How Block’s Cash App and Square Drive 14% Profit Growth in Q2

Strong Financial Momentum

Block, Inc. delivered a solid second quarter for 2025, reporting a 14% increase in gross profit year-over-year to $2.54 billion. This growth was fueled by the company’s two main segments, Cash App, which saw a 16% rise in gross profit, and Square, which experienced a 10% increase in gross payment volume (GPV). Operating income improved dramatically by 58% to $484 million, underscoring the company’s improving profitability and operational leverage.

Adjusted operating income also rose 38% year-over-year to $550 million, reflecting Block’s focus on efficient growth and product innovation. The company’s adjusted EBITDA margin expanded to 35%, signaling strong underlying business health.

Cash App, Building the Financial Operating System for the Next Generation

Cash App continues to be a key growth driver, with the company emphasizing its role as a financial platform for younger users. The app’s peer-to-peer (P2P) network processed $218 billion in volume over the past year, and new features like Pools; launched just four months after development began; are designed to deepen network effects by simplifying group payments.

Cash App’s banking functionality is also expanding, with 2.7 million paycheck deposit actives and a broader definition of banking customers pushing that number to 8 million. Borrow origination volume nearly doubled year-over-year, reaching an annualized $18 billion, highlighting strong demand for Cash App’s lending products.

Square, Innovation and Market Expansion

Square’s growth was supported by new product launches such as the Square Handheld device and Square AI, an AI-powered tool that helps sellers analyze sales trends and customer behavior. The company is also pioneering bitcoin payments for sellers, aiming to roll out this feature to millions by the end of 2025.

Square’s GPV growth was particularly strong in food and beverage (up 15%) and retail sectors (up 10%), with mid-market sellers showing faster adoption. The company is also expanding its sales force internationally and building partnerships, including exclusive payment processing deals with Live Nation Canada and new merchant signings like Colectivo Coffee and Shane’s Rib Shack.

Financial Outlook and Strategic Priorities

Reflecting its strong execution, Block raised its full-year 2025 gross profit guidance to $10.17 billion, representing over 14% growth. Adjusted operating income guidance was also increased to $2.03 billion, with an expected margin expansion to 20%. The company anticipates accelerating gross profit growth in the second half of the year, driven by lending products, BNPL expansion, and product innovations.

Block ended the quarter with $8.5 billion in liquidity and repurchased $692 million of shares, signaling confidence in its financial position. The company’s strategic focus remains on expanding Cash App’s ecosystem, enhancing commerce tools, deepening banking engagement, and integrating bitcoin payments, all while leveraging AI to empower sellers.