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Highlights

  • Block shares fell 24% after disappointing Q1 results and lowered full-year guidance.
  • Revenue and gross profit both missed analyst expectations, prompting investor sell-off.
  • Full-year gross profit forecast cut to US$9.96 billion amid macroeconomic uncertainty.

Block Inc (ASX: XYZ), the payments company behind Cash App and Afterpay, ended the week sharply lower following a disappointing quarterly earnings report and revised guidance. The company's shares plunged as much as 33% in early trading on Friday, hitting a 52-week low of AUD61.42, before recovering slightly to trade down 24% at AUD69.69 by mid-session.

The sell-off was triggered by Block’s Q1 update, which revealed revenue of US$5.77 billion—a 3% year-over-year decline and well below the US$6.2 billion expected by analysts. Gross profit increased 9% to US$2.29 billion, but this also missed the market consensus of US$2.32 billion.

Investor sentiment was further dampened by Block’s downward revision of its outlook. Management cited a “more dynamic macro environment” as the reason for a cautious approach. The company now expects second-quarter gross profit of US$2.45 billion and full-year gross profit of US$9.96 billion—both short of consensus estimates.

CEO Jack Dorsey acknowledged that the company’s performance in the first half of 2025 has been underwhelming, particularly in Cash App, where consumer spending and card activity were weaker than forecast. He attributed this to shifting consumer behavior over the course of the quarter.

While Dorsey suggested that growth may accelerate in the second half of the year, investors remain wary. The revised guidance and current market environment suggest that Block may face ongoing pressure to meet targets and maintain investor confidence.