Total Cost of Revenue
Block Total Cost of Revenue decreased by 6.9% to $3.15B in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 9.6%, from $3.48B to $3.15B. Over 4 years (FY 2021 to FY 2025), Total Cost of Revenue shows relatively stable performance with a 1.1% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase relative to revenue may indicate rising component costs or manufacturing inefficiencies, whereas a decrease suggests better economies of scale.
Detailed definition
The direct costs attributable to the production of the goods sold and the delivery of services. This typically encompass...
Peer comparison
In the consumer electronics industry, this is often compared against revenue to determine the efficiency of the supply chain.
total_cost_of_revenueHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $3.54B | $2.71B | $2.90B | $2.67B | $2.93B | $2.95B | $2.99B | $3.28B | $3.67B | $3.72B | $3.75B | $3.86B | $3.92B | $3.73B | $3.72B | $3.48B | $3.52B | $3.45B | $3.38B | $3.15B |
| QoQ Change | — | -23.4% | +6.8% | -8.0% | +10.1% | +0.5% | +1.4% | +9.5% | +12.0% | +1.4% | +0.8% | +3.1% | +1.5% | -5.0% | -0.1% | -6.4% | +1.0% | -1.8% | -2.1% | -6.9% |
| YoY Change | — | — | — | — | -17.1% | +8.7% | +3.3% | +22.9% | +25.0% | +26.1% | +25.3% | +17.9% | +6.9% | +0.2% | -0.7% | -9.8% | -10.3% | -7.3% | -9.2% | -9.6% |
Product Breakdown — Bitcoin revenue
| Segment | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 |
|---|---|---|---|---|---|---|---|---|
| Bitcoin revenue | $2.45B | $2.65B | $2.54B | $2.36B | $2.35B | $2.24B | $2.06B | $1.89B |
| Transaction-based revenue | $946.05M | $873.17M | $1.00B | $1.01B | $996.32M | $903.82M | $1.07B | $1.14B |
| Subscription and services-based revenue | $272.55M | $269.67M | $291.80M | $271.29M | $303.06M | $275.05M | $298.07M | $299.55M |
| Hardware revenue | $56.44M | $50.79M | $68.31M | $62.09M | $55.26M | $52.53M | $76.55M | $103.30M |
| Total | $3.75B | $3.86B | $3.92B | $3.73B | $3.72B | $3.48B | $3.52B | $3.45B |
Bitcoin revenue, Hardware revenue, Subscription and services-based revenue, Transaction-based revenue were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.
Product Breakdown — Bitcoin ecosystem revenue
| Segment | Q1 '26 |
|---|---|
| Bitcoin ecosystem revenue | $1.73B |
| Commerce enablement revenue | $1.32B |
| Financial solutions revenue | $89.38M |
| Total | $3.15B |
Business Segments — Cash App
| Segment | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 |
|---|---|---|---|---|---|---|---|---|
| Cash App | $2.59B | $2.91B | $2.83B | $2.62B | $2.64B | $2.50B | $2.34B | $2.18B |
| Square | $976.18M | $909.77M | $1.06B | $1.07B | $1.05B | $954.26M | $1.14B | $1.22B |
| Total | $3.75B | $3.86B | $3.92B | $3.73B | $3.72B | $3.48B | $3.52B | $3.45B |
Cash App, Square were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.
Total Cost of Revenue at Other Companies
Frequently Asked Questions
- What is Block's total cost of revenue?
- Block (XYZ) reported total cost of revenue of $3.15B in Q1 2026.
- How has Block's total cost of revenue changed year-over-year?
- Block's total cost of revenue decreased by 9.6% year-over-year, from $3.48B to $3.15B.
- What is the long-term trend for Block's total cost of revenue?
- Over 4 years (2021 to 2025), Block's total cost of revenue has grown at a 1.1% compound annual growth rate (CAGR), from $13.24B to $13.83B.
- What does total cost of revenue mean?
- The direct cost of making the products or providing the services that a company sells.