Block delivered stronger-than-expected first-quarter results even as its Bitcoin -related revenue declined sharply and the company booked its first quarterly loss in three years. Shares of the payments group rose 7.9% in after-hours trading to about $76 after the report, reflecting investor relief that earnings exceeded expectations despite the weaker crypto contribution.
Adjusted earnings came in at 85 cents per share, above the 68-cent consensus estimate. The company’s gross profit climbed 27% from a year earlier to $2.9 billion, supported by strength across its core payments business. At the same time, operating expenses rose 57.2% to $3.08 billion, reflecting a period of heavier spending and restructuring.
Net loss for the quarter was $309 million, a result that included a $172.8 million remeasurement loss tied to Block’s Bitcoin holdings. The company held 8,883 Bitcoin at the end of March, and the quarterly decline in Bitcoin ’s price weighed on the value of that position. Bitcoin revenue from Cash App and other Block products fell to $1.8 billion from $2.33 billion a year earlier.
Block said the drop in Bitcoin revenue reflected changing trading dynamics and a deliberate reduction in fees on certain Bitcoin transactions within Cash App. Even so, Bitcoin payments still generated $63 million in gross profit for the quarter, while Square contributed little to the company’s Bitcoin business.
The quarter also came after a major restructuring announced in late February, when Jack Dorsey said the company would cut about 4,000 roles, or roughly 40% of its workforce, as part of a broader shift toward greater use of artificial intelligence and lower operating costs.
Block has continued to expand its Bitcoin -related products. In late April, it introduced proof-of-reserves tools for its corporate treasury and customer balances, launched a touchscreen version of its Bitkey hardware wallet, and added features on Cash App that allow some users to automatically convert payments into Bitcoin . The company also raised withdrawal limits and offered Bitcoin rewards for certain Square merchants, underscoring its effort to make Bitcoin more central to everyday payments.Coinbase shares fell on Thursday after the crypto exchange reported a wider-than-expected first-quarter loss and revenue that missed Wall Street forecasts. The company posted a net loss of $394 million for the quarter, extending a weak streak after a $667 million loss in the previous quarter and reversing a profit of $66 million a year earlier.
Chief financial officer Alesia Haas said market conditions were difficult, noting that total crypto market capitalization and trading volume both declined by more than 20% from the prior quarter. The results reflected broader pressure across the sector, as the early months of 2026 brought a softer crypto market and weaker trading activity.
Revenue came in at $1.41 billion, below analyst expectations of $1.5 billion. Transaction revenue dropped 40%, underscoring the impact of lower trading activity, while subscription and services revenue, which includes Coinbase’s non-trading businesses, fell 13.5% from a year earlier. The company also reported a loss of $1.49 per share, compared with expectations for a loss of 36 cents.
The disappointing figures sent Coinbase shares down about 5% in after-hours trading to below $184, adding to a decline of more than 14% so far this year. In response to the pressure, the company has accelerated efforts to reduce costs and expand into new areas, including prediction markets, while also cutting 14% of its workforce, or roughly 700 employees, earlier this week.
Chief executive Brian Armstrong said Coinbase is working to broaden its business beyond spot crypto trading and position itself for a future in which more financial activity moves onto blockchain networks. He argued that the company is in a transitional phase as it expands into other asset classes and seeks to build more balanced revenue streams over time.
The results came as other crypto-linked firms have also faced a difficult start to the year. Robinhood Markets reported weaker first-quarter results last month, with crypto revenue and trading volumes falling sharply. Some analysts continue to view the recent selloff in crypto stocks as a possible entry point for investors focused on tokenization, stablecoins and prediction markets.
