XYZ · Block, Inc.

Block, Inc. reported strong Q1 2026 results, exceeding guidance on gross profit, Adjusted Operating Income, and Adjusted EPS, driven by robust growth in Cash App (+38% YoY gross profit) fueled by Primary Banking Actives reaching 9.7 million (+18% YoY), consumer lending originations +82% YoY, and expansions like Cash App Green and managed accounts for kids. Square saw steady +9% YoY gross profit growth with GPV +13% YoY from field sales investments and international expansion. AI initiatives significantly boosted internal efficiency, with production code changes per engineer up 2.5x, incident rates down over 70% YoY, and tools like Builderbot automating 15% of code changes. Externally, Moneybot and Managerbot demonstrated high engagement through proactive prompts, with 70% of conversations initiated that way and strong return rates from action-taking users. Neighborhoods scaled rapidly, adding sellers representing $320M annualized GPV (+190% from December) and surpassing 100K followers in April. Management raised full-year 2026 guidance to 19% gross profit growth with margin expansion and 62% Adjusted Diluted EPS growth, reflecting confidence in AI-driven velocity and high-ROI investments. Q2 outlook projects $3.04B gross profit (+20% YoY), $740M Adjusted Operating Income (+35% YoY, 24% margin), and $0.86 Adjusted Diluted EPS (+39% YoY), despite planned go-to-market spend increases. Non-GAAP reconciliations are in Exhibit 99.1, with forward guidance noting uncertainties in reconciling items.