The Block (ASX: XYZ) share price is in focus today after the company released its results for the fourth quarter and full year ended 31 December 2025, reporting gross profit growth of 24% over the quarter and a significant 33% rise in Cash App gross profit.
What did Block report?
- Q4 2025 gross profit: US$2.87 billion, up 24% year-on-year
- Cash App gross profit: US$1.83 billion, up 33% year-on-year
- Square gross profit: US$993 million, up 7% year-on-year
- Q4 2025 adjusted operating income: US$588 million (20% margin), up 46% year-on-year
- Diluted EPS: US$0.19; adjusted diluted EPS: US$0.65, up 38% year-on-year
- Raised full-year 2026 guidance to US$12.2 billion gross profit (18% growth) and adjusted operating income of US$3.2 billion (26% margin)
What else do investors need to know?
Block announced a major restructuring, reducing its workforce by over 40%âfrom more than 10,000 people to just under 6,000. Management explained that advances in artificial intelligence are enabling a smaller team to work more efficiently and at higher velocity.
During the quarter, Block delivered strong growth in lending, with Cash App Borrow origination volume up 223% versus last year. Engagement on Cash App continues to deepen, with monthly active users up to 59 million and primary banking customers reaching 9.3 million.
What’s next for Block?
Looking ahead, Block has lifted its full-year 2026 guidance, now aiming for gross profit growth of 18%, driven by ongoing investment in product development and high return-on-capital lending. The company expects to see benefits from its new, leaner, AI-driven operating model flow through to improved profitability, with a projected adjusted operating income margin of 26% this year.
Management said the focus will be on product speed, scaling AI-powered capabilities, and expanding flagship offerings such as Cash App Green and proactive intelligence products across the business.
Block share price snapshot
Over the past 12 months, the Block shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.
The post Block Q4 2025 earnings: Profit jumps as AI transformation begins appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.