Block Inc. shares rise 6% after-hours as it raises full-year profit forecast

Jack Dorsey-led fintech firm Block Inc. Block, Inc. (XYZ) saw its shares jump 6.2% in after-hours trading on Tuesday after reporting stronger third-quarter earnings and raising its full-year profit outlook.

Block posted a net income of $566 million in the third quarter of this year, up from $462 million a year earlier, according to its latest quarterly report released Tuesday. It generated $6.72 billion in total revenue, up from $6.12 billion in the same quarter last year.

The company's gross profit rose 22% year-on-year to $3.24 billion, while its Cash App booked $2.07 billion in gross profit, up 27% year-on-year.

On the back of the results, Block raised its full-year gross profit forecast to $12.63 billion, representing a 22% year-on-year growth.

"We are raising our full-year guidance to reflect the momentum we are seeing across Block," the company said. Block said it expects gross profit to grow at least 15% in 2027, as it continues to "expand margins while still investing meaningfully to sustain long-term growth."

Block shares closed down 1.4% at $76 on Tuesday but jumped 6.2% in after-hours trading following the earnings release.

Bitcoin ecosystem

Meanwhile, the firm's bitcoin ecosystem gross profit fell 50% year-over-year to $52 million in the third quarter, according to the report.

It attributed the decline to its "strategic decision to reduce the fee" charged on certain bitcoin transactions on Cash App. Block's bitcoin ecosystem primarily consists of customer purchases of bitcoin within Cash App, Proto, as well as bitcoin withdrawal fees, per the report.

Cash App generated $4.07 billion in revenue in Q3, including $1.77 billion from the bitcoin ecosystem segment.