Block Inc. (NYSE: XYZ) shares slumped over 22% in pre-market trading on Friday after the financial technology firm reported first-quarter earnings that missed Wall Street expectations and issued weaker-than-expected guidance for the rest of the year.
The company, formerly known as Square, posted adjusted earnings per share of $0.56 for the first quarter, well below analyst expectations of $0.98.
Revenue for the quarter totaled $5.77 billion, also missing the consensus estimate of $6.21 billion.
Gross profit, a key performance metric for Block, rose 9% year-over-year to $2.29 billion. However, the company acknowledged the figure was below its internal expectations, citing softer-than-anticipated growth from its Cash App business.
In its shareholder letter, the company said,
“Our growth in the first half of this year does not meet our bar.”
Looking ahead, Block trimmed its full-year 2025 gross profit forecast to $9.96 billion, falling short of analysts’ estimates of $10.18 billion. For Q2, the company expects gross profit of $2.45 billion, also below the $2.53 billion consensus.
The management attributed a weaker outlook to a more cautious macroeconomic environment. It now expects gross profit growth to exit 2025 in the mid-teens percentage range, down from earlier estimates.
Block CEO Jack Dorsey said,
“We understand the drivers behind our recent deceleration in growth and have incorporated updated views on the macro environment into our revised guidance for the year.”
Despite the disappointing financial results, Block highlighted progress on strategic initiatives, including expanding its Cash App Borrow offering and launching new features for Square sellers. The company reaffirmed its focus on accelerating growth in the latter half of 2025.
As of the latest update, Block (NYSE: XYZ) shares are down 22.37%, trading at $45.40.
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry. Read Full Bio
