Block (XYZ) Q1 2025 earnings summary

Executive summary

• Gross profit rose 9% year-over-year in Q1 2025 to $2.31 billion, with record adjusted operating income of $466 million and strong growth in both Cash App and Square segments, driven by disciplined expense management and product innovation.

• Square gained market share with 8.2% constant currency GPV growth, while Cash App engagement increased, especially among teens and families, with gross profit per monthly transacting active at $81.

• Net income attributable to common stockholders was $189.9 million, impacted by a $93.4 million bitcoin remeasurement loss.

• Growth is expected to accelerate in the second half of 2025, underpinned by new product launches, AI automation, and expanded lending capabilities.

• Continued focus on cost efficiency, with $66.9 million in severance and restructuring expenses recorded in Q1 2025.

Financial highlights

• Q1 2025 gross profit: $2.31 billion, up 9% year-over-year; adjusted EBITDA: $813 million, up 15% year-over-year, with a 35% margin.

• Adjusted operating income was $466 million, up 28% year-over-year, with a 20% margin.

• Total net revenue was $5.77 billion, down 3% year-over-year, mainly due to a 16% decrease in bitcoin revenue; excluding bitcoin, revenue grew 8%.

• Trailing 12-month adjusted free cash flow was $1.53 billion, up from $1.07 billion a year ago.

• Cash and cash equivalents at quarter-end were $7.1 billion; total liquidity was $9.2 billion.

Outlook and guidance

• 2025 gross profit growth expected at 12% ($9.96 billion), with Q2 guidance at 9.5% and acceleration to low double digits in Q3 and mid-teens in Q4.

• Adjusted operating income for 2025 guided at $1.9 billion (19% margin), reflecting continued investment in growth initiatives and a cautious macro stance.

• Management expects continued benefits from cost efficiency initiatives and plans to operate below the 12,000 employee cap.

• Ongoing focus on disciplined growth, centralization, and prioritization of scope to drive future profitability.

• Square GPV growth expected to improve, with April global GPV growth at 9.6% year-over-year.