01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Block, Inc. (XYZ) reported second-quarter 2025 total net revenue of $6.05 billiona, down from $6.16 billion a year earlier, as bitcoin revenue fell $467.7 million to $2.14 billion.
Gross profit rose to $2.54 billionb, and the filing states it was up 14% year over year. Cash App gross profit was $1.50 billion (up 16%) and Square gross profit was $1.03 billion (up 11%). Operating income was $484.3 million versus $306.6 million, and net income attributable to common stockholders was $538.5 million versus $195.3 million.
The results include a $212.2 millionc gain from remeasuring the company's bitcoin investment, and Adjusted EBITDA was $891.4 million versus $759.5 million. Transaction, loan, and consumer receivable losses rose 53% to $294.1 million in the quarter, which the filing attributes mainly to growth in loan volumes, particularly Cash App Borrow. Liquidity at June 30, 2025 was $8.5 billion, down from $10.7 billion at December 31, 2024, mainly because of a $1.0 billion cash payment to settle the 2025 Convertible Notes and $1.1 billion of share repurchases in 2025.
Total debt principal outstanding was $5.15 billiond. The company also disclosed a $40 million NYDFS civil penalty, ongoing state Attorney General and SEC/DOJ inquiries, and a San Francisco gross receipts tax dispute with a potential exposure of up to $114 million, for which no liability has been recorded.
The filing notes that the One Big Beautiful Bill Act was enacted on July 4, 2025, with the company evaluating its effects and anticipating material cash tax savings starting in fiscal 2025. Operating cash flow for the six months was $507.7 million, compared with $1.01 billion a year earlier.
02—Key points
Key Highlights
- Total net revenue of $6.05 billion for Q2 2025, down 2% year over year, driven by a $467.7 million decline in bitcoin revenue; excluding bitcoin, revenue rose 10%.
- Gross profit of $2.54 billion, up 14% year over year; Cash App gross profit up 16% to $1.50 billion and Square gross profit up 11% to $1.03 billion.
- Net income attributable to common stockholders of $538.5 million, versus $195.3 million a year earlier, including a $212.2 million bitcoin remeasurement gain.
- Adjusted EBITDA of $891.4 million, compared with $759.5 million in Q2 2024.
- Transaction, loan, and consumer receivable losses increased 53% to $294.1 million, primarily from growth in loan volumes, particularly Cash App Borrow.
- Available liquidity of $8.5 billion at June 30, 2025, down from $10.7 billion at December 31, 2024, after a $1.0 billion convertible note settlement and $1.1 billion of share repurchases.
- Regulatory and legal exposure includes a $40 million NYDFS penalty, state Attorney General and SEC/DOJ inquiries, and a San Francisco gross receipts tax dispute with potential losses of up to $114 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Block kept $0.09.
- Revenue$6.05B100.0%
- Cost of revenue−$3.52B58.1%
- Gross profit$2.54B41.9%
- Operating costs−$2.05B33.9%
- Operating income$484.3M8.0%
- Interest, other & tax$54.0M0.9%
- Net income$538.3M8.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $6.05B$6.16B | −1.6% |
| Cost of Revenue | $3.52B$3.92B | −10.3% |
| Gross Profit | $2.54B$2.23B | +13.6% |
| R&D Expenses | $725.29M$713.16M | +1.7% |
| Operating Expenses | $2.05B$1.93B | +6.5% |
| Operating Income | $484.29M$306.56M | +58.0% |
| Net Income | $538.33M$189.87M | +183.5% |
| EPS (Basic) | $0.88$0.32 | +175.0% |
| EPS (Diluted) | $0.87$0.31 | +180.6% |
| Shares Outstanding (Basic) | 612.88M617.67M | −0.8% |
| Shares Outstanding (Diluted) | 618.93M634.22M | −2.4% |
05—Questions
Frequently Asked Questions
Why did total revenue decline even though gross profit grew?
Total net revenue fell 2% to $6.05 billion because bitcoin revenue dropped $467.7 million, driven by lower trading volume. Bitcoin contributed 35% of Q2 revenue but only 3% of gross profit. Excluding bitcoin, total net revenue increased 10%, and gross profit rose 14%.
How much did the bitcoin investment affect reported earnings?
The company recognized a $212.2 million remeasurement gain on its bitcoin investment in Q2 2025, compared with a $70.1 million loss in Q2 2024. This gain is included in net income and is excluded from Adjusted EBITDA and Adjusted Operating Income.
What is driving the increase in credit losses?
Transaction, loan, and consumer receivable losses rose $102.3 million, or 53%, to $294.1 million in Q2 2025. The filing attributes the increase mainly to growth in loan volumes, particularly Cash App Borrow.
How did the company's cash and liquidity change in 2025?
Available liquidity fell to $8.5 billion at June 30, 2025 from $10.7 billion at December 31, 2024. The decline reflects a $1.0 billion cash payment to settle the 2025 Convertible Notes at maturity and $1.1 billion of share repurchases. The company holds a $775.0 million undrawn revolving credit facility.
What legal and tax matters could affect future results?
The company paid a $40 million NYDFS civil penalty in April 2025 and is subject to an independent monitor. State Attorney General and SEC/DOJ inquiries are ongoing, and the filing says a material adverse effect cannot be ruled out. A San Francisco gross receipts tax dispute could result in losses of up to $114 million for fiscal 2020 through 2024. The company has recorded no liability for it, and the filing says the company is evaluating the One Big Beautiful Bill Act's impact on cash taxes.
06—Continue