Block Misses Revenue Target, Tops EPS; Investors Focus on Cash App Growth and Profitability

Block’s third-quarter revenue missed estimates, but adjusted earnings per share slightly surpassed expectations. The stock initially dropped but regained ground as investors focused on profitability metrics. Cash App, a key growth driver, reported a 21% year-over-year increase in gross profit, with active Cash App Card users up 11%. CEO Jack Dorsey emphasized Block’s AI-driven lending products and the transformation of Cash App into a credit card alternative. Lending loss rates remain low, and Block is scaling back on non-core investments.