- Block reported Q3 net income of $566 million, up from $462 million a year earlier, and raised its full-year 2026 gross profit outlook to $12.63 billion.
- Shares of XYZ rose about 6% in after-hours trading following the results and guidance raise.
- The company disclosed an agreement in principle for a $764 million net settlement with the DOJ over anti-money-laundering program deficiencies.
- Bitcoin ecosystem gross profit fell 50% year-over-year to $52 million, driven by lower Cash App transaction fees.
Jack Dorsey-led Block Inc. saw its shares climb roughly 6% in after-hours trading on Tuesday after posting stronger third-quarter results and lifting its full-year profit guidance, even as it detailed a substantial potential settlement with U.S. authorities over compliance issues.
According to its latest quarterly report, Block posted net income of $566 million for the quarter ended September 30, up from $462 million a year earlier. Total revenue reached $6.72 billion, compared with $6.12 billion in the prior-year period. Gross profit rose 22% year-over-year to $3.24 billion, with Cash App contributing $2.07 billion (up 27%) and Square adding $1.16 billion (up 14%).
The company raised its full-year 2026 gross profit forecast to $12.63 billion, representing 22% growth, from a prior outlook near $12.51 billion. It also projected at least 15% gross profit growth in 2027. “We are raising our full-year guidance to reflect the momentum we are seeing across Block,” the firm stated in materials accompanying the results, as covered by The Block.
Separately, Block disclosed that it reached an agreement in principle in October with the Department of Justice on a deferred prosecution agreement related to allegations that it failed to maintain an effective anti-money-laundering program in violation of the Bank Secrecy Act. The proposed resolution carries a gross monetary component of approximately $964 million, with a net payment of about $764 million after credits for prior regulatory settlements. The company has accrued the $764 million amount as of September 30, and the deal remains subject to a final agreement and court approval, according to its SEC filing and reporting by CoinDesk.
On the crypto side, Block’s bitcoin ecosystem gross profit declined 50% year-over-year to $52 million, primarily due to its decision to lower fees on certain bitcoin transactions via Cash App. Bitcoin-related revenue fell 11% to roughly $1.8 billion, as noted in coverage by CoinDesk and Reuters.
The results highlight Block’s continued diversification beyond pure transaction fees into banking and lending products within Cash App, even as compliance remediation and reduced crypto trading fees weigh on specific segments. Investors appeared to focus on the raised guidance and overall profitability trajectory rather than the settlement size, which had been partially anticipated.
