Education
About Us
Working with TipRanks
Follow Us
Block (XYZ)
NYSE:XYZ
Top Page
Block
(NYSE:XYZ)
Select Model
Select Model
Rating:67Neutral
Price Target:
$81.00
▲(4.69% Upside)
The overall stock score of 67 reflects a balanced view of the company's financial stability and growth potential. The strong earnings call performance and reasonable valuation are positive factors, while technical indicators suggest caution. The decline in revenue growth and negative cash flow growth are notable risks.
Positive Factors
Strong Financial Performance
Block's significant increase in gross profit and operating income highlights its effective cost management and operational efficiency, supporting long-term financial stability.
Cash App Growth
The reacceleration of Cash App's gross profit growth indicates strong user engagement and monetization, reinforcing Block's competitive position in digital payments.
International Growth
Block's accelerating international growth reflects successful market expansion strategies, enhancing its global footprint and revenue diversification.
Negative Factors
Decline in Revenue Growth
The significant decline in revenue growth poses a risk to Block's long-term growth potential, potentially impacting its ability to scale and invest in new opportunities.
Negative Free Cash Flow Growth
Negative free cash flow growth suggests challenges in cash generation, which could limit Block's capacity to fund operations and strategic initiatives without external financing.
Increased Costs and Margins Impact
Rising processing costs could pressure margins, affecting Block's profitability and operational flexibility, potentially hindering long-term financial performance.
Block (XYZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.15B
Dividend YieldN/A
Average Volume (3M)7.08M
Price to Earnings (P/E)16.2
Beta (1Y)1.79
Revenue Growth1.41%
EPS Growth262.31%
CountryUS
Employees12,000
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.62
Shares Outstanding549,574,000
10 Day Avg. Volume5,047,752
30 Day Avg. Volume7,083,842
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit4.40
Enterprise Value/Ebitda21.17
Forecast
1Y Price Target
$87.81Price Target Upside13.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering33
Block Business Overview & Revenue Model
Company DescriptionBlock, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments and provides reporting and analytics, and next-day settlement. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Register that combines its hardware, point-of-sale software, and payments technology; Square Terminal, a payments device and receipt printer to replace traditional keypad terminals, which accepts tap, dip, and swipe payments. The company also offers various software products, including Square Point of Sale; Square Appointments; Square for Retail; Square for Restaurants; Square Online and Square Online Checkout; Square Invoices; Square Virtual Terminal; Square Team Management; Square Contracts; Square Loyalty, Marketing, and Gift Cards; and Square Dashboard. In addition, it offers a developer platform, which includes application programming interfaces and software development kits. Further, the company provides Cash App, which enables to send, spend, and store money; and Weebly that offers customers website hosting and domain name registration solutions. It serves in the United States, Canada, Japan, Australia, Ireland, France, Spain, and the United Kingdom. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in San Francisco, California.
How the Company Makes MoneyBlock generates revenue through multiple streams including transaction fees charged on payments processed through its platforms, subscription fees for premium services offered to merchants, and commissions from cryptocurrency transactions. Additionally, the company has formed strategic partnerships with various financial institutions and e-commerce platforms, enhancing its market reach and customer base. The growing adoption of digital payment solutions and the increasing interest in cryptocurrencies further contribute to Block's earnings potential.
Block Key Performance Indicators (KPIs)
Any
Gross Payment Volume
Defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds
Defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds
Data provided by:
Main Street Data
Main Street DataBlock Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected an overall strong financial performance with significant growth in key areas such as Cash App and Borrow. However, there are some concerns about increased costs impacting margins, particularly due to Borrow expansion and processing costs. Despite these challenges, the company's focus on innovation and international growth is positioning it well for the future.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Gross profit was $2.5 billion, up 14% year-over-year, with adjusted operating income at $550 million, up 38% year-over-year. The company expanded margins to its highest quarterly adjusted operating income margin yet at 22%.
Cash App Growth
Cash App gross profit growth reaccelerated to 16% year-over-year in Q2. The Cash App Card showed healthy gross profit growth, and BNPL gross profit reaccelerated, driven by increasing attach rates for post-purchase BNPL on Cash App Card.
Expansion of Borrow and Banking
Borrow on Square Financial Services saw meaningful ramping, with 6 million monthly actives and $18 billion in annualized originations. The company began to meaningfully ramp Borrow on Square Financial Services during Q2.
Square's Product Innovation
Launched Square AI, Square Handheld, and an updated version of Square Online. Introduced Bitcoin payments on Square and Tap to Pay for Cash App Business powered by Square.
International Growth
International GPV growth accelerated to 25% year-over-year as Block continued to expand distribution across sales and partnerships.
Negative Updates
Increased Costs and Margins Impact
Square's third quarter gross profit growth is impacted by increased processing costs due to changes for operational flexibility at a processing partner and further investments in hardware.
Margin Pressure from Borrow Expansion
Expected Q3 adjusted operating income margin is 18%, compared to 20%+ margins in other quarters this year, primarily due to risk loss growth as Borrow expands.
Company Guidance
During the Block Second Quarter 2025 Earnings Conference Call, several key metrics and guidance details were discussed. The company reported a gross profit of $2.5 billion, marking a 14% year-over-year increase, and an adjusted operating income of $550 million, a 38% rise from the previous year, with an adjusted operating income margin reaching a high of 22%. For the third quarter, Block expects a gross profit of $2.6 billion, reflecting a 16% year-over-year growth, and an adjusted operating income of $460 million, with an 18% margin. The company projected full-year gross profit guidance of $10.17 billion, a 14% increase year-over-year, and an adjusted operating income of $2.03 billion, with a 20% margin, indicating a 2 percentage point margin expansion. These results and projections underscore Block's focus on product innovation, go-to-market investments, and operational efficiency. Additionally, they highlighted the strategic importance of Cash App, with 8 million banking actives generating over $250 in annualized gross profit per active and showcased growth in areas like BNPL and Borrow, with Borrow originations reaching $18 billion annually.Block Financial Statement Overview
Summary
The company exhibits strong profitability metrics with a high gross profit margin and a healthy net profit margin. However, the significant decline in revenue growth and negative free cash flow growth are areas of concern. The balance sheet is strong with low leverage and a solid return on equity, suggesting financial stability. The cash flow situation needs improvement, particularly in terms of growth.Income Statement
The company shows a strong gross profit margin of 39.45% in the TTM, indicating effective cost management. However, the revenue growth rate has declined significantly by 42.2% in the TTM, which is concerning. The net profit margin is healthy at 12.41%, but the EBIT and EBITDA margins are relatively low, suggesting potential inefficiencies in operations.65
Positive
Balance Sheet
The debt-to-equity ratio is low at 0.28, indicating a conservative leverage position, which is a positive sign of financial stability. The return on equity is solid at 13.95% in the TTM, reflecting effective use of equity. The equity ratio is 60.14%, showing a strong equity base relative to total assets.70
Positive
Cash Flow
The free cash flow growth rate is negative at -11.53% in the TTM, which is a concern. However, the operating cash flow to net income ratio is 0.12, and the free cash flow to net income ratio is 0.88, indicating that the company is generating cash relative to its net income, albeit at a declining rate.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.83B | 24.12B | 21.92B | 17.53B | 17.66B | 9.50B |
| Gross Profit | 9.25B | 8.73B | 7.33B | 5.68B | 4.31B | 2.66B |
| EBITDA | 1.92B | 1.74B | 379.42M | -58.76M | 408.48M | 427.38M |
| Net Income | 2.96B | 2.90B | 9.77M | -540.75M | 166.28M | 213.10M |
Balance Sheet | ||||||
| Total Assets | 36.86B | 36.78B | 33.03B | 31.36B | 13.93B | 9.87B |
| Cash, Cash Equivalents and Short-Term Investments | 11.72B | 8.57B | 6.25B | 8.81B | 8.14B | 3.85B |
| Total Debt | 6.12B | 7.92B | 6.07B | 6.33B | 5.52B | 3.49B |
| Total Liabilities | 14.74B | 15.54B | 14.34B | 14.11B | 10.61B | 7.19B |
| Stockholders Equity | 22.16B | 21.27B | 18.70B | 17.22B | 3.27B | 2.68B |
Cash Flow | ||||||
| Free Cash Flow | 1.06B | 1.55B | -50.19M | 5.09M | 543.51M | -15.29M |
| Operating Cash Flow | 1.21B | 1.71B | 100.96M | 175.90M | 847.83M | 173.11M |
| Investing Cash Flow | 211.47M | 649.95M | 683.20M | 1.23B | -1.31B | -606.64M |
| Financing Cash Flow | -1.34B | 1.95B | -240.14M | 97.58M | 2.65B | 3.68B |
Block Technical Analysis
Positive
77.37
Price Trends
75.50
Positive
68.20
Positive
71.51
Positive
Market Momentum
0.02
Positive
55.84
Neutral
72.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYZ, the sentiment is Positive. The current price of 77.37 is above the 20-day moving average (MA) of 76.46, above the 50-day MA of 75.50, and above the 200-day MA of 71.51, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 72.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XYZ.
Block Risk Analysis
Block disclosed 48 risk factors in its most recent earnings report. Block reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Block Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 21.93B | 20.74 | 26.72% | ― | 9.22% | 6.60% | |
75 Outperform | 2.44B | 25.22 | 12.95% | ― | 13.02% | -2.57% | |
73 Outperform | 7.68B | 31.98 | 13.85% | ― | 23.86% | 79.35% | |
73 Outperform | 23.70B | 120.97 | 12.32% | ― | 26.11% | 0.00% | |
67 Neutral | $46.15B | 16.20 | 14.27% | ― | 1.41% | 262.31% | |
63 Neutral | 2.60B | -45.28 | -7.67% | ― | 17.47% | -544.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
XYZ
Block
77.37
9.91
14.69%
CPAY
Corpay Inc
305.27
-1.94
-0.63%
FOUR
Shift4 Payments
86.30
-0.60
-0.69%
PAYO
Payoneer
6.64
-0.94
-12.40%
MQ
Marqeta
5.81
0.66
12.82%
TOST
Toast Inc
41.48
13.77
49.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.