Jack Dorsey's Block reported $3.24 billion in third-quarter gross profit, up 22% from a year earlier, and raised its full-year outlook. Cointelegraph flagged the earnings beat on November 4, 2026. Block's shareholder letter details growth across its two main businesses: Cash App gross profit grew 27%, and Square grew 14%.
The earnings improvement came alongside a weaker bitcoin revenue line, limiting how much Block's overall results tell readers about crypto activity.
Cash App and Square Carry the Quarter
Cash App generated $2.07 billion in quarterly gross profit, compared with Square's $1.16 billion. Cash App reached 60 million monthly transacting active accounts in September. Square processed $76.4 billion in gross payment volume, up 14% year over year.
Adjusted operating income rose 92% to $923 million. GAAP operating income increased 5% to $428 million. The much faster growth in adjusted operating income makes the choice of measure consequential: the 92% increase applies specifically to adjusted results.
Management now expects full-year gross profit of $12.626 billion and adjusted operating income of $3.519 billion. Its fourth-quarter forecast calls for $3.315 billion in gross profit, growing 15% year over year. Block's shareholder letter, reproduced by MarketScreener.
Bitcoin Revenue Moves Against the Group
Block's quarterly filing reports bitcoin ecosystem revenue of $1.804 billion for the three months ended September 30, 2026, down from $2.021 billion a year earlier. That is an 11% decline. Total net revenue increased 10% to $6.719 billion. Excluding bitcoin ecosystem revenue, revenue grew 20%.
Direct costs absorbed most of the bitcoin revenue. The filing lists $1.752 billion in bitcoin ecosystem costs against that $1.804 billion revenue line, leaving approximately $51.8 million before other expenses. The billion-dollar sales figure alone therefore gives an incomplete picture of bitcoin's contribution to Block: only a small portion remained after the costs attributed to that revenue.
Quarterly transaction, loan, and consumer receivable losses reached $601.7 million, compared with $363.5 million a year earlier, an increase of about 66%. The expense category covers transaction and consumer receivable losses as well as loan losses; the increase should not be read as a standalone loan-default measure. Block's quarterly filing, reproduced by StockTitan.
Overview
Block raised its outlook after growth across Cash App and Square lifted quarterly gross profit. Bitcoin ecosystem revenue fell 11%. Adjusted operating income grew faster than GAAP operating income, and transaction, loan, and consumer receivable losses increased to $601.7 million.
