Block (XYZ) grew third-quarter gross profit 22% year over year, ahead of its own guidance, and raised its full-year outlook again; shares rose about 8% in early after-hours trading. Gross profit reached $3.24 billion, with Cash App at $2.07 billion (up 27%) and Square gross payment volume at $76.4 billion (up 14%). Operating income was $428 million (up 5%), versus $923 million on an adjusted basis (up 92%), with the gap reflecting $435 million of excluded contingency, restructuring and other charges, mostly accrued legal costs. Transaction and loan losses rose 66%, three times as fast as gross profit, as Cash App Borrow and Afterpay lending expanded. Block guides gross profit growth to slow to 15% in the fourth quarter.
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