Block Reports 22% Gross Profit Growth and Raises Full-Year Outlook
Block reported strong third-quarter financial results, highlighted by a 22% year-over-year increase in gross profit to $3.24 billion, which exceeded company guidance. This growth was driven largely by Cash App's gross profit rising 27%. Following these results, the company raised its full-year outlook, prompting an 8% rise in after-hours trading. Despite the adjusted profitability surge fueled by previous workforce reductions, GAAP results reveal significant headwinds. Transaction and loan losses surged 66%, outpacing gross profit growth as lending through Cash App Borrow and Afterpay expanded. Additionally, Block incurred $435 million in contingency and legal charges, marking the third consecutive quarter of high legal-related costs.
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Topics: gross profit guidance raise legal charges loan losses payment volume