# Block (XYZ) Q2 2026 earnings

Results filed 2026-08-05 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/xyz/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1512673/000119312526335117/0001193125-26-335117-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Block's Q2 2026 gross profit grew 25% year over year to $3.17B, with Operating Income of $447M, record Adjusted Operating Income of $864M, GAAP diluted EPS of $0.15 and Adjusted Diluted EPS of $1.02.

Block grew gross profit 25% year over year to $3.17 billion, with Cash App up 31% and Square up 13%. Adjusted Operating Income reached a record $864 million, a 27% margin on gross profit. GAAP operating income was $447 million and GAAP diluted EPS was $0.15, held down by $365 million of contingencies, restructuring and other charges. Adjusted Diluted EPS grew 65% to $1.02.
Management raised its 2026 outlook to $12.51 billion of gross profit (up 21%), $3.47 billion of Adjusted Operating Income and $4.02 of Adjusted Diluted EPS. For Q3 it expects $3.13 billion of gross profit and $875 million of Adjusted Operating Income. The main tensions are bitcoin gross profit, which fell 31%, and loan losses, which rose 99% as lending grew. Management expects loss growth to moderate through the rest of 2026.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Gross profit | $3.17B | +25% YoY Growth | GAAP |
| Total net revenue | $6,618 |  | GAAP |
| Net income attributable to common stockholders | $89 million |  | GAAP |
| Diluted EPS | $0.15 |  | GAAP |
| Adjusted Diluted EPS | $1.02 | up 65% from a year ago | non-GAAP |
| Operating income | $447 million |  | GAAP |
| Operating income margin (% of gross profit) | 14% |  | GAAP |
| Net cash provided by operating activities | 1,020 |  | GAAP |
| Free Cash Flow | 967 |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Cash App gross profit | $1.97B | +31% YoY Growth |
| Square gross profit | $1.16B | +13% YoY Growth |
| Square GPV | $72.8 billion | up 13% year over year |
| Cash App monthly transacting actives | 59 million |  |
| Cash App Primary Banking Actives | 9.4 million | up 17% year over year |
| Cash App Commerce Enablement volume | $56.5 billion | up 17% year over year |
| Cash App Consumer Lending origination volume | $18.9 billion | up 59% year over year |
| Bitcoin Ecosystem gross profit | 72 | (31)% YoY |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Gross profit | Q3’26 | $3.13B |
| Adjusted Operating Income | Q3’26 | $875M |
| Adjusted Diluted EPS | Q3’26 | $1.02 |
| Gross profit | 2026 | $12.51 billion |
| Adjusted Operating Income | 2026 | $3.47 billion |
| Adjusted Diluted EPS | 2026 | $4.02 |

## Key takeaways

1. **Gross profit growth of 25% led by Cash App** Gross profit reached $3.17B, with Cash App up 31% to $1.97B and Square up 13% to $1.16B. Financial Solutions gross profit grew 43%, driven by Cash App Consumer Lending.
2. **Adjusted profit hit records; GAAP profit lagged** Adjusted Operating Income was $864M, a 27% margin, and Adjusted Diluted EPS was $1.02. GAAP operating income was $447M and diluted EPS was $0.15, after $365 million of contingencies, restructuring and other charges.
3. **Full-year guidance raised across gross profit and EPS** Block now expects $12.51 billion of gross profit, $3.47 billion of Adjusted Operating Income and $4.02 of Adjusted Diluted EPS for 2026. Q3 guidance is $3.13B of gross profit and $875M of Adjusted Operating Income.
4. **Square U.S. GPV growth accelerated to 10%** Square GPV grew 13% to $72.8 billion, and U.S. growth was the strongest since Q2 2023. A one-time tariff reimbursement added about two points to Square gross profit growth.
5. **Bitcoin gross profit fell 31%; lending losses rose** Bitcoin Ecosystem gross profit declined 31%, driven by a reduced fee on certain bitcoin transactions on Cash App. Transaction, loan, and consumer receivable losses increased 99% on a GAAP basis, though Block expects growth in these losses to moderate through the rest of 2026.

## Questions

**What were Block's main results in Q2 2026?** Gross profit was $3.17B, up 25% year over year. Operating income was $447 million, Adjusted Operating Income was a record $864 million, GAAP diluted EPS was $0.15 and Adjusted Diluted EPS was $1.02.
**Why is GAAP EPS so much lower than Adjusted EPS?** GAAP results include $365 million of contingencies, restructuring and other charges in the quarter, plus an $88 million remeasurement loss on the bitcoin investment. Adjusted Diluted EPS excludes those items, along with intangible amortization and other items.
**What is Block's guidance for the rest of 2026?** Block now expects 2026 gross profit of $12.51 billion (up 21%), Adjusted Operating Income of $3.47 billion (28% margin) and Adjusted Diluted EPS of $4.02. For Q3 it guides to $3.13 billion of gross profit, $875 million of Adjusted Operating Income and $1.02 of Adjusted Diluted EPS.
**How did Cash App and Square perform?** Cash App gross profit grew 31% to $1.97B, helped by Consumer Lending originations up 59% to $18.9 billion. Square gross profit grew 13% to $1.16B, and Square GPV grew 13% to $72.8 billion.
**What are the main risks or pressure points?** Bitcoin Ecosystem gross profit fell 31%, and transaction, loan, and consumer receivable losses rose 99% on a GAAP basis with loan growth. Cash App monthly transacting actives were flat at 59 million sequentially, up 3% year over year.

## Slides and investor documents

- [Shareholder Letter](https://s29.q4cdn.com/628966176/files/doc_financials/2026/q2/Q2-2026-Shareholder-Letter.pdf) (Slide deck)
- [Investor Presentation](https://s29.q4cdn.com/628966176/files/doc_financials/2026/q2/Block-Investor-Presentation-Q2-2026.pdf) (Slide deck)
- [Preliminary Cash App Bitcoin Ecosystem Revenue](https://s29.q4cdn.com/628966176/files/doc_financials/2026/q2/Q2-2026-Preliminary-Cash-App-Bitcoin-Ecosystem-Revenue.pdf) (Slide deck)
- [Prepared Remarks from Earnings Call](https://s29.q4cdn.com/628966176/files/doc_financials/2026/q2/Intro-Remarks-2Q26.pdf) (CFO commentary)
- [Audio File](https://s29.q4cdn.com/628966176/files/doc_financials/2026/q2/Block-Q2-Earnings-Call-Trimmed.mp3) (Document)
- [10-Q](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001512673/7ad903f3-e9b7-44cb-ace3-a4ac120dcab4.pdf) (Document)