TLDR
- Block (XYZ) reported Q3 earnings of $0.54 per share, falling short of the $0.63 analyst consensus by 14%.
- Bitcoin operations generated $1.97 billion in revenue, accounting for nearly one-third of the company’s $6.11 billion total revenue.
- Shares plunged 9.6% in after-hours trading to $64.10 following the earnings miss, adding to 2025’s 18.24% decline.
- Block’s bitcoin holdings increased to 8,780 BTC from 8,485 BTC at year start, though Q3 remeasurement losses hit $59 million.
- Mining division Proto recorded its first revenue through sales of ASICs and mining hardware during the quarter.
Block delivered third-quarter earnings that missed analyst expectations across key metrics. The company reported earnings per share of 54 cents, falling 14% below the 63-cent consensus estimate.
Revenue totaled $6.11 billion for the quarter. While this represented 2.3% year-over-year growth, it came in below Wall Street’s $6.33 billion projection.
Investors responded quickly to the disappointing results. XYZ stock fell 9.6% to $64.10 in extended trading after dropping 3.7% to $70.94 during the regular session.
The stock continues to struggle in 2025. Shares are down 18.24% year-to-date as the company faces pressure to meet growth expectations.
Bitcoin Business Generates Nearly Third of Total Revenue
Cryptocurrency operations brought in $1.97 billion during the third quarter. This makes bitcoin Block’s second-largest revenue category after subscription and services.
The bitcoin revenue figure declined from $2.4 billion in the same period last year. Corresponding costs dropped to $1.89 billion from $2.36 billion year-over-year.
Block expanded its bitcoin position throughout the year. The company held 8,780 BTC at the end of September, compared to 8,485 BTC in January.
Those holdings are worth more than $1 billion at current prices. The company recorded $59 million in negative remeasurement for Q3 and $178 million year-to-date.
CEO Jack Dorsey emphasized positive trends in his shareholder letter. Gross profit climbed 18% year-over-year to $2.66 billion across the company’s platforms.
Cash App and Square Show Divergent Growth Rates
Cash App generated $1.62 billion in profit, posting 24% annual growth. The peer-to-peer payment platform remains Block’s primary profit driver.
Square’s merchant payment business contributed $1.018 billion, growing 9% year-over-year. The slower growth rate reflects competitive pressures in the merchant services space.
Operating income totaled $409 million, up 26% from last year. However, this missed the $473 million consensus estimate that analysts had forecast.
EBITDA reached $833 million, a 3% increase from Q3 2024. The figure fell short of Wall Street’s $840 million expectation.
Block expects full-year 2025 gross profit to hit $10.24 billion. That would mark 15% growth versus the prior year.
Proto Mining Business Posts Initial Revenue
Block’s bitcoin mining division Proto generated revenue for the first time in Q3. CFO Amrita Ahuja discussed the milestone during Thursday’s earnings call.
The division monetized its hardware and software development. Proto sold ASICs, mining hashboards, and complete mining rigs to customers.
Ahuja described third-quarter revenue as “modest” but expressed optimism about future growth. The company is pursuing what she called a “robust pipeline for 2026.”
Proto officially launched in November 2024. The company didn’t announce its first mining rig placements until August of this year.
Block launched new bitcoin payment tools for merchants in October. The company also settled with New York financial regulators earlier in 2025, paying $40 million over alleged anti-money laundering compliance issues related to its bitcoin operations.
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