Block — Q3 2026 Earnings Summary

Financial Performance:

• Total gross profit reached $3.24 billion, representing 22% year-over-year growth.
• Adjusted operating income grew 92% year-over-year to $923 million, achieving a record margin of 29% of gross profit.
• Adjusted diluted EPS increased 109% year-over-year to $1.13.
• GAAP operating income was $428 million, up 5% year-over-year.
• GAAP diluted EPS was $0.92, up 24% year-over-year.
• Net income attributable to common stockholders was $566 million.
• Adjusted EBITDA reached $1.2 billion.
• Cash App gross profit grew 27% year-over-year to $2.07 billion.
• Square gross profit grew 14% year-over-year to $1.16 billion.
• Commerce Enablement gross profit grew 19% year-over-year to $1.85 billion.
• Financial Solutions gross profit grew 32% year-over-year to $1.33 billion.
• Bitcoin Ecosystem gross profit declined 50% year-over-year to $52 million due to a strategic decision to reduce fees on certain Bitcoin transactions.
• Free cash flow for the quarter was $972 million.
• Non-GAAP cash flow for the quarter was $668 million.
• Total liquidity ended the quarter at $10.1 billion, including $9.2 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities.

Guidance and Future Outlook:

• Full-year 2026 guidance raised to $12.626 billion in gross profit (22% YoY growth) and $3.519 billion in adjusted operating income (69% YoY growth).
• Full-year 2026 adjusted diluted EPS guidance raised to $4.15 (75% YoY growth).
• Q4 2026 guidance includes $3.315 billion in gross profit (15% YoY growth) and $1.005 billion in adjusted operating income (30% margin).
• Q4 2026 adjusted diluted EPS guidance is $1.15 (77% YoY growth).
• 2027 preliminary outlook expects gross profit to grow at least 15% year-over-year to $14.519 billion.
• 2027 preliminary outlook expects adjusted operating income to grow 30% year-over-year to $4.575 billion.
• Square expects to accelerate GPV growth for the third consecutive year in 2027.
• Cash App expects at least low-single-digit actives growth in 2027.

Business Segments and Product Lines:

• Square:
  • GPV grew 14% year-over-year to $76.4 billion.
  • U.S. GPV growth accelerated to 10.4% year-over-year; International GPV grew 26% year-over-year.
  • New sellers joining through Independent Sales Organization (ISO) partners grew 90% quarter-over-quarter.
  • Launched Square Kiosk, a voice-enabled AI self-ordering device for multi-unit operators.
  • Launched Squaremates (rebranded from Managerbot), an AI product for sellers available in the U.S., featuring staff analysis, win-back campaigns, and procurement agents.
  • Over 400 ISO partners onboarded.
• Cash App:
  • Monthly transacting actives reached 60 million in September.
  • Consumer Lending origination volume grew 40% year-over-year to $19.0 billion.
  • Cash App Card actives reached 28 million.
  • Launched Cash App en Español and expanded Families product functionality.
  • Launched Earn in P2P pilot for no-fee payment acceptance and tracking.
  • Partnered with Workday for direct deposit and UKG for the Frontline Worker Network.
  • Cash App Tags became generally available; one in five orderers were new or re-engaged Card actives.
  • Afterpay Pay Monthly launched in Australia with Apple as the flagship partner.
  • Signed distribution partnerships with Checkout.com, Fiserv, and Finix for Cash App Pay.
• Infrastructure & AI:
  • Launched Builderlab, an ecosystem for companies to build and collaborate using AI, with Block as the first customer.
  • Began piloting Buzz with prospective customers in October, expecting first machine intelligence revenue in Q4.
  • Introduced Dessa, a full-duplex speech model.
  • Externalized lending infrastructure via Cash App Score, made available to lenders through Nova Credit.
  • Neighborhoods network grew over 10x from June, with sellers on the platform representing nearly $5 billion in annualized GPV.

Market and Competitive Landscape:

• Square estimates more than half of its U.S. addressable market still uses legacy incumbent solutions.
• Square achieved the fastest year-over-year growth in the mid-market seller segment (>$500K annualized GPV).
• Square has sustained over 20% constant currency GPV growth in international markets for six consecutive years.
• Cash App is the fourth largest debit program in the U.S.
• Cash App has over $75 billion in annualized consumer lending origination volume.
• 70% of Cash App monthly transacting actives are modern earners (freelancers, content creators, gig workers).

Risks and Challenges:

• Transaction, loan, and consumer receivable losses increased 66% year-over-year on a GAAP basis, driven by loan volume growth and product mix shifts.
• General and administrative expenses increased 56% year-over-year on a GAAP basis, primarily due to increased accrued legal contingencies.
• Bitcoin Ecosystem gross profit declined significantly due to strategic fee reductions.
• Forward-looking statements are subject to risks including macroeconomic conditions, regulatory changes, credit losses, and competition.

Management Commentary and Tone:

• Management expressed confidence in exceeding guidance across gross profit, adjusted operating income, and adjusted diluted EPS.
• Jack Dorsey and Amrita Ahuja signed the shareholder letter.
• Management emphasized a strategic shift to "make our company an intelligence," focusing on AI tools to accelerate product velocity and automate engineering tasks.
• The tone highlighted strong momentum, with investments in AI and distribution expansion compounding growth.
• Management noted that Neighborhoods was a key driver of Cash App actives growth and Square seller engagement.

Other Key Points:

• Released over 180 new Square features in the first three quarters of 2026, exceeding the total for 2024 and 2025 combined.
• Completed migration of Cash App Borrow to a six-week loan construct in September.
• Square new volume added (NVA) showed an estimated five-quarter payback period.
• Cash App performance marketing and referral investments showed less than a three-quarter payback period.
• Block hosted an event in San Francisco on November 10 to introduce Builderlab.
• Financial results for Q4 2026 are expected to be released on February 24, 2027.