Block Bounces Back from Fee Cuts, Raises Full-Year Gross Profit Forecast

Block's Bitcoin revenue took a hit in Q2 2026 due to fee cuts implemented by Cash App in February. The fintech giant reported adjusted operating income of $1.8 billion, beating expectations, and raised its full-year gross profit forecast to $12.51 billion.

Cash App eliminated fees on Bitcoin purchases exceeding $2,000 and recurring automated buys, resulting in a 31% decline in Bitcoin gross profit. However, the volume play is working, with Cash App's preliminary Bitcoin ecosystem revenue reaching $1.8 billion for Q2 2026.

Block continues to reinvest 10% of its Bitcoin product gross profit into purchasing BTC, and stablecoins have been integrated into the platform through Bitkey and Proto. Investors should keep an eye on whether Cash App's Bitcoin buy volume continues to grow and if the stablecoin rollout gains traction.