Block shares rise 6% after raising full-year profit forecast

Block shares jump after stronger quarterly results

Block Inc. shares rose 6.2% in after-hours trading on Tuesday after the company reported higher third-quarter earnings and raised its full-year outlook.

The Jack Dorsey-led fintech firm said net income was $566 million in the third quarter. That was up from $462 million a year earlier.

Key numbers from the third quarter

• Total revenue was $6.72 billion, up from $6.12 billion a year earlier.
• Gross profit, which is revenue after direct sales costs, rose 22% year-on-year to $3.24 billion.
• Cash App gross profit rose 27% year-on-year to $2.07 billion.
• Block raised its full-year gross profit forecast to $12.63 billion, a forecast increase of 22% year-on-year.
• Shares had closed down 1.4% at $76 on Tuesday before the after-hours rise.

Bitcoin business posts a sharp decline

Gross profit from Block's bitcoin ecosystem fell 50% year-on-year to $52 million.

Block linked the drop to its decision to charge lower fees on certain bitcoin transactions on Cash App. The bitcoin ecosystem includes customer bitcoin purchases in Cash App and Proto, along with bitcoin withdrawal fees.

Cash App revenue was $4.07 billion in the quarter. That included $1.77 billion from the bitcoin ecosystem segment.

What Block expects next

Block said it raised its guidance to reflect momentum across the company. It also said it expects gross profit to grow by at least 15% in 2027.

Sources

• The Block