XYZ · Earnings call · 2026Q2T · Full report
Consumer Lending Trends
Block, Inc. · 2026-08-05 · Importance 51 · Surprise 64 · In source text
Cash App consumer lending origination volume increased 59% year over year in the second quarter. Management expects origination growth to normalize in the second half as Cash App laps the rapid expansion of Borrow in the prior year. Cohort-level loss rates remained healthy and generally decline as borrower cohorts season and repayment behavior improves. Transaction loan and consumer receivable loss growth is expected to moderate through the remainder of 2026.
Key facts
- Block expects consumer lending origination volume to normalize in the back half of 2026.
- Block expects year-over-year growth in transaction loan and consumer receivable losses to moderate through the remainder of 2026 based on origination forecast and maturation of borrower cohorts.
- Cash App consumer lending origination volume grew 59% year-over-year in the second quarter.
- Block said Cash App Borrow comparables will be tougher in the back half of the year as Borrow scaled dramatically in the back half of last year and will normalize in the back half of this year.
- Amrita said Cash App Borrow cohort-level loss rates continued to be healthy and that as borrower cohorts season, repayment behavior generally improves and loss rates decline.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | committed | — | Block expects consumer lending origination volume to normalize in the back half of 2026. |
| assets | negative | committed | — | Block expects consumer lending origination volume to normalize in the back half of 2026. |
| net_income | positive | committed | — | Block expects year-over-year growth in transaction loan and consumer receivable losses to moderate through the remainder of 2026 based on… |