Snapshot
Block, Inc. reported $6.25B of revenue in Q4 2025, up 3.6% year over year, with diluted EPS of $0.19 and an operating margin of 7.8%.
- Revenue
- $6.25B
- YoY growth
- +3.6%
- Diluted EPS
- $0.19
- Operating margin
- 7.8%
What management said
- •These forward-looking statements include discussions of our outlook, strategy, and guidance, as well as our long-term targets and goals, and how we plan to operate moving forward.
- •With Rule of 40, we are evaluating the sum of our gross profit growth and adjusted operating income margin.
- •In 2025, gross profit growth more than doubled from the first quarter to the fourth quarter.
- •We accelerated Square GPV growth and had our strongest new volume added year on record.
- •Small businesses that rely on us to get paid, to manage their money, to access capital.
- •Amrita will now share more detail on the quarter and our outlook for the year.
- •The organizational changes we're sharing today represent a deliberate choice about Block's next phase of growth.
- •In the fourth quarter, we outperformed our guidance across gross profit, adjusted operating income, and adjusted EPS, translating product velocity into strong financial performance.
- •Gross profit growth more than doubled from the first quarter to the fourth quarter, leading to $10.36 billion in gross profit for the full year and growth of 17% year-over-year.
- •Even with additional investment in go-to-market, we grew adjusted operating income 30% year-over-year in 2025, delivering 2 points of margin expansion.
- •We grew consumer lending origination volume by 50% year-over-year in 2025, while sustaining strong margins and healthy risk loss performance.
- •We accelerated Square GPV growth from 8.6% in 2024 to 10% in 2025 and delivered our strongest year ever for new volume added, or NVA, as we expanded our distribution channels.
What went well
- •Block delivered one of its strongest years, generating $2.87 billion in gross profit in Q4 (up 24% year-over-year) and $10.36 billion for the full year (up 17%), and exceeded Rule of 40 in Q4.
- •Adjusted operating income grew 46% year-over-year to $588 million in Q4 with 3 points of margin expansion, and adjusted diluted EPS grew 38% year-over-year.
- •Cash App gross profit grew 33% year-over-year to $1.83 billion in Q4, monthly actives returned to growth ending the year at 59 million, and primary banking actives grew 22% year-over-year to 9.3 million, with those actives generating nearly 10 times the gross profit of peer-to-peer-only actives.
- •Consumer lending origination volume grew 69% year-over-year in Q4, with Borrow origination volume growing more than 3 times year-over-year in its strongest quarter ever for first-time actives.
- •Square reached its strongest year ever for new volume added with 17% growth, accelerating to 29% in Q4, and GPV grew 10.3% in Q4, with sales-led NVA up 62%.
- •The company repurchased $790 million of shares in Q4, bringing the 2025 total to $2.3 billion, and began shipping Proto mining rigs with gross profit scaling in Q4.
What went wrong
- •The company announced a workforce reduction from over 10,000 people to just under 6,000, a difficult decision affecting many employees.
- •Borrow's strong quarter for first-time actives drove higher portfolio losses in December and January due to a mix shift to newer cohorts that carry higher losses by design.
- •In Square, hardware costs and higher processing costs were each a 2 percentage point headwind to Square gross profit growth in Q4, which grew 7.5% year-over-year, slower than overall.
- •Square GPV growth moderated in Q4 relative to Q3.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Full-year gross profit growth | FY2026 | 17% (Investor Day) | 18% to $12.2 billion | Raised |
| Q1 gross profit growth | Q1 2026 | — | 22% to $2.8 billion | — |
| Adjusted operating income | FY2026 | Below $3.2 billion (Investor Day) | $3.2 billion (up 54% YoY, 6 points margin expansion) | Raised |
| Adjusted diluted EPS | FY2026 | — | $3.66 (up 54% YoY) | Raised |
| Q1 adjusted operating income | Q1 2026 | — | $600 million (up 29% YoY) | — |
| Q1 adjusted diluted EPS | Q1 2026 | — | $0.67 (up 20% YoY) | — |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Total gross profit (Q4) | +24% to $2.87 billion | Strength across Cash App and Square translating product velocity into financial performance |
| Adjusted operating income (Q4) | +46% to $588 million | Margin expansion of 3 points even with investment in high-ROI initiatives |
| Cash App gross profit (Q4) | +33% to $1.83 billion | Reignited network growth, deeper engagement, and primary banking actives growth |
| Consumer lending origination volume (Q4) | +69% | Borrow expansion via Square Financial Services and integration with Cash App Green |
| Square GPV (Q4) | +10.3% | Distribution gains across self-onboarding, sales, and partnerships |
| Square gross profit (Q4) | +7.5% | Growth in financial solutions, partly offset by hardware and processing cost headwinds |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI / intelligence-native operating model | — | Reorganizing as a smaller, faster, intelligence-native company; developer velocity up over 40% in production code per engineer since September | New emphasis |
| Cash App Green / primary banking | Launched November | Drove primary banking actives to 9.3 million and lifted offer attach rates from ~2% to ~14% | Scaling |
| Cash App Borrow | Growing | Origination volume up over 3x year-over-year; transitioned fully to Square Financial Services enabling new states and improved unit economics | Accelerating |
| Square go-to-market expansion | 15 US sales reps in Q1 | Over 140 reps by year-end, over 100 independent sales organizations, sales-led NVA up 62% | Expanding |
| Cash App Score monetization | — | Made available to third-party lenders with strong early demand; intends to show score to customers and sell data | Emerging |
| Buy now, pay later / Afterpay | Post-purchase scaling | Launched Afterpay pre-purchase on Cash App Card in February and Pay in Four for peer-to-peer | Expanding |
Q&A summary
Why make the reduction in force now, only three months after Investor Day, and why is this the right level to run at?
Jack Dorsey said several factors compounded: functionalizing the company gave confidence to act as one, and models became an order of magnitude more capable in December; he wanted to get ahead of a shift he believes most companies will make within a year, applying AI broadly to ship faster and operate more efficiently.
What drives sustainable momentum across Cash App and Square given reduced headcount?
Owen Jennings cited smaller nimbler teams moving faster, increased talent density, and AI tooling benefits, plus a high-conviction roadmap spanning core network growth, key product launches (Cash App Green, Cash App Card, Afterpay pre-purchase), and longer-term bets like Neighborhoods, MoneyBot, and ManagerBot.
How do the org changes flow through the 2026 financial outlook and AOI cadence, and where are investment dollars shifting?
Amrita Ahuja said gross profit growth is strongest in Q1 at 22% before settling to mid-teens by year-end, with AOI margins expanding through the year (just under 60% of the $3.2 billion AOI in the second half); investments shift toward senior AI engineering talent, go-to-market, and AI infrastructure.
What is driving primary banking actives growth and how exciting is the opportunity?
Owen Jennings credited the November launch of Cash App Green, which expanded banking benefits to customers spending over $500 a month on Cash App Card, reaching 9.3 million primary banking actives with nearly 10x the gross profit of peer-to-peer-only actives and rising engagement; this is the first launch with much more to come.
What are expectations for Cash App Borrow growth in 2026 and how have loss rates trended?
Amrita Ahuja expects even stronger growth in the first half, with variable profit margins in line with targets despite 223% year-over-year Q4 origination growth, driven by the move to Square Financial Services (new states, better unit economics) and integration with Cash App Green.
Does AI give Block a chance to leapfrog competitors, and what is Block's right to win?
Jack Dorsey pointed to hard-to-replicate capabilities (network, card issuing/acceptance, lending), a large installed interface across Square and Cash App, and a real-time two-sided understanding of customers that lets Block be proactive, which he considers its biggest advantage.