Overview
- Block shares rose about 8% after-hours following Thursday’s earnings report, as adjusted EPS came in at $0.85 versus the $0.68 estimate.
- Management raised its 2026 target to $12.33 billion in gross profit and reported a record 25% adjusted operating margin in the quarter, with Q2 gross profit guided to $3.04 billion.
- Despite the beat, Block posted a GAAP net loss of about $309 million driven by a roughly $173 million fair-value loss on Bitcoin and higher restructuring-related costs, with operating expenses up about 57% to $3.08 billion.
- Cash App led results with gross profit up 38% to $1.91 billion and consumer lending originations up 82% to $17.6 billion, while Square gross profit rose 9% on a 13% gain in payment volume.
- Block expanded its Bitcoin push with proof-of-reserves that let users verify holdings, a new Bitkey hardware wallet, auto-convert for some Cash App payments, 5% Bitcoin rewards for Square merchants, and higher withdrawal limits.