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>>Block exceeded profit expectations, yet it logged a $308.7 million net loss for the first quarter.

Block exceeded profit expectations, yet it logged a $308.7 million net loss for the first quarter.

crypthub

about 4 hours ago

Q1 Summary

Block reported adjusted earnings of $513 million, surpassing expectations, but posted a net loss of $308.7 million for common shareholders. The company lifted its 2026 gross‑profit forecast to $12.33 billion from $12.20 billion. Shares rose 7% after hours, adding to a 9% gain earlier in the year.

Revenue and Growth Drivers

Gross profit climbed 27% year over year to $2.91 billion, driven by strong performance in both Cash App and Square. Cash App’s gross profit jumped 38% and its lending originations rose 82% to $17.6 billion. Square also expanded, lifting overall merchant revenue and supporting the company’s broader earnings beat.

Cost Pressures and Outlook

Restructuring and related charges totalled $852 million, including $742.8 million for contingencies and $109.5 million in share‑based compensation, reflecting a plan to cut over 4,000 jobs. Bitcoin remeasurement losses widened to $172.8 million, and operating income turned negative at $172 million. Despite the losses, adjusted EBITDA grew to $1.01 billion and Block expects continued gross‑profit momentum through 2026.

Block exceeded profit expectations, yet it logged a $308.7 million net loss for the first quarter.

Q1 Summary

Revenue and Growth Drivers

Cost Pressures and Outlook

Block exceeded profit expectations, yet it logged a $308.7 million net loss for the first quarter.