Block (SQ) earnings beat lifts stock, Bitcoin revenue dips

Published: 2026-05-08 05:27:38 |

Block (SQ) earnings beat in Q1 2026 and sent shares higher in after-hours trading, but the company still posted a net loss. Adjusted diluted EPS rose to $0.85 vs. $0.68 expected, while total net revenue climbed to $6.06B (from $5.77B) and gross profit increased to $2.91B (+27% YoY). Full-year gross profit guidance was raised to $12.33B. For crypto traders watching Bitcoin, the key swing factor was the Bitcoin segment: Bitcoin ecosystem revenue fell to $1.80B from $2.33B, and Bitcoin ecosystem gross profit dropped to $68M from $92M. Management pointed to “bitcoin trading dynamics” and a decision to reduce fees on some Bitcoin transactions in Cash App, plus a $172.8M Bitcoin remeasurement loss. Cash App helped offset the headline weakness. Cash App gross profit jumped 38% to $1.91B, and consumer lending originations rose 82% to $17.6B. Block also expanded its Bitcoin push, including proof-of-reserves verification for 8,883 BTC, launching the Bitkey touchscreen wallet, and rolling out features such as automatic Bitcoin conversion for eligible Cash App payments and 5% Bitcoin rewards at Square merchants. Overall, this Block (SQ) earnings print looks more supportive for near-term company fundamentals than for Bitcoin itself, as fee changes and valuation pressure remain visible risks.

Neutral

Bitcoin’s direct earnings signals were softer: Bitcoin ecosystem revenue and gross profit both declined, fee reductions on some Cash App Bitcoin transactions pressured segment economics, and the company recorded a sizable Bitcoin remeasurement loss. Those factors can weigh on Bitcoin sentiment in the very short term. However, the broader company picture improved. Cash App delivered strong profit growth and Block raised full-year gross profit guidance, which may reduce overall risk-off sentiment for SQ and indirectly support demand for Bitcoin features at the platform level. Because the article frames the Bitcoin decline as trading-dynamics/fee-related rather than an outright product withdrawal, the net effect on Bitcoin price is likely mixed rather than clearly bearish. So the expected impact on BTC is best treated as neutral: near-term sentiment/headline pressure exists, but platform momentum and ongoing Bitcoin product rollouts can stabilize expectations over a longer horizon.