Block, Inc. Earnings Summary — Q1 2026

• Revenue for Q1 2026 reached $6.06 billion, representing a 4.9% YoY increase, maintaining a $24B annual run rate.
• The quarter swung to a Net Loss of $308.6 million, a sharp reversal from the $115.6 million profit in the preceding quarter (Q4 2025).
• Operating expenses surged to $3.09 billion, driven significantly by a spike in Selling, General & Admin ($1.51 billion) and Research & Development ($1.04 billion).
• Operating Income fell into negative territory (-$171.99 million) for the first time since 2023, following a period of sustained positive performance.
• Gross profit remains a strong point at $2.92 billion, expanding sequentially from $2.89 billion in Q4 2025 despite the net bottom-line loss.
• Non-operating expenses of -$220.59 million contributed significantly to the quarterly net loss profile.

Management remains committed to 'Rule of 40' targets (Growth + Margin) and is accelerating the pivot toward GAAP operating income targets despite recent quarterly volatility.

Deteriorating

A significant rise in operating expenses and a return to quarterly net losses offset the steady revenue growth, shifting the sentiment from the profitable momentum seen in late 2025.

The company is focused on the convergence of Square and Cash App ecosystems. While Q1 saw a setback in profitability, the structural pivot toward long-term operational discipline remains the core objective for the fiscal year.