XYZ · Q2 2025 Earnings
BullishBlock, Inc.
Reported August 7, 2025
30-second summary
Block delivered $6.05B in revenue (-1.6% YoY, a headline distorted by bitcoin revenue mix) but the number that matters is gross profit, with management raising FY2025 gross-profit guidance to $10.17B (+14% YoY) and committing to a Q4 exit rate of 19% growth. Adjusted operating margin hit 22% in the quarter — the highest ever — while Cash App gross profit grew 16% and Square returned to share gains with international GPV up 25%. Cash App gross profit per MTA reached $87 (+15% YoY). The tone shift is the story: management explicitly declared an inflection, and the guide architecture (accelerating gross-profit growth through year-end while expanding margin 200bps) is the most assertive forward setup Block has put on the tape in several years.
Headline numbers
EPS
Q2 FY2025
$0.62
Revenue
Q2 FY2025
$6.05B
-1.6% YoY
Gross margin
Q2 FY2025
41.9%
Operating margin
Q2 FY2025
19.0%
Key financials
Q2 FY2025| Metric | Q2 FY2025 | YoY |
|---|---|---|
| Revenue | $6.05B | -1.6% |
| EPS | $0.62 | — |
| Gross margin | 41.9% | — |
| Operating margin | 19.0% | — |
Guidance
Prior quarter data unavailable — comparison not possible.
Segment performance
Q2 FY2025| Segment | Q2 FY2025 | YoY |
|---|---|---|
| Cash App Gross Profit | $1.5B | +16.0% |
| Square Gross Profit | $1.03B | +11.0% |
Other KPIs
Q2 FY2025| Segment | Q2 FY2025 | YoY |
|---|---|---|
| Square U.S. GPV | $53.3B | +7.0% |
| Square International GPV | $10.9B | +25.0% |
| Square Gross Payment Volume | $64.2B | — |
| Cash App Monthly Transacting Actives | 57M | — |
| Cash App Card Monthly Transacting Actives | 26M | — |
| Cash App Gross Profit per Monthly Transacting Active | $87 | — |
| Cash App P2P Volume (12-month trailing) | $218B | — |
| Cash App Commerce Volume (12-month trailing) | $183B | — |
| Cash App Borrow Origination Volume (annualized) | $18B | — |
| Adjusted Operating Income Margin | 22% | — |
Management tone
Block's posture this quarter is meaningfully more assertive than the company typically projects. The shifts cluster around five themes.
Management explicitly declared the inflection. "We're back to growth mode across the company" is not a phrase Block has used in recent quarters, and it lands alongside a record 22% adjusted operating margin and 38% YoY adjusted operating income growth. The willingness to make a categorical claim — rather than the usual hedged "investments are paying off" framing — signals deliberate confidence-setting ahead of S&P 500 inclusion and the November Investor Day.
Square is being framed as a share-gainer for the first time in several quarters. "Return to share gains in recent quarters" reverses a multi-quarter narrative of competitive pressure. The supporting metrics — highest-ever new volume added, strongest new-volume growth since Q3 2021, and a commitment to "more than double" Q4 new-volume growth — give the claim teeth.
Banking has been promoted from experiment to strategic pillar. SFS now originates the majority of Borrow loans, and Borrow has reached $18B in annualized originations (+95% YoY). Management's claim of "the best combination of assets in the industry" is the kind of language Block previously reserved for aspirational framing; it is now anchored to a $18B origination run-rate and the new 8M banking-assets cohort with $250 per-active gross profit.
Product velocity is now a quantified narrative, not a qualitative one. Management cited Pools shipping in three months, Square AI, Square Handheld, and an updated Square Online all launched in Q2. The AI coding tool Goose was cited as enabling "near-zero-cost experimentation" — the first time Block has translated internal AI tooling into a shipping-velocity claim on a public call.
Field-sales ROI has moved from "investing for the future" to validated unit economics. Management cited 5–6 quarter LTV-to-cash payback on field sales hires and committed to ramping sales personnel "aggressively." Compared to prior quarters where field-sales economics were defended rather than asserted, this is a clear escalation.
Recurring themes management leaned on this quarter:
Risks management surfaced:
Q&A highlights
Qinxin Quang · J.P. Morgan
Seeking clarity on conviction and visibility into second half acceleration, asking whether management is more bullish in certain areas versus 90 days ago and where they remain cautious.
Management emphasized shipping velocity as the key indicator, highlighted the recent pools launch as evidence of accelerated feature deployment (3 months from ideation to execution), and cited AI coding tools like Goose enabling near-zero-cost experimentation. Expressed high confidence in ability to ship faster and improve Cash App and Square products. Provided specific data: 6 million monthly actives on borrow, post-purchase BNPL crossed 1 million active milestone as of July with $2 billion originations run rate, cash-out pay at $7 million monthly assets as of June.
Tim Scioto · UBR
Requesting detailed metrics on cash card post-purchase BNPL including attach rates, loss rates, and volume to quantify opportunity into 2026.
Management disclosed post-purchase BNPL launched in March, crossed $1 million monthly assets and $2 billion originations run rate in July. BNPL platform GMV accelerated to 17% reported (18% constant currency) in Q2 from 13% (16%) in Q1. Gross profit accelerated 22% year-over-year. Early metrics show strong conversion and adoption, tracking ahead of borrow's early trajectory on origination volume and margin profile. Emphasized learnings from borrow's credit score infrastructure being leveraged. 2026 drivers include ramping post-purchase BNPL, traditional payment in Cash App, Cash App Pay, Tax to Pay, and continued borrow growth.
Darren Peller · Wolf Research
Requesting explanation of new banking assets metric (8 million) combining paycheck deposit users and $500/month spenders, and asking about NAU growth trends.
Management explained that new 8 million banking assets metric reflects deeper customer research showing more people use Cash App as primary banking partner than paycheck deposit metric alone captures. $500/month spend threshold chosen because average US debit card spend is ~$900/month, indicating top-of-wallet usage. These 8 million actives grew 16% year-over-year and generated $250+ in annualized gross profit per active (3x blended ARPU of $87). Transacted 40+ times in June. Management committed to testing higher borrow limits for paycheck deposit actives and expanding banking benefits based on spend thresholds.
Raina Kumar · Oppenheimer
Asking about returns on expanded Square go-to-market investments including new product launches and whether performance is meeting expectations.
Management highlighted strong early results from expanded go-to-market playbooks with improved market share gains. Field sales shows 20%+ growth in new volume added in H1 2024, expected to more than double in Q4. LTV to cash payback in 5-6 quarter range at strong rates. Marginal returns on new field and telesales hires are very strong, supporting continued investment. Partner motion exceeding expectations in Q2 with new channels including first US ISO partnership. International showing 25% GPV growth and 19% gross profit growth in Q2. Self-onboarding volumes remain healthy alongside sales-enabled growth.
Harshita Rawat · Bernstein
Asking what additional strategies can drive Cash App network and user growth given recent stalling, and seeking comments on Bitcoin mining initiatives following recent competitor deals.
Management emphasized focus on network density through family and team features, with pools as flagship product (60% of US adults pool money for something). Highlighted shift to 'money for next generation' as huge untapped opportunity, citing younger audience appeal. Pools allows non-Cash App users to contribute via Apple Pay/Google Pay then sign up. Referenced upcoming announcement on proto-mining ('this coming week'), claiming to have built best miner with most flexibility and customization. Committed to strong execution with creative marketing and faster feature launches enabled by AI tools and reorganization. Noted early signs of success not fully reflected in Q2 results.
What to watch into next quarter
Q3 gross profit landing at +16% YoY ($2.60B): the guide is specific enough to be falsifiable; any Q3 print below +15% breaks the acceleration arc and puts the +19% Q4 exit rate in doubt.
Cash App MTA trajectory: 57M MTAs (flat YoY) and 26M Card MTAs (+5%) were disclosed — watch whether Q3 brings any inflection in the headline user count given that Pools, post-purchase BNPL, and marketing campaigns are all aimed squarely at this metric.
Borrow loss rates as originations scale to $18B+ annualized: management said they expect losses "within historical ranges"; watch the disclosed loss rate in the Q3 print, particularly as SFS now originates the majority of loans and the book is growing fast.
Square U.S. GPV reaccelerating to low-double-digits: Q2 U.S. GPV was +7% while international was +25%; the FY guide implicitly requires U.S. to step up materially in H2, not just international to keep running.
Post-purchase BNPL run-rate progression: $2B annualized originations in July is the new baseline; watch for the Q3 print and any disclosed attach rate on Cash App Card spend to validate the "tracking ahead of Borrow" claim.
Proto chip delivery milestones: management called out Proto as a Q3/Q4 gross-profit contributor; any slippage in deliveries would directly pressure the +19% Q4 exit rate.
Sources
- Block, Inc. Q2 2025 Shareholder Letter / Press Release, SEC EDGAR filing: https://www.sec.gov/Archives/edgar/data/1512673/000119312525175456/d942331dex991.htm
- Block Q2 2025 earnings call Q&A (select exchanges with J.P. Morgan, UBS, Wolf Research, Oppenheimer, Bernstein, Mizuho, FT Partners, and Baird)
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