Block's fourth quarter gross profit beat estimates with 24% growth as it announced a major workforce reduction of over 40%.

Block reported fourth quarter 2025 revenue of $6.25 billion, slightly missing estimates, and adjusted EPS of $0.65, in line with expectations. The company beat on its key profitability metric, with gross profit growing an accelerated 24% year-over-year to $2.87 billion. Concurrent with the earnings, the company announced a significant restructuring plan to reduce its workforce by over 40%.

Key Highlights

• Announced a significant restructuring plan to reduce its workforce by over 40%, expecting to incur charges of $450 million to $500 million, primarily in the first quarter of 2026.
• Gross profit growth accelerated to 24% YoY, reaching $2.87 billion and allowing the company to surpass its 'Rule of 40' target for the quarter (24% growth + 20% Adjusted OI margin).
• Raised its full-year 2026 guidance, now expecting gross profit of $12.20 billion (18% growth) and Adjusted Operating Income of $3.20 billion, citing underlying business strength.