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Block shares drop more than 8% on quarterly miss
11/6/2025, 9:54:32 PM
Economic Summary
- Block (SQ) missed both EPS and revenue expectations this quarter: adjusted EPS $0.54 vs $0.67 estimate and revenue $6.11B vs $6.31B expected, with adjusted EBITDA $833M vs $849M — marking the fourth straight quarter of top-and-bottom-line misses and the sixth straight revenue miss, which drove shares down over 8%.
- Management (CFO Amrita Ahuja) pointed to back-to-back quarters of double-digit gross profit growth and is guiding to $10.2B in gross profit for the year, suggesting improving margins and a potential offset to revenue shortfalls if execution continues.
Bullish
- Back-to-back double-digit gross profit growth and $10.2B annual gross profit guidance.
- CFO highlights gross profit as a bright spot, implying improving unit economics and margin leverage.
Bearish
- Four straight quarters of EPS misses and six straight revenue misses show persistent operational weakness.
- Shares fell over 8% after the latest disappointing quarter and guidance signals continued investor concern.
Bullish tickers
SQ
Bearish tickers
SQ
SQ
Bullish
Consecutive double-digit gross profit growth and $10.2B gross profit guidance point to improving margins and unit economics.
Bearish
Multiple consecutive top- and bottom-line misses, declining revenue trend, and material near-term stock weakness.
People mentioned
JonathanAmrita Ahuja