XYZ · Earnings call · 2026Q2T · Full report

Capital Expenditure and Supply

Block, Inc. · 2026-08-05 · Importance 39 · Surprise 42

Block expects hardware costs to rise over time, particularly for memory, although management said it has not yet experienced the supply constraints or cost issues seen across the industry. The company identified the memory constraint in mid-2025 and has worked with suppliers and suppliers’ suppliers to mitigate its impact. Management said Block has visibility into the trajectory of hardware costs and supply dynamics and believes it can manage them accordingly. The company’s supply-chain approach is intended to protect product availability for Square hardware and new products such as Cash App Tags.

Key facts

• Block expects third quarter interest expense of $50 million to $55 million.
• Block expects full-year 2026 interest expense of $200 million to $210 million.