Block, Inc. stock research
FY2025 Q3
Block (XYZ) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was stable compared with the previous quarter, but gross profit improved, driven by a lower cost of revenue relative to revenue. Gross margin strengthened from the prior quarter and was much higher than the same quarter a year ago, reflecting a more favorable relationship between gross profit and cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was stable compared with the previous quarter, but gross profit improved, driven by a lower cost of revenue relative to revenue. Gross margin strengthened from the prior quarter and was much higher than the same quarter a year ago, reflecting a more favorable relationship between gross profit and cost of revenue.
- Gross profit increased while revenue held steady, which narrowed the cost of revenue as a share of revenue. This was the strongest observable driver of the margin improvement.
- Gross margin improved from the prior quarter and was markedly higher compared with the same quarter one year earlier. The year-over-year improvement was larger than the sequential improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.5%
Gross profit
$2.7B
Revenue
$6.1B
Cost of revenue
$3.5B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+5.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $6.1B | $2.7B | $3.5B | 43.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.6 pts
Year-over-year change
Sep 30, 2024
+5.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased while revenue held steady, which narrowed the cost of revenue as a share of revenue. This was the strongest observable driver of the margin improvement.
Gross margin improved from the prior quarter and was markedly higher compared with the same quarter one year earlier. The year-over-year improvement was larger than the sequential improvement.
Monitor whether cost of revenue can remain contained relative to revenue, as it was the key factor in recent margin expansion.