Block’s Q3 2025: 18% Gross Profit Growth, 58M Cash App Users, Raised Guidance

Strong Financial Momentum

Block, Inc. delivered a strong third quarter in 2025, reporting an 18% year-over-year increase in gross profit to $2.66 billion. This growth was propelled by a 24% surge in Cash App gross profit and a 9% rise in Square’s gross profit. The company’s adjusted operating income reached $480 million, reflecting an 8% increase year-over-year, underscoring improved profitability amid ongoing investments.

Cash App and Square – Dual Engines of Growth

Cash App expanded its user base to 58 million monthly transacting actives, with primary banking actives growing 18% to 8.3 million. Key drivers included strong adoption of Cash App Borrow and Buy Now, Pay Later (BNPL) products, which demonstrated robust unit economics and risk management. Meanwhile, Square’s gross payment volume (GPV) grew 12%, with notable acceleration in the food and beverage sector (17% growth) and retail (12%). The company’s focus on mid-market sellers and upmarket expansion is gaining traction, highlighted by new large clients such as Katz Deli and Purdys Chocolatier.

Innovating with AI and Ecosystem Integration

Block is leveraging its vertically integrated platform to deploy AI tools that enhance seller operations. Square AI now offers sellers rapid insights and automation capabilities, including AI voice ordering and centralized procurement tools, helping businesses optimize efficiency and margins. The launch of Neighborhoods on Cash App connects local sellers with a network of 58 million users, fostering community engagement and driving repeat visits through customizable rewards. Additionally, Square bitcoin payments are being rolled out to enable sellers to accept and convert bitcoin seamlessly.

Expanding Distribution and Market Reach

The company is scaling its sales force and partner programs, with sales-led new volume added (NVA) growing 28% year-to-date and expected to exceed 40% by year-end. Self-onboarding growth is accelerating, supported by simplified pricing and packaging designed to increase software adoption among sellers. Block’s marketing campaigns spotlight local neighborhoods and sellers, reinforcing its position as the preferred commerce platform for businesses of all sizes.

Raised Guidance Reflects Confidence

Reflecting its strong execution, Block raised its full-year 2025 guidance to $10.243 billion in gross profit, representing over 15% growth, and $2.056 billion in adjusted operating income, a nearly 28% increase. The company expects to exit the year with fourth-quarter gross profit growth of 19% and adjusted operating income margins of 20%. With $10.5 billion in liquidity and $403 million in share repurchases during the quarter, Block is well-positioned to continue investing in growth while returning capital to shareholders.