Block (XYZ) investor relations material

Executive summary

• Delivered a strong first quarter in 2026, exceeding guidance with 27% year-over-year gross profit growth to $2.91 billion and a record 25% Adjusted Operating Income margin.

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

• Cash App engagement and monetization surged, with Primary Banking Actives up 18% to 9.7 million and gross profit up 38% year-over-year.

• Square GPV grew 13% year-over-year, with international GPV up 35% and gross profit up 9%.

• Net loss attributable to common stockholders was $308.7 million, impacted 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 27% year-over-year, driven by Cash App and Square.

• Adjusted Operating Income increased 56% year-over-year to $728 million (25% margin).

• Adjusted EBITDA was $1.01 billion, up 24% year-over-year, with a 35% margin.

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

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

Outlook and guidance

• Raised 2026 gross profit outlook to $12.33 billion (19% year-over-year growth) and Adjusted Operating Income to $3.34 billion.

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

• Annualized net cost savings from workforce reduction expected at $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.

• Full-year 2026 Adjusted Diluted EPS guidance raised 62% to $3.85.