XYZ · 8-K · 20260805PR335117

Operating Expense Trends

Block, Inc. · 2026-08-05 · Importance 64 · Surprise 56 · In source text

GAAP operating expenses increased to $2.719 billion in Q2 2026 from $2.052 billion in Q2 2025, while non-GAAP operating expenses rose to $2.315 billion from $2.001 billion. Product development expense decreased 16% year over year because of lower personnel-related costs following February organizational changes. Sales and marketing expense increased 21% year over year, including a 28% increase in Cash App sales and marketing, reflecting higher go-to-market investment. General and administrative expense increased 84% on a GAAP basis due primarily to higher accrued legal contingencies, while transaction, loan, and consumer receivable losses increased 99% because of higher loan volumes.

Key facts

• Transaction, loan, and consumer receivable losses increased 99% year over year on a GAAP basis in Q2 2026, driven primarily by growth in loan volumes. source
• Product development expenses decreased 16% year over year on a GAAP basis in Q2 2026, driven by reduced personnel-related costs associated with organizational changes executed in February. source
• Operating expenses (GAAP) in Q2 2026: $2,719 million. source
• Non-GAAP operating expenses in Q2 2026: $2,315 million. source
• Total operating expenses for the three months ended Jun. 30, 2026: $2,719,211 (in thousands). source
• General and administrative expense for the three months ended Jun. 30, 2026: $825,869 (in thousands). source
• Transaction, loan, and consumer receivable losses for the three months ended Jun. 30, 2026: $585,450 (in thousands). source
• Sales and marketing expenses grew 21% year over year on a GAAP basis in Q2 2026, with Cash App sales and marketing expenses up 28% and other sales and marketing expenses up 11%. source

Impact estimates