Block Inc. (XYZ) — Company Research

Last Updated: 04 Oct 2026

Block, Inc. (NYSE: XYZ) is the company behind Square, Cash App and Afterpay. It changed its ticker from SQ to XYZ on 21 Jan 2025 and joined the S&P 500 on 23 Jul 2025. It runs two main ecosystems:

• Square: payments, point-of-sale hardware and software, banking and lending for sellers;
• Cash App: a consumer finance app for peer-to-peer payments, the Cash App Card, direct deposit, short-term loans (Borrow), Afterpay buy-now-pay-later and bitcoin trading.

Block also builds bitcoin hardware (the Bitkey wallet and Proto mining rigs) and owns TIDAL.

FY2025 revenue was $24,194m (+0.3%), while gross profit, the number management steers by, grew 17% to $10,360m. GAAP diluted EPS was $2.10 and adjusted EPS $2.37. In Feb 2026 CEO Jack Dorsey announced a cut of more than 40% of the workforce, finished in Q2 2026. Q2 2026 gross profit then rose 25%, and Block raised its FY2026 adjusted EPS guidance to $4.02. The shares closed at $74.33 on 02 Oct 2026, a market value of about $44.7bn.

This refresh draws on Block's shareholder letters, the FY2025 Form 10-K, the Q2 2026 Form 10-Q, SEC XBRL company facts and Form 4 filings, all retrieved on 04 Oct 2026. Follow the price on ChartsView Live Charts.

1. Company Snapshot

Field	Value
Full name	Block, Inc. (Delaware corporation; formerly Square, Inc.)
Ticker	XYZ (NYSE); CDIs also listed on the ASX as XYZ. Formerly SQ, changed 21 Jan 2025
Sector	Financial technology: merchant payments, consumer finance and bitcoin services
Headquarters	Oakland, California
CEO / Leadership	Jack Dorsey (co-founder and CEO, formal title “Block Head”); Amrita Ahuja (CFO and COO); Andrea Acosta (Chief Accounting Officer since 26 May 2026)
Market cap	~$44.7bn (600.8m Class A and B shares at 31 Jul 2026 × $74.33 at the 02 Oct 2026 close)
Revenue (FY2025)	$24,194m (+0.3% YoY); gross profit $10,360m (+17%)
Net income (FY2025)	$1,306m attributable to common stockholders; GAAP diluted EPS $2.10; adjusted diluted EPS $2.37
Employees	10,205 full-time at 31 Dec 2025 (FY2025 10-K). A reduction of more than 40% was announced on 26 Feb 2026 and completed in Q2 2026; the new headcount has not been disclosed
Scale	Q2 2026: Square gross payment volume $72.8bn (+13%); 59m Cash App monthly transacting actives; 9.4m primary banking actives (+17%)
Dividend	None. Block has never paid a cash dividend

2. Bull Case vs Bear Case

Distilled from the full report below. Factual only, no ratings.

Bull Case

• Gross profit growth accelerating: Q2 2026 gross profit rose 25% to $3,166m, with Cash App up 31% and Square up 13%. FY2026 gross profit guidance has been raised twice, from $12.20bn in Feb to $12.51bn (+21%) in Aug 2026.
• Record adjusted margins: Q2 2026 adjusted operating income was a record $863.8m, a 27% margin on gross profit. FY2026 guidance is $3.47bn of adjusted operating income and adjusted EPS of $4.02, up 70%.
• Cash generation and buybacks: Trailing-twelve-month operating cash flow was $4,057m against capex of $176m. Block bought back $701m of stock in H1 2026, had $4.6bn of authorisation left and repaid $1.575bn of 2026 notes from cash.
• Lending engine scaling: Consumer lending originations reached $18.9bn in Q2 2026 (+59%), and Afterpay on the Cash App Card became generally available on 02 Jun 2026.
• Leaner cost base: The workforce cut of more than 40%, completed in Q2 2026, is behind the margin expansion in management's 2026 guidance.

Bear Case

• DOJ inquiry unresolved: Block has accrued $526m for a Department of Justice inquiry and disputes the terms the DOJ proposed in Mar 2026. It says further losses are reasonably possible and could be material.
• Credit losses rising: Transaction, loan and consumer receivable losses were $585.5m in Q2 2026, up 99% YoY, after $1,337m in FY2025 (FY2024: $794m).
• Thin GAAP earnings: Trailing GAAP diluted EPS was only about $0.56 after H1 2026 charges of more than $1.1bn for contingencies, restructuring and other items.
• Bitcoin drag: Bitcoin ecosystem gross profit fell 31% in Q2 2026, and the bitcoin Block holds produced an $88.5m remeasurement loss in the quarter.
• Steady insider selling: Director Anthony Eisen sold 845,750 shares (about $66.8m) between 01 Jun and 01 Oct 2026 under a 10b5-1 plan, and no insider bought shares in the open market in 2026.

3. What Does This Company Actually Do?

Block earns fees when sellers accept card payments through Square and when consumers use Cash App to pay, borrow, receive paychecks or buy bitcoin. It reports two operating segments plus a small Corporate and Other line, which includes TIDAL, Proto and Bitkey.

Segment	% of revenue	What it is
Cash App	63.8% ($15,425m)	Consumer app: peer-to-peer payments, Cash App Card, direct deposit, Borrow loans, Afterpay buy-now-pay-later and bitcoin buying and selling. Gross profit $6,336m (+21%)
Square	34.9% ($8,452m)	Seller ecosystem: card acceptance, point-of-sale hardware and software, Square Loans, banking and payroll. Gross profit $3,935m (+9%)
Corporate and Other	1.3% ($317m)	TIDAL music streaming, Proto bitcoin mining hardware, Bitkey wallet and other bets. Gross profit $89m

FY2025 figures from the Q4 2025 shareholder letter segment table; percentages are ChartsView calculations.

From FY2025 Block replaced its old revenue categories with three new ones:

• Commerce Enablement: $11,514m (47.6%);
• Financial Solutions: $4,177m (17.3%);
• Bitcoin Ecosystem: $8,503m (35.1%), which earned only about $419m of gross profit because most of the revenue is the value of bitcoin sold to customers.

4. The Business Model

How it makes money. Square takes a percentage of each card payment it processes, plus software subscriptions, hardware sales and loan fees. Cash App earns interchange when customers spend on the Cash App Card, fees for instant deposits, interest and fees on Borrow loans, Afterpay merchant fees, and a spread on bitcoin trades. Because bitcoin sales inflate revenue but carry very little profit, Block measures itself on gross profit: $10,360m in FY2025, 61% of it from Cash App.

Where the moat sits. Block's advantages are:

• 59m monthly transacting Cash App users and 9.4m who use it as their primary bank account, which gives Block data for underwriting short-term loans;
• Square's installed base of sellers, which processed $72.8bn of payments in Q2 2026;
• its own bank, Square Financial Services, which lets it lend and offer savings accounts without a partner bank;
• links between the two ecosystems, such as Afterpay on the Cash App Card and Neighborhoods, which connects Cash App users with local Square sellers.

What changed in 2025–2026. Block changed its ticker to XYZ, joined the S&P 500 and set multi-year targets at its Nov 2025 investor day: about $15.8bn of gross profit and $5.50 of adjusted EPS by 2028. From FY2025 its adjusted EPS includes share-based compensation, which makes it lower than the old measure. In Feb 2026 it began cutting more than 40% of staff and leaning on in-house AI agents (goose, Builderbot, Moneybot, Managerbot) to do more of the work.

5. Financial Health

Sources: Block shareholder letters (SEC 8-K exhibits), the FY2025 Form 10-K, the Q2 2026 Form 10-Q, and SEC XBRL company facts (data.sec.gov) for revenue, EPS, debt, cash flow, D&A and operating income. The fiscal year ends 31 December.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	$17,661m	+86.0%	$0.33	$1.28†	$0.00	$4,559m
FY2022	$17,532m	-0.7%	-$0.93	$1.00†	$0.00	$4,110m
FY2023	$21,916m	+25.0%	$0.02	$1.80†	$0.00	$4,120m
FY2024	$24,121m	+10.1%	$4.56	$3.37†	$0.00	$5,106m
FY2025	$24,194m	+0.3%	$2.10	$2.37	$0.00	$5,716m

Notes on the annual table:

• † FY2021–FY2024 adjusted EPS uses Block's old definition, which excluded share-based compensation. From FY2025 the definition includes it, so the figures are not directly comparable. On the new basis Q4 2024 adjusted EPS was $0.47 against $0.71 on the old one.
• FY2020 revenue was $9,498m, the base for the FY2021 YoY figure.
• Long-term debt is the noncurrent portion at year-end (XBRL tags LongTermDebtNoncurrent and OtherLongTermDebtNoncurrent). The current portion was $999m at FY2024 year-end and $1,573m at FY2025 year-end. Warehouse funding facilities for consumer loans ($1,365m at FY2025 year-end) are reported separately and not included.
• FY2024 GAAP EPS included a tax benefit of about $1.9bn.

Quarterly results (most recent first)

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 2026 (to 30 Jun 2026)	$6,618m	$1.02	$0.15
Q1 2026 (to 31 Mar 2026)	$6,057m	$0.85	-$0.52
Q4 2025 (to 31 Dec 2025)	$6,253m	$0.65	$0.19
Q3 2025 (to 30 Sep 2025)	$6,115m	$0.54	$0.74
Q2 2025 (to 30 Jun 2025)	$6,054m	$0.62	$0.87
Q1 2025 (to 31 Mar 2025)	$5,772m	$0.56	$0.30
FY2025 total	$24,194m	$2.37	$2.10

Notes on the quarterly table:

• Release dates: Q2 2026 on 05 Aug 2026; Q1 2026 on 07 May 2026; Q4 2025 on 26 Feb 2026.
• Q1 2026 GAAP results include $742.8m of contingencies, restructuring and other charges, mainly the DOJ accrual and workforce reduction, plus $109.5m of restructuring share-based compensation. Q2 2026 includes a further $365m of such charges.
• Q4 2025 GAAP EPS includes a -$0.38 impact from remeasuring Block's bitcoin holdings.
• Q2 2026 in more detail: gross profit $3,166m (+25%), GAAP operating income $446.9m, adjusted operating income $863.8m and adjusted EBITDA $1,168.6m.

Cash flow and balance sheet.

• Cash flow (FY2025).
  • Operating cash flow was $2,580m and capex (purchases of property and equipment) $155m, giving free cash flow of $2,425m.
  • D&A was $370m and GAAP operating income $1,708m. Share buybacks totalled $2,331m.
• Cash flow (H1 2026).
  • Operating cash flow was $1,985m, capex $84m and D&A $191m. GAAP operating income was $275m after the H1 charges.
  • Trailing-twelve-month operating cash flow was $4,057m and capex $176m, giving free cash flow of $3,881m.
• Balance sheet at 30 Jun 2026.
  • Cash and cash equivalents were $6,427m and short-term debt securities $311m.
  • Long-term debt was $5,721m, with no current portion after the 2026 convertible notes ($575m, 01 May) and 2026 senior notes ($1.0bn, 01 Jun) were repaid. Principal of $5,775m matures between 2027 and 2033.
  • Warehouse facilities funding consumer loans were a further $1,162m. Block also held about 9,117 bitcoin, carried at $534m.
• FY2026 guidance (05 Aug 2026):
  • gross profit of $12.51bn (+21%);
  • adjusted operating income of $3.47bn (28% margin);
  • adjusted diluted EPS of $4.02 (+70%). For Q3 2026 Block guided to gross profit of $3.13bn and adjusted EPS of $1.02.

6. Valuation & Market Data

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$44.7bn (600.8m shares at 31 Jul 2026 × $74.33 at the 02 Oct 2026 close)
Enterprise value	~$43.6bn = market cap ~$44.7bn + total debt ~$5.7bn (long-term $5,721m; current portion nil) − cash and short-term debt securities ~$6.7bn ($6,427m + $311m), per the 30 Jun 2026 balance sheet. Warehouse facilities ($1,162m) and bitcoin holdings ($534m) are excluded.
Trailing P/E (GAAP)	~133x ($74.33 / TTM GAAP diluted EPS of about $0.56, Q3 2025 to Q2 2026). GAAP earnings are depressed by more than $1.1bn of H1 2026 charges. On TTM adjusted EPS of about $3.06 the multiple is ~24.3x.
P/E (forward)	~18.5x ($74.33 / FY2026 adjusted EPS guidance of $4.02, issued 05 Aug 2026)
P/S (TTM)	~1.8x (market cap / TTM revenue of $25,042m, Q3 2025 to Q2 2026). On TTM gross profit of about $11.6bn it is ~3.8x.
EV/EBITDA (TTM)	~28.2x (EV ~$43.6bn / TTM EBITDA ~$1.55bn). EBITDA = TTM GAAP operating income $1,170m (FY2025 $1,708m less H1 2025 $814m plus H1 2026 $275m) + TTM D&A $379m (XBRL DepreciationDepletionAndAmortization). GAAP operating income is cut by the H1 2026 DOJ and restructuring charges; Q2 2026 adjusted EBITDA alone was $1,169m.
P/FCF	~11.5x (market cap ~$44.7bn / TTM FCF ~$3.88bn). FCF = operating cash flow $4,057m − capex $176m (FY2025 less H1 2025 plus H1 2026). On FY2025 FCF of $2,425m ($2,580m − $155m) the multiple is ~18.4x.
52-week high	$86.92 (intraday, 27 Aug 2026)
52-week low	$48.21 (intraday, 12 Feb 2026)
Short interest (% of float)	2.52% (13.4m shares, settlement date 15 Sep 2026, per MarketBeat and Finviz)
Days to cover	3.7 (MarketBeat, 15 Sep 2026); Finviz shows 2.97 on a different average-volume basis
Dividend yield	Nil (no dividend)

Share-price-based metrics use the 02 Oct 2026 close; 52-week range from Yahoo Finance daily bars. For live prices see ChartsView Live Charts.

7. What Are They Building

Cash App as a bank and lender.

• Lending: Consumer lending originations reached $18.9bn in Q2 2026 (+59%). Afterpay can now be used on the Cash App Card for a flat 7.5% fee with six-week repayment (generally available 02 Jun 2026).
• Paychecks: Cash App became a direct-deposit option in Workday's Enhanced Direct Deposit from 01 Oct 2026, aimed at growing primary banking actives.
• Credit data: From 01 Sep 2026 outside lenders can use Cash App Score through Nova Credit.
• New products: Cash App Tags (tap-to-pay accessories, launched Jun 2026), a $40-a-month mobile plan and USDC stablecoin support.

Square upmarket and AI tools.

• Square now integrates with ChatGPT and Claude (Jul 2026) and with Apple Business for Apple Maps listings (Sep 2026), and launched a drive-thru product for quick-service restaurants in May 2026.
• Square Financial Services launched a 3.50% APY savings account for sellers in Jun 2026, and the Square Credit Card has passed $1bn of annualised spend.
• Managerbot and Square AI are built into the Square Dashboard to help sellers run their businesses.

Bitcoin infrastructure. Proto mining rigs are shipping and next-generation chip work continues. On 08 Sep 2026 Block applied to the OCC for Builders Bank & Trust, N.A., an uninsured national trust bank to hold bitcoin and stablecoins in custody. It would take no deposits and make no loans.

AI-run operations. Block says agentic AI (Builderbot) helped write and review nearly all production code changes in Jun 2026, and it launched Buzz, an agent-collaboration system, in Jul 2026.

8. Competitive Landscape

Peer	Market cap (Oct 2026)	Key 2025 metric
Robinhood Markets (HOOD)	~$101.4bn	FY2025 revenue a record ~$4.5bn; Q4 2025 revenue $1.28bn, +27% (Robinhood Q4 2025 results)
PayPal (PYPL)	~$45.2bn	FY2025 revenue $33,172m (+4%), total payment volume $1.79trn, 439m active accounts (PayPal Q4 2025 release)
Affirm (AFRM)	~$23.9bn	Revenue $3,224m for the fiscal year to 30 Jun 2025 (SEC XBRL, Form 10-K)
Fiserv, owner of Clover (FISV)	~$23.6bn	FY2025 revenue $21,193m (SEC XBRL, Form 10-K filed 19 Feb 2026)
Toast (TOST)	~$17.3bn	FY2025 revenue $6,153m (SEC XBRL, Form 10-K filed 18 Feb 2026)

Market caps are at the 02 Oct 2026 close from Finviz and StockAnalysis quote pages. Robinhood competes with Cash App for retail investing and banking customers; Affirm with Afterpay; Fiserv's Clover and Toast with Square.

9. Leadership and Ownership

Jack Dorsey co-founded the company and is CEO (“Block Head”). Amrita Ahuja is CFO and COO, and Andrea Acosta, formerly of Pinterest, became Chief Accounting Officer on 26 May 2026. Dorsey filed no Form 4 transactions in 2026, and no insider bought shares in the open market. Sales were made under 10b5-1 trading plans, led by director and Afterpay co-founder Anthony Eisen.

Name	Date	Type	Shares	Price	Value	Plan Type
Anthony Eisen (director)	01 Oct 2026	Sale	6,000	$73.67 (avg)	~$442,000	10b5-1
Amrita Ahuja (CFO and COO)	24 Aug 2026	Sale	9,511	$81.91–$82.92	~$784,000	10b5-1
Anthony Eisen (director)	15 Jul 2026	Sale	135,000	$82.50–$84.00	~$11.29m	10b5-1
Brian Grassadonia (Ecosystem Lead)	02 Jul 2026	Sale	43,348	$80.00	~$3.47m	10b5-1
Anthony Eisen (director)	01 Jun 2026	Sale	135,750	$76.23–$77.13	~$10.43m	10b5-1
Amrita Ahuja (CFO and COO)	21 Apr 2026	Sale	30,919	$75.00	~$2.32m	10b5-1
Brian Grassadonia (Ecosystem Lead)	24 Feb 2026	Sale	10,349	$50.00	~$517,000	10b5-1

Sources: SEC Form 4 filings on EDGAR. Eisen sold 845,750 shares in total between 01 Jun and 01 Oct 2026, typically 6,000 a day, and held 1,326,672 shares afterwards. RSU grants and tax withholdings are not shown.

10. Risks and Challenges

• DOJ inquiry (Material litigation): Block has accrued $526m for a Department of Justice inquiry that followed a Mar 2023 short-seller report. It disputes the terms the DOJ proposed in Mar 2026 and says losses above the accrual are reasonably possible and could be material. The SEC closed its own investigation in Mar 2026 without action.
• Securities and derivative suits (Legal): A motion to dismiss a class action over anti-money-laundering disclosures was denied on 06 Jan 2026, and derivative suits were allowed to proceed. Block says a loss is reasonably possible but cannot estimate it.
• Credit quality (Financial): Losses on transactions, loans and consumer receivables almost doubled to $585.5m in Q2 2026 as Borrow and Afterpay lending grew. A downturn could push losses up further.
• Regulation and compliance (Regulatory): Block has already paid a CFPB order (Jan 2025, up to $120m redress plus a $55m penalty), a $40m NYDFS penalty (Apr 2025) and a multi-state settlement (Jul 2026). Its bank, money-transmitter and buy-now-pay-later licences all depend on regulators.
• Bitcoin exposure (Market): About 35% of revenue comes from bitcoin sales, and Block holds about 9,117 bitcoin on its balance sheet. Price falls reduce trading profit and cause remeasurement losses.
• Execution after deep job cuts (Operational): After cutting more than 40% of staff, Block relies heavily on AI agents to build and run products. Mistakes in compliance or risk control could be costly.
• Competition (Competitive): Square competes with Toast and Fiserv's Clover; Cash App with PayPal, Robinhood and banks; Afterpay with Affirm. Pricing pressure would squeeze gross profit.

11. Recent Developments

• 02 Oct 2026 — Q3 results date set. Block said it will report Q3 2026 results on 03 Nov 2026 after the market close.
• 24 Sep 2026 — Workday and Apple Business deals. Cash App became a direct-deposit option in Workday's Enhanced Direct Deposit from 01 Oct, and Square integrated with Apple Business to manage Apple Maps listings in 8 markets.
• 22 Sep 2026 — Afterpay and Fanatics. Afterpay was named Fanatics' preferred buy-now-pay-later partner.
• 08 Sep 2026 — Trust bank application. Block applied to the OCC to set up Builders Bank & Trust, N.A., an uninsured national trust bank for bitcoin and stablecoin custody based in Sioux Falls, South Dakota.
• 01 Sep 2026 — Cash App Score opened up. Outside lenders can now use Cash App Score through Nova Credit.
• 31 Aug 2026 — Ark Invest buys. Ark Invest bought 456,059 shares, worth about $37.4m.
• 05 Aug 2026 — Q2 2026 results. Gross profit rose 25% to $3,166m and adjusted EPS 65% to $1.02. FY2026 guidance was raised to $12.51bn of gross profit and $4.02 of adjusted EPS, but the shares slipped after the release.
• 01 Jul 2026 — Square joins AI assistants. Square launched integrations with ChatGPT and Claude.
• 02 Jun 2026 — Afterpay on the Cash App Card. The feature became generally available.
• 01 Jun 2026 — Debt repaid; director selling begins. Block repaid its $1.0bn 2026 senior notes, and Anthony Eisen started a run of 10b5-1 sales that continued into Oct 2026.

12. Key Dates Coming Up

• 03 Nov 2026 — Q3 2026 results after the US market close, with a webcast at 5:00pm ET (confirmed by Block on 02 Oct 2026). Guidance is gross profit of $3.13bn and adjusted EPS of $1.02.
• Expected Feb 2027 — Q4 and FY2026 results; the FY2025 results came on 26 Feb 2026.
• TBC — OCC decision on the Builders Bank & Trust charter application filed on 08 Sep 2026.
• TBC — Resolution of the DOJ inquiry, for which $526m is accrued.
• TBC — 2027 annual meeting; the 2026 meeting was held on 16 Jun 2026.

Macro events are on the ChartsView Economic Calendar, and you can discuss Block on the ChartsView Forum.

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