Block raises 2026 guidance despite 31% decline in Bitcoin ecosystem gross profit

Block raised its full year 2026 guidance Wednesday after reporting stronger second quarter results, despite a 31% decline in gross profit from its Bitcoin ecosystem.

Shares initially gained more than 4% following the report before reversing direction. The stock was recently down more than 2% in after hours trading.

Block’s Bitcoin ecosystem generated $72 million in gross profit during the quarter, down from $105 million a year earlier. Revenue from the business declined to $1.89 billion from $2.17 billion.

The company attributed the weaker result to bitcoin trading dynamics and its decision to reduce the fee charged on certain bitcoin transactions through Cash App.

Total revenue rose 9% year over year to $6.62 billion, while gross profit increased 25% to $3.17 billion. Cash App and Square recorded growth that offset the decline in Block’s bitcoin business.

Cash App gross profit increased 31% to $1.97 billion. Commerce volume grew 17% to $56.5 billion, while consumer lending originations rose 59% to $18.9 billion.

Cash App had 59 million monthly transacting active accounts in June. Primary Banking Actives increased 17% to 9.4 million as customers expanded their use of the platform for wages, payments and financial services.

Square gross profit rose 13% to $1.16 billion. Total Square gross payment volume increased 13% to $72.8 billion, with United States payment volume posting its strongest growth rate since the second quarter of 2023.

Block reported operating income of $447 million and adjusted operating income of $864 million, representing a record margin of 27% of gross profit.

Net income attributable to common shareholders was $89 million. GAAP diluted earnings were $0.15 per share, while adjusted diluted earnings increased 65% to $1.02.

Block raised its full year gross profit guidance to $12.51 billion, representing expected annual growth of 21%. The company also increased its adjusted operating income forecast to $3.47 billion and its adjusted diluted earnings guidance to $4.02 per share.

For the third quarter, Block expects gross profit of $3.13 billion, adjusted operating income of $875 million and adjusted diluted earnings of $1.02 per share.