Block shares fall 11.53% after-hours as $68M employee event expense and Q3 earnings miss weigh on investor sentiment.

Block Inc. fell 11.53% in after-hours trading following a Q3 earnings report that missed revenue and earnings estimates, coupled with a $68 million expense for an in-person company event. The fintech firm’s core Square business saw gross profit growth slow to 9%, lagging its 12% gross payment volume increase, while higher general and administrative costs—driven by the event—sparked investor concerns about profitability. Analysts criticized the spending as inconsistent with bottom-line targets, exacerbating the sell-off. Despite strong 24% growth in Cash App gross profit and early revenue from its Bitcoin mining unit Proto, near-term margin pressures and elevated costs outweighed optimism, driving the sharp decline. The event’s per-employee cost of ~$6,000 and Square’s decelerating performance highlighted operational challenges, aligning with the stock’s bearish movement.