Block Inc. posts 27% profit growth but reports $309M net loss due to Bitcoin losses and restructuring costs

Block Inc. reported a 27% year-over-year gross profit growth to $2.91 billion in Q1 2026, driven mainly by strong performance from Cash App and Square. Adjusted operating income rose 56% to $728 million, with operating margins hitting a record 25%. However, GAAP results showed a $309 million net loss due to a $173 million Bitcoin-related fair value loss and $852 million in restructuring charges following workforce reductions. Despite these losses, Block's Bitcoin holdings remain significant at 9,032 BTC worth approximately $724.4 million. The company also expanded Bitcoin payment services for small U.S. businesses, signaling ongoing crypto integration.