Block Inc. anticipates a 2.2% revenue growth year-over-year for Q2 2025, but expects earnings per share (EPS) to decline by approximately 27% due to margin compression. The Cash App Borrow expansion, enabled by FDIC approval, is set to double the number of eligible users and boost gross profits in the second half of 2025. Additionally, a new retroactive Buy Now Pay Later feature via Afterpay aims to enhance user engagement and deposit growth, reflecting strong attach rates despite overall earnings challenges.
Block Inc. is expected to see Q2 2025 revenue growth of 2.2% YoY; however, EPS is predicted to drop around 27%, indicating margin compression alongside top-line growth.
FDIC approval allows Block's Cash App Borrow to expand, doubling eligible users and enhancing unit economics. Expected to drive gross profit growth in the latter half of 2025.
Afterpay's retroactive BNPL feature aims to increase user engagement and drive deposit growth by enabling users to split past Cash Card purchases, showcasing strong attach rates.
Despite slight revenue increases, cost pressures and shifts in product mix are projected to cause significant declines in earnings per share for Block in the upcoming quarter.
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