Block (ASX:XYZ): Three Key Growth Signals From the Latest Results

Sonal Goyal

20 October 2026 05:33 PM AEDT

Block (ASX:XYZ): Three Key Growth Signals From the Latest Results

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Key highlights

Block reported second-quarter 2026 Gross Profit growth of 25% year over year, with Cash App gross profit up 31%.
Adjusted Operating Income was a record US$864 million, and adjusted diluted EPS was US$1.02, up 65%.
Full-year guidance is for gross profit of US$12.51 billion, up 21%, and adjusted diluted EPS of US$4.02.

Block, Inc. (ASX:XYZ) reported its second-quarter 2026 results in a Form 8-K dated 5 August 2026. The document provided is a quarterly report, not a full-year annual report. It covered gross profit, profitability, Cash App and Square performance and guidance for the third quarter and full year. Figures are in US dollars.

About Block

Block operates the Square seller ecosystem and the Cash App consumer financial app, and owns Afterpay, a buy now pay later service. Its other products include Bitcoin hardware and Mining initiatives.

Second-quarter financial results

Gross profit grew 25% year over year, outperforming the company’s guidance. Cash App gross profit grew 31%. Operating income was US$447 million, and adjusted operating income was a record US$864 million, an adjusted Margin of 27%. Net Income attributable to common stockholders was US$89 million, and adjusted EBITDA reached a record US$1.2 billion. GAAP diluted EPS was US$0.15, and adjusted diluted EPS was US$1.02, up 65%.

Cash App and Square

Cash App commerce enablement Volume grew 17% to US$56.5 billion, driven by Cash App Card and buy now pay later, and consumer lending origination volume grew 59% to US$18.9 billion, driven by Cash App Borrow. Primary banking actives grew 17%. Cash App launched a US$40-per-month unlimited 5G wireless plan.

Square gross payment volume grew 13%, and US gross payment volume growth accelerated to 10%. The company said Square Credit card volumes exceeded US$1 billion, and that its Loan cohorts have had loss rates of less than 4%.

Guidance

For the third quarter, the company expects gross profit of US$3.13 billion, up 18%, and adjusted operating income of US$875 million, a 28% margin. For the full year, it expects gross profit of US$12.51 billion, up 21%, adjusted operating income of US$3.47 billion, a 28% margin growing 67%, and adjusted diluted EPS of US$4.02, up 70%.

Risks to consider

GAAP net income attributable to common stockholders was only US$89 million against adjusted operating income of US$864 million, and adjusted measures exclude certain items. Lending growth carries credit risk even though loss rates have been below 4%.

Payments and consumer finance are competitive and regulated, and Block’s results depend on consumer spending and seller activity. Guidance is forward looking, and new products such as wireless plans and bitcoin hardware are at an early stage.

Catalysts to watch

Items to watch include third-quarter gross profit of about US$3.13 billion, growth in primary banking actives, Cash App lending volume, Square US gross payment volume growth, and the full-year guidance of US$12.51 billion in gross profit.

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