Block Inc., the parent company of Square and Cash App, reported its first-quarter 2025 financial results, revealing challenges in consumer spending and a downturn in Bitcoin-related revenue.
Key Financial Highlights
- Revenue: $5.77 billion, a 3% decrease year-over-year, falling short of analysts’ expectations of $6.19 billion.
- Net Income: $189.9 million, or $0.30 per share, down from $472 million, or $0.74 per share, in Q1 2024.
- Adjusted EPS: $0.56, below the projected $0.97.
- Gross Profit: $2.29 billion, a 9% increase year-over-year, but slightly under the estimated $2.32 billion.
- Adjusted EBITDA: $813 million, surpassing the forecasted $791 million. (
Segment Performance
Cash App:
- Gross profit reached $1.38 billion, missing the $1.42 billion forecast.
- The platform experienced a slowdown in gross profit growth to 10%, compared to 25% in the previous year, attributed to decreased discretionary spending in areas like travel and media.
Square:
- Gross profit stood at $898 million, exceeding expectations of $885 million.
- Gross Payment Volume (GPV) grew by 7.2%, with U.S. GPV increasing by 5.6% and international GPV by 15%.
Bitcoin Revenue Impact
- Bitcoin revenue declined by 15.7% to $2.30 billion, influenced by a broader downturn in the cryptocurrency market.
- The company reported a $93.4 million remeasurement loss on its Bitcoin investment, contrasting with a $233.4 million gain in the same period last year.
Revised Outlook
- Fiscal 2025 Gross Profit: The company lowered its guidance to $9.96 billion, representing a 12% year-over-year growth, down from the earlier projection of 15%.
- Q2 2025 Gross Profit: Expected to be $2.45 billion, below the anticipated $2.54 billion.
Following the earnings release and revised guidance, Block’s stock experienced a significant decline, dropping over 15% in after-hours trading to $49.37.
For more detailed information, you can view Block Inc.’s full Q1 2025 earnings report here.