Block raises 2026 outlook despite $173M bitcoin hit

Block reported a $173 million bitcoin remeasurement loss in the first quarter of 2026 and a net loss attributable to common stockholders of $309 million, even as total gross profit rose 27% year-over-year to $2.91 billion.

The loss resulted from fair-value accounting on Block’s corporate bitcoin treasury and customer bitcoin holdings. Together those holdings totaled 28,355 BTC, valued at about $2.2 billion at quarter end. The remeasurement is a non-cash, unrealized adjustment that marks the holdings to market prices at quarter end.

Operational results showed growth. Cash App’s gross profit rose 38% to $1.91 billion, driven by expanded lending, banking and commerce businesses. Bitcoin-related activity in Cash App declined 31% year-over-year and generated about $28 million in revenue; those revenues were largely offset by related costs and had little impact on gross profit. Square’s bitcoin business showed virtually no meaningful movement in the quarter.

On an adjusted basis, operating income increased 56% to $728 million and adjusted operating margin widened to 25% of gross profit. Adjusted earnings per share rose 52% to $0.85.

In response to the quarter’s operating performance, Block raised its full-year guidance and now expects 19% year-over-year gross profit growth in 2026 and 62% growth in adjusted diluted EPS. In its investor presentation the company wrote, “We are raising our full-year guidance to reflect our strong execution and increased expectations for the remainder of the year.”

Block cut about 40% of its workforce in February. Since the last earnings update the company’s shares have risen roughly 25%.

Block is the public fintech company founded by Jack Dorsey that operates Cash App and seller and financial services businesses. Its bitcoin holdings are recorded at fair value and can produce non-cash swings in reported net income.