Block, Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Block Q2 2026 Earnings Summary

Overall Performance: Strong quarter with record profitability. Gross profit +25% YoY. Adjusted operating income (AOI) margin reached all-time high of 27%. Adjusted diluted EPS +65% YoY. Raised full-year 2026 guidance due to execution strength.

Financial Highlights (vs. Q2 2025)

  • Gross profit: +25% YoY; AOI margin: 27% (record high)
  • Adjusted diluted EPS: +65% YoY
  • Square gross profit & GPV: +13% YoY each; U.S. GPV growth strongest since Q2 2023
  • Cash App gross profit: +31% YoY
  • Cash App monthly transacting actives: +3% YoY (expect low single-digit growth in 2026)
  • Cash App Commerce Enablement volume: +17% YoY
  • Cash App Consumer Lending origination volume: +59% YoY

2026 Full-Year Guidance (Raised)

  • Gross profit: $12.51 billion (+21% YoY)
  • AOI: $3.47 billion (28% margin)
  • Adjusted diluted EPS: +70% YoY

Q3 2026 Expectations

  • Gross profit growth: +18% YoY
  • AOI margin: 28%
  • Adjusted diluted EPS growth: +89% YoY
  • Interest expense: $50-55 million (Q3); $200-210 million (full year)
  • Non-GAAP effective tax rate: mid-20% (Q3 and full year)

Key Initiatives & Outlook

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Matthew Ross: Thank you all for joining today's call. We have Jack and Amrita with us today, along with Owen Jennings, our Business Lead and Thomas Templeton, Hardware Lead for Block. Today's discussion includes forward-looking statements regarding our strategy, guidance and long-term goals. Actual results may differ materially due to risks and uncertainties described in materials filed and furnished with the SEC and should not be considered an indication of future performance. These statements speak only as of today, and we undertake no obligation to update them, except as required by law. Reconciliations of any non-GAAP financial measures that we discuss to the most directly comparable GAAP measures are available in our shareholder letter. Further, any discussion of our lending and banking products refer to products offered through Square Financial Services or our bank partners. Before turning the call over to Jack, I wanted to note that we're trying something new this quarter. In addition to taking questions on the call, we've sourced questions directly from shareholders on X. Throughout the call, I will ask questions directly of Jack, Amrita, Owen and Thomas based on topics our shareholders asked us to explore on our earnings call. With that, over to you, Jack. Jack Dorsey: Thank you all for joining us. We had a strong second quarter, and we're raising our guidance for the year based on the strength of our execution. My letter this quarter focuses on our capabilities and

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