XYZ · 8-K · 20260805PR335117

Gross Margin Drivers

Block, Inc. · 2026-08-05 · Importance 59 · Surprise 48

Second-quarter gross profit increased 25% year over year to $3.166 billion from $2.537 billion, lifting gross margin to approximately 48% from 42%. Total cost of revenue fell 2% to $3.452 billion despite higher commerce enablement revenue, primarily because Bitcoin ecosystem costs declined 12% to $1.821 billion. Cash App gross profit increased 31% to $1.973 billion, while Square gross profit increased 13% to $1.160 billion. Square commerce enablement gross profit excluding hardware increased to $897 million from $814 million, while hardware contribution increased in absolute terms to $37 million from $34 million.

Key facts