01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Block, Inc. (XYZ) reported third-quarter 2025 results in this Form 10-Q filed November 6, 2025.
Total net revenue for the three months ended September 30, 2025 was $6.11 billiona, up 2% from $5.98 billion a year earlier, while gross profit rose to $2.66 billion from $2.25 billion. Operating income was $409.4 million versus $323.0 million, and net income attributable to common stockholders was $461.5 million versus $283.8 million. For the nine months, total net revenue declined 1% to $17.94 billion, mainly because bitcoin revenue fell $1.36 billion, while excluding bitcoin revenue the company's net revenue grew 12%.
Growth was driven by Cash App Borrow and Square's software and payments products. Credit costs rose sharply. Transaction, loan, and consumer receivable losses were $363.5 millionb in the quarter, up from $192.1 million, as loan volumes grew and the company began classifying most newly originated customer loans as held for investment starting in the second quarter of 2025.
Loans held for investment reached $2.20 billionc net of allowance, versus $365.1 million at year-end 2024. On the balance sheet, the company issued $2.2 billion of senior notes due 2030 and 2033 in August 2025 and repaid $1.0 billion of 2025 convertible notes at maturity.
It repurchased $1.5 billiond of Class A stock in the first nine months, with $1.1 billion remaining under the program, and ended the quarter with $10.5 billion in available liquidity. The filing also discloses ongoing state Attorney General, SEC, and DOJ matters, and a San Francisco gross receipts tax assessment for which the company has recorded no liability.
02—Key points
Key Highlights
- Q3 2025 total net revenue of $6.11 billion, up from $5.98 billion; nine-month net revenue of $17.94 billion, down from $18.09 billion, reflecting lower bitcoin revenue.
- Q3 gross profit of $2.66 billion, up from $2.25 billion; Cash App segment gross profit rose 24% to $1.62 billion and Square segment gross profit rose 9% to $1.02 billion.
- Operating income of $409.4 million in Q3 2025 versus $323.0 million; Adjusted EBITDA of $832.7 million versus $807.5 million.
- Transaction, loan, and consumer receivable losses increased to $363.5 million in Q3 from $192.1 million, driven by Cash App Borrow growth and held-for-investment loan classification.
- Issued $2.2 billion of senior notes (2030 and 2033) in August 2025 and repaid $1.0 billion of 2025 convertible notes; total principal debt of $7.35 billion at September 30, 2025.
- Repurchased $1.5 billion of Class A common stock in the first nine months of 2025; $1.1 billion remained authorized, and available liquidity was $10.5 billion.
- Bitcoin investment of approximately 8,780 bitcoins with a fair value of $1.0 billion; $178.4 million of nine-month remeasurement gains recorded in net income.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Block kept $0.08.
- Revenue$6.11B100.0%
- Cost of revenue−$3.45B56.5%
- Gross profit$2.66B43.5%
- Operating costs−$2.25B36.8%
- Operating income$409.4M6.7%
- Interest, other & tax$52.2M0.9%
- Net income$461.6M7.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $6.11B$5.98B | +2.3% |
| Cost of Revenue | $3.45B$3.73B | −7.3% |
| Gross Profit | $2.66B$2.25B | +18.3% |
| R&D Expenses | $711.24M$710.98M | 0.0% |
| Operating Expenses | $2.25B$1.93B | +16.9% |
| Operating Income | $409.44M$323.01M | +26.8% |
| Net Income | $461.60M$281.14M | +64.2% |
| EPS (Basic) | $0.76$0.46 | +65.2% |
| EPS (Diluted) | $0.74$0.45 | +64.4% |
| Shares Outstanding (Basic) | 610.20M616.43M | −1.0% |
| Shares Outstanding (Diluted) | 621.66M632.76M | −1.8% |
05—Questions
Frequently Asked Questions
How did Block's profitability change in the third quarter of 2025?
Net income attributable to common stockholders was $461.5 million, compared with $283.8 million in the third quarter of 2024. Operating income rose to $409.4 million from $323.0 million, and diluted net income per share was $0.74 versus $0.45. Other income, net of $167.2 million, mainly reflected a $171.6 million upward adjustment on a non-marketable equity investment.
Why did total revenue decline for the first nine months while growing in the quarter?
Bitcoin revenue fell $1.36 billion for the nine months, from $7.77 billion to $6.41 billion, as trading volume decreased. Excluding bitcoin revenue, net revenue grew 12% for the nine months, and subscription and services-based revenue rose 17%, led by Cash App Borrow and other financial services products.
What is driving the increase in credit losses?
Transaction, loan, and consumer receivable losses rose to $363.5 million in the third quarter from $192.1 million. The filing attributes the increase to significant growth in loan volumes, particularly Cash App Borrow, which grew 134% in the quarter, and to the company classifying most newly originated customer loans as held for investment, which requires an allowance for credit losses.
How is Block funding its capital returns and debt obligations?
In August 2025 Block issued $2.2 billion of senior unsecured notes, with $1.2 billion due 2030 at 5.625% and $1.0 billion due 2033 at 6.000%. It used cash to settle $1.0 billion of 2025 convertible notes in March 2025 and repurchased $1.5 billion of stock in the first nine months. The company reported $10.5 billion in available liquidity and a $775.0 million undrawn revolving credit facility as of September 30, 2025.
What legal and regulatory matters could affect Block's results?
The filing discloses state Attorney General inquiries into Cash App's handling of customer complaints, where the company states a loss is probable and could be material but cannot estimate the amount. It also cites SEC and DOJ inquiries and a San Francisco gross receipts tax assessment, with up to $114 million in potential losses for fiscal years 2020 through 2024 for which no liability has been recorded because a loss is not probable.
06—Continue