01—Abstract
Summary
Summary of the 10-Q filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Block, Inc. (XYZ) reported first-quarter 2025 results in this Form 10-Q filed May 1, 2025.
Total net revenue was $5.77 billiona, down from $5.96 billion a year earlier, primarily because bitcoin revenue fell $429.7 million to $2.30 billion. Excluding bitcoin revenue, total net revenue increased $244.4 million, or 8%. Gross profit rose to $2.29 billion from $2.09 billion, up 9% year over year, with Cash App gross profit up 10% to $1.38 billion and Square gross profit up 9% to $897.9 million.
Operating income was $329.3 millionb versus $249.7 million a year earlier, and Adjusted EBITDA was $812.8 million versus $705.1 million. Net income attributable to common stockholders fell to $189.9 million from $472.0 million, mainly because of a $93.4 million remeasurement loss on the bitcoin investment compared with a $233.4 million gain in the prior-year quarter. Diluted EPS was $0.30 versus $0.74.
Liquidity remained substantial at $9.2 billionc, though it declined $1.5 billion from December 31, 2024. The decline reflected a $1.0 billion cash payment to settle the 2025 Convertible Notes at maturity and $445.3 million of share repurchases in the quarter. The company held $5.2 billion in aggregate principal amount of debt, including $1.0 billion of 2026 Senior Notes, $1.0 billion of 2031 Senior Notes, $2.0 billion of 2032 Senior Notes, and $575.0 million each of the 2026 and 2027 Convertible Notes.
Operating cash flow was $133.3 milliond, compared with $489.4 million a year earlier. The filing also discloses legal and regulatory matters. In April 2025 the company entered into a consent order with the New York State Department of Financial Services and paid a $40 million civil monetary penalty.
Ongoing matters include multistate Attorney General inquiries about Cash App customer complaints, SEC and DOJ inquiries, and a San Francisco gross receipts tax assessment of $71.4 million that the company paid as a deposit. The company estimates a possible loss range of approximately $0 to $92 million for that tax matter, but has not recorded a liability because a loss is not considered probable.
02—Key points
Key Highlights
- Total net revenue was $5,771.8 million, down 3% from $5,957.1 million, mainly due to a $429.7 million decline in bitcoin revenue; excluding bitcoin, net revenue rose 8%.
- Gross profit was $2,289.6 million, up 9% year over year, with Cash App gross profit up 10% to $1,380.0 million and Square gross profit up 9% to $897.9 million.
- Operating income was $329.3 million versus $249.7 million; Adjusted Operating Income was $466.3 million versus $364.3 million.
- Net income attributable to common stockholders was $189.9 million versus $472.0 million, reflecting a $93.4 million bitcoin remeasurement loss compared with a $233.4 million gain a year earlier.
- Available liquidity was $9.2 billion, down $1.5 billion from year-end 2024, after a $1.0 billion payment to settle the 2025 Convertible Notes and $445.3 million of share repurchases.
- Operating cash flow was $133.3 million, down from $489.4 million in the prior-year period.
- The company agreed to a $40 million NYDFS civil penalty in April 2025 and has other open regulatory and tax matters, including a San Francisco gross receipts tax assessment with an estimated loss range of approximately $0 to $92 million that is not recorded as probable.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Block kept $0.03.
- Revenue$5.77B100.0%
- Cost of revenue−$3.48B60.3%
- Gross profit$2.29B39.7%
- Operating costs−$1.96B34.0%
- Operating income$329.3M5.7%
- Interest, other & tax−$140.6M2.4%
- Net income$188.7M3.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 1, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $5.77B$5.96B | −3.1% |
| Cost of Revenue | $3.48B$3.86B | −9.8% |
| Gross Profit | $2.29B$2.09B | +9.3% |
| R&D Expenses | $760.70M$720.57M | +5.6% |
| Operating Expenses | $1.96B$1.84B | +6.3% |
| Operating Income | $329.30M$249.74M | +31.9% |
| Net Income | $188.72M$470.82M | −59.9% |
| EPS (Basic) | $0.31$0.77 | −59.7% |
| EPS (Diluted) | $0.30$0.74 | −59.5% |
| Shares Outstanding (Basic) | 619.37M616.40M | +0.5% |
| Shares Outstanding (Diluted) | 635.34M637.36M | −0.3% |
05—Questions
Frequently Asked Questions
Why did total net revenue decline even though the core businesses grew?
Total net revenue fell $185.3 million, or 3%, to $5.77 billion, because bitcoin revenue decreased $429.7 million, or 16%, as lower quantity sold more than offset a higher average bitcoin price. Excluding bitcoin revenue, net revenue increased $244.4 million, or 8%, driven by subscription and services revenue growth of 12%, including Cash App financial services and BNPL revenue of $312.9 million.
Why did net income fall so sharply year over year?
The main driver was a $93.4 million remeasurement loss on the company's bitcoin investment in Q1 2025, compared with a $233.4 million remeasurement gain in Q1 2024, a swing of $326.8 million. Operating income actually improved to $329.3 million from $249.7 million. Diluted EPS was $0.30 versus $0.74.
How is the company's liquidity and debt position?
Available liquidity was $9.2 billion as of March 31, 2025, including $8.5 billion in cash, restricted cash and marketable debt securities plus $775.0 million undrawn under the revolving credit facility. Total debt principal was $5.2 billion after the $1.0 billion 2025 Convertible Notes were repaid in March 2025. The company stated it was in compliance with all financial covenants.
What regulatory and legal risks does the filing highlight?
The filing discloses a $40 million civil monetary penalty paid in April 2025 under a New York DFS consent order, an ongoing multistate Attorney General matter on customer complaint handling, SEC and DOJ inquiries, and a San Francisco gross receipts tax assessment of $71.4 million paid as a deposit. The company estimates possible losses of approximately $0 to $92 million for the tax matter but has not recorded a liability.
How much did the company spend on share repurchases?
During Q1 2025 the company repurchased 6.8 million Class A shares for $445.3 million. As of March 31, 2025, $2.2 billion remained available under the $4 billion total repurchase authorization.
06—Continue