Block Inc (NYSE:SQ) shares fell nearly 10% in early trading following the company’s third quarter 2025 earnings report, as the payments and financial technology company missed Wall Street revenue and profit expectations.
The company reported revenue of $6.11 billion for the quarter, up 2.3% increase year-over-year, but below analyst estimates of $6.34 billion.
Adjusted earnings per share came in at $0.54, missing the consensus forecast of $0.63.
Block posted a net profit of $461.6 million, or $0.74 per share on a GAAP basis, up from $283.8 million, or $0.45 per share, a year earlier.
Adjusted operating income for the quarter was $409 million, falling short of the Street consensus of $473 million.
Adjusted operating margin came in at approximately 6.7%, well below the 18% margin analysts had anticipated.
The company highlighted growth in its core Square platform, with gross payment volume rising 12% year-over-year, driven by strength in food, beverage, and retail sellers.
Cash App continued to expand, reaching 58 million monthly active users, with gross profit per monthly transacting active up 25% to $94.
The company also noted the first revenue from its Proto business, positioning it as a potential growth engine.
Block raised its guidance for 2025, projecting full-year gross profit of $10.24 billion, a year-over-year increase of more than 15%, and adjusted operating income of $2.06 billion, representing a 20% margin.
The company expects fourth-quarter gross profit growth of 19% year-over-year and adjusted operating income of $560 million.