Block Inc. Shares Slide After Q3 Revenue Miss and Flat Bitcoin Earnings

Block Inc.’s stock took a hit in after-hours trading following a disappointing Q3 performance, with both total revenue and Bitcoin-related income missing market expectations.

The company’s shares fell by over 12% soon after the closing bell, though they recovered slightly, leaving them up around 4% for the year.

The tech firm, known for its Square point-of-sale system and Cash App, reported a modest 6.4% revenue increase from the previous year, reaching $5.98 billion—falling short of analyst projections of $6.17 billion. Bitcoin revenue, Block’s key income stream from crypto-related fees, remained stagnant compared to last year’s third quarter at roughly $2.43 billion.

Amid these results, Block announced plans to wind down its decentralized finance project, TBD, and reduce its investment in the TIDAL music platform to focus more on crypto-related ventures. According to Block, this shift will allow for further investment in initiatives like Bitcoin mining and the Bitkey self-custody wallet.

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Despite the revenue shortfall, Block’s gross profit rose by 19% to $2.25 billion, with net income reaching $283.7 million, aligned with analyst forecasts. The revenue miss was partly attributed to Bitcoin’s price stability during the quarter, averaging close to $60,000.

Kosta Gushterov