- Block posted a surprise 25.68% earnings beat, with Q1 EPS of 85 cents surpassing estimates of 68 cents.
- The company reported its first quarterly loss in three years, a $309 million net loss driven by a $172.8 million Bitcoin remeasurement loss.
- Gross profit grew 27% year-over-year to $2.9 billion, while Bitcoin payments on Cash App contributed $63 million to that figure.
Jack Dorsey’s payments firm Block surged nearly 8% in after-hours trading Thursday after posting a significant first-quarter earnings surprise, despite reporting its first quarterly loss since 2023. The strong per-share performance of 85 cents, which beat analyst estimates by 25.68%, was detailed in the company’s Q1 earnings report. Investors responded positively, driving Block shares to $75.70 after hours, data shows.
However, the earnings beat came alongside a $309 million net loss for the quarter. This loss was primarily driven by a $172.8 million Bitcoin remeasurement loss on its treasury holdings, a consequence of Bitcoin’s 23.8% price decline during the period. Consequently, Bitcoin revenue from Cash App and other products fell to $1.8 billion from $2.33 billion a year earlier.
Meanwhile, Block’s underlying business performance showed strength, with gross profit rising 27% year-over-year to $2.9 billion. Bitcoin payments on Cash App contributed $63 million to this gross profit. Avory & Co. founder Sean Emory said “Block had a strong quarter,” having “beat and raised” its guidance.
The quarter followed a major restructuring where Dorsey announced roughly 4,000 staff cuts. Block also expanded its Bitcoin offerings significantly in late April, launching proof-of-reserves and new wallet features. It now offers 5% Bitcoin Cash back rewards for Square merchants and raised customer withdrawal limits to broaden Bitcoin’s role in everyday payments.
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