Block Inc. Shares Slide After Q3 Earnings Disappoint Despite Growth in Core Businesses
Block Inc., the fintech company led by Jack Dorsey, saw its stock take a sharp hit in after-hours trading following a disappointing third-quarter earnings report that fell short of Wall Street forecasts. Despite notable growth in key revenue drivers like Cash App and Square, the company’s overall financial performance failed to meet analyst expectations, triggering a nearly 12% drop in share value during post-market hours.
The company reported earnings per share (EPS) of $0.54 for Q3, missing the consensus estimate of $0.63 by approximately 14%. Revenue came in at $6.11 billion, representing a 2.3% increase compared to the same period last year. However, this figure still fell short of analysts’ projections of $6.33 billion, reinforcing investor concerns and exacerbating the stock’s downward trajectory.
By the close of regular trading on Thursday, Block’s stock had already declined 3.7% to $62.75. After-hours trading saw a further plunge of 11.53%, bringing the share price down to $70.93. Overall, the company’s shares have lost 18.24% of their value since the beginning of 2025, reflecting broader market skepticism and pressure on fintech stocks.
Despite the earnings miss, Block’s internal performance metrics tell a more nuanced story. Gross profit surged 18% year-over-year to reach $2.66 billion for the quarter. The company has set an ambitious target of $10.24 billion in gross profit for 2025, aiming for a 15% annual increase.
Cash App, Block’s peer-to-peer payment platform, remains its strongest performer. The unit generated $1.62 billion in gross profit, marking a 24% increase from the same quarter last year. Square, the firm’s merchant services division, also posted solid results with $1.018 billion in gross profit—up 9% year-over-year.
Operating income for the quarter stood at $409 million, a 26% rise from the previous year. This improvement suggests that while top-line growth is under pressure, the company is managing its expenses effectively and improving operational efficiency.
One area of emerging potential is Block’s foray into Bitcoin mining through its subsidiary, Proto. According to Chief Financial Officer Amrita Ahuja, the company recorded its first revenue from Proto during Q3. While the earnings from this segment were described as “modest,” Ahuja emphasized that Proto’s hardware offerings—including ASICs, hashboards, and complete mining rigs—have begun to generate early-stage income. Proto, launched in late 2024, didn’t begin commercial placements until August 2025, but management expressed optimism about a growing pipeline for 2026.
Block’s diversification into Bitcoin mining aligns with its broader strategy to expand its crypto ecosystem. By integrating mining infrastructure into its portfolio, the company aims to capitalize on both hardware sales and cryptocurrency market trends. Although still in its infancy, Proto could become a significant revenue stream if market conditions remain favorable and adoption continues.
It’s also worth noting that Block’s investments in hardware innovation could position it competitively in a market increasingly looking for in-house crypto infrastructure solutions. With the rise of decentralized finance and growing Bitcoin adoption, offering mining hardware and software could complement Block’s existing fintech services.
In terms of investor sentiment, the shortfall in earnings underscores the volatility that often accompanies tech and fintech stocks. While gross profit growth and operational improvements are encouraging, markets continue to react strongly to misses in EPS and revenue—especially in a macroeconomic climate characterized by rising interest rates and reduced risk appetite.
Looking ahead, Block will need to balance its innovation-driven initiatives with a renewed focus on meeting financial benchmarks. Investors may give the company credit for its strategic vision, but sustained underperformance against analyst expectations could erode confidence over time.
To regain momentum, Block might consider more aggressive cost controls, clearer communication of its crypto strategy, and perhaps a reassessment of near-term financial guidance to align market expectations with operational realities. The continued success of Cash App and Square provides a strong foundation, but innovation arms like Proto will need to scale rapidly to justify long-term investments and support stock recovery.
In summary, while Block’s Q3 results fell short in key financial areas, the company demonstrated strength in core business units and showed initial progress in new ventures. The market’s reaction reflects short-term disappointment, but the underlying fundamentals suggest potential for recovery, provided the company can execute its growth strategy effectively and deliver consistent results moving forward.