Block (XYZ) AI Stock Analysis

• Market Cap: $46.29B
• Dividend Yield: N/A
• Average Volume (3M): 5.92M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.74
• Revenue Growth: 1.41%
• EPS Growth: 262.31%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.62
• Shares Outstanding: 549,574,000
• 10 Day Avg. Volume: 5,281,775
• 30 Day Avg. Volume: 5,918,077
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 21.17
• 1Y Price Target: $89.07
• Price Target Upside: 19.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 31

• Rating: 71 Outperform
• Price Target: $85.00 ▲(14.40% Upside)

The overall stock score of 71 reflects a strong earnings call performance and reasonable valuation, which are the most significant factors. Financial performance shows solid profitability but is weighed down by declining revenue growth and negative cash flow growth. Technical analysis suggests a neutral trend with some bullish momentum.

Positive Factors

Strategic Partnerships

The partnership with Grubhub enhances Block's market reach and customer base, integrating its payment solutions into a broader ecosystem, which can drive long-term revenue growth and strengthen its competitive position.

Product Innovation

The introduction of Square Bitcoin showcases Block's commitment to innovation and positions it to capture growth in the cryptocurrency market, potentially expanding its customer base and revenue streams.

International Growth

Accelerated international growth indicates successful expansion efforts, enhancing Block's global footprint and providing a diversified revenue base, which can contribute to long-term stability and growth.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth can signal potential challenges in market demand or competitive pressures, which may impact Block's ability to sustain long-term growth and profitability.

Negative Cash Flow Growth

Negative cash flow growth suggests potential liquidity issues and may limit Block's ability to invest in growth opportunities or weather economic downturns, impacting long-term financial health.

Margin Pressure

Increased costs and margin pressure from expanding services like Borrow could erode profitability, affecting Block's ability to maintain competitive pricing and invest in future growth initiatives.

Block Business Overview & Revenue Model

Company Description

Block, 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 Money

Block 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 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 74.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYZ, the sentiment is Neutral. The current price of 74.3 is below the 20-day moving average (MA) of 77.27, below the 50-day MA of 76.61, and above the 200-day MA of 69.36, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 22.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XYZ.

Block Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PYPL	―	$64.81B	13.90	24.36%	―	4.50%	19.71%
CPAY	―	$18.38B	17.69	31.43%	―	9.22%	6.60%
XYZ	―	$46.29B	16.24	14.27%	―	1.41%	262.31%
GPN	―	$18.71B	13.48	6.21%	1.29%	-4.17%	4.76%
FOUR	―	$6.11B	25.60	19.00%	―	23.86%	79.35%
TOST	―	$21.07B	105.40	14.51%	―	26.11%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Block Corporate Events

Block Announces Leadership Transition in Engineering Team

On August 21, 2025, Block, Inc. announced a leadership transition within its engineering team. Dhanji R. Prasanna will shift from his role as Engineering + Technology Lead to focus on technology strategy and frontier technologies, while Arnaud Weber will take over as Engineering Lead, pending regulatory approvals.

The most recent analyst rating on (XYZ) stock is a Sell with a $70.00 price target. To see the full list of analyst forecasts on Block stock, see the XYZ Stock Forecast page.

Block Inc. Earnings Call Highlights Strong Growth

Block Inc. Earnings Call Reflects Positive Sentiment and Strong Growth

Block Inc. Reports Strong Q2 2025 Financial Growth

Block Inc., a prominent player in the financial technology sector, operates platforms such as Square and Cash App, offering a range of financial services and commerce solutions. In its latest earnings report for the second quarter of 2025, Block Inc. showcased robust financial growth with a 14% year-over-year increase in gross profit, reaching $2.54 billion. The company highlighted significant growth in its Cash App and Square platforms, with Cash App gross profit rising by 16% and Square by 11% year-over-year. Key strategic initiatives included the launch of new products like Pools on Cash App and the introduction of Square Handheld, enhancing customer experience and operational efficiency. Block Inc. also reported a net income of $538 million and an adjusted EBITDA of $891 million, reflecting strong profitability. Looking ahead, Block Inc. remains optimistic about sustaining its growth trajectory, with plans to further expand its product offerings and deepen customer engagement, positioning itself well for continued success in the evolving financial services landscape.