Block, Inc. reported robust financial results for 2025, driven by Cash App and Square growth, while announcing a significant workforce reduction to accelerate AI-driven innovation and efficiency.
- Over 40% workforce reduction announced to align with AI-driven operating model
- 2025 gross profit grew 17%, with Q4 up 24% year-over-year
- Cash App consumer lending origination volume surged 69% in Q4
- Square gross payment volume grew 10% in Q4, with international markets leading
- 2026 guidance raised: 18% gross profit growth and 54% adjusted operating income growth expected
Strong 2025 Performance Sets Stage for Transformation
Block, Inc. closed out 2025 with impressive financial momentum, reporting a 17% increase in gross profit for the full year and an even stronger 24% growth in the fourth quarter. The company’s dual engines, Cash App and Square, both contributed to this success, with Cash App’s gross profit rising 33% year-over-year and Square’s gross profit up 7%. Key growth drivers included accelerated consumer lending volumes, expanded payment processing, and innovative product launches such as AI-powered tools and bitcoin mining units.
Bold Workforce Reduction to Embrace AI Efficiency
In a decisive move, Block announced a workforce reduction plan that will cut more than 40% of its staff, reducing headcount from over 10,000 to under 6,000 employees. This restructuring aims to better align the company’s organisational structure with its strategic priorities centred on artificial intelligence. The company estimates restructuring charges between $450 million and $500 million, primarily impacting the first half of 2026. Block’s leadership emphasised that this leaner, AI-native approach will enable faster decision-making, product development, and customer service.
AI at the Core of Future Operations
Block is positioning intelligence tools as the foundation of its future operations. The company plans to embed AI deeply into decision-making, risk management, product innovation, and customer engagement. Notably, Square AI and Cash App’s Moneybot are examples of proactive intelligence interfaces already delivering real-time insights and personalised financial guidance. This shift reflects a broader industry trend, with Block aiming to lead rather than follow in adopting AI-driven efficiencies.
Robust Growth Across Key Segments
Cash App’s consumer lending origination volume soared 69% year-over-year in Q4, with the Borrow product growing 223%, highlighting strong demand for flexible credit solutions among modern earners. Meanwhile, Square’s gross payment volume increased 10%, with international markets outpacing the US. The company also reported record new volume added (NVA) growth, particularly in the food and beverage vertical, and successful expansion into new geographies including Australia and the UK.
Raised 2026 Guidance Reflects Confidence
Reflecting its strong finish and strategic repositioning, Block raised its 2026 financial outlook. The company now expects 18% gross profit growth to $12.2 billion and a 54% increase in adjusted operating income to $3.2 billion, representing a 26% margin. Adjusted diluted earnings per share are forecast to grow 54% to $3.66. The company anticipates that the benefits of its AI-driven restructuring will begin to materialise in the second quarter, improving profitability in the latter half of the year.
Bottom Line?
Block’s bold bet on AI and a leaner workforce signals a new era of fintech innovation, but execution risks remain high.
Questions in the middle?
- How will the workforce reduction impact Block’s product development and customer support in the short term?
- What specific AI capabilities will drive the next phase of growth and how quickly can they be scaled?
- How will Block manage risks associated with rapid restructuring and integration of AI tools?