Block (XYZ) Q4 2025 earnings summary

Executive summary

• Announced a major workforce reduction from over 10,000 to under 6,000 employees to accelerate operational efficiency and product velocity through AI and automation.

• Achieved 17% year-over-year gross profit growth in 2025, reaching $10.36B, with December marking the first $1B gross profit month.

• Q4 2025 gross profit growth accelerated to 24% year-over-year, driven by new product launches and investments in Square and Cash App.

• Adjusted Operating Income grew 30% year-over-year to $2.08B in 2025, with margins expanding to 20%.

• Raised 2026 outlook for gross profit, adjusted operating income, and EPS, reflecting confidence in long-term targets.

Financial highlights

• Q4 gross profit reached $2.87B, up 24% year-over-year; adjusted operating income grew 46% to $588M, with 3 points of margin expansion.

• Full-year 2025 gross profit was $10.36B, up 17% year-over-year; adjusted operating income grew 30% with 2 points of margin expansion.

• Adjusted EBITDA for 2025 was $3.47B, up 14% year-over-year, with a 33% margin.

• Cash App gross profit grew 33% year-over-year to $1.83B in Q4; Square gross profit grew 7% year-over-year.

• Consumer lending origination volume up 69% year-over-year in Q4; Borrow origination volume more than tripled year-over-year.

Outlook and guidance

• 2026 gross profit guidance raised to $12.2B (18% year-over-year growth); Q1 2026 gross profit expected at $2.8B (22% growth).

• Adjusted operating income guidance for 2026 increased to $3.2B (54% growth, 6 points margin expansion); adjusted diluted EPS guidance raised to $3.66 (54% growth).

• Q1 2026 adjusted operating income expected at $600M (29% growth); adjusted diluted EPS at $0.67 (20% growth).

• Margin expansion expected each quarter, with most profitability gains in the second half of 2026.

• Net interest expense expected at $60M in Q1 and $200M for 2026; mid-20% non-GAAP effective tax rate projected.