Bitcoin News Today: Block's Earnings Miss Overshadows Optimistic Guidance

Block Inc. (NYSE: XYZ) shares fell sharply in after-hours trading following a third-quarter earnings report that missed analyst estimates on both revenue and earnings per share, despite a raised full-year gross profit outlook, according to a Benzinga report. The fintech giant reported adjusted earnings of $0.54 per share, below the $0.67 consensus, while revenue of $6.11 billion lagged the expected $6.31 billion. The stock dropped approximately 12% to $63.80 after hours, extending a year-to-date decline of 18.24%.

While the results fell short of expectations, the company highlighted growth in key segments. Square's gross payment volume (GPV) rose 12% year-over-year, with U.S. GPV up 8.9% and international GPV surging 26%. Cash App's gross profit per monthly transacting active user grew 25% to $94.16, and monthly transacting actives hit 58 million. CEO Jack Dorsey emphasized "high-quality and high-velocity" performance in a shareholder letter, noting Square's market share gains and Cash App's 24% gross profit growth.

Block also raised its 2025 gross profit guidance to $10.24 billion, reflecting over 15% year-over-year growth. However, investors appeared unconvinced, with analysts pointing to weak profit flow-through to operating income. EBIT beat the quarter by just $7 million, fueling concerns about margin durability. "The headline miss overshadowed incremental guidance raises in the short term," one analyst noted.

The company's Bitcoin initiatives remain a focal point. Block's Bitcoin mining arm, Proto, generated its first revenue in Q3, with CFO Amrita Ahuja calling it a "potential next major ecosystem." Meanwhile, the company's Bitcoin-related operations brought in nearly $2 billion in Q3, though this came amid regulatory scrutiny earlier this year. An earnings call transcript provides additional context on mining operations and industry dynamics.

Investors also eyed broader market headwinds. Reuters highlighted cautious consumer spending and intensifying competition in peer-to-peer payments as challenges for near-term profitability. A GuruFocus note underscored the stock's volatility since its ticker change to XYZ in January 2025, and the latest miss has reignited questions about its long-term strategy.