Shares in Block Inc. fell about 10% in late trading today after the financial services company missed on revenue and earnings in its third quarter.

For the quarter ended Sept. 30, Block reported adjusted earnings per share of 54 cents, up slightly from 53 cents per share in the same quarter of 2024, on revenue of $6.11 billion, up 2.8% year-over-year. Both trailed the 67 cents per share and revenue of $6.312 billion expected by analysts.

Block saw transaction revenue rose 9%, to $1.873 billion, subscription and services-based revenue jumped 23%, to $2.205 billion, hardware revenue declined 16%, to $70.19 million, and bitcoin revenue fell 19%, to $1.996 billion.

Across Block’s segments, the company saw Square gross payment volume rises 12% year-over-year, to $67.2 billion, its fastest growth since mid-2023, driven by international growth of 26% year-over-year. Gross profit for Square rose 9%, to $1.018 billion, led by software, integrated payments and banking products.

Block’s Cash App saw gross profit climbing 24% year-over-year, to $1.624 billion, as monthly transactions grew to 58 million, up from 51 million a year earlier. The company’s Buy Now, Pay Later vertical saw gross merchandise volume reached $9.7 billion, up 17%, generating $299 million in gross profit.

Business highlights in the quarter included the expansion of Square’s food and beverage platform, that included the introduction of new tools for voice ordering, ingredient-level cost control and artificial intelligence-powered insights tailored for restaurants. The update, announced in July, marked a significant step in Block’s push to capture higher-value merchant segments, particularly in hospitality and retail.

Cash App saw the addition of new functionality to strengthen engagement and monetization. The company began rolling out Cash App “Pools,” a feature enabling group payments and shared savings and expanded Tap to Pay on iPhone for business sellers using Cash App. The quarter also saw closer integration between Afterpay, Block’s Buy Now, Pay Later service and Cash App, allowing users to manage Buy Now, Pay Later installments directly within the app.

“We had another strong quarter, delivering for our customers with high quality and high velocity,” Block Chief Executive Jack Dorsey said in the letter to shareholders.

For its fiscal fourth quarter, Block said that it expects a gross profit of $2.775 billion and, for the full year, gross profit of $10.243 billion.

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