Block Q2 Gross Profit Up 25%, FY26 Guidance Raised

Block (ASX:XYZ) lodged with the ASX its Form 8-K attaching the shareholder letter announcing results for the second quarter ended 30 June 2026. Gross profit was $3.17 billion, up 25% year over year, with Cash App gross profit of $1,973 million, up 31%, and Square gross profit of $1,160 million, up 13%. Total net revenue was $6.62 billion, from $6.05 billion in the prior year quarter. Operating income was $447 million and Adjusted Operating Income reached a record $864 million, a margin of 27% of gross profit, which Block said exceeded its guidance. Net income attributable to common stockholders was $89 million, Adjusted EBITDA was $1.2 billion, GAAP diluted earnings per share were $0.15 and Adjusted Diluted EPS grew 65% year over year to $1.02.

Cash App Commerce Enablement volume grew 17% year over year to $56.5 billion and consumer lending origination volume grew 59% to $18.9 billion, driven by Cash App Borrow, with Cash App monthly transacting actives of 59 million in June. Square gross payment volume grew 13% year over year on a reported and constant currency basis to $72.8 billion, with United States GPV growth of 9.8%, which Block described as its strongest US growth rate since the second quarter of 2023, and international GPV growth of 28%, or 25% in constant currency. Block noted that a one-time tariff reimbursement booked in the quarter contributed approximately two points to Square gross profit growth, roughly offsetting the lapping of a network remediation payment in the prior year, and said it continues to expect Square gross profit to grow roughly in line with Square GPV in the second half. The company raised its full-year guidance, now expecting 2026 gross profit of $12.51 billion, up 21%, Adjusted Operating Income of $3.47 billion at a margin of 28% of gross profit, and Adjusted Diluted EPS of $4.02, up 70%. Third quarter guidance is for gross profit of $3.13 billion, up 18%, and Adjusted Operating Income of $875 million.