Block Inc. shares rose after the payments company reported stronger adjusted earnings for Q1 2026, even as its Bitcoin business weakened and the firm posted a net loss.
Summary
- Block stock jumped after adjusted EPS beat estimates, even as Bitcoin revenue dragged on results.
- Cash App gross profit rose sharply, while Block’s Bitcoin ecosystem revenue fell year over year.
- Proof of reserves and new Bitcoin features kept Jack Dorsey’s payments strategy in market focus.
The reaction showed investors focused more on adjusted results than the reported loss in the quarter as well.
Google Finance showed Block stock at $75.70 in after-hours trading, up 7.93%, after closing at $70.14. The move came after the company reported adjusted diluted earnings per share of $0.85, above the $0.68 estimate shown by Google Finance.
Block reported total net revenue of $6.06 billion for the quarter ended March 31, up from $5.77 billion a year earlier. Gross profit reached $2.91 billion, up 27% year over year, according to the company’s shareholder letter.
Still, the headline profit picture stayed mixed. Block reported a net loss attributable to common stockholders of $308.7 million, compared with net income of $189.9 million in the same quarter last year. Operating expenses rose to $3.08 billion from $1.96 billion.
Bitcoin revenue falls as fees change
Bitcoin remained a major part of Block’s revenue base, but it weakened in the first quarter. Bitcoin ecosystem revenue fell to $1.80 billion from $2.33 billion a year earlier. Bitcoin ecosystem gross profit dropped to $68 million from $92 million.
Block said the decline came from “bitcoin trading dynamics” and a decision to reduce fees on some Bitcoin transactions in Cash App. The company also recorded a $172.8 million Bitcoin remeasurement loss, compared with a $93.4 million loss a year earlier.
Moreover, Cash App provided the main growth engine for Block during the quarter. Its gross profit reached $1.91 billion, up 38% from a year earlier. Square gross profit rose 9% to $982 million, while Block lifted its full-year gross profit outlook to $12.33 billion.
Reuters reported that Cash App’s consumer lending originations rose 82% to $17.6 billion. It also cited Seaport Research analyst Jeff Cantwell as saying, “Cash App was the standout this quarter,” while noting that the recent workforce reduction did not appear to hurt execution.
Block expands Bitcoin push
Related crypto.news coverage noted that Block recently opened proof-of-reserves verification for 8,883 BTC across its corporate treasury, Cash App, and Square. The move allows users to check holdings through on-chain signatures.
Block also launched a touchscreen Bitkey wallet, automatic Bitcoin conversion for eligible Cash App payments, and 5% Bitcoin rewards at Square merchants. The company said users “should be able to verify” their Bitcoin, while Dorsey’s payments strategy remains tied to broader Bitcoin use.
