Block (SQ, Financials) shares plunged 20.4% to $46.53 on Friday after the company missed first-quarter revenue estimates and issued weaker-than-expected guidance for the second quarter and full year.
Revenue fell 3% year over year to $5.77 billion, missing Wall Street’s forecast of $6.2 billion. Gross profit rose 9% to $2.29 billion but still came in below the $2.32 billion consensus. Adjusted earnings per share were 56 cents, though the company said the figure may not be directly comparable to analyst estimates.
The company lowered its outlook, now expecting gross profit of $2.45 billion for the second quarter and $9.96 billion for the full year, compared with analyst projections of $2.54 billion and $10.2 billion, respectively.
Chief Financial Officer Amrita Ahuja cited macroeconomic headwinds and recently announced tariffs under President Donald Trump’s administration as reasons for a more cautious stance on the rest of the year. Gross payment volume for the quarter was $56.8 billion, also missing expectations of $58 billion.
Cash App gross profit increased 10% to $1.38 billion, though growth was softer than anticipated. Ahuja attributed the weakness to muted tax-season spending and lower inflows but said the company expects improvement later in the year, driven by the nationwide rollout of the Cash App Borrow program, which received regulatory approval.
CEO Jack Dorsey said the company aims to deepen customer engagement through banking services and credit expansion while also growing the user base. Block is integrating Afterpay’s buy now, pay later feature into Cash App as part of its credit strategy.
Block ended the quarter with $2.3 billion in bitcoin holdings and plans to deliver its first bitcoin mining chips in the second half of 2025. Despite this development and growing international traction—now comprising 18% of total payment volume—the company continues to face intense competition from firms like Toast and Fiserv’s Clover.
Block shares are now down 31% year-to-date as of Thursday’s close, reflecting ongoing investor concerns around slowing growth, macro uncertainty, and competitive pressure.
