Block, Inc. (XYZ)

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AI: Fair-priced

Price checkAt $82.88, strong cash growth offsets demanding profit assumptions, making Block fairly priced.

The August 14 close implies a $49.79 billion market value using 600.79 million shares. Management’s target of 70% adjusted earnings-per-share growth, applied to roughly $2.38 earned in 2025, implies about $4.04 for 2026 and a price near 20.5 times that figure. Adjusted earnings exclude costs including share-based pay, so they look flattering. Conversely, trailing free cash flow—cash left after operations and equipment spending—was about $3.88 billion, a reasonable 12.8 times price. These conflicting signals support Fair-priced, not a clear bargain.

Big pictureGross profit and cash are rising, but reported earnings remain uneven and cycle-sensitive.

Gross profit rose 16.5% to $10.36 billion in 2025, while operating income nearly doubled to $1.71 billion. First-half 2026 gross profit then advanced about 26% from the comparable 2025 period. Trailing operating cash flow reached $4.06 billion, but reported net income swung from a $309 million first-quarter loss to an $89 million second-quarter profit. Bitcoin remeasurement, restructuring and lending flows contribute volatility. Square depends on merchant spending, while rapidly expanding Cash App lending increases exposure to consumer repayment losses during weaker conditions.

Business strengthA liquid balance sheet and buybacks protect owners, though share-based pay still costs heavily.

At June 2026, Block held $6.43 billion of cash against $5.72 billion of debt, leaving $707 million of net cash. Current assets were 2.21 times current liabilities, although customer funds and receivables make that measure less conservative than it appears. Block spent $2.33 billion on buybacks in 2025 versus $1.22 billion of share-based employee pay; first-half 2026 figures were $701 million and $598 million. Shares were down 3.7% year over year, suggesting repurchases recently exceeded dilution, but replacing issued shares consumes substantial cash.

What could change the storyFaster customer growth would add upside; weaker lending or stalled margins would expose the price.

The strongest bull case is delivery of management’s 2026 targets: $12.51 billion of gross profit, $3.47 billion of adjusted operating income and 70% adjusted earnings-per-share growth. Second-quarter Square and Cash App gross profit grew 13% and 31%, supporting that case. The bear case is that Cash App’s monthly active users grew only 3% while consumer-lending originations jumped 59%, increasing credit exposure faster than the customer base. The current price requires near-guidance growth and lasting savings after layoffs; a reversal in either would make roughly 20.5 times adjusted earnings demanding.

$82.88 price considered

AI: News

Second-quarter guidance raisedBlock beat its profit targets and raised the year outlook, but shares fell the next session.

On August 5, Block reported second-quarter gross profit of $3.17 billion, up 25% year over year, and a record 27% adjusted operating margin. Management raised 2026 targets to $12.51 billion of gross profit and $3.47 billion of adjusted operating income. Shares nevertheless closed 6.15% lower on August 6, from $84.20 to $79.02. That timing indicates an earnings reaction, but does not prove whether slower active-user growth, planned investment or profit-quality concerns drove the decline.

First-quarter expectations improvedCash App growth and tighter spending lifted profit expectations despite a reported quarterly loss.

On May 7, Block reported first-quarter gross profit of $2.91 billion, up 27%, and adjusted operating income of $728 million, up 56%. It raised 2026 guidance to $12.33 billion of gross profit, $3.34 billion of adjusted operating income and $3.85 of adjusted earnings per share. Reported net income was a $309 million loss, partly reflecting unusual restructuring and bitcoin effects. Shares closed 6.72% higher on May 8, an associated market reaction rather than proof of a single cause.

Artificial-intelligence workforce resetBlock cut nearly half its staff, betting artificial intelligence can preserve output with fewer people.

On February 26, Block announced plans to reduce staffing from more than 10,000 people to just under 6,000. Its SEC filing estimated $450 million to $500 million of restructuring charges, including cash severance and non-cash share-award costs. Shares gained 16.8% on February 27 alongside fourth-quarter results. The recurring payroll savings can lift margins, but the investment case now depends on smaller teams maintaining product development, customer service and risk controls after a unusually large organizational change.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Revenue	$24.19B	$24.12B	$21.92B	$17.53B	$17.66B	$9.50B	$4.71B	$3.21B	$2.21B	$1.71B	$1.27B	$850.2M
Gross profit	$10.36B	$8.89B	$7.50B	$5.99B	$4.42B	$2.73B	$1.89B	$1.30B	$839.3M	$576.0M	$370.0M	$226.1M
Research & development	$2.91B	$2.91B	$2.72B	$2.14B	$1.38B	$881.8M	$674.2M	$497.5M	$321.9M	$268.5M	$199.6M	$144.6M
Operating expenses	—	—	—	—	—	—	—	$1.34B	$893.5M	$746.5M	$544.5M	$376.6M
Operating income	$1.71B	$892.3M	−$278.8M	−$624.5M	$161.1M	−$18.8M	$26.6M	−$36.6M	−$54.2M	−$170.5M	−$174.5M	−$150.5M
EBITDAderived	$2.08B	$1.27B	$129.7M	−$284.0M	$295.9M	$65.4M	$102.2M	$24.3M	−$16.9M	−$132.7M	−$146.8M	−$131.9M
Net income	$1.31B	$2.90B	$9.8M	−$540.7M	$166.3M	$213.1M	$375.4M	−$38.5M	−$62.8M	−$171.6M	−$179.8M	−$154.1M
Basic EPSper diluted share	$2.13	$4.70	$0.02	-$0.93	$0.36	$0.48	$0.88	-$0.09	-$0.17	-$0.50	-$1.24	-$1.08
Diluted EPSper diluted share	$2.10	$4.56	$0.02	-$0.93	$0.33	$0.44	$0.81	-$0.09	-$0.17	-$0.50	-$1.24	-$1.08

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$25.00M disclosed value

Sells (SEC code S)165$54.04M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 29, 2026Form 4 · 10b5-1	Eisen Anthony MathewDirector	SellClass A Common Stock	6.0K	$78.93	$473.6K	1.92M
Jun 26, 2026Form 4 · 10b5-1	Eisen Anthony MathewDirector	SellClass A Common Stock	6.0K	$74.80	$448.8K	1.93M
Jun 25, 2026Form 4 · 10b5-1	Eisen Anthony MathewDirector	SellClass A Common Stock	6.0K	$75.70	$454.2K	1.93M
Jun 24, 2026Form 4 · 10b5-1	Eisen Anthony MathewDirector	SellClass A Common Stock	6.0K	$74.01	$444.1K	1.94M
Jun 23, 2026Form 4 · 10b5-1	Eisen Anthony MathewDirector	SellClass A Common Stock	6.0K	$72.29	$433.7K	1.95M

Review ownership filings at SEC.gov ↗

Block, Inc. (XYZ)

Financial charts

Financial statements

Insider buys & sells