Block raised its full-year guidance and pointed to a stronger fourth quarter, as Square begins a US launch of bitcoin payments and a native wallet for sellers.
Block has taken its 2025 targets higher after what it called “another strong quarter”, guiding to $10.24bn of gross profit for the year and $2.06bn in adjusted operating income, a 20% margin.
It also set fourth-quarter guidance at $2.76bn of gross profit and $560m of adjusted operating income, again implying 20% margins into year-end.
In the shareholder letter, the company said it expects gross profit growth to accelerate to “over 19%” in Q4 versus the prior year, reflecting product launches and go-to-market investment across both ecosystems.
Amrita Ahuja, COO and CFO for Block, framed the quarter simply during the earnings call. “We had another strong quarter, delivering for our customers and exceeding expectations across gross profit and Adjusted Operating Income,” she said.
Cash App monetisation trends remain favourable
Cash App continued to be the faster-growing side of the business. Gross profit rose 24% year on year to $1.624bn. The app ended September with 58 million monthly transacting actives, while gross profit per monthly active climbed 25% to $94 on an annualised basis. Inflows reached $78.8bn, with the monetisation rate improving to 1.72%.
Block cited deeper engagement from customers bringing paycheques into Cash App, with primary banking actives up 18% to 8.3m.
The company also highlighted buy now, pay later (BNPL) activity feeding Cash App usage. BNPL gross merchandise value reached $9.7bn in the quarter, up 17% year on year on a reported basis, with BNPL gross profit at $299m.
Faster gross payment volume and an up-market drift
On the seller side, Square’s engine picked up speed. Gross payment volume (GPV) grew 12% year on year to $67.2bn, the fastest pace since mid-2023. International GPV rose 26%, outpacing the US at 8.9%, and mid-market sellers (those processing more than $500k a year) now account for 45% of GPV after 20% growth in that segment.
Management said growth in Square gross profit is being driven by software, integrated payments and Square Banking as the platform pushes further up-market. Ahuja also flagged new product momentum in target verticals such as food and beverage and pointed to improved sales execution, with “new volume added” on track for a record year.
Credit costs are rising alongside lending products
As Block leans further into lending-adjacent revenue credit costs ticked up. “Transaction, loan, and consumer receivable losses” expense rose to $363m in the quarter from $192m a year earlier.
In its shareholder letter, Block attributed the increase primarily to growth in loan volumes, noting Cash App Borrow originations were up 134% year on year.
The company reiterated that profitability improved on most measures: operating income of $409m, adjusted operating income of $480m, and adjusted EBITDA of $833m.
Where bitcoin fits now: a seller tool, not a margin drag
The guidance backdrop matters for how to read Square’s new bitcoin features. Square has begun rolling out a native bitcoin wallet for sellers and an option to auto-convert a percentage of daily card sales into bitcoin.
Bitcoin Payments opens to US merchants on November 10 with a promotional 0% processing fee through 2026, before moving to 1% from 1 January 2027. Sellers can accept bitcoin at the point of sale, manage holdings in the Square dashboard, and choose to settle in USD or bitcoin; the launch excludes New York and is US-only at this stage.
Crucially for take-rate fears, Block’s outlook still assumes a 20% adjusted operating income margin for both Q4 and the full year, suggesting management expects any fee holiday impact to be offset by software and banking attach, and by where volumes ramp first.
