Block Q2 FY26: gross profit up 25%, adjusted EPS $1.02, GAAP EPS $0.15
Block's second quarter was two different reports wearing one cover: gross profit rose 25% to $3.17 billion and adjusted EPS hit $1.02, but GAAP net income fell to $88.5 million and GAAP EPS of $0.15 badly missed the $0.8764 consensus. The gap is $365 million of legal and restructuring charges. Read the gross profit, margin and cash flow lines for the business, and the GAAP lines for the noise.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $0.15 came in far below the $0.8764 consensus figure, while adjusted diluted EPS of $1.02 beat it and grew 65% year over year. The whole gap is items the company excludes: GAAP net income fell to $88.5 million from $538.5 million a year ago, even as adjusted net income rose to $620 million from $385 million. The largest reconciling item is $365 million of contingencies, restructuring and other charges booked this quarter.
Revenue of $6.62 billion rose 9.3% from $6.05 billion a year ago, but the number that matters more is gross profit of $3.17 billion, up 25%. The gap between those two growth rates is mostly mix: low-margin Bitcoin Ecosystem revenue fell to $1.89 billion from $2.17 billion, so reported revenue understates growth in the money Block actually keeps. Gross margin of 47.8% versus 41.9% in the year-ago quarter is the cleanest evidence of that shift.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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