The news: Block’s gross profit increased 18% YoY to $2.66 billion, per its Q3 2025 earnings release.

• Cash App’s gross profit rose 24% YoY to $1.62 billion.
• Square’s gross profit jumped 9% YoY to $1.02 billion.

Even so, investors sent Block shares down 24% after the fintech missed its revenue expectations of $6.31 billion at $6.11 billion, per CNBC.

But Block raised its gross profit guidance for 2025 to $10.25, or 15% growth YoY, based on the strength of Cash App’s performance across its card product, Cash App Afterpay, and Cash App Borrow.

Payment volume: Square’s gross payment volume (GPV) of $67.2 billion increased 12% YoY, with international payments making up 26% of growth for Q3. 

Cash App’s commerce volume grew 17% YoY to $49.7 billion, and Cash App Afterpay’s GMV increased 17% YoY to $9.7 billion.

Cash App on the rise: New features drove volume and users to the app.

• More than 1 million Cash App pools have been created as of September.
• Post-purchase buy now, pay later (BNPL) plans on the Cash App card crossed $3 billion in volume by early September.
• Cash App Borrow originations surged 134% YoY.

Square’s woes: While Square’s GPV increased 12% YoY, gross profit growth slid from 11% to 9%. 

Block blamed the dip on sluggish hardware sales, joining competitors like Fiserv’s Clover and Toast facing downturns on POS hardware sales.

Block’s dip in performance could indicate that SMBs are finally showing signs of stress as worries of a recession loom. With tariffs eating into margins, many small-business owners may be turning to mPOS solutions to avoid pricey terminal sales. 

Our take: Expanding buy now, pay later solutions can help payment platforms grow volume heading into the holiday season as consumers grapple with economic uncertainty and the pressure of gift buying. Providers who can leverage rewards like cash back and/or interest-free options serve to secure consumer loyalty during a time of economic stress.