# Block Inc. (SQ) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/SQ/thesis · /stocks/SQ/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/SQ/fundamental

## Navigation

- Overview: /stocks/SQ
- Financials (this page): /stocks/SQ/financials
- Thesis: /stocks/SQ/thesis
- Investment Memo: /stocks/SQ/memo
- Coverage universe: /stocks