Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement
Cash App lifted quarterly profit 27% as Block said a proposed DOJ deal could cost about $764 million.
- On Tuesday, Block reached a preliminary three-year deferred prosecution agreement with the Justice Department over anti-money laundering compliance, while raising its full-year 2026 gross profit forecast to $12.63 billion.
- The agreement in principle resolves a federal investigation into alleged failures in anti-money laundering controls under the Bank Secrecy Act, requiring Block to meet specific compliance obligations throughout the three-year term.
- Accounting for credits from previous regulatory resolutions, including a 2025 fine from New York regulators, Block expects a net payment of roughly $764 million against a gross monetary component of approximately $964 million.
- Strong consumer demand for Cash App and Square drove total gross profit to $3.2 billion in the third quarter, though Bitcoin ecosystem profit plunged 50% year-over-year to $52 million due to lower fees.
- The company expects investments in AI tools to begin generating revenue in the fourth quarter, with Chief Financial Officer Amrita Ahuja projecting 2027 gross profit of $14.52 billion, implying 15 per cent growth.
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Block, a payment company behind Square, Cash App and Afterpay, which has co-founder Jack Dorsey (who was one of the creators of the old Twitter), had to reserve more resources to close an investigation that has been dragging away for years in the United States Department of Justice on its money laundering prevention program. In October, the company and the Department of Justice reached a preliminary agreement by which the body would agree to "su…
Block Agrees to $964 Million Penalty on Money-Laundering Lapses
Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement
Block on Tuesday raised its full-year gross profit outlook after strength in its Cash App unit lifted the firm's quarterly earnings, while also reaching a preliminary settlement with the US Department of Justice over its anti-money laundering program.
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