Block Inc Shares Jump After Q1 Earnings Beat Despite Bitcoin Revenue Decline

Block Inc shares climbed nearly 8% in after-hours trading after the company delivered stronger-than-expected first-quarter earnings. The payments company reported earnings of 85 cents per share, beating analyst estimates of 68 cents and creating a positive surprise for investors despite broader weakness in the crypto market.

The company posted a quarterly net loss of $309 million, its first loss since 2023. A major factor behind the decline was a $172.8 million Bitcoin remeasurement loss tied to the company’s holdings of 8,883 BTC during a period when Bitcoin prices fell nearly 24%.

Bitcoin Revenue Falls as Block Expands Crypto Payments

Bitcoin revenue generated through Cash App and other services dropped to $1.8 billion from $2.33 billion a year earlier. Block said the decline reflected changing Bitcoin trading activity and lower transaction fees on Cash App.

Despite weaker Bitcoin revenue, Block’s gross profit increased 27% year-over-year to $2.9 billion. The company also expanded Bitcoin payment services, introduced new wallet features, increased withdrawal limits, and continued integrating Bitcoin into everyday merchant transactions across its payment ecosystem.