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Block 8-K Report, Financial Results (Feb 20, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 20, 2025
Period End
February 20, 2025
Securities
XYZBSQKZ
In the record · 2016–202610-K1110-Q338-K137

XYZ filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Apr ’22Apr ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.

Block, Inc. (XYZ) filed this Form 8-K on February 20, 2025 to furnish its Shareholder Letter (Exhibit 99.1) reporting fourth-quarter and fiscal 2024 results.

For fiscal 2024, gross profit was $8.89 billiona, up 18% year over year, with Cash App gross profit of $5.24 billion (up 21%) and Square gross profit of $3.60 billion (up 15%). GAAP operating income was $892 million, a 10% margin on gross profit, while Adjusted Operating Income was $1.61 billion, an 18% margin. Net income attributable to common stockholders was $2.90 billion, which includes $1.9 billion of one-time income tax benefits.

Fourth-quarter gross profit was $2.31 billionb, up 14%, and operating income fell to $13 million, reflecting contingencies, restructuring and other charges tied to litigation and regulatory matters. Management's 2025 outlook calls for gross profit of $10.22 billion (at least 15% growth) and Adjusted Operating Income of $2.10 billion, or about a 21% margin, implying a Rule of 35.5. The company expects gross profit growth to accelerate through the year, with a more pronounced acceleration at Cash App driven by the February 2025 rollout of Afterpay on Cash App Card and expanded Cash App Borrow eligibility.

Management plans to raise go-to-market investment by more than 20% and expects to exit 2025 at a Rule of 40 run rate, with Rule of 40 still targeted for 2026. The letter also gives a Q1 2025 outlook of $2.32 billionc gross profit (11% growth) and $430 million Adjusted Operating Income.

The letter notes that results are preliminary until the company files its Form 10-K, and that the company is continuing negotiations with the New York Department of Financial Services over its compliance program, one of its remaining state money transmitter regulators. Share repurchases totaled $1.17 billiond for fiscal 2024, and $2.7 billion remained under the $4 billion authorization as of December 31, 2024.

02—Key points

Key Highlights

  1. Fiscal 2024 gross profit of $8.89 billion, up 18% year over year; Cash App gross profit of $5.24 billion (up 21%) and Square gross profit of $3.60 billion (up 15%).
  2. GAAP operating income of $892 million (10% of gross profit) versus an operating loss of $279 million in 2023; Adjusted Operating Income of $1.61 billion (18% margin).
  3. Fourth-quarter operating income was $13 million, down from a $131 million loss in Q4 2023 only in relative terms, with contingencies, restructuring and other charges of $203 million, primarily related to litigation and regulatory matters.
  4. GAAP net income attributable to common stockholders of $2.90 billion for 2024 includes $1.9 billion of one-time income tax benefits from valuation allowance release and deferred tax asset recognition.
  5. 2025 outlook: gross profit of $10.22 billion (at least 15% growth) and Adjusted Operating Income of $2.10 billion, about a 21% margin, implying a Rule of 35.5.
  6. Q1 2025 outlook: gross profit of $2.32 billion (11% growth) and Adjusted Operating Income of $430 million (19% margin).
  7. Cash App paycheck deposit monthly actives reached 2.5 million in Q4 2024, up 25% year over year; Afterpay on Cash App Card rollout began February 2025.

03—Questions

Frequently Asked Questions

  1. How did Block perform in fiscal 2024?

    Gross profit reached $8.89 billion, up 18% year over year, with Adjusted Operating Income of $1.61 billion and an 18% margin. GAAP operating income was $892 million, compared with an operating loss of $279 million in 2023.

  2. Why was fourth-quarter operating income so low?

    Fourth-quarter operating income was $13 million. The letter attributes this to $203 million of contingencies, restructuring and other charges, primarily accrued expenses related to certain litigation and regulatory matters. Adjusted Operating Income for the quarter was $402 million.

  3. What is Block's 2025 guidance?

    Management expects gross profit of $10.22 billion, growth of at least 15%, and Adjusted Operating Income of $2.10 billion, with margin expansion to about 21%. It expects to exit 2025 at a Rule of 40 run rate and remains committed to Rule of 40 in 2026.

  4. What drives the expected 2025 acceleration?

    The letter cites the February 2025 launch of Afterpay on Cash App Card and the planned expansion of Cash App Borrow eligibility, plus ramping marketing for Cash App Card and paycheck deposit actives. For Square, it cites expanded go-to-market initiatives and product investments expected to improve GPV and gross profit growth.

  5. Are these results final?

    No. The letter states that the company has not yet filed its Form 10-K for 2024, so all financial results are preliminary and subject to change for any necessary adjustments or changes in accounting estimates identified before that filing.

04—Continue

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