$SQ (-0,32%)

Financial Results (Q3 2026)

• Gross profit rose by 22% to $3.24 billion. [s29.q4cdn.com]
• Cash App gross profit rose by 27% to $2.07 billion. [s29.q4cdn.com]
• Square’s gross profit rose by 14% to $1.16 billion. [s29.q4cdn.com]
• Adjusted operating income rose by 92% to $923 million. [s29.q4cdn.com]
• Adjusted EPS (earnings per share) rose by 109% to $1.13. [s29.q4cdn.com]
• The company has raised its full-year forecast. [s29.q4cdn.com]

Strategic Focus

Block is increasingly focusing on artificial intelligence . The revised strategy includes: [s29.q4cdn.com]

• Transforming the company itself into an “intelligence” platform.
• Creating the best AI for businesses.
• Creating the best AI for personal finance.
• Building an open financial infrastructure.
• Connecting local communities (“Neighborhoods”) globally. [s29.q4cdn.com]

AI Initiatives

• Internal AI Platform Buzz is used for collaboration and software development. [s29.q4cdn.com]
• New Ecosystem Builderlab plans to offer these AI tools to other companies in the future. [s29.q4cdn.com]
• The first revenue from the “Machine Intelligence” segment is already expected in the fourth quarter. [s29.q4cdn.com]
• Language model Dessa is highlighted as a major AI breakthrough. [s29.q4cdn.com]

Business Performance

• Square’s payment volume grew by 14%, the highest growth rate since early 2023. [s29.q4cdn.com]
• Over 180 new Square features were released in the first three quarters. [s29.q4cdn.com]
• According to the company, the number of new merchants acquired through sales partners rose by 90% compared to the previous quarter. [s29.q4cdn.com]

Cash App

• The number of monthly active users of Cash App reached 60 million. [s29.q4cdn.com]
• Block is increasingly focusing on Bitcoin and stablecoin infrastructure to expand its ecosystem. [s29.q4cdn.com]

Conclusion

The letter shows that Block aims to evolve from a traditional fintech company into a provider of AI-powered software and financial infrastructure. At the same time, its operating metrics remain strong, with double-digit growth in earnings and profitability. [s29.q4cdn.com]

Jack Dorsey announces that $SQ (-0,32%) Block (formerly Square) is cutting almost half of its workforce - from over 10,000 to just under 6,000 employees, i.e. over 4,000 redundancies.

And not because of financial problems, as business is going well. Rather, AI tools and flatter team structures are enabling a fundamentally new way of working that requires fewer staff. Dorsey deliberately opted for a one-off major cut instead of gradual reductions, as repeated rounds of redundancies would destroy morale and trust.

I imagine Block is just the beginning. It will be exciting to see how the world of work changes with AI. As a software developer, when I see how good Claude Code is now, for example, it makes me wonder whether I won't be at risk of being replaced in 5-10 years' time.

https://x.com/i/status/2027129697092731343

$SQ (-0,32%)

(All facts are taken from your open document s29.q4cdn.com.)

📊 Growth and financial profile 2025

Block achieves a very solid level of growth and earnings in 2025:

• Gross profit growth: +17% for the year as a whole, exceeding USD 1 billion for the first time Gross profit in one month
• Segment development:Cash App +36 %
• Square +25 %
• Corporate & Other +62 %
• Profitability:Adjusted EBITDA margin: 33 %
• Adjusted Operating Income: +30 % YoYmargin 20%
• Net result: strongly influenced by Bitcoin valuations and tax effects, but clearly positive

Block emphasizes that the Rule of 40 sustainably (sum of gross profit growth + adjusted operating income margin).

🚀 Q4 2025: acceleration of growth

Growth picks up noticeably in the fourth quarter:

• Gross profit: +24% YoY (Q3 was +18%)
• Cash App: 59m monthly active users, Primary Banking Actives +22%
• Square: GPV +10 %, NVA +29 %
• Profitability: Adjusted operating income +46 % YoY

Momentum comes from new products, stronger monetization and higher user activity

💡 Strategic focus areas

Block is positioning itself as an integrated financial and commerce ecosystem:

• Cash App:
• Focus on banking functions (saving, investing, credit)
• Inflows per active +12 %
• Lending volume +69 %
• Expansion of Cash App Green as an engagement driver
• Square:
• Focus on automation (AI tools), commerce software and financial solutions
• Strong international growth (+24% GPV)
• Monetization rates stable
• Bitcoin ecosystem: Volatile, but still an integral part of the platform

🔮 Outlook for 2026

Block raises its expectations for 2026:

• Gross profit: USD 12.20 billion → +18 %
• Adjusted operating income: USD 3.20 billion → +54 %
• Adjusted EPS: USD 3.66
• Rule of X: 44% (significantly above the Rule of 40 benchmark)

For Q1 2026 Block expects:

• Gross profit +22%
• Adjusted operating income USD 600 million
• Adjusted EPS USD 0.67

🧭 Classification

Block has a business model that:

The presentation conveys a company that wants to accelerate further in 2026 and become significantly more efficient operationally.

• is highly diversified (Cash App + Square)
• achieves high economies of scale
• is growing profitably
• gains additional leverage through banking functions and AI automation

No time to look at the earnings right now, but the news shouldn't be bad $SQ (-0,32%)

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$DUOL

Hello everyone,

I would like to wish everyone a happy holiday and a happy new year.

Here is my annual performance, which I am satisfied with, not only because of the return I achieved - some have achieved far more - but also because I was able to reduce my drawdown compared to my "comparison benchmarks".

I thought my 3 best stocks would be the ones I bought in the "Trump Crash". But the 3 best were the ones I bought before and simply held:

$CIEN (-4,01%)

$KGX (+0,35%)

$FN (-2,29%)

And also the ones I bought after the big carnage did well

$CTMX (+0,43%)

$SQ (-0,32%)

$INOD (-1,03%)

However, the following did not go well at all

$ENPH (-1,59%)

$US60855R1005 (-0,07%)

$1SXP (-1,92%)

The surprise of the year for me was silver, which of course benefited my portfolio.

Best regards

Disruption potential in payment transactions

Strong growth

Practical examples

USDT

USDC

Adyen $ADYEN (+3,02%)

Amazon $AMZN (+0,92%)

Block $SQ (-0,32%)

Coinbase $COIN (-0,84%)

Fiserv $FI (-0,36%)

JPMorgan $JPM (+0,66%)

MaterCard

PayPal $PYPL (-0,24%)

Robinhoods Markets $HOOD (-1,09%)

Standard Chartered $SCBFY

Visa $V (+0,55%)

Walmart $WMT (+0,63%)

Link: https://www.ideas-magazin.de/2025/ausgabe-284/titelthema/stablecoins/?utm_source=techaktien-instagram&utm_medium=influencer&utm_content=titelthema&utm_campaign=ideas-magazin

I own $SQ (-0,32%)
$TTD (+0,17%)
$NOVO B (-0,81%)
$MSTR (-0,68%) and am now 20% to sometimes 45% down on Novo. How do you deal with such losses? I'm wondering whether I should realize the gains in Block, for example, and rather buy shares in which I see more potential and which have just fallen. For example $CSU (-1,17%)
$PLTR (-2,21%)
$HIMS (-0,17%)
$RKLB (-2,56%)
$1810 (+3,42%)

How do you do that? Do you continue to hold on to the shares or do you leave them in your portfolio despite halving your original investment?

I'm using my latest milestone to introduce myself and my portfolio :)

I started investing in 2020 on my 18th birthday and initially tried out a lot of things, which led to me falling into the wrong trap more than once. I then significantly reduced my stock picking and initially focused on building a strong core with ETFs (mainly S&P500). I still have a few portfolio corpses from that time, which I am saving in order to fill my loss pot in the event of higher price gains in the future. I hardly have any opportunity costs due to the very low value.

Fast forward: I am 23 today and am delighted to have reached this milestone. Today, thanks to $IREN (-4,61%) the necessary boost.

I have invested over 50% of my portfolio in ETFs. Almost all of my savings plans are in these funds. Brand new in the savings plan and therefore still a very small position: the MSCI EM. I also have a few smaller positions in individual shares:

$ASML (-2,46%) I had the savings plan running at around €500 for a long time, but have now suspended the savings plan for the time being due to the high price gains. I am still holding the position.

$GOOG (-0,25%) When I bought in at €94 in 2022, I couldn't have dreamed of this price gain in such a short time. Nice surprise, so no savings plan here either for the time being, but I'm continuing to hold on because the figures have developed well in line with Google.

$IREN (-4,61%) I opened a small position here about a month ago. The share has performed very well since then. It's a somewhat riskier position, but I'm very confident in the current market environment, which is why it's only a small position.

$ADBE (+0,42%) New in the portfolio and the only single share I currently invest in on a monthly basis. As long as Adobe is around €300, I would like to continue to build up the position here. In my opinion, the (negative) impact of AI on the business model is massively overestimated.

The remaining individual shares $SQ (-0,32%) , $JD (+4,05%) , $CRSR (-0,8%) and $SE (-0,28%) are the aforementioned "portfolio corpses" from earlier times. As I said, I will sell them at breakeven, otherwise I will save these positions for the loss pot.