01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Block, Inc. (XYZ) reported net income attributable to common stockholders of $88.5 milliona for the three months ended June 30, 2026, compared to $538.5 million a year earlier, and a net loss attributable to common stockholders of $220.2 million for the six months.
Total net revenue rose to $6.62 billionb for the quarter (up 9%) and $12.67 billion for the six months (up 7%), while bitcoin ecosystem revenue fell 13% and 18%, respectively. Gross profit was $3.17 billion for the quarter, up 25% year over year, with Cash App gross profit up 31% and Square gross profit up 13%. Operating income fell to $446.9 million from $484.3 million, reflecting higher transaction, loan, and consumer receivable losses ($585.5 million in the quarter versus $294.1 million), general and administrative expenses ($825.9 million, including litigation and regulatory accruals), and restructuring charges of $495.0 million for the six months tied to the February 2026 Workforce Plan, which reduced headcount by more than 40%.
Adjusted Operating Income was $863.8 millionc and Adjusted EBITDA was $1.17 billion for the quarter. The balance sheet shows cash and cash equivalents of $6.43 billion and total liquidity of $8.76 billion, including an undrawn $900.0 million revolving credit facility. The company repaid $1.0 billion of 2026 Senior Notes and $575.0 million of 2026 Convertible Notes at maturity during the period, leaving $5.78 billion of principal debt outstanding.
Repurchases of common stock totaled $700.9 milliond in the six months, with $4.6 billion remaining under the $9 billion authorization. The company accrued $526 million for a potential DOJ resolution and states that a loss in excess of that amount is reasonably possible and could be material.
The filing also reports that the SEC staff concluded its investigation in March 2026 without recommending enforcement, while the DOJ inquiry remains ongoing and the securities class action survived a motion to dismiss in January 2026. The company estimates annualized net cost savings from the Workforce Plan of approximately $800 million to $900 million.
02—Key points
Key Highlights
- Total net revenue of $6.62 billion for Q2 2026, up 9% year over year; bitcoin ecosystem revenue declined 13% to $1.89 billion.
- Gross profit of $3.17 billion for Q2 2026, up 25% year over year; Cash App gross profit rose 31% to $2.0 billion and Square gross profit rose 13% to $1.2 billion.
- Net income attributable to common stockholders was $88.5 million in Q2 2026, versus $538.5 million in Q2 2025; the six-month period showed a net loss of $220.2 million.
- Transaction, loan, and consumer receivable losses more than doubled in the quarter to $585.5 million from $294.1 million, driven mainly by loan losses tied to Cash App Borrow growth.
- General and administrative expenses rose to $825.9 million, including increased litigation and regulatory accruals; the company accrued $526 million for a potential DOJ matter.
- Workforce Plan restructuring charges totaled $495.0 million for the six months, with expected annualized net savings of $800 million to $900 million.
- Liquidity of $8.76 billion at June 30, 2026, after repaying $1.6 billion of notes maturing in Q2; $4.6 billion remains under the share repurchase authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Block kept $0.01.
- Revenue$6.62B100.0%
- Cost of revenue−$3.45B52.2%
- Gross profit$3.17B47.8%
- Operating costs−$2.72B41.1%
- Operating income$446.9M6.8%
- Interest, other & tax−$359.8M5.4%
- Net income$87.1M1.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $6.62B$6.05B | +9.3% |
| Cost of Revenue | $3.45B$3.52B | −1.9% |
| Gross Profit | $3.17B$2.54B | +24.8% |
| R&D Expenses | $608.66M$725.29M | −16.1% |
| Operating Expenses | $2.72B$2.05B | +32.5% |
| Operating Income | $446.87M$484.29M | −7.7% |
| Net Income | $87.07M$538.33M | −83.8% |
| EPS (Basic) | $0.15$0.88 | −83.0% |
| EPS (Diluted) | $0.15$0.87 | −82.8% |
| Shares Outstanding (Basic) | 597.83M612.88M | −2.5% |
| Shares Outstanding (Diluted) | 608.85M618.93M | −1.6% |
05—Questions
Frequently Asked Questions
What drove the decline in net income for the second quarter of 2026?
Net income attributable to common stockholders fell to $88.5 million from $538.5 million. The filing points to higher transaction, loan, and consumer receivable losses ($585.5 million versus $294.1 million), higher general and administrative expenses ($825.9 million versus $449.2 million, including litigation and regulatory accruals), and an $88.5 million remeasurement loss on the bitcoin investment, compared with a $212.2 million gain a year earlier.
How are Cash App and Square performing?
Cash App segment gross profit was $1.97 billion for the quarter, up 31% year over year, driven by Cash App Borrow and Cash App Card. Square segment gross profit was $1.16 billion, up 13%, driven primarily by Square processing, software, and Square Loans. Square gross payment volume grew 13% to $74.7 billion for the quarter.
What is the status of the regulatory and legal matters?
In March 2026 the SEC staff notified the company it had concluded its investigation and did not intend to recommend enforcement. The DOJ inquiry remains ongoing; the company has accrued $526 million and says losses above that amount are reasonably possible and could be material. A securities class action survived a motion to dismiss in January 2026, and the company accrued a separate multistate Attorneys General settlement it describes as immaterial.
How much debt does the company have and what has been repaid?
Principal outstanding was $5.78 billion as of June 30, 2026, including $575.0 million of 2027 Convertible Notes and $5.2 billion of senior notes due 2030 through 2033. During the second quarter the company paid $1.0 billion to settle its 2026 Senior Notes and $575.0 million to settle its 2026 Convertible Notes at maturity. The $900.0 million revolving credit facility was undrawn.
06—Continue