Latest news with #BlockXYZ
Globe and Mail
08-08-2025
- Business
- Globe and Mail
Block's Q2 Earnings Beat Estimates, 2025 Guidance Raised, Shares Up
Block XYZ reported second-quarter 2025 adjusted earnings of 62 cents per share, which outpaced the Zacks Consensus Estimate by 3.3%. However, the figure decreased 33.3% year over year. Net revenues of $6.05 billion missed the consensus mark by 4.2%. The top line declined 1.6% year over year. XYZ continues to launch new products across Square and Cash App, accelerating Gross Payment Volume ('GPV') growth in Square and gross profit per monthly transacting active in Cash App. Based on strong execution, the company also raised its full-year guidance. Reflecting positive sentiments, XYZ shares have risen more than 6% in pre-market trading. XYZ's Q2 in Details Transaction (30.0% of second-quarter 2025 net revenues) revenues were $1.82 billion, up 6.1% year over year. The Strong Square ecosystem accounted for $1.76 billion in transaction revenues, up 8.8% year over year. Cash App contributed $60.5 million to transaction revenues, down 38.8% year over year. Subscription and Services (33.9% of net revenues) revenues were $2.05 billion, up 14.8% year over year. Hardware (0.7% of net revenues) revenues fell 5.9% year over year to $40.4 million. Bitcoin (35.4% of net revenues) revenues declined 17.9% year over year to $2.14 billion. GPV was $66.6 billion, up 7.5% year over year. Square's GPV was $64.2 billion, up 10.1% year over year. U.S. GPV grew 7%, while international GPV increased 25% (24% on constant currency). The company observed strength in food and beverage and retail. Cash App's GPV was $2.37 billion, down 33.7% year over year. BNPL platform's Gross Merchandise Value grew 17% year over year to $9.11 billion in the reported quarter. Block's Operating Details The gross profit grew 13.6% year over year to $2.54 billion. Square generated a gross profit of $1.03 billion, up 11.3% year over year. Cash App generated a gross profit of $1.50 billion, up 15.6% year over year. Square's gross profit rose on strong growth in software and integrated payments and banking products. Cash App's gross profit increase was driven by growth across Cash App Borrow, Cash App Card and BNPL. Cash App's gross profit per monthly transacting active grew 15% year over year to $87. The company increased engagement of its 57 million active users, and drove Borrow and BNPL attach rates higher while growing Cash App Card actives to 26 million. Adjusted EBITDA was $891.4 million, up 17.4% year over year. Operating expenses were $2.05 billion, up 6.5% year over year. The adjusted operating income was $549.6 million in the reported quarter, up 37.7% year over year. The adjusted operating margin was 22%, expanding 400 basis points on a year-over-year basis. Block's Balance Sheet Details XYZ closed the quarter with $8.5 billion in liquidity, including $7.7 billion in cash and securities plus $775 million in credit capacity. The long-term debt was $3.5 billion as of June 30, 2025, down from $5.1 billion as of March 31, 2025. In the second quarter of 2025, Block repurchased 12.5 million shares of its Class A common stock for a total amount of $692 million. As of June 30, 2025, $1.5 billion remained available under the current authorization. XYZ's Guidance For the third quarter of 2025, Block expects gross profit of $2.60 billion, suggesting year-over-year growth of 16%. The adjusted operating income is expected to be $460 million, with an operating margin of 18%. The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $6.38 billion, suggesting 6.7% growth over the figure reported in the year-ago quarter. The consensus mark for third-quarter 2025 earnings is pegged at 65 cents per share, indicating a 26.14% year-over-year decline. For 2025, XYZ expects a gross profit of $10.17 billion, indicating growth of 14.4% from the 2024 reported figure. The adjusted operating income is now expected to be $2.03 billion, with an operating margin of 20%. The Zacks Consensus Estimate for 2025 revenues is pegged at $24.94 billion, suggesting 3.4% growth over the figure reported in the year-ago quarter. The consensus mark for 2025 earnings is pegged at $2.45 per share, indicating a 27.3% year-over-year drop. Currently, Block has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. A Stock to Consider PayPal Holdings PYPL reported second-quarter 2025 non-GAAP earnings of $1.40 per share, which surpassed the Zacks Consensus Estimate by 7.7% and jumped 17.6% year over year. Results reflected better-than-expected growth in revenues. PayPal saw an uptick in both total payment volume and revenues compared to the first quarter, along with another quarter of high single-digit growth in transaction margin dollars. Reflecting this momentum, the company raised its full-year guidance for transaction margin dollars and EPS while maintaining its outlook for free cash flow. Currently, PayPal carries a Zacks Rank #2 (Buy). Upcoming Earnings Release We now look forward to the earnings release of another stock in the Fintech industry — Affirm Holdings, Inc. AFRM, which is slated to report on Aug. 28. The Zacks Consensus Estimate for Affirm's fiscal fourth-quarter 2025 EPS stands at 11 cents on revenues of $839.88 million. Affirm carries a Zacks Rank #3. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
Yahoo
17-06-2025
- Business
- Yahoo
Galileo Transforms SoFi Into the Backbone of Embedded Finance
Galileo, the B2B financial services arm of SoFi Technologies, Inc. SOFI, is emerging as a key engine of growth in the rapidly expanding embedded finance market. By offering seamless payment and lending integrations, Galileo enables financial and non-financial firms to embed banking capabilities directly into their platforms. This strengthens SoFi's competitive edge and opens up new revenue streams. As embedded finance is expected to witness a CAGR of 16.8% through 2029, Galileo's ability to attract high-profile clients and scale its offerings positions SoFi as a serious contender for long-term leadership. SoFi is leveraging Galileo to diversify beyond its core consumer lending business, tapping into the broader digital banking ecosystem. The platform's adoption by other financial firms not only validates its technological edge but also enhances its network effects, improving monetization potential. As the digital banking platform market is poised for substantial growth, Galileo's early momentum provides SoFi with a significant competitive edge. As more companies, including smaller traditional banks, seek turnkey digital solutions rather than build costly infrastructure from scratch, Galileo becomes an even more attractive proposition. Ultimately, Galileo is transforming SoFi from a digital bank into a foundational layer of the future financial system. Block XYZ, Robinhood (HOOD) and PayPal PYPL are three fintech names to keep on the radar. Block is deepening its ecosystem via Cash App and Square, aiming to unify consumer and merchant services. Robinhood is expanding beyond trading into full-scale financial services, with HOOD users growing steadily. Meanwhile, PayPal is leaning into branded checkout and expanding Venmo's capabilities. Block, Robinhood, and PayPal each face competitive pressure but continue to innovate across digital payment rails and user engagement models. The stock has declined 8.5% year to date compared with the industry's 6% decline. < Image Source: Zacks Investment Research From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 37.2, well above the industry's 17.98. It carries a Value Score of F. < Image Source: Zacks Investment Research The Zacks Consensus Estimate for SOFI's 2025 earnings has been on the rise over the past 60 days. SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
16-06-2025
- Business
- Globe and Mail
Galileo Transforms SoFi Into the Backbone of Embedded Finance
Galileo, the B2B financial services arm of SoFi Technologies, Inc. SOFI, is emerging as a key engine of growth in the rapidly expanding embedded finance market. By offering seamless payment and lending integrations, Galileo enables financial and non-financial firms to embed banking capabilities directly into their platforms. This strengthens SoFi's competitive edge and opens up new revenue streams. As embedded finance is expected to witness a CAGR of 16.8% through 2029, Galileo's ability to attract high-profile clients and scale its offerings positions SoFi as a serious contender for long-term leadership. SoFi is leveraging Galileo to diversify beyond its core consumer lending business, tapping into the broader digital banking ecosystem. The platform's adoption by other financial firms not only validates its technological edge but also enhances its network effects, improving monetization potential. As the digital banking platform market is poised for substantial growth, Galileo's early momentum provides SoFi with a significant competitive edge. As more companies, including smaller traditional banks, seek turnkey digital solutions rather than build costly infrastructure from scratch, Galileo becomes an even more attractive proposition. Ultimately, Galileo is transforming SoFi from a digital bank into a foundational layer of the future financial system. Other Stocks to Watch in Fintech Block XYZ, Robinhood (HOOD) and PayPal PYPL are three fintech names to keep on the radar. Block is deepening its ecosystem via Cash App and Square, aiming to unify consumer and merchant services. Robinhood is expanding beyond trading into full-scale financial services, with HOOD users growing steadily. Meanwhile, PayPal is leaning into branded checkout and expanding Venmo's capabilities. Block, Robinhood, and PayPal each face competitive pressure but continue to innovate across digital payment rails and user engagement models. SOFI's Price Performance, Valuation and Estimates The stock has declined 8.5% year to date compared with the industry 's 6% decline. < From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 37.2, well above the industry's 17.98. It carries a Value Score of F. < The Zacks Consensus Estimate for SOFI's 2025 earnings has been on the rise over the past 60 days. SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
