Block Inc - Ordinary Shares - Class A

Strong quarter + raised full-year outlook (profitability and EPS momentum) - Block reported record profitability in Q2 and beat guidance, driving a raise to 2026 guidance. - Q2 highlights: Gross profit +25% YoY, adjusted operating income margin 27% (all-time high), and adjusted diluted EPS +65% YoY. - Raised full-year 2026 guidance: Gross profit $12.51B (+21% YoY), adjusted operating income $3.47B (~28% margin), and adjusted diluted EPS +70% YoY.

Segment/metric outlook: Square accelerating; Cash App still growing but expected to be harder vs comps - Q3 forecast (guidance): Gross profit +18% YoY, adjusted operating income margin ~28%, and adjusted diluted EPS +89% YoY. - Cash App expectations (demand durability vs normalization): - Monthly transacting actives +3% YoY in June, with management expecting low single-digit actives growth in 2026. - Cash App gross profit +31% YoY in Q2, with ongoing focus on deeper engagement across commerce + lending. - Consumer lending: Borrow growth expected to normalize in the back half, but loss rates expected to remain healthy with cohort maturation helping. - Square expectations (growth comp/roll-through): - Square’s U.S. GPV growth accelerated to the strongest rate since Q2 2023 (also noted global GPV strength). - Management expects Square gross profit growth roughly in line with GPV in H2. - Interest expense guidance: Q3 interest expense $50M–$55M and full-year $200M–$210M; mid-20% non-GAAP effective tax rate.

Growth drivers: distribution expansion (ISOs/field sales) + product velocity + AI execution - ISO/field sales scale-up: now 200+ active ISO partners, driving 150%+ QoQ growth in new sellers joining Square from ISO channel. - Product momentum: shipped new offerings in Q2 including Cash App Tags and Cash App Mobile; Afterpay Pre-Purchase on Cash App Card reached general availability. - AI investment is translating into execution: public launch of Buzz (agentic collaboration platform) and “intelligence-centered” reorganization are cited as improving shipping velocity and removing internal single points of failure (vendors/tools). - Management frames this as building “capabilities + connections” (i.e., not just model-building, but integrating capabilities into customer value).