The Block (ASX: XYZ) share price is getting hammered today.
Shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) company, which acquired Afterpay in January 2022, closed yesterday trading for $112.91. In late morning trade on Friday, shares are changing hands for $97.05 apiece, down 14.1%.
For some context, the ASX 200 is down 0.1% at this same time.
This underperformance follows the release of Block's September quarter results.
Here's what's happening.
(*Note, all figures below in US dollars unless otherwise specified.)
Image source: Getty Images
Block share price tumbles despite growth
Market expectations were high for the ASX 200 BNPL stock, with a lot of growth priced into the stock.
This sees the Block share price under heavy pressure today despite posting a $2.66 billion gross profit in Q3, up 18% year on year.
The company's Cash App gross profit was up 24% to $1.62 billion. And its Square gross profit was up 9% from Q3 2024 to $1.02 billion.
In other core financial metrics, the ASX 200 BNPL stock reported quarterly operating income of $409 million, with a 15% margin. Adjusted operating income came in at $480 million at an 18% margin, with net income of $462 million.
For the September quarter, Block reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $833 million.
The Block share price also isn't getting any relief today from the company's boosted full-year 2025 guidance. Block is now forecasting $10.243 billion in gross profit for 2025, up 15% from 2024.
The company also expects full-year adjusted operating income of $2.056 billion, or 20% margin, growing nearly 28% year over year.
Additionally, it expects gross profit in the fourth quarter to grow 19% year over year to $2.755 billion with adjusted operating income of $560 million, for adjusted operating income margins of 20%.
What did management say?
Commenting on the results that have yet to lift the Block share price today, CEO Jack Dorsey said, "We had another strong quarter delivering for our customers with high quality and high velocity."
Dorsey added:
Square GPV growth accelerated to 12% and we gained profitable market share through product innovation and expanded distribution. Cash App gross profit growth accelerated to 24%, and in September we hit 58 million Cash App monthly actives.
Proto generated its first revenue, seeding what we believe will become our next major ecosystem. Last quarter, I outlined Cash App's strategy to become the financial platform for the next generation.
This quarter, I want to outline how Square will continue to take market share by being the best platform to help sellers grow, run, and automate their businesses.
With today's big intraday losses factored in, the Block share price is down 30% in 2025.
