Block, Inc. stock research
FY2025 Q2
Block (XYZ) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased sequentially but decreased year-over-year, while gross profit rose on both bases and cost of revenue was flat sequentially and lower year-over-year, resulting in an improved gross margin. The filing discusses the company's Square and Cash App ecosystems and forward-looking statements, without attributing the margin change to any specific factor.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased sequentially but decreased year-over-year, while gross profit rose on both bases and cost of revenue was flat sequentially and lower year-over-year, resulting in an improved gross margin. The filing discusses the company's Square and Cash App ecosystems and forward-looking statements, without attributing the margin change to any specific factor.
- The most observable driver of the margin improvement is the change in cost of revenue relative to revenue. Cost of revenue held steady sequentially despite higher revenue and fell year-over-year even as revenue decreased modestly, resulting in a higher gross margin.
- Compared to the prior quarter, gross margin improved as revenue grew while cost of revenue was unchanged. Compared to the same quarter a year ago, gross margin strengthened as cost of revenue declined more than the slight revenue decrease.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.9%
Gross profit
$2.5B
Revenue
$6.1B
Cost of revenue
$3.5B
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+5.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $6.0B | $2.2B | $3.7B | 37.6% |
| Dec 31, 2024 | $6.0B | $2.3B | $3.7B | 38.3% |
| Mar 31, 2025 | $5.8B | $2.3B | $3.5B | 39.7% |
| Jun 30, 2025 | $6.1B | $2.5B | $3.5B | 41.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.2 pts
Year-over-year change
Jun 30, 2024
+5.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the margin improvement is the change in cost of revenue relative to revenue. Cost of revenue held steady sequentially despite higher revenue and fell year-over-year even as revenue decreased modestly, resulting in a higher gross margin.
Compared to the prior quarter, gross margin improved as revenue grew while cost of revenue was unchanged. Compared to the same quarter a year ago, gross margin strengthened as cost of revenue declined more than the slight revenue decrease.
Monitor the trajectory of cost of revenue, especially its relationship to revenue, to assess whether the current margin level can be maintained.