Block posts record margin in first full quarter after deep job cuts

Block reported second-quarter gross profit of $3.17 billion on August 5, up 25 percent from a year earlier and above its own guidance of $3.04 billion, and raised its full-year outlook. Adjusted diluted earnings were $1.02 per share against the $0.87 analysts expected, while revenue rose 9 percent to $6.62 billion, according to Crypto Briefing.

Adjusted operating income reached $864 million, a margin of 27 percent of gross profit and the highest the company has recorded. The results cover the first full quarter after Block cut its workforce from more than 10,000 to just under 6,000 in February, a reduction the company attributed to artificial intelligence tools changing how it operates.

“We outperformed our guidance and achieved record profitability in the second quarter,” chief operating and financial officer Amrita Ahuja said on the earnings call, according to BigGo Finance. Business lead Owen Jennings said the company shipped more product features in the first six months of 2026 than in the equivalent period of 2025, and that code changes per engineer rose 150 percent.

Cash App generated gross profit of $1.97 billion, up 31 percent, with consumer lending originations rising 59 percent to $18.9 billion and commerce volume up 17 percent to $56.5 billion. Primary banking actives reached 9.4 million in June, an increase of 17 percent. Square gross profit rose 13 percent to $1.16 billion, and gross payment volume grew 13 percent to $72.8 billion, with US volume up about 10 percent, the fastest rate since the second quarter of 2023, and international volume up 28 percent.

Several figures ran the other way. Bitcoin gross profit fell 31 percent following Cash App fee reductions. Losses on transactions, loans and consumer receivables totalled $585 million as credit losses nearly doubled, though the company said cohort loss rates remain healthy. Block also set aside a $526 million accrual tied to an ongoing Justice Department case, according to TS2. On a GAAP basis, diluted earnings were $0.15 per share and net income was $89 million, down from $538 million a year earlier.

The company raised full-year gross profit guidance to $12.51 billion, up 21 percent, adjusted operating income to $3.47 billion at a 28 percent margin, and adjusted diluted earnings to $4.02 per share, up 70 percent. Third-quarter gross profit growth is expected to slow to 18 percent, according to Quartz.

Block shares rose more than 4 percent immediately after the release before reversing, trading down about 2 percent at $82.53 in late dealing against a close of $84.20, Crypto Briefing reported. The stock had gained 29.4 percent for the year through Wednesday’s close.