TLDR
- Block (XYZ) reported Q3 earnings of $461.5 million on revenue of $6.11 billion, missing analyst expectations for adjusted operating income ($409M vs $473M expected) and EBITDA ($833M vs $840M expected).
- Bitcoin revenue totaled $1.97 billion, accounting for nearly one-third of total revenue and making it the company’s second-largest revenue source.
- Block shares fell 9.6% in after-hours trading to $64.10 after closing down 3.7% at $70.94, extending the stock’s 18.24% decline for 2025.
- The company holds 8,780 BTC worth over $1 billion, up from 8,485 BTC at the start of the year, but recorded a $59 million negative remeasurement in Q3.
- Block’s new mining venture Proto generated its first revenue in Q3 through hardware sales of ASICs, hashboards, and mining rigs.
Block reported third-quarter earnings that fell short of Wall Street estimates. The company posted earnings per share of 54 cents, missing analyst expectations of 63 cents by 14%.
$XYZ (Block) #earnings are out: pic.twitter.com/GQmFYD30cP
— The Earnings Correspondent (@earnings_guy) November 6, 2025
Revenue came in at $6.11 billion for the quarter. That figure represented a 2.3% increase year-over-year but missed the $6.33 billion analysts had projected.
Shares dropped hard after the earnings release. XYZ fell 9.6% in after-hours trading to $64.10 after already closing down 3.7% at $70.94 during regular trading.
The stock has had a rough year overall. Shares are down 18.24% for 2025 so far.
Bitcoin operations generated $1.97 billion in revenue during Q3. That makes crypto the company’s second-largest revenue source behind subscription and services.
The bitcoin revenue figure was down from $2.4 billion in the same quarter last year. Bitcoin costs also decreased to $1.89 billion from $2.36 billion in Q3 2024.
Block’s bitcoin holdings grew during the year. The company held 8,780 BTC at the end of September, up from 8,485 BTC at the start of 2025.
Those holdings are worth over $1 billion. But they recorded a negative remeasurement of $59 million in Q3 and $178 million year-to-date.
Cash App and Square Show Growth
Gross profit rose 18% year-over-year to $2.66 billion. CEO Jack Dorsey highlighted this growth in his shareholder letter.
Cash App led profit generation with $1.62 billion, marking a 24% yearly increase. Square’s merchant payments business brought in $1.018 billion, a 9% increase.
Operating income totaled $409 million, up 26% year-over-year. However, this missed consensus estimates of $473 million.
EBITDA came in at $833 million, a 3% increase. Analysts had expected $840 million.
Block now projects gross profit of $10.24 billion for full-year 2025. That would represent a 15% increase compared to the previous year.
Proto Mining Venture Starts Generating Revenue
Block’s bitcoin mining arm Proto generated its first revenue in Q3. CFO Amrita Ahuja announced this development on the investor call.
Proto monetized its hardware and software innovations. The company sold ASICs, mining hashboards, and full mining rigs.
Ahuja described Q3 revenue as “modest” but said the company has a “robust pipeline for 2026.” Proto launched in November 2024 but didn’t announce its first mining rig placements until August.
Block rolled out new bitcoin payment tools and a merchant wallet for businesses in October. Earlier in 2025, the company paid $40 million to settle with the New York Department of Financial Services over alleged anti-money laundering failures related partly to its bitcoin operations.
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