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Highlights

  • Block's gross profit rose 14% year-on-year to US$2.54 billion in Q2 2025.

  • Operating income increased 58% year-on-year to US$484 million.

  • Adjusted earnings per share climbed 31.9% to 62 US cents.

Block Inc (ASX:XYZ) saw its share price rise during morning trade on Friday, increasing 10% to AUD 127.88 following the release of its second quarter financial update before the market opened.

For the three months ended 30 June 2025, the payments company recorded a 14% increase in gross profit to US$2.54 billion, exceeding its guidance. This growth was supported by a 16% year-on-year increase in Cash App gross profit to US$1.5 billion and an 11% lift in Square gross profit to US$1.03 billion.

The company stated that the outperformance in gross profit was partly due to the launch of new products across Square and Cash App, aimed at sustaining growth at scale. Block reported operating income of US$484 million for the quarter, with adjusted operating income reaching US$550 million.

Performance Drivers

Management noted year-on-year improvement across all major profitability metrics and confirmed that it exceeded profitability guidance for the period. Square’s gross payment volume grew 10% year-on-year, while Cash App gross profit growth accelerated toward the end of the quarter.

Jack Dorsey, Block’s co-founder, highlighted that the company’s focus on product innovation to support network expansion had delivered measurable results. He pointed to the development and rollout of Pools on Cash App, which launched in July, four months after the start of development work.

Cash App and Square Developments

The company continues to emphasise its two core platforms—Cash App and Square—as the primary drivers of growth. The launch of new features is intended to deepen customer engagement and broaden usage across its ecosystem.

Dorsey described Cash App as having significant potential, referring to it as a platform capable of acting as a comprehensive financial operating system for its user base.

Outlook

In his outlook, Dorsey stated that Cash App processed US$218 billion in peer-to-peer volume, US$183 billion in commerce volume, and US$18 billion in annualised Borrow originations, with millions of active banking customers. These figures, according to the company, demonstrate the scale of its ecosystem and its integration into customers’ daily financial activities.

Block aims to continue expanding its customer base and product offerings, leveraging its ecosystem to generate further growth. The company plans to provide additional insights into its strategic direction at its upcoming Investor Day, with a focus on Cash App in the near term and Square in the following quarter.

Over the past month, Block’s share price has risen 20%, with the second quarter results contributing to the latest increase.