Block, Inc. Q4 FY2025 earnings call

Jack mentioned the company is reducing headcount from over 10,000 to under 6,000. Intelligence will be core, with extreme focus on 4 things: customer capabilities, interfaces, proactive intelligence, and an intelligence model to orchestrate operations. Speed is key. 2025 was strong with gross profit growth doubling from Q1 to Q4, surpassing Rule of 40 in Q4, Cash App network growth and engagement reignited, lending products scaled, Square GPV grew, hardware launched, and share repurchases increased. 2026 outlook includes raising guidance, AI tooling improvements, and product launches like Cash App Green scaling, Afterpay pre-purchase launch, etc.

In the fourth quarter, Cash App generated $1.83 billion in gross profit, a 33% year-over-year increase. For the full year 2025, Cash App had $10.36 billion in gross profit, a 17% year-over-year growth. Square's GPV grew 10.3% in Q4, and in 2025, Square's GPV growth accelerated from 8.6% in 2024 to 10%. 2025 was Square's strongest year ever for NVA growth at 17%, with 29% year-over-year NVA growth in Q4. Sales-led NVA in Q4 was up 62%.

For full year 2026, expect year-over-year gross profit growth of 18% to $12.2 billion. Q1 2026 expects year-over-year gross profit growth of 22% to $2.8 billion. Adjusted operating income for 2026 is raised to $3.2 billion. Adjusted diluted EPS for 2026 is raised to $3.66. Expect mid-20% non-GAAP effective tax rate in 2026.

Changes in macroeconomic conditions and risks related to the workforce reduction announced.

Q: Why now for the reduction in force?

A: Compounding factors like functionalizing the company, AI tools becoming magnitudes more capable.

Q: What drives sustainable momentum across businesses?

A: Org structure with smaller nimble teams, product development road map with core network growth, key product launches, and big bets.

Q: How do org changes flow through financial outlook?

A: Margin expansion throughout the year due to underlying unit economic strength, timing of cost structure changes, and investment areas like people, go-to-market, and AI infrastructure.

Q: About primary banking actives?

A: Cash App Green launched expanding access, primary banking actives grew 22% to 9.3 million in December, with high gross profit per active and improved engagement.

Q: On MAU growth?

A: Driven by multiplayer money, network enhancements, go-to-market, and marketing, with focus on quality actives.

Q: On Cash App Score?

A: Credit score valuable for underwriting, showing to customers, partnering with third parties, and part of Cash App ecosystem.

Q: On BNPL?

A: Afterpay post-purchase momentum, new products rolling out, strong growth in commerce volume and consumer lending originations.

Q: On Cash App Borrow growth?

A: Expect strong growth in 2026 with drivers like SFS expansion and integration with Cash App Green.

Q: AI as competitive vector?

A: Block's capabilities, interfaces, understanding of customers, and orchestration of the company set it apart.

Q: Bridge to 2028 targets?

A: Current path shows credible and profitable way to reach 2028 targets through accelerating strategies and compounding profitability.