The Block (NYSE: XYZ) share price soared 20% in aftermarket trading on the NYSE after releasing its December 2025 result, which is an exciting prospect for the Block (ASX: XYZ) share price.
Block is the owner of payments system Square and buy now, pay later business Afterpay.
Block December 2025 annual result
The business reported its 12-month result and the quarterly result for the period to December 2025. Let’s take a look at the numbers for the annual result:
- Gross payment volume (GPV) grew 7.8% to US$259.6 billion
- Gross profit rose 17% to US$10.36 billion
- Adjusted EBITDA (EBITDA explained) rose 14.4% to US$3.47 billion
- Adjusted net profit (operating income) increased 29.5% to US$2.08 billion
- Adjusted earnings per share (EPS) rose 21.5% to US$2.37
- Statutory operating net profit jumped 91% to US$1.7 billion
- Statutory net profit declined 55% to US$1.3 billion
Statutory net profit declined largely because last year included a US$1.9 billion benefit related to the “release of the valuation allowance associated with certain federal and state deferred tax assets as well as the recognition of deferred tax assets as part of internal legal entity restructuring efforts in the fourth quarter of 2024.”
Cash app gross profit rose 21% to US$6.34 billion and the Square gross profit increased 9% to US$3.94 billion.
Quarterly numbers
The business also gave investors a number of interesting insights into how it performed in the three months to December 2025.
Block’s gross profit grew 24% to US$2.87 billion, with the cash app gross profit growing 33% to US$1.83 billion and the Square gross profit rising 7% to US$993 million.
During this quarter, it generated US$588 million of adjusted operating income (adjusted operating profit) and the statutory operating income (operating net profit) reached US$485 million.
Block job cuts
The company told the market that it’s going to reduce its workforce by nearly half, from 10,000 people to just under 6,000. That means more than 4,000 people are being asked to leave or entering into consultation.
Block explained that ‘intelligence tools’ have changed what it means to build and run a company.
It will change how it builds products and how it serves customers. Customers can build their own features directly on top of its capabilities.
Block said it believes Block will be “significantly more valuable as a smaller, faster, intelligence-native company.”
Outlook for the Block share price
The company gave guidance on what it expects for 2026.
Gross profit is projected to increase by 18% to US$12.2 billion and the adjusted operating income (adjusted operating profit) is expected to grow to US$3.2 billion. This implies a possible rise of 53.8% of adjusted operating net profit.
In the first quarter of FY26, it expects gross profit growth of 22% to US$2.8 billion.
Clearly, a large increase in net profit is exciting to the market and its growth metrics continue to be positive.
At the pre-open Block share price, it was down 40% in the past six months. It’s going some way to justify a return to its previous valuation.
It could still be one of the ASX growth shares to watch even after it jumps today, but there are other opportunities that could be better picks, in my opinion.
