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

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.