Overview

• Block reported Q1 earnings of $0.56 per share and revenue of $5.77 billion, both falling short of analysts' expectations.
• Cash App gross profit grew 10% year-over-year but underperformed internal targets, with user growth stagnating at 57 million for five consecutive quarters.
• The company recorded a $93.4 million bitcoin remeasurement loss, contributing to a 60% drop in quarterly profit compared to the prior year.
• Block lowered its 2025 gross profit growth forecast from 15% to 12%, citing a dynamic macroeconomic environment and shifts in consumer spending.
• Shares fell over 22%, prompting multiple analyst downgrades, while management emphasized plans to refocus on network growth and expand lending through FDIC-approved Cash App Borrow.