Why did Block shares rise after earnings despite a quarterly loss?

Block Inc. shares rose because the company’s earnings per share came in above analyst expectations. Investors focused on stronger operational performance and improving gross profit growth despite the headline net loss.

How much did Block beat earnings expectations by?

Block reported earnings of 85 cents per share compared with analyst expectations of 68 cents. Zacks described the result as an earnings surprise of more than 25%.

Why did Block report a net loss in Q1?

The company posted a $309 million net loss largely due to a $172.8 million Bitcoin remeasurement loss tied to the value of its BTC holdings. Falling Bitcoin prices during the quarter negatively affected accounting valuations.

How much Bitcoin does Block hold?

Block held approximately 8,883 Bitcoin at the end of the quarter. The company continues treating Bitcoin as a strategic long-term asset within its broader ecosystem.

Why did Block’s Bitcoin revenue decline?

Bitcoin revenue through Cash App and other services fell to $1.8 billion from $2.33 billion a year earlier. Block said weaker trading activity and lower fees on certain Bitcoin transactions contributed to the decline.

Why are investors still optimistic about Block?

Investors were encouraged by strong gross profit growth, improving operational metrics and continued expansion of Bitcoin-related payment services. The company also continues building new financial products tied to Bitcoin adoption.

How important is Bitcoin to Block’s business strategy?

Co-founder Jack Dorsey has consistently positioned Bitcoin as a long-term payments network rather than only a speculative asset. Block continues integrating Bitcoin into Cash App, Square and its broader payments ecosystem.

What Bitcoin products is Block expanding?

Recent launches include proof-of-reserves tools, automatic Bitcoin conversion features on Cash App and upgraded Bitkey hardware wallet functionality. Block also introduced expanded Bitcoin cashback rewards for Square merchants.

Block shares jump after earnings beat despite Bitcoin loss

Written by Jon CuthbertPublished May. 8 2026Last Updated May. 8 2026

Block Inc. shares climbed nearly 8% in after-hours trading after the payments company delivered stronger-than-expected first-quarter earnings despite reporting its first quarterly loss in three years.

The company posted earnings of 85 cents per share, beating analyst expectations of 68 cents according to Zacks estimates, while investors responded positively to the earnings surprise despite ongoing weakness in Bitcoin-related revenue.

“This quarterly report represents an earnings surprise of +25.68%,”

Zacks Equity Research said in its report following the results release.

Block recorded a net loss of $309 million during the quarter, including a $172.8 million Bitcoin remeasurement loss tied to the company’s holdings of 8,883 Bitcoin.

Bitcoin revenue generated through Cash App and other products fell to $1.8 billion from $2.33 billion a year earlier, which the company attributed to changing Bitcoin trading dynamics and lower fees on certain Cash App transactions.

Despite the revenue decline, Block’s gross profit rose 27% year-over-year to $2.9 billion, while Bitcoin payments generated roughly $63 million in gross profit through Cash App operations.

The company has continued expanding Bitcoin-focused payment products under co-founder Jack Dorsey, who has repeatedly promoted Bitcoin as a long-term payments network rather than solely a speculative asset.

Recent product launches included new proof-of-reserves tools, upgraded Bitkey hardware wallet features, automatic Bitcoin conversion tools on Cash App and expanded Bitcoin cashback rewards for Square merchants.

At the time of reporting, Bitcoin price was $79,505.34.