Block's bitcoin profit halves to $52 million after it cut Cash App fees, but the shares rise about 6% after hours as it lifts its full-year forecast to $12.63 billion

Block is making less money from bitcoin on purpose. The company's bitcoin ecosystem segment, which The Block says consists mainly of customer bitcoin purchases inside Cash App and Proto, plus bitcoin withdrawal fees, produced $52 million of gross profit in the third quarter, down 50% year on year. Block attributed the drop to a strategic decision to reduce the fee on certain Cash App bitcoin transactions, The Block reports.

The rest of the business more than covered it. Gross profit rose 22% to $3.24 billion, ahead of the company's $3.13 billion guidance, on revenue of $6.72 billion, up from $6.12 billion a year earlier, and net income of $566 million, up from $462 million, according to The Block; the guidance comparison is from The Private Banker. Cash App's gross profit grew 27% to $2.07 billion, and Square's grew 14% to $1.16 billion on $76.4 billion of gross payment volume. Adjusted operating income nearly doubled to $923 million, though The Motley Fool notes that transaction and loan losses rose 66%, about three times the pace of gross profit growth.

Block raised its full-year 2026 gross profit forecast to $12.63 billion, which would be 22% growth, from the $12.51 billion it set in August, and said it expects gross profit to grow at least 15% in 2027. For the fourth quarter it guided to $3.32 billion of gross profit, or 15% growth. The shares closed down 1.4% at $76 on Tuesday and rose about 6% in after-hours trading once the results were out, The Block reports; The Motley Fool put the early after-hours move at about 8%.