Cash App gross profit jumps 16% to $1.50b, beating estimates, driven by Borrow, card spending, and BNPL.
Block Inc., led by Jack Dorsey, lifted its full-year gross profit outlook after delivering a stronger-than-expected second quarter. The jump was powered by Cash App’s lending growth and steady payment volumes across its platforms.
The company had previously forecast $9.96 billion in gross profit for 2025. News of the appointment caused Block shares to rise 8% in after-market trade in New York on Thursday.
Cash App, Block’s peer-to-peer payment and banking platform, pulled in $1.50 billion gross profit for the quarter — an increase of 16% YoY — topping an expected $1.42 billion by analysts.
The signature player here was Borrow, a short-term lending service, Cash App said, which sold faster than anticipated. Card spending also supported the buy now, pay later features.
Monthly active users remained steady at around 57 million, but the company expects revenue to climb without adding more users. Chief Financial Officer Amrita Ahuja said revenue acceleration in the year’s second half does not depend on active user growth.
Square and efficiency bolster results
Square, Block’s merchant-facing division, continued to deliver solid gains in the second quarter, reinforcing its role as the company’s second major growth engine alongside Cash App. The business, best known for its sleek card readers and point-of-sale systems used by coffee shops, restaurants, salons, and small retailers, saw gross payment volume (GPV) climb 10% year-over-year to $64.25 billion. While this fell slightly short of Wall Street’s $66.33 billion forecast, analysts noted the growth was still strong given the challenging macroeconomic environment and tighter consumer spending in some sectors.
Higher transaction volumes and broader adoption of value-added services lifted Square’s gross profit 11% over last year. The company’s buy now, pay later (BNPL) service, which enables customers to split payments into installments, is seeing strong growth across merchants and consumers on the platform, driving better sales and customer retention for sellers.
Square has also started shipping its Bitcoin mining chips to clients as part of a wider strategy targeting the cryptocurrency infrastructure market over the long term. I say go, and the revenue on these deliveries should be more material as the year progresses.
Operation efficiency is also increasingly a core focus for Block, with Square playing a large part. Artificial intelligence tools for product development, fraud detection, personalized merchant servicing, and lower operational costs have been deployed across the company. The savings from all of this will be funneled into Block’s pockets to redeploy that money toward growth initiatives, which the company hopes can increase margins.
Perhaps most importantly for Square, the future of the business is clouded in as much uncertainty as ever: Bloomberg Intelligence analysts identified three main growth catalysts for the business -deepening engagement among Cash App users to drive transaction frequency higher, growing Square’s merchant base across not only small and mid-sized businesses but larger enterprises and in geographies outside of its existing markets, and optimizing operations to further profit without sacrificing innovation. If macroeconomic conditions stabilize and small-business spending rebounds in those areas, Block could be better poised for growth starting in 2025.
Firm stays upbeat despite headwinds
Block reported an adjusted net profit of $385 million for the second quarter, or 62 cents per share, up from 47 cents a year ago. Revenue came in at $6.82 billion, matching market expectations.
The company has also enjoyed a boost in investor confidence since joining the S&P 500 in July.
CEO Jack Dorsey also addressed the rise of stablecoins, noting their role in remittances. He said if stablecoins became more common in payments, Block would consider entering the space, but he stressed that Bitcoin remains the company’s focus.
Dorsey said Bitcoin remained unique as it was entirely new and possessed qualities no stablecoin possessed. He added that the company’s goal was to make Bitcoin a native currency of the internet and to see it used as everyday money.
He noted that Block’s strong quarter underscored its position as a leader in digital payments, with growth in Cash App lending and an expanding Square merchant base. He focused on Bitcoin, signaling confidence in the company’s future — a sentiment reflected in Wall Street’s reaction.
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