Block raises its 2026 revenue forecast after a strong Q2 while holding 9,117 BTC, despite declines in Bitcoin revenue and profit.
Block, the fintech firm co-founded by Jack Dorsey, has raised its revenue expectations for 2026 following a strong performance in the second quarter of this year. According to its latest 10-Q filing, the company recorded a gross profit of $3.17 billion, marking a 25% increase from the same period last year.
The company reported an adjusted operating income of $863.8 million for the second quarter, significantly up from $549.6 million in the prior year. Diluted earnings per share reached $1.02, exceeding analysts' predictions of 87 cents.
However, revenue from Block's Bitcoin operations experienced a downturn, totaling $1.89 billion, a 13% decrease year-on-year. Gross profit from this division fell by 31%, dropping to $72 million. The decline was attributed to a strategic choice to reduce transaction fees on Bitcoin payments via Cash App and a decrease in market activity for the leading cryptocurrency.
Block also disclosed an unrealized loss of $88.5 million related to its Bitcoin holdings, as the value of assets fluctuated. The firm currently possesses 9,117 BTC, according to Bitcoin Treasuries.
Despite these setbacks, Block continues to innovate in the cryptocurrency space. Cash App, for instance, recently added support for USDC, allowing for stablecoin transactions on multiple blockchains.
In a communication to shareholders, Block highlighted that AI agents played a crucial role in revising production code in June, part of a larger initiative to restructure the company's operations towards artificial intelligence. This move follows significant layoffs earlier in the year when around 4,000 employees were let go, although some have since been rehired.
Additionally, Block launched Builderbot in June to streamline software development, contributing to about 15% of the total code produced. In July, the company introduced Buzz, an open-source platform designed to foster collaboration between employees and AI agents in a single workspace.
