Jack Dorsey's Block (NYSE: XYZ) reported the financial results for the third quarter of 2026 on Nov. 3. The Bitcoin-focused company posted a gross profit of $3.2 billion, beating Wall Street
Jack Dorsey's Block (NYSE: XYZ) reported the financial results for the third quarter of 2026 on Nov. 3.
The Bitcoin-focused company posted a gross profit of $3.2 billion, beating Wall Street estimates of $3.1 billion. It also raised its full-year 2026 gross profit guidance from $12.51 billion to $12.63 billion.
India tests Jack Dorsey's app as peaceful protest meets police force (3:51)Adjusted operating income rose to $923 million, with net profit standing at $565.5 million.
The earnings per share (EPS) last quarter came at $1.13, topping the estimate of $1.03.
Gross profit at Cash App, the consumer-focused platform, surged 27% from a year earlier to $2.07 billion in the last quarter. Gross profit at Square, the merchant-focused platform, also surged 14% to $1.16 billion.
But the company's Bitcoin ecosystem gross profit declined 50% from a year ago to $52 million and the related revenue fell 11% to $1.8 billion. Block attributed the decline to its strategic decision to reduce the fee on certain BTC transactions on Cash App.
The company's stock was trading at $86.98 at the time of writing, up more than 14% on the day.
Block's Nov. 3 filing with the Securities and Exchange Commission (SEC) revealed that the company has decided to pay $764 million to resolve an investigation launched by the Department of Justice (DOJ) three years ago.
In March 2023, the short seller Hindenburg Research alleged that Cash App inflated its user numbers by counting duplicate and fraudulent accounts and weak identity checks let criminals use it for illicit activities.
Though Block disputing the short seller's findings, the report prompted the DOJ and the SEC to launch investigations into Block.
While the SEC closed its investigation in March this year without recommending enforcement action, the latest filing revealed that Block reached a deferred prosecution agreement with the DOJ last month.
The agreement would defer the criminal charge of Block failing to maintain an effective anti-money-laundering (AML) program for three years.
It is expected to carry a gross monetary component of around $964 million, which comes down to $764 million after credits for prior regulatory resolutions.
The amount exceeds the profit of $565.5 million Block generated last quarter.
The company disclosed in the filing that it had already set aside the amount as of Sep. 30.
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