Block Inc.

SQ
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$6.1B
Q1 2026
TTM ROIC
4.07%
TTM · NOPAT / Invested Capital (Op Income × 0.77 for tax; Invested Capital = Total Equity + Total Debt − Cash) · WACC ~9.5% · Moat spread +-5.43pp

Financial Snapshot


ticker: SQ step: 04 generated: 2026-05-13 source: quick-research

Block, Inc. (SQ / XYZ) — Financial Snapshot

Block's primary financial metric is Gross Profit (not GAAP revenue), as Bitcoin pass-through revenue (~$10–15B) inflates gross revenue with near-zero margin.

Gross Profit Summary (Primary Metric)

Metric FY2022 FY2023 FY2024 YoY
Gross Profit ~$5.99B ~$7.50B ~$8.90B +19%
Cash App GP ~$3.5B ~$4.8B ~$5.8B +21%
Square GP ~$2.5B ~$2.7B ~$3.1B +11%
Adj. Operating Income negative improving ~$1.5B
GAAP Net Income ~-$0.54B ~-$0.2B ~-$1.0B volatile

FY2025 guidance raised to $10.17B gross profit (+14% YoY). Q2 2025: Total GP $2.54B (+14% YoY); Cash App $1.31B (+21%); Square $1.03B (+11%). Management 2026 guidance: 18% GP growth to ~$12B gross profit; adjusted operating income $3.2B (26% margin). FY2024 GAAP net loss elevated from Afterpay impairment charges.

GAAP Revenue vs. Gross Profit

Metric FY2022 FY2023 FY2024
GAAP Revenue ~$17.5B ~$21.9B ~$24.1B
Gross Revenue Growth +15% +25% +10%
Bitcoin Revenue (pass-through) ~$7B ~$10B ~$11B

Bitcoin revenue is a near-zero-margin pass-through — Block buys Bitcoin at market and sells it to Cash App users at a small markup. It inflates gross revenue by $10B+ but contributes only ~$0.5–1B in gross profit.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Adjusted Operating Income ~$1.5B
Free Cash Flow ~$0.8–1.5B (improving)
Cash & Equivalents ~$6–8B
Total Debt ~$4–5B (convertible notes + senior notes)
Gross Payment Volume (GPV) ~$241B

Afterpay's $29B acquisition (2022) is now fully integrated into Cash App BNPL and written down significantly, but still requires goodwill impairment testing. The net debt position is manageable relative to growing cash flow.

Key Ratios (approximate)

  • EV/Gross Profit: ~5x (FY2025) | P/E: N/A (GAAP losses from Afterpay charges)
  • Gross Profit Growth (TTM): ~14–19% | Adjusted Operating Margin: ~26% (FY2026 guidance)

Growth Profile

Block's gross profit grew from $5.99B (FY2022) to $8.90B (FY2024) — 1.5x in 2 years — with Cash App the dominant growth engine. Cash App BNPL on Cash App Card ($3B+ annualized originations) is the newest high-growth product. Direct deposit growth drives Cash App monetization per user higher as customers use it as their primary banking account. Square is growing solidly at 10–11% — driven by international expansion (+25% non-U.S. GPV) and software/banking upsell to the 4M seller base.

Forward Estimates

  • FY2025: Gross profit ~$10.17B (+14% YoY)
  • FY2026: Gross profit ~$12B (+18% YoY); adj. operating income $3.2B (26% margin)
  • Analyst avg EPS: ~$3.53 for FY2026 (range $3.07–$4.25)
  • Analyst consensus PT: ~$79–82 (range $57–$131) vs. current ~$55–70

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $SQ.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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