Fintech company Block, founded by Jack Dorsey, has increased its forecasts for 2026 following a robust second quarter. According to the 10-Q report, the company’s gross profit climbed 25% year-over-year, reaching $3.17 billion.
In the second quarter, Block's adjusted operating income was $863.8 million, up from $549.6 million the previous year. The adjusted diluted earnings per share hit $1.02, surpassing Wall Street's consensus estimate of 87 cents.
Block's revenue from its Bitcoin ecosystem totaled $1.89 billion, a decline of 13% compared to the previous year. The gross profit from this segment fell 31% to $72 million. The company attributed this downturn to a "strategic decision" to lower transaction fees for Bitcoin payments through Cash App, along with a slowdown in the first cryptocurrency's market activity.
Additionally, Block reported an unrealized loss of $88.5 million on its Bitcoin reserves due to fluctuations in asset value. As noted by Bitcoin Treasuries, the company held 9,117 BTC at the time of reporting.
Source: Bitcoin Treasuries.Despite these challenges, Block has continued to enhance its cryptocurrency offerings. During the reported quarter, Cash App introduced support for USDC and enabled stablecoin transactions across several blockchains.
In a letter to shareholders, Block stated that in June, AI agents assisted in writing and reviewing nearly all changes to the production code. The company also linked the development of AI tools to a broader restructuring of its processes.
Earlier in the year, Block laid off approximately 4,000 employees as it shifted towards a model that leverages artificial intelligence. However, by early March, the firm began to rehire some of those who were let go.
In June, Block launched the AI tool Builderbot to automate software development, which was responsible for creating about 15% of the company's total code at that point.
Lastly, in July, Block introduced Buzz, a free open-source platform where employees and AI agents collaborate in a unified workspace.