Block — the fintech behind Cash App and Square (ticker XYZ) — filed an 8-K with its second-quarter 2026 shareholder letter. Gross profit grew 25% to $3.17 billion, adjusted earnings of $1.02 per share beat the ~$0.87 estimate, and the company raised its full-year outlook, sending the stock up about 4.5% after hours.

The numbers

• Gross profit: $3.17B, up 25% year-over-year — the metric Block leads with (see below).
• Cash App gross profit: $1.97B, up 31% — the faster-growing engine.
• Square gross profit: $1.16B, up 13%; US payment-volume growth accelerated to 10%.
• Adjusted EPS: $1.02 vs ~$0.87 expected — a solid beat.
• Reported (GAAP) EPS: $0.15, far below adjusted because reported profit absorbs heavy stock-based compensation and other non-cash costs.
• Adjusted operating income: $864M, a 27% margin — what management calls record profitability.
• Raised full-year 2026 guide: gross profit ~$12.51B, adjusted operating income ~$3.47B (up ~67%), and adjusted EPS ~$4.02 (up ~70%).

What an 8-K "Item 2.02" is

An 8-K reports a major event between quarterly filings, and Item 2.02 — "Results of Operations and Financial Condition" is the tag for earnings news; Block's full shareholder letter is attached as the exhibit. An 8-K flagged 2.02 means the quarter's results are out.

Why it matters

Notice that Block leads with gross profit, not revenue. That's deliberate and worth understanding: a large share of Block's reported "revenue" is bitcoin that Cash App buys and immediately resells to users at almost no markup. That inflates the revenue line without adding much profit, so gross profit — what's left after those pass-through costs — is the honest gauge of how the business is really doing. Within that, Cash App (consumer money app) is growing faster than Square (seller tools), and management raised guidance for the full year, which is a confidence signal. The other lesson is the wide gap between adjusted EPS ($1.02) and GAAP EPS ($0.15): most of that is stock-based compensation, a real cost to shareholders through dilution even though no cash goes out the door — so it's worth watching, not ignoring. None of this predicts the share price; it explains what changed this quarter.

Beginner takeaway

Block grew profit 25% and lifted its full-year targets, led by Cash App. When a company steers you to "gross profit" instead of revenue, it's often because revenue is distorted by low-margin pass-through items — here, bitcoin.

FAQ

Why is Block's ticker "XYZ"? The company renamed itself from Square to Block and changed its stock symbol to XYZ; it still owns the Square and Cash App brands.

Why report gross profit instead of revenue? Because reselling bitcoin at near-zero margin balloons revenue without adding real earnings. Gross profit strips that out and better reflects the core business.

Why is GAAP EPS so much lower than adjusted EPS? The official (GAAP) figure includes big non-cash costs like stock-based pay. Adjusted EPS removes them — useful, but those costs still dilute existing shareholders.

As of August 5, 2026. Source: official SEC filing — read it directly here. We summarise filings for education and may make errors, so always verify against the official document. Educational content only — not investment advice, not a buy/sell recommendation.