From CNBC: 2025-02-21 12:55:23

Block shares dropped 16% after fourth-quarter earnings missed estimates. Revenue of $6.03 billion fell short of $6.29 billion expectations. Gross profit was $2.31 billion, slightly below consensus estimates. Competition is increasing in payments systems for small businesses, with Square losing market share. Block reiterated 2025 gross profit growth outlook of at least 15%.

Square’s payment volume rose nearly 10%, with a 13% boost in food and beverage. Retail transactions climbed 8%. Cash App saw a 16% gross profit increase, but monthly transacting users remained flat at 57 million. Block is expanding Cash App Borrow and integrating buy now, pay later features.

CEO Jack Dorsey assured investors of long-term success through financial services integration. He highlighted new Bitcoin mining system, Proto, launching in second half of 2025. Barclays analysts note messy turnaround, with improvements not expected until later in 2025. Square focuses on industry-specific sales teams and distribution deals.



Read more at CNBC:: Block shares head for worst day in 5 years after earnings miss