Block (XYZ) Stock: Bitcoin Revenue Tops $1.97 Billion But Earnings Disappoint

TLDR

• Block (XYZ) posted Q3 revenue of $6.11 billion but missed earnings expectations with $0.54 per share versus $0.63 expected.
• Bitcoin revenue reached $1.97 billion, representing nearly one-third of total revenue and making it the second-largest revenue source.
• Stock dropped 9.6% in after-hours trading to $64.10, extending 2025 losses to 18.24%.
• Company holds 8,780 BTC valued over $1 billion but recorded $59 million in negative remeasurement for Q3.
• New mining division Proto generated first revenue through hardware sales in third quarter.

Block reported third-quarter results that failed to meet Wall Street projections. Earnings per share came in at 54 cents, missing the 63-cent estimate by 14%.

Total revenue reached $6.11 billion for the quarter. The figure showed 2.3% growth year-over-year but fell short of the $6.33 billion target.

The stock took a hit after the earnings announcement. XYZ shares dropped 9.6% to $64.10 in after-hours trading after closing down 3.7% at $70.94.

Block, Inc., XYZ

Year-to-date performance shows Block down 18.24% in 2025. The earnings miss adds pressure to an already struggling stock price.

Bitcoin Operations Drive Major Revenue Stream

Bitcoin revenue totaled $1.97 billion during the third quarter. This makes cryptocurrency Block’s second-largest revenue generator behind subscriptions and services.

The bitcoin figure decreased from $2.4 billion in Q3 2024. Associated costs also fell to $1.89 billion from $2.36 billion year-over-year.

Block increased its bitcoin holdings throughout 2025. The company owned 8,780 BTC at September’s end, up from 8,485 BTC in January.

Current holdings exceed $1 billion in value. However, remeasurement losses hit $59 million in Q3 and $178 million year-to-date.

CEO Jack Dorsey highlighted growth in his shareholder letter. Gross profit jumped 18% year-over-year to $2.66 billion.

Cash App Performance Leads Growth

Cash App delivered $1.62 billion in profit, marking 24% yearly growth. Square’s merchant business contributed $1.018 billion, up 9%.

Operating income reached $409 million, growing 26% year-over-year. The number still missed analyst estimates of $473 million.

EBITDA came in at $833 million, a 3% increase. Wall Street had projected $840 million for this metric.

Block projects full-year 2025 gross profit at $10.24 billion. That represents 15% growth compared to 2024.

Proto Mining Division Starts Revenue Generation

Block’s mining arm Proto posted its first revenue in Q3. CFO Amrita Ahuja shared the news during the investor call.

Proto sold mining hardware including ASICs, hashboards, and complete rigs. Ahuja called Q3 revenue “modest” but pointed to a strong 2026 pipeline.

The division launched in November 2024. First mining rig placements weren’t announced until August 2025.

Block introduced new bitcoin payment tools in October. The company also deployed a merchant wallet for businesses.

Earlier in 2025, Block settled with New York financial regulators for $40 million. The settlement addressed alleged anti-money laundering failures tied partly to bitcoin operations.

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