Block lifts 2026 outlook despite 31% drop in Bitcoin gross profit
Block's Bitcoin business revenue fell to $1.89 billion and gross profit dropped to $72 million as Cash App trading slowed and lower fees weighed, even as companywide gross profit rose 25%.
Block reported a 31% drop in second-quarter gross profit from its Bitcoin business as lower Cash App transaction fees, weaker Bitcoin trading activity and unrealized losses on its holdings weighed on results. Bitcoin business revenue fell 13% to $1.89 billion from $2.17 billion a year earlier, with Cash App contributing $1.81 billion. Gross profit declined to $72 million from $105 million, while Block recorded an $88.5 million unrealized loss on its Bitcoin holdings, versus a $212.2 million unrealized gain a year earlier. As of May, the company held 9,032 Bitcoin, up from 8,997 at the end of the first quarter. Despite the pressure in Bitcoin-related operations, Block said overall second-quarter gross profit rose 25% to $3.17 billion and raised its full-year gross profit forecast to $12.51 billion, helped by growth in its Cash App and Square businesses. The company also added USD Coin, or USDC, support to Cash App in the quarter, enabling users to send and make payments with the stablecoin across multiple blockchains.
- unrealized loss: A decline in the value of an asset that has not been sold, meaning the loss is recorded on paper rather than locked in through a transaction.
- stablecoin: A type of digital token designed to maintain a relatively stable value, often by being linked to a currency such as the U.S. dollar.
- gross profit: Revenue minus the direct costs associated with providing a product or service, used to measure core business profitability.