Block, Inc. Q3 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Context: Block delivered strong Q3 results, exceeding guidance across all metrics and raising full-year 2026 outlook. Growth was driven by Square GPV acceleration and Cash App engagement, with significant margin expansion. Comparisons are year-over-year (YoY) unless noted. The company also provided preliminary 2027 guidance reflecting durable profitable growth.

Key Financial Highlights (Q3 2026 vs. Q3 2025)

  • Gross Profit: $3.24 billion (+22% YoY)
  • Adjusted Operating Income (AOI): $923 million (+92% YoY), record 29% margin
  • Adjusted EPS: $1.13 (+109% YoY), quarterly record
  • Square GPV Growth: +14% YoY (strongest rate since Q1 2023); Square gross profit +14% YoY, in line with GPV
  • Cash App Gross Profit: +27% YoY
  • Monthly Transacting Actives: 60 million in September (+4% YoY), with Neighborhoods as key contributor
  • Cash App Consumer Lending Originations: $19 billion (+40% YoY); Afterpay post-purchase originations more than tripled YoY; prepurchase more than tripled quarter-over-quarter
  • Variable Profit Margins (Lending): Consistent with prior year despite larger base; target unit economics strong on scaling products

Strategic Highlights

Professional feature The full AI summary covers key highlights, financial performance and analyst Q&A.
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 Juan Hernandez, Head of Credit and Underwriting. 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. As we did last quarter, throughout the call, I will ask questions based on topics our shareholders ask us to explore. With that, over to you, Jack. Jack Dorsey: Thank you all for joining us. We had a strong third quarter, exceeding our guidance and raising our outlook for the year. We had a strong quarter in Cash App, and we continue to accelerate in Square with U.S. GPV growth more than doubling over the past 2 years as we've expanded distribution and accelerated product velocity. In my letter this quarter, I focused on the intelligence capabilities we're building for our customers across Sq
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