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Net revenues of $6.06 billion narrowly missed the consensus mark of $6.11 billion but increased 4.9% year over year.
Block’s quarter was defined by strong ecosystem monetization, especially Cash App lending and commerce, driving outsized gross profit and adjusted earnings growth, even as reported revenue and GPV trends were mixed. Cash App Primary Banking Actives rose 18% year over year to 9.7 million in March, highlighting continued engagement gains.
XYZ’s Revenue Mix Shows Strength Outside Bitcoin
Commerce enablement revenues totaled $2.94 billion, up 14.5%, reflecting continued scale across seller and consumer commerce flows. Financial solutions revenues came in at $1.32 billion, up 51.1%, supported by lending-related contributions and other financial products. Bitcoin ecosystem revenues were $1.80 billion, down 29%, given trading-related dynamics.
Gross profit increased 27.1% to $2.91 billion from a year ago. Square generated gross profit of $982 million, up 9.4% year over year, while Cash App generated $1.91 billion, up 38.3% year over year. Management attributed Square’s gross profit gain primarily to Financial Solutions, “most notably Square Loans,” and cited Cash App growth as being driven by Cash App Borrow and Commerce Enablement (including Cash App Card and BNPL).
On payment volume, Block reported total GPV of $63.11 billion, up 11.1% year over year. Square GPV was $61.21 billion, up 13.2% year over year, while Cash App GPV was $1.90 billion, down from $2.70 billion in the year-ago quarter. Within Square, U.S. GPV growth was 8.2% year over year, and international GPV growth was 35% year over year (reported), with 11.5% growth on a constant-currency basis cited for Square overall. The company also highlighted seller vertical strength, noting food and beverage GPV up 21%, retail up 11%, and services up 7% year over year.
Block’s Cash App Trends Accelerate Across Lending
Consumer Lending origination volume climbed 82% year over year to $17.6 billion, driven by strength in Cash App Borrow. The quarter also showed expanding monetization in the ecosystem as more customers adopted credit products alongside broader engagement features.
Cash App Commerce Enablement volume grew 18% year over year to $55.0 billion, with performance supported by Cash App Card and BNPL activity. Inflows per transacting active increased 10% year over year to $1,494, pointing to deeper wallet share as customers brought more of their financial lives into Cash App.
XYZ’s Profitability Split Reflects Large GAAP Items
On a GAAP basis, XYZ posted an operating loss of $172 million. The quarter’s profitability was pressured by sizable items, including restructuring and other charges and accrued legal contingencies, alongside a $173 million bitcoin remeasurement loss.
Despite those impacts, adjusted profitability improved sharply. Adjusted operating income rose 56.2% to $728 million, translating to a 25% margin, while Adjusted EBITDA reached $1.01 billion. The quarter also reflected higher loss-related costs within the income statement, including $500.1 million in transaction, loan and consumer receivable losses.
Block’s Liquidity Position Supports Ongoing Flexibility
XYZ ended the quarter with $6.86 billion in cash and cash equivalents, providing balance sheet flexibility amid ongoing investment and restructuring actions. Operating cash flow was $965.6 million in the first quarter, supported by working-capital movements and non-cash adjustments.
The company also continued capital returns. During the quarter, XYZ repurchased common stock, including excise tax, totaling $636 million. Management’s ability to pair investment with capital returns remains a key element of the company’s broader shareholder value framework.
XYZ’s 2026 Outlook Raised on Execution Momentum
Management raised its full-year outlook following the strong start to 2026. XYZ now expects 2026 gross profit of $12.33 billion, reflecting growth of more than 19% year over year, alongside full-year Adjusted Operating Income of $3.34 billion, or a 27% margin.
The company also expects adjusted EPS to rise 62% to $3.85 for 2026. For the second quarter, XYZ anticipates gross profit of $3.04 billion, implying 20% year-over-year growth, with adjusted operating income of $740 million and a 24% margin.
PayPal Holdings (PYPL - Free Report) reported first-quarter 2026 non-GAAP EPS of $1.34, which beat the Zacks Consensus Estimate of $1.27. The metric increased 1% year over year.
The quarter reflected broad-based momentum across the platform, highlighted by total payment volume rising 11% to $464 billion, alongside steady profitability and strong cash generation.
BILL Holdings, Inc. (BILL - Free Report) posted third-quarter fiscal 2026 non-GAAP net income of 68 cents per share, beating the Zacks Consensus Estimate by 23.6%. The figure increased 36% from the year-ago quarter.
The quarter reflected continued expansion across BILL’s financial operations platform, highlighted by total payment volume of $89 billion, up 12% from the prior-year period.
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Block Q1 Earnings Beat on Strong Monetization Despite Mixed GPV
Key Takeaways
Block, Inc. (XYZ - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 85 cents, beating the Zacks Consensus Estimate of 68 cents by 25%. The metric was up 51.8% from the year-ago quarter.
Net revenues of $6.06 billion narrowly missed the consensus mark of $6.11 billion but increased 4.9% year over year.
Block’s quarter was defined by strong ecosystem monetization, especially Cash App lending and commerce, driving outsized gross profit and adjusted earnings growth, even as reported revenue and GPV trends were mixed. Cash App Primary Banking Actives rose 18% year over year to 9.7 million in March, highlighting continued engagement gains.
XYZ’s Revenue Mix Shows Strength Outside Bitcoin
Commerce enablement revenues totaled $2.94 billion, up 14.5%, reflecting continued scale across seller and consumer commerce flows. Financial solutions revenues came in at $1.32 billion, up 51.1%, supported by lending-related contributions and other financial products. Bitcoin ecosystem revenues were $1.80 billion, down 29%, given trading-related dynamics.
Gross profit increased 27.1% to $2.91 billion from a year ago. Square generated gross profit of $982 million, up 9.4% year over year, while Cash App generated $1.91 billion, up 38.3% year over year. Management attributed Square’s gross profit gain primarily to Financial Solutions, “most notably Square Loans,” and cited Cash App growth as being driven by Cash App Borrow and Commerce Enablement (including Cash App Card and BNPL).
On payment volume, Block reported total GPV of $63.11 billion, up 11.1% year over year. Square GPV was $61.21 billion, up 13.2% year over year, while Cash App GPV was $1.90 billion, down from $2.70 billion in the year-ago quarter. Within Square, U.S. GPV growth was 8.2% year over year, and international GPV growth was 35% year over year (reported), with 11.5% growth on a constant-currency basis cited for Square overall. The company also highlighted seller vertical strength, noting food and beverage GPV up 21%, retail up 11%, and services up 7% year over year.
Block’s Cash App Trends Accelerate Across Lending
Consumer Lending origination volume climbed 82% year over year to $17.6 billion, driven by strength in Cash App Borrow. The quarter also showed expanding monetization in the ecosystem as more customers adopted credit products alongside broader engagement features.
Cash App Commerce Enablement volume grew 18% year over year to $55.0 billion, with performance supported by Cash App Card and BNPL activity. Inflows per transacting active increased 10% year over year to $1,494, pointing to deeper wallet share as customers brought more of their financial lives into Cash App.
XYZ’s Profitability Split Reflects Large GAAP Items
On a GAAP basis, XYZ posted an operating loss of $172 million. The quarter’s profitability was pressured by sizable items, including restructuring and other charges and accrued legal contingencies, alongside a $173 million bitcoin remeasurement loss.
Despite those impacts, adjusted profitability improved sharply. Adjusted operating income rose 56.2% to $728 million, translating to a 25% margin, while Adjusted EBITDA reached $1.01 billion. The quarter also reflected higher loss-related costs within the income statement, including $500.1 million in transaction, loan and consumer receivable losses.
Block’s Liquidity Position Supports Ongoing Flexibility
XYZ ended the quarter with $6.86 billion in cash and cash equivalents, providing balance sheet flexibility amid ongoing investment and restructuring actions. Operating cash flow was $965.6 million in the first quarter, supported by working-capital movements and non-cash adjustments.
The company also continued capital returns. During the quarter, XYZ repurchased common stock, including excise tax, totaling $636 million. Management’s ability to pair investment with capital returns remains a key element of the company’s broader shareholder value framework.
XYZ’s 2026 Outlook Raised on Execution Momentum
Management raised its full-year outlook following the strong start to 2026. XYZ now expects 2026 gross profit of $12.33 billion, reflecting growth of more than 19% year over year, alongside full-year Adjusted Operating Income of $3.34 billion, or a 27% margin.
The company also expects adjusted EPS to rise 62% to $3.85 for 2026. For the second quarter, XYZ anticipates gross profit of $3.04 billion, implying 20% year-over-year growth, with adjusted operating income of $740 million and a 24% margin.
Currently, Block has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Block, Inc. Price, Consensus and EPS Surprise
Block, Inc. price-consensus-eps-surprise-chart | Block, Inc. Quote
Performance of Other Fintech Stocks
PayPal Holdings (PYPL - Free Report) reported first-quarter 2026 non-GAAP EPS of $1.34, which beat the Zacks Consensus Estimate of $1.27. The metric increased 1% year over year.
The quarter reflected broad-based momentum across the platform, highlighted by total payment volume rising 11% to $464 billion, alongside steady profitability and strong cash generation.
BILL Holdings, Inc. (BILL - Free Report) posted third-quarter fiscal 2026 non-GAAP net income of 68 cents per share, beating the Zacks Consensus Estimate by 23.6%. The figure increased 36% from the year-ago quarter.
The quarter reflected continued expansion across BILL’s financial operations platform, highlighted by total payment volume of $89 billion, up 12% from the prior-year period.