Block reaches DOJ settlement and raises profit outlook

Block, the fintech company led by Jack Dorsey, has reached a preliminary settlement with the US Department of Justice to resolve an investigation into its anti-money laundering compliance programs. The company agreed in principle to pay $764 million to end the probe, which originated from allegations regarding insufficient identity verification and controls. The settlement includes a three-year deferral of criminal charges related to the Bank Secrecy Act.

Despite the legal settlement and a 50% year-over-year decline in Bitcoin ecosystem gross profit—attributed to deliberate fee reductions on Cash App—Block reported strong third-quarter financial results. Total gross profit rose 22% to $3.24 billion, driven by a 27% surge in Cash App gross profit and a 14% increase in Square merchant business gross profit. Cash App reached 60 million monthly transacting actives in September.

Following the earnings report, Block raised its full-year 2026 gross profit guidance for the third consecutive time. The company also reported that it added 120 Bitcoin to its corporate treasury during the quarter, bringing its total holdings to 9,237 BTC.