Good day, ladies and gentlemen, and welcome to the Block third quarter 2025 earnings conference call. These forward-looking statements include discussions of our outlook, strategy, and guidance, as well as our long-term targets and goals. Also note that the forward-looking statements, including earnings guidance for 2025 discussed on this call, are based on information available to us and assumptions we believe are reasonable as of today's date. With Rule of 40, we are evaluating the sum of our gross profit growth and adjusted operating income margin.
Gross profit grew 18% year-over-year to $2.66 billion, accelerating from 14% growth last quarter, driven by Cash-up. Adjusted operating income was $480 million, showing strong profitability even in a quarter where we leaned into investments to drive long-term growth. Cash-up's 24% year-over-year gross profit growth in the third quarter accelerated from 16% in the second quarter. Our focus on re-accelerating active growth and increasing network density is working, as we reached 58 million monthly actives in September.
This growth was driven by improvements in experiences across the app, including onboarding, referrals, and core payment flows, reducing friction while boosting engagement and retention. Cash-up's gross profit per monthly transacting active grew 25% year-over-year to $94. Primary banking actives grew 18% year-over-year to 8.3 million, up from 8 million in the second quarter. Turning to Square, gross profit grew 9% year-over-year in the third quarter, and GPV grew 12%, with an acceleration of growth in both the U.S.
| Metric | Period | Current guidance |
|---|---|---|
| Gross profit | Q4 2025 | $2.755 billion (over 19% YoY growth) (raised) |
| Adjusted operating income | Q4 2025 | $560 million (20% margin) (raised) |
| Gross profit | Full year 2025 | $10.243 billion (more than 15% YoY growth) (raised) |
| Adjusted operating income | Full year 2025 | $2.056 billion (nearly 28% YoY growth) (raised) |
| Net interest expense | Q4 2025 | $45 million (new) |
| Tax rate | 2025 and long term | mid-20% range (new) |
| Metric | YoY | Note |
|---|---|---|
| Total gross profit | +18% | Acceleration driven by Cash App, with broad-based contribution across network, banking, commerce, and Bitcoin products. |
| Cash App Borrow originations | +134% | Core underwriting model improvements deployed across new and existing states, nationwide expansion via the SFS bank migration, and refined limits for engaged customers. |
| Square GPV | +12% | Profitable market share gains in target verticals such as food and beverage, with larger sellers and international markets; U.S. and international both accelerated. |
| International GPV | +26% | Particular strength in the telesales channel across global markets. |
| Transaction, loan, and risk loss expense | +89% | Investment in scaling lending products, most notably Borrow and the recent launch of post-purchase BNPL. |
| Afterpay GMV | +18% (constant currency) | Growth led by post-purchase Afterpay on the Cash App card, with gross profit up 23%. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Cash App active and engagement growth | Network density declared a top priority earlier in the year | Reached 58 million monthly actives in September with continued acceleration in October, driven by network enhancements, multiplayer money (pools), and teens/family | Accelerating |
| Cash App Borrow and lending | Majority of Borrow originations shifted to SFS bank last quarter | Originations up 134% with healthy losses and strong second-order engagement lifts across the ecosystem | Expanding |
| Field sales and go-to-market for Square | Started the year with next to no ramped field reps | Now over 100 field reps with sales-led NVA up 28% year to date and expected to exceed 40% in Q4 | Scaling |
| AI across the company | Started Goose about two years ago to automate engineering tests | Goose now used across nearly every role, powering Square AI and soon Cash App AI; seen as both a growth driver and cost reducer | Expanding |
| Bitcoin / Proto and Square Bitcoin acceptance | — | Proto generated first revenue selling mining hardware; Square Bitcoin payments acceptance launching to all sellers the following week | Emerging |