Block, Inc. Reports $5.77 Billion Revenue in Q1 2025, Driven by Subscription Growth

Block, Inc. reported a total net revenue of $5.77 billion for the first quarter of 2025, a decrease of 3% compared to $5.96 billion in the same period last year. The decline was primarily driven by a significant drop in bitcoin revenue, which fell by 16% to $2.30 billion from $2.73 billion. Excluding bitcoin revenue, total net revenue increased by 8%, reflecting growth in transaction-based and subscription services revenue. Transaction-based revenue rose by 3% to $1.55 billion, while subscription and services-based revenue increased by 12% to $1.89 billion, bolstered by strong performance in Cash App's financial services products.

The company's gross profit for the quarter was $2.29 billion, up 9% year-over-year, with operating income reaching $329.3 million, compared to $249.7 million in the prior year. However, net income attributable to common stockholders dropped to $189.9 million from $472.0 million, largely due to a remeasurement loss of $93.4 million on bitcoin investments, compared to a gain of $233.4 million in the previous year. The diluted net income per share was $0.30, down from $0.74 a year earlier.

In terms of operational metrics, Block, Inc. ended the quarter with approximately 12,000 employees, maintaining its cap on workforce size as part of its cost efficiency strategy. The company also reported a liquidity position of $9.24 billion, which includes $8.5 billion in cash and cash equivalents, and an undrawn $775 million revolving credit facility. The liquidity decreased from $10.70 billion at the end of 2024, primarily due to a $1 billion cash payment for the settlement of convertible notes and $445.3 million in share repurchases during the quarter.

Strategically, Block, Inc. continues to focus on enhancing its product offerings and expanding its market reach. The company has made significant investments in its Cash App and Square ecosystems, including the integration of new financial services and the ongoing development of its BNPL platform. The company also announced a share repurchase program, with $2.2 billion remaining authorized for repurchases as of March 31, 2025. Looking ahead, Block, Inc. aims to navigate the evolving regulatory landscape, particularly concerning its bitcoin operations and BNPL services, while continuing to drive growth across its core business segments.