Block (XYZ) investor relations material

Executive summary

• Gross profit rose 27% year-over-year to $2.91 billion in Q1 2026, with Cash App gross profit up 38% and Square up 9%.

• Adjusted Operating Income margin reached a record 25% in Q1 2026, with Adjusted Operating Income up 56% year-over-year to $728 million.

• Adjusted EBITDA reached $1.01 billion, up 24% year-over-year, and Adjusted Diluted EPS rose 52% to $0.85.

• Cash App engagement increased, with Primary Banking Actives up 18% to 9.7 million and Consumer Lending origination volume up 82% year-over-year.

• Net loss attributable to common stockholders was $308.7 million, driven by $852 million in restructuring and legal charges and a $173 million bitcoin remeasurement loss.

Financial highlights

• Q1 2026 gross profit reached $2.91 billion, up from $2.29 billion in Q1 2025, marking 27% year-over-year growth.

• Adjusted Operating Income grew 56% year-over-year to $728 million (25% margin), and Adjusted EBITDA was $1.01 billion (35% margin).

• Adjusted Diluted EPS increased 52% year-over-year to $0.85.

• Total net revenue increased 5% year-over-year to $6.06 billion; excluding bitcoin, net revenue grew 24%.

• Operating loss was $172 million, compared to operating income of $329.3 million in Q1 2025.

Outlook and guidance

• Full-year 2026 guidance raised: gross profit expected to grow 19% year-over-year to $12.33 billion, Adjusted Operating Income margin at 27%, and Adjusted Diluted EPS up 62% to $3.85.

• Q2 2026 guidance: gross profit of $3.04 billion (20% year-over-year growth), Adjusted Operating Income of $740 million (24% margin), and Adjusted Diluted EPS of $0.86 (39% growth).

• Annualized net cost savings from workforce reduction expected to be $800–900 million, with most benefits realized after Q2 2026.

• Expect mid-teens gross profit growth rate exiting 2026 and margin expansion in Q3 and Q4.