Financial service companies Block Inc. and Chime Financial Inc. both reported second-quarter earnings today, with shares in Block up solidly up after hours thanks to strong guidance, while Chime shares declined slightly.

For the quarter that ended on June 30, Block reported adjusted earnings per share of 62 cents, up from 47 cents in the same quarter of 2024, on revenue of $6.054 billion, down 1.64% year-over-year. Both were misses, as analysts had been expecting adjusted earnings of 69 cents per share on revenue of $6.31 million.

The compay saw its gross profit rise 14% year-over-year to $2.536 billion, ahead of expectations, with growth across both operating segments. Square, its merchant services arm, generated $1.03 billion in gross profit, up 11%, while Cash App posted $1.5 billion, up 16%. Cryptocurrency revenue declined to $2.14 billion from $2.61 billion a year earlier, reflecting weaker cryptocurrency trading volumes.

Transaction-based revenue came in at $1.82 billion, up 6% year-over-year and subscription and services-based revenue was up 14% to $2.05 billion.

Block’s operating expenses came in at $2.03 billion, up from $1.96 billion a year earlier; adjusted operating income reached $529 million, up 28% year-over-year and free cash flow totaled $440 million, up 35% year-over-year. Block ended the quarter with $5.6 billion in cash, cash equivalents, restricted cash and investments on hand.

“We had a strong second quarter. Square GPV grew 10% year-over-year and Cash App gross profit grew 16% year-over-year, accelerating as we exited Q2,” Jack Dorsey, chief executive officer of Block, said in a shareholder letter. “Our focus on products that can drive network expansion is already paying off as we started rolling out Pools on Cash App in July, just four months after kicking off development work.”

For its fiscal third quarter, Block expects gross profit to grow 16% year-over-year to $2.6 billion, supported by continued momentum in Cash App’s Borrow and buy now, pay later products, along with steady growth in its Square merchant segment.

For the full year, the company raised its gross profit forecast to $10.17 billion from $9.96 billion and increased its adjusted operating income target to $2.03 billion from $1.90 billion, citing strong customer engagement, disciplined cost management, and a healthy macro backdrop for consumer spending.

The rise in the company’s gross profit forecast was enough to push Block shares up more than 5% in late trading.

Conversely, Chime shares were down ever so slightly after the bell, about 0.3% as of the time of writing, despite solid results in what was the company’s first earnings report after it went public on the Nasdaq in June.

For its second quarter, Chime reported revenue of $528 million, up 37% year-over-year and ahead of an expected $502.9 million. The company did not give an adjusted earnings per share figure in its earnings release but did report earnings before interest, taxes, depreciation and amortization of $16 million on a 3% margin.

Chime saw payments revenue grow 19% year-over-year to $366 million, while platform-related revenue more than doubled to $162 million. Gross profit rose to $461 million on an 87% margin, with active members up 23% year-over-year to 8.7 million and average revenue per member up 12% to $245.

To this point, the figures were solid, but Chime also reported a $923 million net loss, driven largely by $928 million in initial public offering-related stock-based compensation and payroll tax. The size of the loss was enough to raise concern among investors.

“This was a breakout first quarter as a public company for Chime, driven by accelerating year-over-year growth, expanding margins, and continued product execution,” co-founder and CEO Chris Britt said in the company’s earnings release. “These results highlight the strength of our payments-based model, fueled by highly recurring revenue and deep member engagement.”

For its fiscal third quarter, Chime expects revenue of between $525 million and $535 million and for the full year, revenue of $2.135 billion to $2.155 billion.

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