Block Prepares to Announce Q2 Results: What to Expect?

Upcoming Earnings Report for Block

Block is scheduled to release its second-quarter 2025 results on August 7, after the market closes. The Zacks Consensus Estimate for second-quarter revenues is set at $6.32 billion, showing a 2.64% increase compared to the same period last year. For earnings per share (EPS), the consensus forecast stands at 60 cents, which is a penny higher than the previous week’s estimate. However, this figure represents a 35.5% decline from the EPS reported in the second quarter of 2024.

Looking ahead to the full year, the Zacks Consensus Estimate for Block’s revenues is projected at $24.94 billion, reflecting a 3.4% year-over-year growth. The full-year EPS forecast is $2.45, indicating a 27.3% decrease compared to the previous year.

Over the past four quarters, Block’s earnings have exceeded the Zacks Consensus Estimate once, matched it once, and fallen short twice. This performance highlights the company’s fluctuating financial trajectory.

Earnings Prediction and Market Outlook

Block’s earnings are expected to beat the Zacks Consensus Estimate, based on a combination of a positive Earnings ESP (Earnings Surprise Prediction) and a Zacks Rank of #3 (Hold). The company currently has an Earnings ESP of +0.84%, suggesting a slight upward surprise in its earnings report.

Investors can use tools like the Earnings ESP Filter to identify stocks with strong potential for beating expectations before their reports are released.

Key Factors Influencing Q2 Performance

For the second quarter of 2025, Block anticipates a gross profit of $2.45 billion, representing a 9.5% year-over-year increase. Adjusted operating income is expected to reach $450 million, with an operating margin of 18%.

Square, one of Block’s key platforms, is projected to see high-single-digit Gross Payment Volume (GPV) growth. April’s global GPV growth is expected to be 9.6% year-over-year. The company continues to expand its fintech ecosystem through Square and Cash App, offering integrated solutions in payments, commerce, lending, and banking.

Recent Developments and Strategic Moves

Block has experienced several positive developments during the second quarter. These include the launch of Square Handheld in the United Kingdom, a partnership with Live Nation Canada to enhance commerce at Rogers Stadium, and collaborations with Angel Reese and Bambu Dessert Drinks to improve operational efficiency.

Transaction revenues are estimated at $1.81 billion for the second quarter, up from $1.55 billion in the previous quarter and $1.71 billion in the same period last year. Square’s ecosystem is expected to contribute $1.74 billion, while Cash App is projected to add $69.47 million.

Subscription and Services revenues are anticipated to reach $2.03 billion, increasing from $1.89 billion in the prior quarter and $1.79 billion in the year-ago period. Bitcoin revenues are expected to be $2.52 billion, slightly down from the previous quarter but still higher than the same period last year.

Despite macroeconomic challenges such as trade tariffs and reduced discretionary spending, Block is focusing on improving user engagement and expanding features like Borrow and retroactive BNPL to drive growth in the second half of the year.

Other Stocks to Consider

In addition to Block, two other stocks in the Financial Services industry may be worth watching:

• StepStone Group (STEP): Scheduled to report earnings on August 7, STEP has an Earnings ESP of +7.63% and a Zacks Rank of 3.
• Marex Group PLC (MRX): Set to report on August 13, MRX has an Earnings ESP of +3.97% and a Zacks Rank of 1.

These companies also show potential for exceeding earnings expectations based on current forecasts.