Block loses Afterpay co-founder Nick Molnar at year-end as lending losses rose 65.6% to $602 million
The man who sold Afterpay to Block for $29 billion in stock at the top of the BNPL cycle steps away to focus on family, and his co-founder sold $8.9 million of XYZ the same month. The lending engine Block bought now grows on borrowed money while its banking base sits flat.
Vincent Jiangtwo-minute read
Nick Molnar built Afterpay out of a Sydney home and sold it to Block+2.10% — Block, up 2.10 percent today at the top of the buy-now-pay-later cycle. On Friday he said in a LinkedIn post that he will wrap up at Block at the end of the year, citing family 12. He co-founded Afterpay with Anthony Eisen in 2014, when Molnar was a Sydney jewelry salesman and Eisen his neighbor and a former chief investment officer at Guinness Peat Group 3.
Block, then called Square, agreed in August 2021 to pay A$39 billion, about US$29 billion, in stock, after Afterpay's shares had run from A$9 to A$160 during the pandemic, and closed the deal in January 2022 3. Molnar rose to Block's head of sales in 2024 3.
Eisen, now a Block director, sold 100,000 Class A shares at $89.00 on November 9, $8.9 million, under a 10b5-1 plan adopted on March 2, and held 1,077,672 shares afterward, roughly $96 million at the sale price 4. The plan predates Molnar's announcement, so the sale is a scheduled trim of about 8.5% of the stake, not a reaction to it 4. Still, the month leaves one founder walking out and the other lightening up.
The lending engine now outruns its users
Cash App counted 9.4 million primary banking actives in September, unchanged from June 5, though up 13% year over year 6. The growth is coming from borrowing: consumer lending originations jumped 40% to $19 billion, driven by Cash App Borrow and Afterpay Post-Purchase 6. Transaction, loan and consumer receivable losses rose 65.6% to $602 million 6, and Chime+5.03% — Chime, up 5.03 percent today, the neobank, likewise reported higher third-quarter losses as first-time Prime members borrowed 5. Block raised its legal reserve for a possible Department of Justice settlement to $526 million in August, with talks ongoing 7; the FTC questions over 1,500 frozen Square accounts, covered by The Inference on November 11, sit alongside.
Q3 credit losses grew faster than anything at Block
Lending grew 40% year over year on an actives base up 4%
Data
| Value | |
|---|---|
| Loan & receivable losses | 65.6% |
| Consumer lending originations | 40% |
| Gross profit | 21.6% |
| Primary banking actives | 13% |
| Monthly transacting actives | 4% |
The quarter was strong anyway
Gross profit climbed 21.6% to $3.24 billion, adjusted operating margin hit a record 29% of gross profit, and management raised the full-year gross profit outlook to $12.626 billion 6. Rival Affirm−1.94% — Affirm, down 1.94 percent today expects to test installment loans on other issuers' debit cards in the first half of 2027 5, aiming at the same wallet.
Gross profit growth has reaccelerated past 20%
Four straight quarters of growth above 20%
Data
| Gross profit | |
|---|---|
| Q4 '23 | $2.03B |
| Q1 '24 | $2.09B |
| Q2 '24 | $2.23B |
| Q3 '24 | $2.25B |
| Q4 '24 | $2.31B |
| Q1 '25 | $2.29B |
| Q2 '25 | $2.54B |
| Q3 '25 | $2.66B |
| Q4 '25 | $2.87B |
| Q1 '26 | $2.91B |
| Q2 '26 | $3.17B |
| Q3 '26 | $3.24B |
No successor has been named
Neither the announcements nor the press reports name who takes over Molnar's duties 12. Holders of XYZ can watch three things: the fourth-quarter gross profit print against the $3.315 billion guide 6, the DOJ settlement talks 7, and Eisen's next Form 4 4.
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