0001628280-25-038920
SEC filingQ2 2025 gross profit rose 14% to $2.5B, driven by Cash App Borrow and Square banking, despite a 2% revenue dip from lower bitcoin sales.
Block's Q2 2025 total net revenue declined 2% year-over-year to $6.05 billion, primarily driven by a 18% drop in bitcoin revenue ($2.14B vs $2.61B). Excluding bitcoin, revenue grew 10% to $3.91B, fueled by subscription and services-based revenue which rose 15% to $2.05B. Gross profit expanded 14% to $2.5B, with gross margin improving from 35.5% to 41.3%, reflecting favorable mix shift toward higher-margin services and lower bitcoin cost of sales. Operating income surged 58% to $484.3M, while adjusted operating income reached $549.6M (up 38%). Net income more than doubled to $538.5M, boosted by a $212.2M bitcoin remeasurement gain and lower interest expense. Adjusted diluted EPS grew to $0.62 from $0.47.
The Cash App segment generated $3.84B in revenue (down 7% YoY) due to lower bitcoin activity, but ex-bitcoin revenue grew 12%. Cash App gross profit increased 16% to $1.50B, driven by Cash App Borrow, Card usage, and Cash App Pay. The Square segment delivered $2.17B in revenue (up 9%) and $1.03B in gross profit (up 11%), supported by strength in Square Loans and software/integrated payments. Transaction-based revenue rose 6% on 8% GPV growth, while subscription and services-based revenue increased 15% from BNPL platform revenue ($343.8M, up 17%) and Cash App financial products. Transaction, loan, and consumer receivable losses jumped 53% to $294.1M, reflecting higher loan volumes from Cash App Borrow.
Block continues to execute on its cost efficiency program, maintaining headcount below the 12,000 cap. In Q2, severance costs were modest at $2.6M. The company's focus remains on disciplined growth, with marketing investments prioritized for Cash App and Square. No specific forward guidance was provided, but management expects to continue benefiting from cost actions and the shift toward higher-margin revenue streams. Liquidity remains strong at $8.5B, though reduced from year-end due to debt repayment and share repurchases. The share repurchase program has $1.5B remaining under the $4B authorization.
As of June 30, 2025, Block held $6.38 billion in cash and cash equivalents and $510 million in marketable debt securities, providing substantial liquidity. Total debt comprised $5.11 billion in senior and convertible notes (net carrying value) and $703.9 million drawn under warehouse funding facilities, resulting in net debt of approximately -$1.1 billion (cash and marketable securities exceed debt). Shareholders' equity rose to $22.12 billion from $21.23 billion at year-end 2024, driven by net income and foreign currency translation gains.
Note 17 discloses $732.7 million in non-cancelable purchase commitments related to cloud computing infrastructure. Payments are scheduled: $154.3 million in the remainder of 2025, $263.3 million in 2026, and $315.1 million in 2027. No other material commitments were disclosed.
During H1 2025, Block repurchased 19.3 million shares of Class A common stock for $1.14 billion. As of June 30, 2025, $1.5 billion remained authorized under the share repurchase program (originally $1B in Oct 2023, increased by $3B in July 2024). The company fully redeemed the $1 billion 2025 Convertible Notes at maturity in March 2025, reducing debt. No dividends were declared. Capital expenditures (property and equipment) were $63.2 million in H1 2025, down from $70.4 million in H1 2024.
The company operates two reportable segments: Cash App and Square. For Q2 2025, Cash App generated $3.84 billion in revenue (including $2.14 billion Bitcoin) and $1.50 billion gross profit (up 15.5% YoY). Square generated $2.17 billion revenue and $1.03 billion gross profit (up 11.3% YoY). Corporate and Other (TIDAL, etc.) contributed $43 million revenue and $9 million gross profit. Geographically, 92% of total revenue came from the United States, with international contributing 8%.