NEW YORK, July 15, 2026, 13:10 EDT
- Cash App Borrow logged over $27 billion in originations during the year ending in March, with usage by more than 15 million active accounts.
- Block’s own numbers suggest Borrow accounted for about 44% of Cash App’s $61.6 billion in consumer-lending originations for the quarter.
- Financial solutions drove roughly 72% of Cash App’s year-over-year gross-profit growth in Q1, according to rounded figures from the company.
Block, Inc. NYSE:XYZ originated over $27 billion in Cash App Borrow loans in the 12 months through March, according to new company data. Shares rose 3.5% to $82.76 at midday in New York, bringing Block’s market value to roughly $49.5 billion.
Block revealed the news just weeks ahead of its second-quarter earnings, set for release after markets close on Aug. 5. The move gives investors clearer data to track the company’s growing lending efforts as Cash App earnings have already swung toward financial products.
Block’s rounded quarterly numbers show Cash App consumer lending originations could reach $61.6 billion for April 2025 to March 2026. Borrow made up just over $27 billion, or about 44%. That broader tally includes Borrow and buy now, pay later products.
The basic ratio from the two lower-bound figures works out to about $1,800 in originations per active account for the year. That just gives a sense of scale—it’s not an average balance or a true unique borrower count, since Block counts an active as any account with one Borrow transaction, and says aliases may connect different accounts or customers. The actual customer mix is more complicated than the credit-score figures might imply. Seventy percent of Borrow actives had scores under 580, but a different breakdown shows 56% of personal-loan users reported household incomes over $70,000.
Cash App’s profit mix is changing fast. Gross profit from financial solutions shot up to $957 million, from about $577 million, making up nearly 72% of the $528 million gain in total Cash App gross profit. Its share of segment gross profit climbed to 50.2% from 41.8%. Block doesn’t break out profit from Borrow, so this category can’t be looked at as loan-only.
| Cash App measure | Q1 2025 | Q1 2026 | Change |
|---|---|---|---|
| Segment gross profit | $1.380 billion | $1.908 billion | 38% |
| Financial-solutions gross profit | About $577 million | $957 million | 66% |
| Financial-solutions share of gross profit | 41.8% | 50.2% | 8.4 percentage points |
Block’s size shows up in a peer check. Cash App logged $17.6 billion in consumer lending for the first quarter, up 82%. Affirm Holdings, Inc. NASDAQ:AFRM booked $11.6 billion in gross merchandise volume, up 35%. Block’s number is about 52% bigger, but the companies measure things differently: Block reports Borrow and buy now, pay later loans, while Affirm counts transaction value on its platform after refunds.
| March-quarter comparison | Block Cash App | Affirm |
|---|---|---|
| Reported volume | $17.6 billion | $11.6 billion |
| Year-on-year growth | 82% | 35% |
| Scope | Borrow and BNPL loans | Platform volume after refunds |
Chief Operating and Financial Officer Amrita Ahuja told the first-quarter call underwriting was “in-line with our expectations.” Borrow’s gross loss rate for the quarter hit 3.16% for customers with up to six months’ tenure, 3.01% for the seven to twelve month cohort, and 2.67% for borrowers with more than a year. Newer customers drove more originations, but loss rates dropped in older cohorts. Q4 CDN
Management is guiding for second-quarter gross profit of $3.04 billion, up 20%, and adjusted operating income of $740 million, up 35%. The adjusted figure strips out items like restructuring charges and some stock compensation. Block doesn’t break out Borrow revenue or profit by itself, so August results will include that in the broader financial-solutions category and credit-loss expense.
PayPal Holdings, Inc. NASDAQ:PYPL jumped 16.1% Wednesday after Reuters said Stripe and Advent International put in a $60.50 per share bid, valuing PayPal at over $53 billion. There’s no deal yet. Block was trading midday at a market cap only $3.5 billion below that offer for PayPal. William Blair’s Andrew Jeffrey called the PayPal bid just an “opening salvo” and said the pair might go as high as $70 per share. There’s no indication Block has had any approach, but the move gives the market a live benchmark for big consumer-payment platforms. Reuters
But pushing credit isn’t free. Block saw its transaction, loan, and consumer-receivable losses jump 195% year-on-year in Q1, with Borrow originations up 175%. Most of the loss increase came from higher loan volume, according to the company. Repayment rates on Borrow have held above 97%, though that’s not the same as a cohort loss rate and won’t guarantee the same results if more low-score customers come in. Block says the pace of loss growth should slow for the rest of 2026.
Block, Inc. (SQ) faces a test on Aug. 5: will financial-solutions gross profit outpace credit costs even as the company sticks to its guidance? Investors aren’t worried about Borrow’s scale anymore, but whether its after-loss contribution holds up is still not clear.
