# Block (XYZ.US)

Canonical: https://gigainvestors.com/s/XYZ

Analysis as of: 2026-10-16T07:33:18.432Z. Financial observations: FY2012–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $79.83 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 1.68×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.02×

- FY2018: -0.01×

- FY2019: 0.01×

- FY2020: -0.00×

- FY2021: 0.01×

- FY2022: -0.00×

- FY2023: 0.02×

- FY2024: 0.07×

- FY2025: 0.13×

- LTM to Jun 2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.7%

- ROIC, second-lowest year: -4.6%

- Typical minus recent gross margin: -5.4 pp

- Typical gross margin (annual median): 37.4%

- Recent gross margin (lower of latest and 3-year median): 42.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.1%

- ROIC including acquisitions, ten-year median: 4.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -7.3%

- FY2018: -4.6%

- FY2019: 8.6%

- FY2020: -0.9%

- FY2021: >100%

- FY2022: -0.8%

- FY2023: 8.8%

- FY2024: 33.6%

- FY2025: 31.9%

- LTM to Jun 2026: 33.2%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.26×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.1B

- Net income, five-year total: $4.0B

- Return on incremental invested capital: 24.6%

- Working capital / revenue, annual change: 2.5 pp

- Working capital / revenue, change between three-year averages: 15.7 pp

- Working capital / revenue, final three-year average: 31.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.69×

- FY2023: 27.34×

- FY2024: 1.08×

- FY2025: 1.16×

- LTM to Jun 2026: 1.57×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -7.3% vs 31.9%

- Per-share earnings: -0.50 to 2.10 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 13.8%

- Ordinary dilution, 5-year annual growth: 5.3%

- Market cap gain: $36B

- Cumulative retained earnings: $4.5B

- Diluted shares, 10-year annual growth: 13.8%

- Diluted shares, 5-year annual growth: 5.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $2.60

- Per-share value, starting three-year median: -$0.50

- Per-share value, ending three-year median: $2.10

- Buybacks concentrated in cheaper years (correlation): 0.72

- Average buyback yield: 1.2%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $14B

- Cumulative net income, 10 years: $4.2B

- ROIC, first three-year median: -7.3%

- ROIC, last three-year median: 31.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.50

- FY2017: -$0.17

- FY2018: -$0.09

- FY2019: $0.81

- FY2020: $0.44

- FY2021: $0.33

- FY2022: -$0.93

- FY2023: $0.02

- FY2024: $4.55

- FY2025: $2.10

### accounting: fail

- latest-year receivables to sales index (DSRI) exceeds 1.465

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -3.2%

- Receivables to sales index (DSRI): 1.56×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 47.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.98×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.59×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -16.1%

- FY2017: -8.7%

- FY2018: -10.2%

- FY2019: 1.1%

- FY2020: 0.4%

- FY2021: -4.9%

- FY2022: -2.3%

- FY2023: -0.3%

- FY2024: 3.2%

- FY2025: -3.2%

## Holders

- [Chase Coleman](https://gigainvestors.com/TGM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Daniel Loeb](https://gigainvestors.com/tp): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 69% since Oct 2021 · "Block Links 40% Job Cuts To AI And Margin Reset" (finance.yahoo.com, Mar 2026) · sales +3.5%

Story as of 2026-10-16T09:59:54.603Z; price observation 2026-10-15.

- 2025-05-01: Square Earnings, Revenue, Key Metrics Miss In Q1. Payment Firm Lowers 2025 Guidance. ([finance.yahoo.com](https://finance.yahoo.com/m/6e33be3f-8222-3c75-85ed-aca5e22f69de/square-earnings%2C-revenue%2C-key.html))

- 2025-11-06: Block shares tumble as Q3 earnings miss estimates; company raises guidance ([finance.yahoo.com](https://finance.yahoo.com/news/block-shares-tumble-q3-earnings-214933464.html))

- 2026-02-26: Dorsey’s Block slashes workforce 40% to embrace AI-native future, shares gain ([finance.yahoo.com](https://finance.yahoo.com/news/dorsey-block-slashes-workforce-40-215300683.html))

- 2026-03-01: Block’s 40% Job Cuts And AI Reset Raise Big Valuation Questions ([finance.yahoo.com](https://finance.yahoo.com/news/block-40-job-cuts-ai-220913043.html))

- 2026-05-07: Block raises annual gross profit outlook as Cash App stands out ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/block-quarterly-profit-jumps-resilient-201218678.html))

- 2026-07-15: Block's Cash App Borrow to Drive Earnings Growth, UBS Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/block-apos-cash-app-borrow-174316064.html))

### Sales · FY2025–2026

sales +3.5%; source https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm; observed 2026-02-26.

- FY2017: $2.2B 

- FY2018: $3.3B 

- FY2019: $4.7B 

- FY2020: $9.5B 

- FY2021: $18B 

- FY2022: $18B 

- FY2023: $22B 

- FY2024: $24B 

- FY2025: $24B 

- FY2026: $25B 

### Gross margin · FY2026

gross margin 46.4%; source https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm; observed 2026-02-26.

- FY2017: 37.9% 

- FY2018: 39.5% 

- FY2019: 40.1% 

- FY2020: 28.8% 

- FY2021: 25.0% 

- FY2022: 34.2% 

- FY2023: 34.2% 

- FY2024: 36.9% 

- FY2025: 42.8% 

- FY2026: 46.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 24.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm (filed 2026-02-26); FY2025: revenue 24193683000; grossProfit 10359929000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); XYZ.US: Block, Inc., together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally. It operates through two segments: Square and Cash App. The Square segment offers managed payment services; software solutions; hardware products, such as registers, terminals, stands, and readers for contactless and chips; banking services consisting of lending, instant transfer, and checking and savings accounts; and full-service setup and support services. This segment also provides loyalty, marketing, team management, and payroll services; and gift cards. It also offers Square Handheld, a portable point-of sale device for transaction purposes. The Cash App segment offers financial tools, including peer-to-peer payments, bitcoin, and stock investment brokerage; Cash App Card, a debit card; Cash App Pay, mobile-friendly way for cash app customers to pay at merchants across online and in-person channels; direct deposit, stock brokerage, and tax preparation services; and Afterpay, a buy now, pay later platform. In addition, the company operates TIDAL, a platform for musicians and fans; TBD, an open developer platform focused on making the decentralized financial world accessible; Bitkey, a self-custody bitcoin wallet; and proto. 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 Oakland, California.

### Why customers stay

Margins ranged from 34.2% to 42.8% during 2023–25; it earns 8.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 34.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 36.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 42.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2017,-0.07312851146380865],[2018,-0.045599603989740306],[2019,0.0856555073525198],[2020,-0.009259105121561593],[2021,1.2799669505529427],[2022,-0.007744683297963526],[2023,0.08792589809384699],[2024,0.33599184000350624],[2025,0.31946367436785034],[2026,0.3317230781765854]]; median 0.0867907027231834. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 2.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 62498000; owner earnings 388546000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 104190000; upkeep 84212000; owner earnings 213105000. Growth capex / owner earnings = 0.4889139156753713.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 169563000; upkeep 134757000; owner earnings 166284000. Growth capex / owner earnings = 1.019719275456448.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 151151000; owner earnings 267181000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 153947000; owner earnings 3119227000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 155038000; owner earnings 1520127000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,1858461000],[2021,1775538000],[2022,1386218000],[2023,130433000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 2330661000 USD.

### Are managers owners

Insiders own 1.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); XYZ.US SharesStats.PercentInsiders = 1.179 percentage points; cache date 2026-10-16.

### What could break it

"We rely on third parties and their systems for a variety of services" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm (filed 2026-02-26); We rely on third parties and their systems for a variety of services

### What the price says

The price is 2.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Closing price 79.83 USD; reporting-to-trading FX 1; FY2025 annual sales per share 38.8442628741342; price multiple 2.055129743578107. FY2025 cash earnings/share 2.44064588223583. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $11.20 per share

- 2016-11: $12.94 per share

- 2016-12: $13.63 per share

- 2017-01: $14.62 per share

- 2017-02: $17.32 per share

- 2017-03: $17.28 per share

- 2017-04: $18.24 per share

- 2017-05: $22.99 per share

- 2017-06: $23.46 per share

- 2017-07: $26.35 per share

- 2017-08: $26.11 per share

- 2017-09: $28.81 per share

- 2017-10: $37.19 per share

- 2017-11: $39.22 per share

- 2017-12: $34.67 per share

- 2018-01: $46.91 per share

- 2018-02: $46.05 per share

- 2018-03: $49.20 per share

- 2018-04: $47.34 per share

- 2018-05: $58.25 per share

- 2018-06: $61.64 per share

- 2018-07: $64.65 per share

- 2018-08: $88.64 per share

- 2018-09: $99.01 per share

- 2018-10: $73.45 per share

- 2018-11: $69.84 per share

- 2018-12: $56.09 per share

- 2019-01: $71.35 per share

- 2019-02: $81.24 per share

- 2019-03: $74.92 per share

- 2019-04: $72.82 per share

- 2019-05: $61.95 per share

- 2019-06: $72.53 per share

- 2019-07: $80.41 per share

- 2019-08: $61.84 per share

- 2019-09: $61.95 per share

- 2019-10: $61.43 per share

- 2019-11: $69.12 per share

- 2019-12: $62.56 per share

- 2020-01: $74.69 per share

- 2020-02: $83.33 per share

- 2020-03: $52.38 per share

- 2020-04: $65.14 per share

- 2020-05: $81.08 per share

- 2020-06: $104.94 per share

- 2020-07: $129.85 per share

- 2020-08: $159.56 per share

- 2020-09: $162.55 per share

- 2020-10: $154.88 per share

- 2020-11: $210.96 per share

- 2020-12: $217.64 per share

- 2021-01: $215.96 per share

- 2021-02: $230.03 per share

- 2021-03: $227.05 per share

- 2021-04: $244.82 per share

- 2021-05: $222.52 per share

- 2021-06: $243.80 per share

- 2021-07: $247.26 per share

- 2021-08: $268.07 per share

- 2021-09: $239.84 per share

- 2021-10: $254.50 per share

- 2021-11: $208.33 per share

- 2021-12: $161.51 per share

- 2022-01: $122.29 per share

- 2022-02: $127.50 per share

- 2022-03: $135.60 per share

- 2022-04: $99.54 per share

- 2022-05: $87.51 per share

- 2022-06: $61.46 per share

- 2022-07: $76.06 per share

- 2022-08: $68.91 per share

- 2022-09: $54.99 per share

- 2022-10: $60.07 per share

- 2022-11: $67.77 per share

- 2022-12: $62.84 per share

- 2023-01: $81.72 per share

- 2023-02: $76.73 per share

- 2023-03: $68.65 per share

- 2023-04: $60.79 per share

- 2023-05: $60.39 per share

- 2023-06: $66.57 per share

- 2023-07: $80.53 per share

- 2023-08: $57.65 per share

- 2023-09: $44.26 per share

- 2023-10: $40.25 per share

- 2023-11: $63.43 per share

- 2023-12: $77.35 per share

- 2024-01: $65.01 per share

- 2024-02: $79.47 per share

- 2024-03: $84.58 per share

- 2024-04: $73.00 per share

- 2024-05: $64.08 per share

- 2024-06: $64.49 per share

- 2024-07: $61.88 per share

- 2024-08: $66.08 per share

- 2024-09: $67.13 per share

- 2024-10: $72.32 per share

- 2024-11: $88.55 per share

- 2024-12: $84.99 per share

- 2025-01: $90.82 per share

- 2025-02: $65.30 per share

- 2025-03: $54.33 per share

- 2025-04: $58.47 per share

- 2025-05: $61.75 per share

- 2025-06: $67.93 per share

- 2025-07: $77.26 per share

- 2025-08: $79.64 per share

- 2025-09: $72.27 per share

- 2025-10: $75.94 per share

- 2025-11: $66.80 per share

- 2025-12: $65.09 per share

- 2026-01: $60.43 per share

- 2026-02: $63.70 per share

- 2026-03: $60.18 per share

- 2026-04: $70.51 per share

- 2026-05: $75.72 per share

- 2026-06: $76.00 per share

- 2026-07: $81.24 per share

- 2026-08: $82.02 per share

- 2026-09: $73.53 per share

- 2026-10: $76.86 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:03.803Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1512673/000162828026012254/xyz-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.