Block (ASX:XYZ) Shares Surge on Positive Outlook and December 2025 Cost Cuts
Shares of Block (ASX: XYZ) experienced a significant surge, jumping 20% in aftermarket trading. This positive movement reflects the market’s reaction to the company’s recent quarterly results and strategic announcements.
Block’s December 2025 Annual Results
In its latest annual report, Block showcased impressive financial growth for the year ending December 2025. Key figures from the results include:
- Gross payment volume (GPV) increased by 7.8%, reaching US$259.6 billion.
- Gross profit rose 17% to US$10.36 billion.
- Adjusted EBITDA climbed 14.4% to US$3.47 billion.
- Adjusted net profit saw a significant boost of 29.5%, totaling US$2.08 billion.
- Adjusted earnings per share (EPS) increased by 21.5% to US$2.37.
- Statutory operating net profit surged 91% to US$1.7 billion.
- Statutory net profit dropped by 55% to US$1.3 billion, largely due to prior year tax benefits.
Block’s Cash App gross profit climbed 21% to US$6.34 billion, while its Square gross profit increased by 9% to US$3.94 billion.
Quarterly Insights
The quarterly performance for the period ending December 2025 revealed further growth:
- Gross profit up 24% to US$2.87 billion.
- Cash App gross profit rose 33% to US$1.83 billion.
- Square gross profit grew by 7% to US$993 million.
- Adjusted operating income reached US$588 million.
- Statutory operating income amounted to US$485 million.
Workforce Adjustments
In a strategic move to enhance efficiency, Block announced plans to reduce its workforce from 10,000 to approximately 6,000 employees. This decision impacts over 4,000 workers currently in consultation. The company attributed this shift to advancements in “intelligence tools,” aimed at refining product development and customer service.
Future Outlook for Block Shares
Looking ahead, Block has shared its projections for 2026. The company expects gross profit to grow by 18%, reaching US$12.2 billion. Furthermore, it anticipates adjusted operating income will increase to US$3.2 billion, suggesting a remarkable 53.8% rise in adjusted net profit. In the first quarter of FY26, gross profit is expected to show a 22% growth, totaling US$2.8 billion.
Despite facing a 40% decrease in share price over the past six months, the company’s promising outlook and strong growth metrics could ultimately attract renewed investor interest. As the landscape evolves, Block remains a noteworthy entity within the ASX growth shares to monitor.
