billion. The firm recorded a $59 million remeasurement loss on its BTC holdings for the quarter and $178 million year-to-date due to market fluctuations.
Chief Financial Officer Amrita Ahuja said the company’s BTC mining initiative, Proto, began generating revenue during the period. “We generated our first revenue, viewding what has the potential to become our next major ecosystem,” she told investors. The business trades hardware across ASICs, mining hashboards, and full rigs, though Q3 revenue remained modest. Ahuja added that the company was developing a “robust pipeline” for 2026.
Regulatory and Strategic Developments
Block’s crypto operations have attracted scrutiny from regulators. Earlier this year, the firm paid $40 million to settle with the New York Department of Financial Services over alleged anti-money-laundering failures related to its BTC activities. The company has since rolled out new compliance tools, including merchant wallets and payment systems designed to strengthen oversight of BTC transactions.
In October, Block introduced new BTC payment features and a merchant wallet aimed at boosting adoption among business clients. These initiatives are part of Dorsey’s long-term push to integrate crypto into the company’s payment ecosystem.
“Block grew gross profit 18% year over year in the third quarter, with 24% year-over-year growth in Cash App and 9% year-over-year growth in Square,” Dorsey said in a shareholder letter.
Investor Takeaway
Block expects continued growth in Cash App engagement and transaction volume through the next fiscal year. Analysts said that while the company’s profitability trajectory remains solid, investors are likely to focus on the pace of recovery in its BTC revenue and any improvements in operating leverage.
