Block Raises 2026 Guidance After Q1 Earnings Beat Despite Bitcoin Loss

TLDR

• Block reported a $309 million Q1 net loss after recording a $173 million Bitcoin remeasurement loss.
• Block’s first-quarter gross profit rose 27% year over year to $2.91 billion despite weaker Bitcoin revenue.
• Cash App generated $1.91 billion in gross profit, up 38% from the same quarter last year.
• Block’s adjusted earnings per share reached $0.85, above the $0.68 analyst estimate.
• Block raised its 2026 guidance and now expects 19% gross profit growth for the full year.

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Block Inc. raised its full-year guidance after reporting stronger adjusted earnings and gross profit growth for the first quarter of 2026, even as the company recorded a $173 million Bitcoin remeasurement loss and posted its first quarterly net loss in three years.

The financial technology company led by Jack Dorsey reported a net loss attributable to common stockholders of $309 million for the quarter. The loss was partly tied to fair value accounting on Block’s corporate Bitcoin treasury and customer Bitcoin holdings.

Block’s Bitcoin holdings stood at 28,355 BTC, valued at about $2.2 billion, according to company figures. The remeasurement loss was unrealized and non-cash, reflecting the drop in Bitcoin’s value during the quarter.

Despite the loss, Block reported gross profit of $2.91 billion, up 27% from a year earlier. Adjusted operating income rose 56% to $728 million, while adjusted earnings per share increased 52% to 85 cents. The adjusted EPS figure beat analyst expectations of 68 cents per share.

Cash App Growth Supports Block Results

Cash App remained Block’s largest driver of gross profit growth in the quarter. The consumer finance platform reported gross profit of $1.91 billion, up 38% year over year.

The growth came from Cash App’s lending, banking and commerce services. These areas helped offset weaker Bitcoin activity on the platform.

Cash App’s Bitcoin business declined 31% from a year earlier. Block said Bitcoin revenue fell due to trading conditions and a decision to lower fees on certain Bitcoin transactions.

Bitcoin revenue across Cash App and other Block products dropped to $1.8 billion from $2.33 billion a year earlier. Bitcoin-related gross profit from Cash App was about $63 million.

Square, Block’s merchant services business, had little effect on Bitcoin gross profit during the quarter. The company reported about $28 million in Bitcoin-related revenue from Square, offset by similar costs.

Bitcoin Loss Weighs on Net Income

Block’s quarterly net loss was tied in part to the Bitcoin remeasurement charge. The company reported a $172.8 million to $173 million Bitcoin-related fair value loss during the quarter.

The accounting loss followed a decline in Bitcoin prices during the three-month period. Block held 8,883 BTC in its corporate treasury as of March 31, while total corporate and customer Bitcoin holdings reached 28,355 BTC.

The loss did not prevent Block from reporting positive adjusted EBITDA and adjusted operating income. The company has now reported 13 straight quarters of positive adjusted EBITDA, based on company figures.

Block shares rose in after-hours trading after the earnings report. The stock gained about 7.9% to near $75.70 as investors reacted to the earnings beat and raised outlook.

The company’s operating expenses rose to $3.08 billion, up 57.2% from a year earlier. The quarter followed a large restructuring announced in February, when Block cut about 4,000 jobs, representing roughly 40% of its workforce.

Block Expands Bitcoin Payment Tools

Block continues to build Bitcoin-focused products while reducing costs and increasing automation. Dorsey has said Bitcoin payments remain part of the company’s long-term strategy.

In late April, Block launched proof-of-reserves tools for its corporate Bitcoin treasury and for customer balances on Cash App and Square. The company said the feature was designed to increase transparency for users.

Block also introduced a new Bitkey hardware wallet with a touchscreen for transaction verification. Cash App added a feature allowing selected users to automatically convert payments into Bitcoin.

The company also expanded Bitcoin rewards for merchants. Square merchants can receive 5% Bitcoin cash back, while withdrawal limits for customers increased to $10,000 per day and $25,000 per week.

Block raised its 2026 guidance after the first-quarter results. The company now expects gross profit to grow 19% year over year and adjusted diluted earnings per share to rise 62% for the full year.

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