NEW YORK, September 2, 2026, 14:44 (EDT) — Block stock rose 5.7% as the company’s Cash App unit posted growth that withstood concerns over credit losses.
- Block was trading at $82.30, marking a rise of 5.68%, as of 14:43:45 EDT.
- Gross profit for Cash App increased by 31% in the second quarter, while Square’s gross profit was up 13%.
- Losses on transactions, loans and consumer receivables rose sharply to $585 million, nearly twice as much.
- On Monday, ARK Invest acquired 456,059 shares of Block through three separate funds.
Shares of Block, Inc. NYSE:XYZ rose 5.68% to $82.30 on Wednesday. The SPDR S&P 500 ETF Trust NYSEARCA:SPY, which tracks the S&P 500, increased 0.39% simultaneously Yahoo Finance.
The rebound reverses much of Tuesday’s 5% loss. It also intensifies the key earnings issue: whether rapid Cash App expansion can offset increasing credit expenses.
On Monday, ARK Invest purchased 456,059 shares of Block through three of its exchange-traded funds. The acquisition totaled approximately $37.4 million, The Block reported.
Block shares climbed through the session
NYSE price in U.S. dollars. Last point: $82.30, up 5.68%.
As of . Source: Yahoo Finance; five-minute observations rounded to cents.
Block led gains among payment companies. Affirm Holdings, Inc. NASDAQ:AFRM advanced 5.48%, as PayPal Holdings, Inc. NASDAQ:PYPL climbed 3.45%.
Cash App continues to drive results. Gross profit for the segment climbed 31% in the second quarter to $1.97 billion. Square reported a 13% gain in gross profit to $1.16 billion Block shareholder letter.
Cash App supplied most of the gross-profit gain
Second-quarter segment gross profit, billions of dollars.
Quarter ended June 30, 2026. Source: Block Form 10-Q.
Bitcoin accounted for 45% of Cash App’s revenue, but represented just 3% of its gross profit, indicating revenue alone exaggerates bitcoin’s impact.
Square’s gross payment volume for the second quarter totaled $72.85 billion, an increase of 13%. Gross payment volume for Cash App decreased to $1.89 billion from $2.37 billion.
Profitability increased at a quicker pace. Adjusted operating income climbed 57% to $864 million, achieving a 27% margin.
The earnings bridge: stronger profit, higher credit costs
Company guidance is non-GAAP. Price multiple calculated from the September 2 quote. Sources: Block shareholder letter and Yahoo Finance.
Block projects gross profit of $12.51 billion for 2026. Adjusted operating income is forecast at $3.47 billion, and adjusted EPS is anticipated to be $4.02.
At Wednesday’s price, the stock is valued at approximately 20.5 times the adjusted EPS goal. This ratio is an approximation, as the target omits some GAAP items.
Risks: As loan originations increased, credit losses also climbed. Block indicated it expects growth to slow, although challenges from less creditworthy borrowers or increased funding expenses could postpone this trend.
Growth is benefiting from the rebound today. For a sustained rerating, credit costs must continue to lag behind increases in gross profit.
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