Block, IncXYZ
▼ NegativeDemandrelevance
Cash App's monthly transacting actives growth decelerated to 3% YoY, with guidance for low single-digit growth in 2026, overshadowing strong EPS.
Impact on stocks 1
Digital Finance & Tokenization
Block, IncBlock Inc. posted adjusted EPS of $1.02, beating Wall Street's $0.87 estimate and raising full-year guidance, yet shares fell roughly 6% the next day. Investors focused on Cash App's monthly transacting actives, which grew just 3% year-over-year in June, a deceleration from the prior quarter, with management guiding to low single-digit actives growth for all of 2026. The company's AI-driven cost cuts, including a 40% workforce reduction in February, helped lift second quarter gross profit 25% year-over-year and adjusted operating income margin to an all-time high of 27%. Square's US gross payment volume accelerated to its fastest pace since 2023, while Cash App gross profit grew 31% and consumer lending originations rose 59%. CFO Amrita Ahuja sold 8,971 shares on earnings day under a pre-arranged Rule 10b5-1 plan, trimming her direct stake by about 2%.
Block, IncCash App's monthly transacting actives growth decelerated to 3% YoY, with guidance for low single-digit growth in 2026, overshadowing strong EPS.