Jack Dorsey-led Block generated nearly $2b in Bitcoin revenue during the third quarter, accounting for almost one-third of its total $6.11b haul.
The fintech reported net income of $461.5m for the period, according to its latest filing with the Securities and Exchange Commission.
In a Thursday letter to shareholders, the firm said gross profit rose 18% year over year, led by a 24% jump in Cash App and 9% growth in Square.
“Block grew gross profit 18% year over year in the third quarter, with 24% year-over-year growth in Cash App and 9% year-over-year growth in Square,” he said.
Shares closed at $70.94 on Wednesday, down 3.7%, and slipped further in after-hours trading to $64.10.
Mixed Quarter for Block as Bitcoin Still Anchors Revenue Base
Market watchers surveyed by Zacks had forecast $6.34b in revenue and earnings per share of $0.63. Actual results came in slightly lower, with $6.11b in revenue and adjusted EPS of $0.54.
Gross profit reached $2.66b, up 18% year over year, while net income climbed 64%. The company forecasted fourth-quarter gross profit of around $2.75b, implying 19% annual growth.
Adjusted operating income came in at $409m versus consensus estimates of $473m, while EBITDA rose 3% to $833m, narrowly missing projections of $840m.
Bitcoin revenue totaled $1.97b, down from $2.4b a year earlier, yet it remains Block’s second-largest revenue stream behind subscriptions and services. Bitcoin costs dropped to $1.89b from $2.36b during the same period in 2024.
Company Expands Bitcoin Suite Even as Holdings Face Quarterly Markdowns
The firm’s BTC holdings stood at 8,780 BTC as of Sept. 30, up from 8,485 at the start of the year. Those holdings, valued at more than $1b, saw a negative remeasurement of $59m in the quarter and $178m year-to-date.
Block has continued expanding its Bitcoin ecosystem. In October, it launched new payment tools and a merchant wallet to help sellers accept Bitcoin directly. Earlier this year, the company paid $40m to settle allegations from the New York Department of Financial Services over compliance gaps tied to its BTC operations.
Founded by Dorsey in 2009, Block has evolved from a payment processor into a broader financial platform with deep exposure to digital assets. Its inclusion in the S&P 500 earlier this year marked a milestone for one of the highest-profile Bitcoin-integrated companies in the US.
Shares Slip Post-Earnings, but Analysts Cite Long-Term Crypto Strategy as a Strength
Dorsey has long described Bitcoin as “the internet’s native currency” and said his mission is to make it usable for everyday payments. He once remarked that if he were not working on Twitter or Block, he would be dedicating his career entirely to Bitcoin development.
Shares continued to slide after the report, down more than 11% in late trading. Still, many analysts view Block’s long-term Bitcoin exposure as strategic, particularly as institutional adoption of crypto assets accelerates globally.
Meanwhile, Dorsey’s advocacy for everyday Bitcoin use is gaining traction in Washington.
Sen. Cynthia Lummis is drafting legislation to exempt small crypto transactions from capital gains taxes, a proposal inspired by Dorsey’s call to make bitcoin a medium of exchange rather than just a store of value.
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