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what it is
Block helps sellers take payments and helps consumers move, spend, and borrow money through Cash App, Square, and Afterpay.
how it gets paid
Last year Block made $24.2B in revenue. Bitcoin revenue was the main engine at $9.5B, or 39% of sales.
why it's growing
Revenue grew 0.3% last year. Cash App drove the upside, with gross profit up 24% as engagement and monetization improved.
what just happened
Revenue hit $17.9B and EPS reached $1.91, both far above last year.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
15/100 earnings predictability — expect surprises
25.9x trailing p/e — priced about right
8.0% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
Block helps sellers take payments and helps consumers move, spend, and borrow money through Cash App, Square, and Afterpay.
Block processed $240.8 billion of gross payment volume in 2024. Gross payment volume → money moving across its network → so what: sellers and consumers already use the same rails. If your store runs on Square and your customers use Cash App, leaving is a chore, and that gives Block more chances to sell you software, lending, and checkout tools.
How they make money
$24.2B
annual revenue · their business grew +0.3% last year
Bitcoin revenue
$9.5B
+15.0%
Transaction-based revenue
$6.6B
+3.0%
Subscription and services
$6.5B
+12.0%
Other revenue
$1.4B
17.0%
Hardware revenue
$0.2B
5.0%
The products that matter
merchant payment software & hardware
Square
$14.5B · +2% growth
it's the larger operating line on this page at 60% of the $24.2B segment total. if your merchant base slows, the steadier half of the thesis stops acting steady.
60% of shown segment revenue
consumer banking & peer-to-peer payments
Cash App
$9.7B · -2% growth
this $9.7B line is the consumer growth case, and it moved backward. that's why the market is rewarding margin targets more than user-growth talk.
40% of shown segment revenue
consumer lending and monetization
Cash App lending
$200B+ credit provided
over $200B in credit says this is already material. it can lift monetization, but it also means mistakes in underwriting do not stay small for long.
higher-margin upside
Key numbers
$40B
2028 revenue goal
$40 billion by fiscal 2028 means Block needs to add about $15.8 billion from today's $24.2 billion trailing revenue. That's a much bigger company in just a few years.
8.0%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: 8.0% is decent, not amazing, for a company priced like a growth story.
25.9x
trailing p/e
Trailing P/E → stock price divided by last year's earnings → so what: you are paying nearly 26 times profits for a company with 0.3% revenue growth.
10.0%
operating margin
Operating margin → money left after running the business → so what: only 10 cents of every revenue dollar stays before interest and taxes.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $5.7B (12% of capital)
- net profit margin 7.0% — keeps 7 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in XYZ 3 years ago → it's now worth $9,200.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $17.9B and EPS reached $1.91, both far above last year.
Cash App drove the upside, with gross profit up 24% as engagement and monetization improved. Square grew gross profit 9%, but higher lending losses and processing costs were the pressure points.
$17.9B
revenue
$1.91
eps
41.7%
gross margin
the number that mattered
The number that mattered was 24% Cash App gross profit growth, because it shows the consumer side is still doing the heavy lifting.
-
block's earnings quality has been much stronger of late.
-
the company posted adjusted earnings per share of $0.74 versus an estimated $0.45 in the third quarter, supported by 18% growth in gross profit leading to robust operating income.
-
cash app did most of the heavy lifting, with gross profit up 24% as product changes and marketing improved engagement and monetization, while square grew gross profit 9%, alongside a 12% increase in payment volumes.
-
the main pressure point was a higher loss-related expense as lending and buy-now-pay-later scaled, plus a temporary processing-cost headwind at square, which together raise sensitivity to credit performance and operating leverage.
-
the near-term setup into 2026 looks like a balance between growth and discipline.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the margin reset failing to produce durable gross profit growth at Block.
med
the $12.2B gross profit target becomes the whole report card
Management cut nearly half its workforce and asked investors to judge the company on a leaner operating model. If quarterly progress toward $12.2B looks slow or inconsistent, the reset stops looking strategic and starts looking defensive.
At 25.9x trailing earnings and a 6.0% net margin, this valuation does not leave much room for a missed checkpoint.
med
Cash App cannot stay negative for long
Cash App generated $9.7B here and declined 2%. That is 40% of the segment revenue shown on this page. If the consumer side stays in reverse, the higher-margin upside case starts to look more like a slide deck than an income statement.
A shrinking consumer segment makes it harder for Block to grow gross profit without leaning even harder on cost discipline.
med
Square is bigger, but 2% growth is not much ballast
Square produced $14.5B and grew 2%. That is the larger half of the operating base shown here. If seller activity cools, Block loses the side that is supposed to keep the story stable while Cash App improves.
Two percent growth on 60% of the shown segment revenue base leaves little buffer if the consumer business stays soft.
If Square stays near +2%, Cash App stays negative, and the $12.2B gross profit target slips, a 6.0% net margin on the $24.2B operating revenue base shown here will not justify much multiple patience.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
progress toward $12.2B gross profit
This is the scoreboard now. If quarterly progress looks lumpy, the reset story loses credibility fast.
trend
Cash App needs to turn positive again
A 2% decline in a $9.7B segment is survivable once. If you see it again, it becomes the pattern.
calendar
the next full-year outlook update
Generic optimism will not do much from here. You need checkpoints that show how the company gets from cost cuts to durable profit growth.
risk
whether margin gains come from better business, not just fewer employees
Cutting nearly half the workforce can improve optics for a while. The durable version is growth and profitability improving together.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a market-like setup, not a clear edge.
risk profile
average
stability score 3 — not a bunker stock, but not the edge of the cliff either.
chart momentum
bottom 5%
technical score 5 — the lowest rating. translation: the chart still looks worse than most stocks.
earnings predictability
15 / 100
low predictability means the model can move around on you. if you own it, expect abrupt revisions instead of quiet quarter-to-quarter progress.
source: institutional data
Institutional activity
519 buyers vs. 441 sellers in 3q2025. total institutional holdings: 0.4B shares.
source: institutional data
Price targets
3-5 year target range
$47
$134
$66
current price
$91
target midpoint · +38% from current · 3-5yr high: $165 (+150% · 26% ann'l return)
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