Block Raises 2025 Gross Profit Guidance 14% After Strong Q2

Block Inc., led by Jack Dorsey, raised its full-year gross profit forecast for 2025 after reporting stronger-than-expected second-quarter results, with gross profit now projected at $10.17 billion, up 14.4% year over year. Cash App drove growth with a 16% year-over-year increase in gross profit to $1.50 billion, fueled by the success of its Borrow lending service and buy now, pay later features, despite steady monthly active users. Square, Block's merchant-facing division, also contributed solidly with a 10% rise in gross payment volume to $64.25 billion, supported by higher transaction volumes and increased adoption of value-added services. While the company missed revenue and earnings per share estimates, management's confidence remains high, emphasizing margin expansion, cost discipline, and strategic shifts toward more profitable segments. The strong quarterly performance and optimistic outlook boosted Block's shares by 8-11% in after-hours trading, reflecting investor confidence amid a challenging economic environment. Analysts note that Block's ability to offset lower volumes with higher margins and diversified growth engines positions it well for sustained profitability.