Block Reports 2% Revenue Growth, $2.2B Senior Notes, $1.5B Stock Buyback

Quarterly Financial Highlights

Block, Inc. has released its financial results for the quarter ended September 30, 2025, showing a 2% increase in total net revenue to $6.1 billion compared to the same period last year. This growth was primarily driven by the Cash App and Square segments, despite a notable decline in bitcoin-related revenue. Operating income rose to $409 million, while net income attributable to common stockholders increased significantly to $461.5 million. Adjusted EBITDA also improved, reaching $832.7 million for the quarter.

Capital Markets Activity and Liquidity

During the quarter, Block issued $2.2 billion in senior unsecured notes, split between $1.2 billion due in 2030 and $1.0 billion due in 2033. The company also repurchased $1.5 billion of its Class A common stock, continuing its commitment to returning capital to shareholders. As of September 30, 2025, Block maintained a robust liquidity position of approximately $10.5 billion, including cash, cash equivalents, restricted cash, marketable securities, and an undrawn revolving credit facility of $775 million.

Operational and Segment Performance

The Cash App segment delivered a 24% year-over-year increase in gross profit, fueled by growth in financial services products such as Cash App Borrow. Square’s gross profit rose 9%, supported by strength in software, integrated payments, and banking products. Bitcoin revenue, which accounted for a significant portion of total revenue, declined by 19% compared to the prior year quarter, reflecting lower trading volumes despite higher average bitcoin prices. Notably, bitcoin contributed only 3% to total gross profit, underscoring the company’s diversified revenue streams.

Strategic Focus and Cost Management

Block continues to emphasize disciplined growth and cost efficiency, maintaining an employee headcount cap of 12,000. The company recorded $79.5 million in severance and restructuring expenses year-to-date as part of ongoing efforts to optimize its cost structure. Marketing and advertising expenses increased as Block prioritized investments to support growth in Cash App and Square. Transaction, loan, and consumer receivable losses rose significantly, driven by expanded loan volumes, particularly in Cash App Borrow, though loss rates remained stable.

Regulatory and Legal Landscape

Block faces ongoing regulatory scrutiny, including inquiries from the SEC and DOJ related to a short seller report, and investigations by multiple state Attorneys General concerning Cash App’s handling of customer disputes. The company is also engaged in a tax dispute with the San Francisco Tax Collector over gross receipts taxes related to bitcoin sales, with payments made under protest and refund claims filed. While these matters pose risks, Block continues to cooperate with regulators and is committed to compliance and risk management.

Looking Ahead

Block’s future performance will hinge on its ability to navigate a complex regulatory environment, manage credit risk amid macroeconomic uncertainties, and capitalize on growth opportunities in its core segments. The company’s investments in AI and bitcoin, alongside its strategic capital management, position it to adapt to evolving market dynamics, though volatility in cryptocurrency markets and regulatory developments remain key risks.