Shares in Jack Dorsey's block fell about 12% in after-hours trading Thursday after third-quarter profits fell short of analysts' expectations.
The crypto-friendly fintech company earned 54 cents per share in the third quarter, 14% below the 63 cents expected by analysts. Meanwhile, sales for the third quarter were $6.11 billion, an increase of 2.3% year-on-year, but fell short of expectations of $6.33 billion.
Block Inc. (XYZ) stock fell 3.7% to $70.93 in after-hours trading, after closing at $62.75.
Brock's stock price fell after the bell and continued to fall during Thursday's trading session. sauce: Google Finance
This adds to the decline in Block's stock price, which has fallen 18.24% so far through 2025.
Despite the sharp market reaction, certain metrics in Block's third-quarter results showed strong growth for the company.
The company said gross profit rose 18% year over year to $2.66 billion, and that it expects 2025 profits to reach $10.24 billion, an annual increase of 15%.
Block's peer-to-peer payments arm, Cash App, accounted for most of the profit, with $1.62 billion representing a 24% annual increase. Block's merchant payments business, Square, accounted for a 9% increase to $1.018 billion.
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In terms of overall profit after accounting for operating expenses, Block's operating profit totaled $409 million, an increase of 26% year-over-year.
Block Bitcoin Mining Business
Block Chief Financial Officer Amrita Ahuja said on a conference call with investors that the company's Bitcoin mining arm, Proto, is starting to see results.
“We generated the first revenue and planted the seeds of what could be the next major ecosystem,” Ahuja said. “We have monetized Proto’s innovations in hardware and software through hardware sales across ASICs, mining hashboards, and full mining rigs that provide many of the key advanced components for mining Bitcoin.”
Proto was launched in November 2024, but the deployment of the first mining rig was not announced until August. Ahuja said third-quarter revenue was “modest,” but the company is “aggressively pursuing a robust pipeline into 2026.”
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