Square shares rose after its second-quarter earnings report showed improving trends in its Cash App business.
Square’s parent company, Block (XYZ), reported second-quarter earnings and revenue slightly below Wall Street expectations on Thursday. However, Square’s stock rose after it beat expectations on some key financial metrics and raised its 2025 gross profit forecast.
In May, the digital payments company lowered its fiscal 2025 guidance due to weakness in its consumer Cash App business. However, trends in some Cash App businesses improved in the second quarter. Square reported adjusted earnings per share of 62 cents for the period ended June 30 after the market closed, up more than 10% from the same period last year. Square also said net revenue, including Bitcoin trading, was $6.054 billion, down 1.6% from the same period last year.
In the second quarter, the company’s gross profit rose 14% to $2.537 billion, beating expectations of $2.461 billion. The Cash App unit reported gross profit of $1.501 billion, up 15.6%, accelerating from a 9.6% increase in the first quarter.
Cost cuts boosted earnings before interest, taxes, depreciation and amortization, or EBITDA, a key metric. EBITDA rose 17% to $891 million, well ahead of expectations of $828 million.
In the second quarter, merchant customer transaction volume (GPV) grew 10% to $64.25 billion, below the $66.318 billion forecast.
The company raised its 2025 gross profit forecast to $10.17 billion, a 14% year-over-year increase. The previous forecast was $9.96 billion, a 12% year-over-year increase.
Square Stock: Banking Growth
Cash App’s average monthly users remained flat at 57 million in the second quarter. Square said in a letter to shareholders: “As of June, we had 2.7 million active users using payroll deposits. If we define banking customers based on how people use money in their daily lives—depositing their payroll or spending at least $500 per month on Cash App—we had 8 million active banking customers, up 16% year-over-year. If we include users who deposit more than $200 per month or make 15 or more transactions per month, we had 11 million active banking customers at the end of June, up more than a million from the same period last year. No matter how we define it, our banking business is massive.”
On the stock market today, Square shares rose nearly 6% to $81.40 in after-hours trading.
Square’s core business operates a two-sided digital payments ecosystem, with products for both merchants and consumers. San Francisco-based Block’s profitable businesses include consumer lending company Afterpay.
Square Cash App helps individuals manage their money, buy stocks and cryptocurrencies, and more. The company recently added a pool payments feature to the app, allowing groups of users to share payments.
Square Stock Technical Rating
Prior to the Block earnings report, Square stock had fallen about 11% in 2025.
Square stock holds an IBD Composite Rating of 90 out of a possible 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks receive a Composite Rating of 90 or higher.
Meanwhile, Square stock has an Accumulation/Distribution Rating of A-. The rating ranges from A+ (best) to E (worst). This rating analyzes a stock’s price and volume changes over the past 13 weeks of trading.