Block's Bitcoin Ecosystem Gross Profit Falls 31% in Q2 After Cash App Fee Cuts

Block reported a 31% year-over-year decline in bitcoin ecosystem gross profit during the second quarter, down to $72 million from $105 million a year earlier. The company attributed the decline to its "strategic decision" to reduce fees on certain bitcoin transactions through Cash App, alongside a slowdown in bitcoin trading throughout 2026.

Bitcoin ecosystem revenue totaled $1.89 billion, down 13% from $2.17 billion a year earlier but up 5% from the first quarter, with Cash App accounting for $1.81 billion of the total. Block's shares initially gained 4.5% after-hours but reversed to trade more than 2% lower at $84.20 following the results.