Achieved a historic milestone with quarterly Total Processing Volume (TPV) exceeding $100 billion, driven by 36% year-over-year growth and consistent sequential acceleration.
Performance was bolstered by the lending and Buy Now, Pay Later (BNPL) sectors, which grew nearly 60% due to geographic expansion and the adoption of innovative flexible network credentials.
Strategic pivot toward enterprise-level embedded finance resulted in signing three Fortune 500 customers and increasing average deal sizes by over 20% year-over-year.
European operations demonstrated significant momentum, with TPV growing twice as fast as the overall company and 2025 volume reaching eight times the 2022 levels.
Value-added services doubled in gross profit contribution year-over-year, now utilized by 18 of the top 20 customers to enhance fraud mitigation and user engagement.
Operational efficiency and platform scale allowed the company to more than double adjusted EBITDA dollars while trending toward sustainable GAAP profitability.
Management expects to achieve full-year GAAP net income of approximately $10 million in 2026, marking a pivotal transition to bottom-line profitability.
Gross profit growth for 2026 is projected at 10% to 12%, factoring in a 7-percentage-point headwind from the timing of two major renewals and a specific pricing tier shift for Block.
Guidance assumes a gradual reduction in new card issuance from Cash App during the first half of 2026, with no new issuance expected in the second half as they diversify providers.
TPV growth is anticipated to moderate to the high 20s in 2026 as the company laps exceptionally strong comparisons from the prior year.
Strategic focus remains on expanding the end-to-end European offering following the TransactPay acquisition and leaning further into credit product capabilities.
The Block contract includes a specific price tier that steps down at twice the size of other tiers, which was triggered in December 2025 and will impact 2026 comparisons.
Two major contract renewals delayed from 2025 represent the final significant pricing adjustments stemming from the previous ‘fintech boom’ era.
The acquisition of TransactPay added 4 percentage points to Q4 gross profit growth and enables a full-stack EMI licensed offering across the UK and EU.
Share repurchase programs significantly reduced outstanding shares by nearly 17% in 2025, reflecting management’s view of current undervaluation.
