Block Inc - Ordinary Shares - Class A

Gross Profit Growth and Guidance: Block reported a total gross profit of $2.29 billion in Q1 2025, a 9% increase year-over-year. The company now anticipates overall gross profit growth of 12% for 2025, totaling approximately $9.96 billion. Q2 is expected to see a growth rate of 9.5%, while the company expects acceleration to low-double-digit growth in Q3 and mid-teens growth in Q4.

Cash App Performance Challenges: Cash App's gross profit grew by 10% year-over-year, but fell below expectations due to changes in consumer spending behavior, particularly during tax refund season. Particularly, there was a notable decline in discretionary spending, impacting inflows and Cash App Card usage, which contributed to a forecast miss.

Increasing Investment in Growth: Even amid uncertainties in the macroeconomic environment, Block plans to continue investing in key growth initiatives including expanding its banking services through Square Financial Services and enhancing product offerings and marketing. The anticipated launch of Cash App’s Borrow product nationwide is expected to significantly contribute to gross profit in the second half of the year.