These forward-looking statements include discussions about public strategy and guidance, as well as our long-term targeting goals. Also note that the forward-looking statements, including earnings added into 2025, that discussed on the call are based on information available to us and is subsequently reviewed at SEC. With the Rule of 40, we are evaluating some of the growth product growth and suggested value in the margin. We delivered strong results in the second quarter, exceeding our gross profit and adjusted operating income guidance.
Gross profit was $2.5 billion, up 14% year-over-year, accelerating from 9% growth last quarter. Adjusted operating income was $550 million, up 38% year-over-year, as we extended margin to our highest quarterly adjusted wide margin yet, 22%. In Cash App, gross profit growth reaccelerated to 16% year-over-year in the second quarter. We believe the combination of assets we have in Cash App is unique and positions us for attractive, sustainable long-term growth as an enduring ecosystem.
First, we have a scaled peer-to-peer network that drives community connection and Cash App customer acquisition, with $218 billion in peer-to-peer volume in the last 12 months. We observed strong GPV growth in food and beverage and retail, up 15% and 10% respectively. International GPV growth accelerated to 25% year-over-year as we continued to expand distribution across sales and partnerships. In the second quarter, we delivered our highest ever new volume added and our strongest growth in new volume added since the third quarter of 2021.
| Metric | Period | Current guidance |
|---|---|---|
| Gross profit | Q3 2025 | $2.6 billion, up 16% year-over-year (Acceleration of two points sequentially) |
| Adjusted operating income | Q3 2025 | $460 million, 18% margin (Margin step-down vs other quarters' 20%+) |
| Square GPV growth | Q3 and Q4 2025 | Low double-digit growth (Modest acceleration from 10% in Q2) |
| Gross profit | Full year 2025 | $10.17 billion, over 14% year-over-year growth (Raised) |
| Adjusted operating income | Full year 2025 | $2.03 billion, 20% margin (Raised; margin expanding two points year-over-year) |
| Gross profit growth exit rate | Q4 2025 | 19% gross profit growth with over 20% adjusted operating income margin (Three points of further sequential acceleration into Q4) |
| Metric | YoY | Note |
|---|---|---|
| Total gross profit | +14% | Accelerating product innovation and go-to-market investments across Block, up from 9% growth the prior quarter. |
| Adjusted operating income | +38% | Margin expansion to a record 22% on more efficient value delivery. |
| Cash App gross profit | +16% | Reacceleration driven by Cash App Card growth at scale and reaccelerating BNPL gross profit. |
| Square GPV | +10% | Strong food and beverage (+15%) and retail (+10%) volume plus expanded go-to-market and product launches. |
| Square gross profit | +11% | Included a previously discussed network remediation payment, offset by an approximately 2% processing-cost headwind. |
| Square international GPV | +25% | Continued expansion of distribution across sales and partnerships. |
| Borrow originations | Nearly doubled, to $18 billion annualized | Expanded rollout under Square Financial Services originations and growth to 6 million monthly actives. |
| BNPL GMV | +17% reported (18% constant currency) | Acceleration from 13% reported in Q1, driven largely by post-purchase BNPL on Cash App Card. |
| BNPL gross profit | +22% | Part of an accelerating story for the BNPL platform overall. |
| Banking actives ARPU | ARPU over $250 annualized vs $87 blended | 8 million banking actives (paycheck deposit or $500+ monthly spend) are deeply engaged, transacting over 40 times in June; cohort up 16% year-over-year. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Product velocity and shipping speed | Discussed for several quarters as a focus | Cited as the central takeaway, with launches like Cash App Pools going from ideation to customers in three months, aided by AI coding tools (Goose) | Rising |
| Borrow expansion and migration to SFS | Began meaningfully ramping this quarter | SFS now originates the majority of Borrow loans; testing higher limits for paycheck deposit actives with 24% annualized net margin | Rising |
| Post-purchase BNPL on Cash App Card | Released in March | Crossed 1 million monthly actives and $2 billion originations run rate in July, tracking ahead of Borrow's early trajectory | Rising |
| Square go-to-market and field sales | Leaned into Square sales effort last year | Highest-ever new volume added; 20%+ growth in new volume added with strong LTV/CAC and five to six-quarter payback | Rising |
| Cash App banking primacy | — | New disclosure of 8 million banking actives; testing expanded benefits based on spend thresholds | Rising |
| Bitcoin, Proto mining and stablecoins | Bitcoin a long-standing focus | Proto miner news expected the following week; Bitcoin acceptance enabled on Square; will support major stablecoins but sees no differentiator to issue its own | Rising |