Block, the fintech company led by Jack Dorsey, reported a mixed third quarter with its total revenue reaching $6.11 billion, falling slightly short of analysts' $6.34 billion forecast. Despite the overall revenue miss, the company's Bitcoin revenue was a major contributor, generating nearly $2 billion—about one-third of the total haul.
Key Financial Highlights:
- Total Revenue: $6.11 billion (Missed $6.34 billion forecast)
- Net Income: $461.5 million (Climbed 64% year-over-year)
- Adjusted EPS: $0.54 (Missed $0.63 forecast)
- Gross Profit: Reached $2.66 billion, an 18% year-over-year increase, led by Cash App growth (24%) and Square growth (9%).
- Q4 Forecast: Block anticipates around $2.75 billion in gross profit for the fourth quarter.
- Bitcoin Revenue: Totaled $1.97 billion, though this was down from $2.4 billion a year earlier. Bitcoin remains the company's second-largest revenue stream after subscriptions and services.
Bitcoin Strategy and Market Reaction:
Block's stock, trading under the symbol 'SQ', slipped significantly post-earnings, closing down 3.7% on Wednesday and falling more than 11% in after-hours trading, in part due to missing some key market estimates like adjusted operating income and EPS.
- Expanding Bitcoin Ecosystem: The company continues to invest in its Bitcoin offerings, launching new payment tools and a merchant wallet to facilitate direct BTC acceptance.
- BTC Holdings: Block's holdings increased to 8,780 BTC by the end of the quarter. These holdings incurred a negative remeasurement of $59 million for the period.
- Dorsey's Vision: Founder Jack Dorsey remains a strong proponent of Bitcoin as "the internet’s native currency," advocating for its use in everyday payments. This vision is even influencing policy, with US Senator Cynthia Lummis drafting legislation inspired by Dorsey's calls to exempt small crypto transactions from capital gains taxes.
Despite the immediate stock dip, many analysts view Block's deep, long-term commitment to Bitcoin and its surrounding ecosystem as a strategic strength for the future.
November 2025, Cryptoniteuae