Block Q2 Gross Profit Surpasses Estimates, Up 14% Year-Over-Year

Block Inc (NYSE: XYZ) reported a gross profit of $2.54 billion for the second quarter of 2025, reflecting a 14% year-over-year increase and surpassing analyst expectations of $2.46 billion [1]. This growth was fueled by robust performances across its two primary business segments: Cash App and Square. Cash App contributed $1.5 billion in gross profit, a 16% increase from the previous year, while Square added $1.03 billion, reflecting an 11% rise [2].

The company’s net profit attributable to common stockholders reached $538.46 million in the second quarter, a substantial increase compared to $195.27 million in the same period of the prior year. Operating income for the quarter climbed to $484 million, with adjusted operating income reaching $550 million, representing a 22% margin [4]. Adjusted EBITDA totaled $891 million, driven by margin expansion and increased product velocity across both platforms.

Block also raised its full-year gross profit forecast for 2025 to $10.17 billion, up from the previous estimate of $9.96 billion [2]. The company expects $2.60 billion in gross profit for Q3 2025, with adjusted operating income of $460 million. For the full year, Block aims to achieve an adjusted operating income of $2.03 billion at a 20% margin [4].

Cash App’s performance remained a key growth driver, with gross profit per transacting user rising 15% to $87, while maintaining 57 million monthly active users. The platform also saw a 17% increase in BNPL gross merchandise volume to $9.11 billion, and the annualized pace of Cash App Borrow reached $18 billion [6]. Additionally, Cash App Pay volume doubled year over year, and the number of Cash App Card actives reached 26 million [6].

Square also contributed to the company’s strong results, with a 10% increase in gross payment volume (GPV) to $64.2 billion, including a 25% year-over-year rise in international GPV [7]. The company attributes this growth to continued product innovation and strategic investments in its go-to-market approach.

CEO Jack Dorsey expressed renewed confidence in the company’s trajectory, stating in the shareholder letter that Block is “back on offense.” He emphasized the company’s ability to scale growth sustainably and highlighted the unique positioning of Cash App as a comprehensive financial platform [5].

The positive earnings report was reflected in the stock market, with XYZ shares surging more than 8% in after-hours trading following the earnings release [9]. The stock continued to climb in the days that followed, with some reports indicating price jumps as high as 11% in the immediate aftermath [10].

Block’s Q2 performance demonstrates its ability to adapt to a challenging economic climate and deliver value through strategic product development and margin optimization. The company’s dual focus on Cash App and Square positions it as a major player in the evolving financial services landscape [11].

Source:

[1] Yahoo Finance, [https://finance.yahoo.com/news/block-shares-gain-strong-gross-204033601.html](https://finance.yahoo.com/news/block-shares-gain-strong-gross-204033601.html)

[2] The, [https://www.fool.com.au/2025/08/08/block-share-price-jumps-10-on-q2-guidance-beat/](https://www.fool.com.au/2025/08/08/block-share-price-jumps-10-on-q2-guidance-beat/)

[4] American Banker, [https://www.americanbanker.com/payments/news/block-boosts-its-earnings-outlook-for-2025](https://www.americanbanker.com/payments/news/block-boosts-its-earnings-outlook-for-2025)

[5] AInvest, [https://www.ainvest.com/news/xyz-stock-soars-11-block-strong-q2-gross-profit-growth-2508/](https://www.ainvest.com/news/xyz-stock-soars-11-block-strong-q2-gross-profit-growth-2508/)

[6] The, [https://www.fool.com.au/2025/08/08/why-block-iress-nick-scali-and-westgold-shares-are-storming-higher-today/](https://www.fool.com.au/2025/08/08/why-block-iress-nick-scali-and-westgold-shares-are-storming-higher-today/)

[7] MarketIndex, [https://www.marketindex.com.au/asx/xyz/announcements/form-8k-q2-25-earnings-3A673108](https://www.marketindex.com.au/asx/xyz/announcements/form-8k-q2-25-earnings-3A673108)

[9] Techmeme, [https://techmeme.com/index.html](https://techmeme.com/index.html)

[10] Reddit, [https://www.reddit.com/r/stocks/](https://www.reddit.com/r/stocks/)

[11] Yahoo Finance, [https://finance.yahoo.com/news/live/earnings-live-eli-lilly-stock-slides-pinterest-sells-off-expedia-and-block-gain-after-hours-205302959.html](https://finance.yahoo.com/news/live/earnings-live-eli-lilly-stock-slides-pinterest-sells-off-expedia-and-block-gain-after-hours-205302959.html)