Block Lifts Outlook as Lending Losses Climb 66%

Merchants and Cash App users should watch fee terms and credit conditions as Block expands its consumer lending products.

Updated on Nov. 3, 2026 in Public Companies

Bold vector editorial illustration of plain white payment cards fanned beside an open coin purse with loose coins, in coral, teal, and cream. — Block raised its 2026 gross profit outlook to $12.63 billion, even as losses on Cash App lending and receivables climbed 65.6 per cent to $601.7 million. AI Illustration. Upload story photo >

Live Poll

Would you use a fintech app like Cash App to borrow money?

Block raised its full-year 2026 gross profit outlook to $12.63 billion after third-quarter growth, with Cash App gross profit up 27 per cent year over year. The company's rising credit and receivable losses also climbed sharply, a development relevant to merchants and consumers using its payment and lending products.

Why it matters

Cash App's banking and lending products have diversified Block's revenue beyond transaction fees, but the same products drove credit losses up 65.6 per cent, showing that growth in consumer finance carries rising risk costs. For operators who accept Square payments or rely on Cash App for customer transactions, the trade-off between growth and loss exposure is the signal to watch.

Cash App gross profit rose 27 per cent and Square gross profit rose 14 per cent in the third quarter from a year earlier. Block lifted its 2026 gross profit forecast to $12.63 billion, up from $12.51 billion, and reported adjusted operating income of $923 million versus $480 million a year earlier.

The players

Block

A U.S. financial technology company operating the Square merchant payments platform and the Cash App consumer finance app, with growing banking and lending businesses.

The details

Block's gross profit growth came largely from Cash App, where banking and lending products expanded revenue beyond transaction fees. Those same products increased the company's credit exposure, with losses on transaction, loan and consumer receivables rising 65.6 per cent to $601.7 million in the quarter. Block now expects fourth-quarter gross profit of $3.32 billion and forecasts 2027 gross profit of $14.52 billion, implying 15 per cent growth.

Q3 2025: baseline quarter for year-over-year comparisons of Cash App and Square results.
September 30, 2026: end of the third-quarter period for adjusted operating income.
September 2026: Cash App reached 60 million monthly transacting actives.
Fourth quarter 2026: Block expects to generate its first revenue directly from AI tools.
2027: Block forecasts gross profit of $14.52 billion.

Market Landscape

Block's results reflect a broader push by payment platforms to add banking and lending products on top of transaction revenue, a shift that Cash App's diversification illustrates directly. The rise in credit losses alongside gross profit growth places Block in the same risk-return trade-off facing other consumer finance firms expanding into lending.

Operators who accept Square payments or use Cash App for business transactions should monitor fee and settlement terms as Block expands its consumer lending products. Businesses that rely on consumer spending should also factor in the rise in credit losses, which signals tighter credit conditions for some customers.

The takeaway

Track Block's fourth-quarter gross profit against its $3.32 billion forecast, and watch whether the 65.6 per cent rise in credit losses continues as lending grows. Review any payment processing or merchant lending terms with your accountant or financial advisor before committing to new programs.