Fintech company Block, founded by Jack Dorsey, raised its forecasts for 2026 following a strong second quarter. According to the 10-Q report, the company's gross profit grew 25% year-over-year, reaching $3.17 billion.
In the second quarter, Block's adjusted operating profit was $863.8 million, compared to $549.6 million a year earlier. Adjusted diluted earnings per share reached $1.02 against Wall Street's consensus forecast of 87 cents.
Revenue from Block's Bitcoin ecosystem was $1.89 billion, down 13% year-over-year. The segment's gross profit decreased by 31%, to $72 million. The company explained this as a 'strategic decision' to reduce fees on part of Bitcoin transactions via Cash App, as well as a slowdown in activity in the primary cryptocurrency market.
Block also recorded an unrealized loss on its Bitcoin reserve of $88.5 million due to changes in the asset's value. According to Bitcoin Treasuries, the company held 9117 BTC at the time of writing.
Meanwhile, Block continued to develop cryptocurrency products. In the reporting quarter, Cash App added support for USDC and the ability to conduct operations with the stablecoin across multiple blockchains.
In a letter to shareholders, Block stated that in June, agentic artificial intelligence helped write and verify nearly all production code changes. The company also linked the development of AI tools to a broader process restructuring.
In February, Block cut about 4,000 people amid a transition to a model actively using artificial intelligence. However, by early March, the firm had already begun bringing back some of the laid-off employees.
In June, Block implemented the AI tool Builderbot for software development automation. At that time, the system was creating about 15% of all the firm's software code.
Recall that in July, Block launched a free, open-source platform called Buzz, where employees and AI agents work in a unified space.
end-content
