XYZ · 8-K · 20260805PR335117

Operating Income and Margins

Block, Inc. · 2026-08-05 · Importance 63 · Surprise 64 · No source text

Second-quarter GAAP operating income declined 8% year over year to $447 million from $484 million despite a $630 million increase in gross profit. Six-month GAAP operating income declined 66% to $275 million from $814 million as operating expenses rose to $5.800 billion from $4.013 billion. Adjusted operating income increased 57% year over year to $864 million, and adjusted operating income margin of gross profit increased to 27% from 22%. Adjusted EBITDA increased 31% to $1.169 billion, with adjusted EBITDA margin rising to 37% from 35%.

Key facts

• Block reported Adjusted Operating Income for Q2 2026 grew 57% year over year. source
• Block reported Adjusted Diluted EPS grew 65% year over year to $1.02 in Q2 2026. source
• Adjusted Diluted EPS in Q2 2026: $1.02, up 65% year over year. source
• Adjusted EBITDA in Q2 2026: $1.2 billion (record). source
• Adjusted Operating Income margin reached an all-time high of 27% in Q2 2026 (as percent of gross profit). source
• Block’s net income (GAAP) in Q2 2026: $89 million and adjusted net income: $620 million. source
• Gross profit for the three months ended Jun. 30, 2026: $3,166,081 (in thousands). source
• Adjusted Operating Income for the three months ended Jun. 30, 2026: $863,845 (in thousands). source

Impact estimates