Block Q3 Earnings: $566M Profit Surge as Bitcoin Business Slows
Block Q3 Earnings: $566M Profit Rises as Bitcoin Gains Lose Momentum
Block Q3 earnings, released on November 3, 2026, show a fast-growing payments business and a shrinking crypto line.
Net income rose to $566M, the full-year gross profit outlook climbed to $12.63B, and bitcoin gross profit fell by half.
Source: The Block Post
The Headline Numbers: Earnings Up, Outlook Raised
Jack Dorsey's fintech company reported net income attributable to common stockholders of $566M, up from $462M a year earlier, according to its Q3 shareholder letter.
That is a rise of about 22.5% (our math). The company says it beat its own third-quarter guidance and then raised its targets for the full year.
| Metric | Q3 2026 | Change on last year |
| Gross profit | $3.24B | +22% |
| Cash App gross profit | $2.07B | +27% |
| Square gross profit | $1.16B | +14% |
| Operating income | $428M | +5% |
| Adjusted operating income | $923M | +92% |
| Diluted EPS | $0.92 | +24% |
| Adjusted diluted EPS | $1.13 | +109% |
EPS means earnings per share. "Adjusted" figures are the company's own measures.
They remove items such as legal and restructuring charges, so they look stronger than the standard accounting numbers.
Why Net Income Rose Faster Than Operating Income
Operating income grew only 5%, while the bottom line grew about 22.5%. The gap sits below the operating line.
Earnings before tax rose just under 2%, to $612M. However, the tax charge fell to $48M from $140M, and a $230M gain on Block's bitcoin investment replaced a $60M gain a year ago.
Costs explain why standard earnings lagged the adjusted figures:
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Contingencies, restructuring, and other charges reached $435M, up from $21M.
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General and administrative costs rose 56%, mainly on accrued legal contingencies.
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Losses on loans and receivables rose 66% to $602M, as lending grew.
The business also generated plenty of money. Operating cash flow was $1.02B in the quarter, and free cash flow was $972M, based on the company's own table.
Bitcoin Results Fall 50% After a Fee Cut
The weak spot in Block Q3 earnings is bitcoin. The letter shows bitcoin ecosystem gross profit of $52M, down from $104M.
It says the fall was driven mainly by a strategic decision to reduce the fee charged on certain bitcoin transactions on Cash App.
| Quarter | Amount | Change on last year |
| Q3 2025 | $104M | +8% |
| Q4 2025 | $118M | +10% |
| Q1 2026 | $68M | -26% |
| Q2 2026 | $72M | -31% |
| Q3 2026 | $52M | -50% |
The line covers customer purchases of the coin in Cash App and Proto, plus withdrawal fees.
Its revenue was still $1.80B, but most of that pays for the coins themselves, leaving a margin of about 3% (our math).
It is now roughly 1.6% of total gross profit (our math). Separately, the balance sheet lists Block's own bitcoin investment at $772M.
Cash App and Square: Where Growth Came From
Cash App reached 60 million monthly transacting users in September, helped by Neighborhoods, a program that links Square sellers with shoppers.
Lending was a major driver: originations grew 40% to $19.0B. Commerce volume, which covers card, pay, and buy now, pay later spending, rose 14% to $56.9B.
The company moved its borrow loans to a six-week format and kept limits flat during the change, which cut loans per customer by 7% from the prior quarter. It expects to raise limits again soon.
The average limit is $300 against a top limit of $1,500. In September, the company said lenders will be able to use its credit-scoring tool through Nova Credit, and a Workday deal lets eligible employees pick the app for direct deposit.
Square processed $76.4B in payments, up 14%. Payment volume is the total amount sellers charge through Square.
Food and beverage sellers grew fastest at 20%, followed by retail at 13% and services at 8%.
In October, the company launched Squaremates, an AI assistant for U.S. sellers, and a voice-enabled Square Kiosk for self-ordering.
| Metric | Q3 2026 |
| Square payment volume | $76.4B (+14%) |
| U.S. growth | 10.4% |
| International growth | 26% |
| Cash App monthly users | 60M |
Outlook: What the Company Expects Next
Management now expects 2026 gross profit of $12.626B, up 22%, and adjusted operating income of $3.519B. Growth is expected to cool in Q4 to 15% from 22% in the third quarter.
For 2027, it expects growth of at least 15%.
| Period | Gross profit | Adjusted operating income |
| Q4 2026 | $3.315B (+15%) | $1.005B |
| Full year 2026 | $12.626B (+22%) | $3.519B |
| 2027 preview | $14.519B | $4.575B |
Block Q3 earnings also come with a strong balance sheet. Total liquidity was $10.1B at quarter end, including $9.2B in cash and investments plus $900M available on a credit line.
The company expects its first revenue from its Buzz AI tools in the fourth quarter and will hold an event on November 10 to introduce Builderlab.
Its next results are due on February 24, 2027, per the filing.
The Bottom Line
Block Q3 earnings show strong core growth and a higher outlook, with that line the clear drag. This is information, not financial advice.
Disclaimer
This article is for educational and informational purposes only and is not financial or investment advice. Crypto assets are high risk, their prices can be very volatile, and you can lose some or all of your money. Always do your own research and consider speaking with a licensed financial advisor before making investment decisions.
