Block’s Bitcoin Gross Profit Drops 31% After Cash App Fee Cuts

Block, the Jack Dorsey led fintech company, reported a 31% year-over-year drop in bitcoin ecosystem gross profit for the second quarter, falling to $72 million from $105 million. Revenue from the segment came in at $1.89 billion, down 13% annually but up 5% from the prior quarter. The company said the decline stemmed from its decision to lower certain bitcoin transaction fees on Cash App, combined with slower bitcoin trading activity throughout 2026. Cash App made up $1.81 billion of that bitcoin revenue.

Paper Losses Hit Bitcoin Holdings

Block posted an $88.5 million paper loss tied to its bitcoin holdings, compared to a $212.2 million paper gain a year earlier. The company held 9,032 BTC as of May 8, up from 8,997 BTC at the end of the first quarter, worth more than $586 million at current prices.

Full-Year Outlook Raised Despite Bitcoin Weakness

Net income fell to $89 million from $538 million a year earlier, largely due to unrealized bitcoin losses. Total gross profit still climbed 25% to $3.17 billion, with Cash App gross profit up 31% to $1.97 billion and Square gross profit up 13% to $1.16 billion. Block raised its full-year profit forecast to $12.51 billion, a projected 21% annual increase, and highlighted its new USDC support on Cash App.

Block shares initially rose 4.5% after hours before reversing to trade more than 2% lower at $84.20.