Block podal u OCC žádost o zřízení Builders Bank & Trust, N.A., nepojištěné národní svěřenecké banky pro úschovu bitcoinů a stablecoinů. Banka by nepřijímala vklady ani neposkytovala úvěry.
Key Takeaways Block applied to establish Builders Bank, an uninsured national trust bank under OCC supervision.Builders Bank to provide custody and fiduciary services for bitcoin and stablecoins without taking deposits.XYZ is expanding regulated financial services as Square Financial Services brings more payments in-house. Block (XYZ - Free Report) has submitted an application to the Office of the Comptroller of the Currency (“OCC”) to establish Builders Bank & Trust, N.A., an uninsured national trust bank. The application remains subject to the OCC’s review and approval. Builders Bank would begin operations only after obtaining all necessary regulatory approvals.
If approved, it would operate as a federally regulated national trust bank under OCC supervision and provide custody and related fiduciary services for bitcoin and stablecoins. The charter would enable Block to conduct these activities through a consistent national framework as the business scales.
Builders Bank would be an uninsured, non-deposit-taking trust bank and would not accept deposits or make loans. The proposed charter would establish a federal supervisory framework for certain custody and related activities currently offered by Block.
The application follows Block’s broader expansion of regulated financial-services capabilities, including through its existing industrial bank, Square Financial Services. In the second quarter of 2026, eligible sellers maintaining at least $10,000 in Square Savings could earn 3.5% APY. Separately, Block noted in its second-quarter 2026 earnings that a larger deposit base could provide low-cost funding for future lending and reduce reliance on warehouse facilities and other funding sources.
Block has also been bringing payments infrastructure in-house. Square Financial Services processed its first Square acquiring transaction in June 2026 and plans to shift more Square and Cash App acquiring volume over time. In the second quarter, Cash App consumer-lending originations rose 59% year over year to $18.9 billion, highlighting the scale of Block’s financial-services operations.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 18% compared with the industry's growth of 14.5%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and MongoDB (MDB - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BILL’s fiscal 2027 earnings per share (EPS) has moved 37 cents northward to $3.68 over the past month.
The consensus estimate for MDB’s fiscal 2027 EPS has moved up 17 cents to $6.37 over the past week.
Block za poslední měsíc přidal asi 5,5 % po silných výsledcích za 2. čtvrtletí 2026, kdy tržby vzrostly o 9,3 % na 6,62 miliardy USD a upravený EPS dosáhl 1,02 USD.
It has been about a month since the last earnings report for Block (XYZ - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Block due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Block's Q2 Earnings & Revenues Beat on Cash App & Square StrengthBlock reported second-quarter 2026 adjusted EPS of $1.02, up 64.5% year over year and above the Zacks Consensus Estimate of 86 cents by 18.6%.
Revenues rose 9.3% to $6.62 billion, beating the consensus mark of $6.54 billion by 1.3%. Cash App lending, commerce activity and stronger Square payment volume supported the quarter’s results. Total Square GPV increased 13.4% to $72.85 billion.
Revenue Mix Benefits From Commerce Enablement GrowthCommerce Enablement revenues increased 15.3% year over year to $3.34 billion. Financial Solutions revenues advanced 40.4% to $1.38 billion, reflecting continued growth across lending and other financial products.
Bitcoin Ecosystem revenues declined 12.8% to $1.89 billion. Despite that pressure, total gross profit climbed 24.8% to $3.17 billion. Commerce Enablement gross profit rose 18% to $1.81 billion, while Financial Solutions gross profit increased 42.9% to $1.29 billion.
Cash App Monetization Gains MomentumCash App gross profit advanced 31.5% year over year to $1.97 billion. Cash App Commerce Enablement volume rose 17% to $56.5 billion, supported by Cash App Card and BNPL products. Commerce Enablement monetization rate improved 12 basis points to 1.65%, aided by higher Afterpay Post-Purchase attach rates.
Consumer Lending origination volume increased 58.8% to $18.9 billion, driven largely by Cash App Borrow. Cash App Primary Banking Actives grew 17% to 9.4 million, while monthly transacting actives reached 59 million in June. Inflows per transacting active rose 9.2% to $1,469.
Square Trends Strengthen Across MarketsSquare’s gross profit increased 13% year over year to $1.16 billion. Growth was driven by Commerce Enablement, reflecting stronger payment volumes, increased software adoption and continued momentum in Financial Solutions, particularly Square Loans. A one-time tariff reimbursement contributed roughly two percentage points to Square’s gross profit growth.
Square GPV reached $72.85 billion. U.S. GPV increased 9.8%, marking the strongest domestic growth rate since the second quarter of 2023. International GPV rose 28% on a reported basis and 25% at constant currency. Food and beverage GPV grew 20%, retail advanced 13% and services increased 7%.
Adjusted Profitability Reaches a RecordGAAP operating income was $447 million compared with $484 million a year earlier. General and administrative expenses increased sharply, primarily due to higher accrued legal contingencies.
Adjusted operating income rose 57.1% year over year to a record $864 million. The adjusted operating margin expanded to 27% of gross profit from 22%. Adjusted EBITDA increased 31.1% to $1.17 billion, while adjusted net income climbed to $620 million from $385 million.
Expenses Reflect Lending & Legal CostsOperating expenses totaled $2.72 billion, up from $2.05 billion in the prior-year quarter. Contingencies, restructuring and other charges were $365 million compared with $16 million in the prior-year quarter. Non-GAAP operating expenses increased to $2.32 billion from $2.00 billion.
Transaction, loan and consumer receivable losses increased 99% year over year, primarily because of higher loan volumes. Management noted that cohort-level Borrow risk-loss rates remained healthy as origination volume shifted toward the six-week loan product.
Block Raises Its 2026 Financial OutlookFor the third quarter of fiscal 2026, Block expects gross profit of $3.13 billion, representing 18% year-over-year growth. Adjusted operating income is projected at $875 million, with a 28% margin. Adjusted EPS is forecasted at $1.02, up 89%.
Management raised its full-year outlook to gross profit of $12.51 billion, implying 21% growth. Adjusted operating income is now anticipated to be $3.47 billion, representing a 28% margin and 67% year-over-year growth. Adjusted EPS is expected to increase 70% to $4.02.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9.37% due to these changes.
VGM ScoresAt this time, Block has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Block has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerBlock is part of the Zacks Internet - Software industry. Over the past month, Paylocity (PCTY - Free Report) , a stock from the same industry, has gained 1.9%. The company reported its results for the quarter ended June 2026 more than a month ago.
Paylocity reported revenues of $444.73 million in the last reported quarter, representing a year-over-year change of +11%. EPS of $1.84 for the same period compares with $1.56 a year ago.
For the current quarter, Paylocity is expected to post earnings of $1.92 per share, indicating a change of +9.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +9.6% over the last 30 days.
Paylocity has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Block poprvé zpřístupní Cash App Score externím věřitelům, a to přes distribuční platformu Nova Credit. Skóre vychází z dat o cash flow z Cash App a má být součástí schvalování úvěrů.
Block, Inc. (NYSE: XYZ) today announced that it will open the Cash App Score to external lenders for the first time, with Nova Credit as a distribution partner. The partnership will make Cash App's proprietary, cash flow-based credit score available to lenders through Nova Credit's Cash Flow Intelligence Platform, embedding it directly into the underwriting workflows lenders already use, with no new consumer credentialing required.
Cash App Score, which has begun rolling out to customers, draws on millions of real-time, first-party signals from across the Cash App ecosystem, including spending, saving, repayment behavior, paycheck deposits, and peer-to-peer activity, to form a detailed, near real-time picture of a person's financial health. And, unlike traditional credit scores, Cash App Score doesn’t look back exclusively at credit history - instead it reflects a customer’s broader financial behavior including historical and current activities, reflecting changes in near real-time.
Within Cash App, customers can see their score on the Money Tab, understand what drives it, and take concrete steps to improve it. Early engagement is strong - within 30 days, 551 percent of customers return to check their score. Cash App customers will set their own preferences for whether and how their score will be shared with third-party lending partners, with Cash App managing notifications and consent directly and no third-party logins required.
"At Block, we believe people should be able to use their own financial history to unlock opportunity, on their terms," said Juan Hernandez, Head of Credit and Underwriting at Block. "We built Cash App Score to see the financial activity of millions of people the traditional credit system misses, and it's now the same technology at the center of how we manage credit across Block, where we use it to understand risk in near real-time. Partnering with Nova Credit lets us put that capability in the hands of lenders through infrastructure they already trust, so more of those consumers can be reached responsibly, while they stay informed and in control of their data."
The technology behind Cash App Score powers underwriting across all of Block's consumer lending products. In Cash App Borrow, where the technology has been running longest, it approves 38 percent more customers at the same loss rate compared with traditional credit scores1. Roughly 70 percent of active Borrow customers have FICO scores below 580, the population conventional models underserve, at a target repayment rate. Block's analysis across additional categories indicates the potential to approve 30 percent more auto loans and 28 percent more credit card applications at comparable loss rates versus traditional methods.
The technology does more than assess individual creditworthiness - it tracks consumer financial health in aggregate and in near real-time, giving Block a continuous read on how macroeconomic conditions are affecting its portfolio. This allows Block to model scenarios and adjust credit policy dynamically rather than relying on lagging indicators.
For lenders, this means the Cash App Score is not a static signal - it is built on infrastructure that continuously adapts to economic conditions, the same infrastructure Block relies on to manage its own portfolio.
A richer view for lenders, across verticals
Through Nova Credit's network, lenders will be able to incorporate the Cash App Score into their underwriting across verticals including credit cards, auto lending, device financing, personal lending and tenant screening, all areas where Cash App does not compete, delivered through the same Cash Flow Intelligence Platform they rely on today. The Cash App Score will provide lenders with a comprehensive, near real-time view of a consumer's ability to pay. Used alongside Nova Credit's Cash Atlas, lenders will gain an additional layer of cash flow context through a single integration.
Beyond distribution, Nova Credit brings deep experience deploying cash flow-based scores, along with the consumer-reporting infrastructure, FCRA-compliance framework, and established lender network that together turn a powerful score into a solution lenders can adopt with confidence.
"By bringing the Cash App Score into Nova Credit's Cash Flow Intelligence Platform, we're giving lenders a unique tool to develop a richer, near real-time view of tens of millions of credit-seeking Americans," said Misha Esipov, Co-founder and CEO of Nova Credit. "Our joint goal is to help Americans put their best financial foot forward, using the apps they already rely on every day."
Nova Credit and Block will share more about the partnership at the Cash Flow Intelligence Summit, the annual gathering of consumer lending leaders, in New York City on September 10, 2026. Apply to attend.
About Block
Block builds technology to increase access to the global economy. Each of our brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send, and store money. Afterpay is transforming the way customers manage their spending over time. TIDAL is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, we're helping build a financial system that is open to everyone. Block.xyz
About Nova Credit
Nova Credit is the industry's leading cash flow intelligence platform, enabling businesses to unlock the power of cash flow data in how they operate. The company leverages its industry-leading data infrastructure, intelligence layer, and FCRA-compliance to boost underwriting approvals, fight fraud, drive responsible growth, and more. Nova Credit supports over 7,000 businesses including organizations such as Chase, HSBC, SoFi, AppFolio, and Yardi, with a growing suite of products. Learn more at www.novacredit.com.
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Block uvedl, že Neighborhoods přidal dalších 30 000 prodejců, téměř desetinásobek oproti červnu. Síť propojuje Square a Cash App a podporuje místní obchod.
Block's Neighborhoods Adds 30,000 More Sellers as Square and Cash App Help Build Local Commerce Network Block, Inc. (NYSE: XYZ) today announced that Neighborhoods, the experience that connects Square sellers with Cash App customers to drive discovery, repeat visits, and local growth, has added 30,000 more sellers to the network, up nearly 10x from June. The expansion marks a new phase for Neighborhoods as Square and Cash App scale a local commerce network for both sellers and customers.
Built into their existing Square Point of Sale, Neighborhoods gives local businesses a new way to earn repeat visits. Customers can earn Local Cash2 equal to 10% of their order subtotal, up to $10 per order, on qualifying purchases with participating Neighborhoods sellers, then redeem it on a future visit. Cash App funds Local Cash during an initial period,3 giving sellers a no-cost way to reward customers and encourage repeat visits. Participating sellers appear on the map in the Neighborhoods tab in Cash App, where customers can discover and follow the businesses they love.
"Neighborhoods helps local businesses get discovered by new customers and then turn that first visit into a lasting relationship,” said Owen Jennings, Executive Officer and Head of Business, Block. “We're seeing a business's most loyal customers come back more often and spend more, which creates the repeat behavior that helps local businesses grow and thrive.”
Once a customer follows a business on Neighborhoods, the seller can reach them directly with marketing campaigns in Cash App, designed to bring followers back. New customers who follow a participating business and make a qualifying purchase may also receive a Cash App-funded first-time $5 Local Cash bonus.4
A model built to scale
Square has made Neighborhoods available to more eligible sellers through their existing Square Point of Sale. As of June 2026, Neighborhoods had scaled to sellers that represent a total of $1 billion in annualized gross payment volume (GPV), up more than 220% from March 2026.5
In June 2026, Neighborhoods became available on additional Square hardware, including Square Terminal, more than doubling the number of eligible sellers. Spend from followers reached 10% of seller GPV on average after three quarters on Neighborhoods, making them among the highest-value customers a seller can build.⁵
"We want to sell more coffee, build more regulars, and give people more reasons to come back – and Neighborhoods helps us do just that. Because it’s integrated with Square and Cash App, the experience feels seamless for our team and our customers, from updating menu availability in real time to letting customers order ahead and redeem Local Cash in store. We’ve seen it become part of people’s daily routines, including a longtime customer and dad on the go who uses it almost every day to order ahead before work,” said Hayden Swiderski, Applications Order Manager at Night Swim Coffee in Charlotte, North Carolina.
"Our vision at Keva Juice has always been to create an uplifting experience that gives customers a reason to return. Neighborhoods builds on that by connecting local businesses through one experience, instead of asking customers to keep up with another standalone app or isolated loyalty program. With Square and Cash App built in together, the technology does more of the work for us, so our team can stay focused on serving customers and creating the experience that keeps them coming back," said Gary Thomas, owner and CEO of Keva Juice with locations across Nevada and Colorado.
What's next
Block is ramping auto-enablement across the country and testing new ways to build density in local markets, including pairing seller activation with dedicated account management. The company is also focused on increasing awareness of Neighborhoods among Square sellers' employees.
To learn more about Neighborhoods, visit squareup.com/us/en/neighborhoods.
About Block
Block, Inc. (NYSE: XYZ) builds technology to increase access to the global economy. Each of our brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send, and store money. Afterpay is transforming the way customers manage their spending over time. Tidal is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, we’re helping build a financial system that is open to everyone. Block.xyz.
Cash App is a financial services platform, not a bank. Banking services provided by Cash App's bank partner(s). See cash.app for more details.
1 Based on 26,260 enrolled customer–seller pairs and 162,404 comparison pairs at the 44 highest-adoption Neighborhoods sellers based on the top 10%, measured since 1/28/26 with at least 90 days of history per customer. Sellers were selected by share of transactions involving Local Cash. Enrollment is customer-initiated; differences reflect observed behavior, not a measured effect of the program.
2 Local Cash is for promotional purposes only and has no cash value. Terms and restrictions apply.
3 Cash App currently funds the cost of Local Cash rewards for the first 12 months. Not transferable or redeemable for cash. Offers and program terms subject to change. Additional terms apply.
4 Local Cash welcome bonus limited to one per customer, available for a limited time, when a customer makes a qualifying purchase and follows their first Neighborhoods seller. Valid Cash App account required. Local Cash offers may vary and are subject to change.
5 Block, Inc. Q2 2026 results
View source version on businesswire.com: https://www.businesswire.com/news/home/20260825494603/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Amrita Ahuja, the CFO and COO of Block, Inc. (XYZ -0.95%), disclosed the disposition of 31,013 shares on August 20 and August 21, as detailed in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$2.5 millionShares sold31,013Post-transaction shares (directly held)423,262Post-transaction value$34.45 millionTransaction value based on SEC Form 4 weighted average sale price ($80.80); post-transaction value based on the August 24 market close ($81.38).
Key questionsWhat were the mechanics behind the reported share disposition?
The transaction was comprised of two distinct components: 18,401 shares were withheld by the company to satisfy income tax obligations linked to the settlement of restricted stock units, and 12,612 shares were sold via a Rule 10b5-1 trading plan adopted on March 2.How does the current market price compare to the execution levels?
The shares were disposed of at a weighted average price of $80.80, while the stock was priced at $82.16 as of the August 21 market close.What is the scale of the insider's remaining direct equity interest?
Following these transactions, the CFO and COO retains direct ownership of 423,262 shares, representing 0.07% of the company's total shares outstanding.What is the company's recent performance profile?
Block reported trailing 12-month revenue of $25.0 billion and net income of $357.1 million, with the stock delivering a one-year total return of 3% as of the August 24 transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$82.16Market Capitalization$48.9 billionRevenue (TTM)$25.0 billionNet Income (TTM)$357.1 millionCompany SnapshotBlock, Inc. develops comprehensive payment processing solutions and hardware devices, including Magstripe readers and Contactless and chip readers supporting EMV and Near Field Communication technologies, generating revenue through transaction processing, hardware sales, and value-added services.The company operates a merchant-centric business model that generates revenue from payment processing fees, hardware sales, and analytics services, while providing next-day settlement capabilities to enhance merchants' cash flow management.Block serves a diverse customer base of merchants across multiple verticals seeking integrated payment solutions, reporting analytics, and efficient settlement mechanisms to streamline their payment operations and financial management.Block, Inc. is a substantial technology infrastructure provider with a market capitalization of $48.9 billion and TTM revenue of $25.0 billion, positioning it as a significant player in the global payments ecosystem. The company's integrated platform approach--combining hardware, payment processing, and analytics--creates a defensible competitive moat while enabling merchants to consolidate their payment infrastructure across a single provider. Block maintains strategic positioning to capture growth opportunities in both traditional card-based payments and emerging payment technologies.
What this transaction means for investorsAhuja had 18,401 shares withheld when restricted stock settled and sold 12,612 more under a plan she adopted on March 2, months before the quarter that moved the stock. It's not her only disposition to surface this month; there was an 8,971-share sale for roughly $770,000 in early August.
Meanwhile, Block reported gross profit up 25% to $3.17 billion on August 5, adjusted earnings of $1.02 a share, up 65%, and a record 27% operating margin for the latest quarter, resulting in a third straight raise to full-year guidance. However, shares still fell about 6% the next day, as investors scrutinized third-quarter gross profit growth falling to 18% and then slowing further in the fourth quarter to the mid-teens. "Our budgets obviously are going up," CFO Amrita Ahuja said on the call about AI, though she argued the company routes work to cheaper and open-source models to hold the bill down. Legal costs are climbing, too. Block's second-quarter 10-Q lifted the accrued loss on an open Justice Department investigation, tied to a 2023 short-seller report on Cash App, to $526 million from $240 million three months earlier, and the company has said the eventual figure could run higher.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
Brian Grassadonia, ecosystem lead at Block, Inc., prodal podle formuláře SEC 17 765 akcií za 1,4 milionu USD v rámci plánu Rule 10b5-1 přijatého 2. června 2025; část akcií byla zadržena kvůli daňovým povinnostem souvisejícím s vypořádáním restricted stock units. Firma mezitím vsází na Neighborhoods, který má pomoci růstu Cash App.
Brian Grassadonia, ecosystem lead at Block, Inc. (XYZ -0.95%), reported a disposal of 17,765 shares this past week in an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$1.4 millionShares sold17,765Post-transaction shares (directly held)513,981Post-transaction value$41.83 millionTransaction value based on SEC Form 4 weighted average sale price ($81.16); post-transaction value based on the August 24 market close ($81.38).
Key questionsWhat governed the timing and execution of these dispositions?
The transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on June 2, 2025, and included shares withheld to satisfy income tax obligations arising from the settlement of restricted stock units.How does this sale impact the insider's total equity stake?
Grassadonia reduced his direct ownership by 3% in this filing while retaining a direct position of 513,981 shares and additional equity through derivative securities.What is the current market context for the stock?
Shares were priced at $82.16 as of the August 21 market close, and the company has delivered a one-year total return of 3% as of the transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$82.16Market Capitalization$48.9 billionRevenue (TTM)$25.0 billionNet Income (TTM)$357.1 millionCompany SnapshotBlock, Inc. develops comprehensive payment processing solutions that enable merchants to accept card transactions via proprietary hardware readers, including Magstripe and EMV-compliant contactless and chip readers, and generates revenue from transaction processing fees and hardware sales.The company operates a transaction-based business model whereby it derives revenue from payment processing fees, merchant services, and the sale of point-of-sale hardware and software solutions that facilitate card acceptance and fund settlement.Block serves a diverse merchant base ranging from small independent retailers to mid-market enterprises seeking integrated payment processing, analytics, and working capital solutions in the financial technology infrastructure sector.Block, Inc. is a leading financial technology infrastructure provider with a market capitalization of $48.9 billion and TTM revenues of $25.0 billion, positioning the company as a significant player in the global payments ecosystem. The company's competitive advantage derives from its integrated suite of hardware and software solutions that streamlines payment acceptance, provides actionable merchant analytics, and accelerates fund settlement with next-day availability. With a strategic focus on merchant empowerment through technology, Block maintains a robust platform designed to address the evolving needs of payment processing in an increasingly digital commerce environment.
What this transaction means for investorsGrassadonia sold 17,765 shares under a trading plan adopted on June 2, 2025, with part of the total withheld for taxes on settled stock, leaving 513,981 shares in his direct name. Fourteen months between adoption and execution takes the timing question off the table here. The company's growth story is much more important for investors, especially now: Cash App monthly transacting actives reached 59 million in June, up just 3%, and that slowing growth rattled investors and sent the stock down about 6% the day after the company's latest earnings report, despite a record 27% operating margin and a guidance raise. Cash App gross profit still grew 31% to $1.97 billion with inflows per active user up 9%, so Block is earning more from a base that has stopped widening.
For now, Block's answer is Neighborhoods, the program that steers Cash App users to Square sellers. Annualized seller GPV on it crossed $1 billion in June and grew 220% year over year, and on the company earnings call this month, Business Lead Owen Jennings said that spend from followers reaches about 10% of a seller's GPV within three quarters, and management plans to spend harder on it in the back half, which makes the next report an important signal as to whether linking the two ecosystems adds users or just deepens the ones already there.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
Cash App od společnosti Block ve 2. čtvrtletí 2026 zvýšil hrubý zisk o 31 % na 1,97 miliardy USD. Růst táhly Financial Solutions (+43 %) a Cash App Borrow, jehož objem vzrostl o 59 % na 18,9 miliardy USD.
Key Takeaways Cash App gross profit rose 31%, led by 43% growth in Financial Solutions.Block's Cash App Borrow origination volume surged 59% to $18.9 billion.Cash App's monetization rate improved to 1.65% as inflows per active rose 9%. Block (XYZ - Free Report) delivered a strong performance in the second quarter of 2026, with Cash App generating $1.97 billion in gross profit, up 31% year over year. The growth was driven mainly by Financial Solutions, up 43%, while Commerce Enablement increased 18%. Monthly transacting actives grew only 3%, indicating that Cash App's performance is driven by deeper customer engagement rather than rapid user growth. Primary Banking Actives rose 17%, while inflows per active increased 9%, highlighting engagement.
A major contributor was Cash App Borrow, with Consumer Lending origination volume increasing 59% year over year to $18.9 billion. Commerce Enablement volume also rose 17% to $56.5 billion, supported by Cash App Card and Afterpay BNPL. The monetization rate improved from 1.53% to 1.65%, demonstrating that Cash App is generating more value from its existing customer base.
However, sustaining growth will not be without challenges. Management expects Borrow growth to normalize as Block faces tougher comparisons, while loan-related losses have increased with higher lending volumes. Bitcoin Ecosystem gross profit declined, and Cash App sales and marketing expenses increased 28%. These factors highlight the need for Block to diversify its growth drivers while maintaining profitability.
The long-term outlook remains positive as Block continues to build a diversified Cash App ecosystem across Card, BNPL, primary banking, Cash App Pay, Neighborhoods, families and teens products, Tags and Cash App Mobile. With avenues to deepen engagement, increase product adoption and expand monetization, Block has the potential to sustain healthy growth. The key will be converting customer relationships into financial activity.
How Are Block’s Competitors Faring?PayPal’s (PYPL - Free Report) revenues increased 5% to $8.7 billion in the second quarter of 2026, while total payment volume (TPV) grew 10% to $486.4 billion. Venmo TPV was particularly strong, increasing 14% year over year, while transactions per active account rose 3%. PayPal also raised its full-year 2026 outlook, reflecting improving momentum across Venmo, Braintree and financial services.
SoFi (SOFI - Free Report) also delivered strong growth in second-quarter 2026, reporting record net revenues of approximately $1.2 billion and net income of $157 million. The company continued to benefit from strong member and product growth, supported by its integrated digital-financial-services platform.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 17.6% over the past three months, which outperformed the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.02X, which is at a discount to the Zacks Internet Software industry’s 27.33X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Block rozšiřuje propojení Square a OpenTable, aby restaurace lépe propojily rezervace, platby a data o hostech. Cílem je podpořit věrnostní programy, personalizovaný marketing a vyšší využití Square.
Key Takeaways Block is expanding Square and OpenTable's integration to connect reservations, payments and guest data.The integration can aid restaurants identify high-value guests and improve loyalty and personalized marketing.Deeper integration could drive Square adoption, broader product use and higher payment volumes. Block’s (XYZ - Free Report) Square and OpenTable are expanding their preferred partnership to more closely connect reservation, guest, payment and transaction data across their platforms. The enhanced integration will combine OpenTable’s reservation history, booking behavior, dining preferences and guest information with Square’s order, payment, spending and operational data, giving restaurant operators a more complete view of the customer journey from booking through payment and repeat visits.
For restaurants, the integration could make it easier to link reservations with actual revenues, identify high-value and frequent guests, track spending patterns and use those insights to improve loyalty programs, personalized marketing and customer engagement. It could also help restaurants deliver more tailored service by giving staff better visibility into guest preferences and past behavior.
The partnership could also support growing adoption of Square among restaurants by making its platform more attractive to operators seeking integrated payments, point-of-sale (POS), guest insights and customer engagement tools. Deeper integration with OpenTable could help Square win new restaurant customers while encouraging existing merchants to adopt more of its software, payments and hardware products, strengthening its position as a broader restaurant technology platform. Greater merchant engagement and broader product adoption could, in turn, support higher payment volumes and additional revenue opportunities for Block.
The expanded partnership builds on the companies’ POS relationship launched in 2022. The new capabilities are opt-in, with future enhancements expected to include faster onboarding, smarter reservation workflows, richer guest insights, deeper loyalty integration, and expanded ordering and payment functionality.
How Are Block’s Competitors Fairing?Toast (TOST - Free Report) is a key Square competitor, with integrations across Resy, SevenRooms and Tock connecting reservations, guest profiles and POS data. TOST ended second-quarter 2026 with approximately 180,000 locations, up 22% year over year, after adding a record 9,500 net locations.
Lightspeed Commerce (LSPD - Free Report) , which integrates its restaurant POS with SevenRooms, reported fiscal first-quarter 2027 revenues of $322.7 million, up 17% organically. Gross payment volume reached $11.3 billion. The company ended June 2026 with about 146,000 customer locations, underscoring its scale in restaurant and retail technology across global markets.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 12.1% over the past three months, which outperformed the broader industry and the S&P 500 Index.
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In terms of forward 12-month P/E, XYZ stock is trading at 16.9X, which is at a discount to the Zacks Internet Software industry’s 27.76X.
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Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week. It indicates a significant increase year over year.
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Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Block posted 25% gross-profit growth and a record 27% adjusted operating margin in Q2.Cash App gross profit rose 31%, while Square gross profit and GPV both increased 13%.Block raised its 2026 outlook as it invests more in go-to-market efforts, Neighborhoods and AI. Block, Inc. (XYZ - Free Report) has entered the second half of 2026 with stronger operating momentum, improving profitability and several growth initiatives across Cash App and Square. The fintech company is also putting more focus on connecting its consumer and merchant ecosystems, while investments in artificial intelligence are aimed at improving product development and efficiency. This gives investors more to consider than a simple earnings beat.
XYZ shares had considerably advanced in 2026 heading into second-quarter earnings, reflecting renewed confidence in Block's execution. The stock fell more than 6% on Aug. 6 after the results as investors weighed higher planned investments against stronger earnings and guidance. Through Aug. 12, XYZ remained below its pre-results level. Over the broader period, Block's performance has compared favorably with PayPal Holdings (PYPL - Free Report) , while Toast (TOST - Free Report) has also seen notable swings as investors reassessed growth expectations across fintech and payments.
The key question now is whether Block can maintain stronger growth and margins while stepping up spending on sales, product development and AI. Its second-quarter results provided encouraging evidence, but the balance between growth investment and operating discipline remains important.
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Block’s Q2 Results Shows Better Growth and ProfitabilityBlock delivered second-quarter adjusted EPS of $1.02, while revenues rose 9% year over year to $6.62 billion. Gross profit increased 25% from the prior-year period. More important for the longer-term earnings story, adjusted operating income reached $864 million, and the adjusted operating margin hit a record 27%.
Cash App remained the stronger growth engine, with gross profit rising 31% year over year. Monthly transacting actives increased 3% in June, while Cash App Commerce Enablement volume climbed 17%, and consumer lending origination volume increased 59%. Block is seeking to deepen engagement rather than relying only on user additions, an approach that could support monetization even if active-user growth remains modest.
Square also showed better momentum. Gross profit and gross payment volume both increased 13%, while U.S. GPV growth accelerated to its strongest pace since the second quarter of 2023. Management said new seller additions through independent sales organization partners increased more than 150% sequentially as Block continued expanding its distribution channels.
XYZ’s Raised Guidance Adds SupportManagement increased its 2026 outlook following the stronger first half. Block now expects gross profit of $12.51 billion, representing 21% year-over-year growth, along with adjusted operating income of $3.47 billion and a 28% margin. Adjusted EPS is expected to grow 70% for the full year. For the third quarter, management expects gross profit growth of 18% and another 28% adjusted operating margin.
The raised outlook is encouraging because it reflects more than the second-quarter beat. Management said performance heading into the third quarter remained healthy, with Square GPV growth in July consistent with second-quarter strength and Cash App inflows and monetization trends remaining solid.
New Products Could Broaden Growth of BlockBlock is also trying to create stronger links between Square and Cash App. Neighborhoods is an important part of that effort. Annualized seller GPV on the platform crossed $1 billion in June, up 220% year over year, while seller onboarding accelerated sharply into July.
Product development has accelerated as well. Block said code changes per engineer increased 150% since the start of 2026, while Square shipped 130 features during the first half, more than three times the number delivered in the comparable 2025 period.
The opportunity comes with added costs. Management plans to increase investment in go-to-market efforts, Neighborhoods and AI when it sees attractive returns. This strategy could support longer-term growth, but investors will want evidence that higher spending does not interrupt recent margin progress.
XYZ’s Earnings Estimate Revision Trends UpwardThe Zacks Consensus Estimate for Block’s 2026 sales calls for a year-over-year rise of 7.50%, while that for earnings per share (EPS) suggests a 65.40% increase year over year. EPS estimates for both 2026 and 2027 have been trending upward over the past month.
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XYZ's Valuation Remains ReasonableBlock's valuation looks more balanced after its earnings and profit growth improved, although it should be viewed alongside expectations for continued execution. In terms of forward 12-month Price/Earnings (P/E), Block is trading at 17.05X, which is at a discount to Toast’s 21.32X, but at a premium to PayPal’s 10.50X.
Block's premium to PayPal can be supported if gross-profit growth remains strong and margins continue expanding. At the same time, comparisons with Toast show that investors are already willing to pay more for faster payments and merchant-technology growth, leaving Block with less room for execution setbacks.
Valuation
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What Should Investors Do With XYZ Stock?Block's second-quarter report strengthened the investment case without removing the reasons for caution. Gross profit growth accelerated, profitability reached record levels, and management raised its full-year outlook. Square's improving GPV trends and deeper Cash App engagement also provide several ways to sustain growth into 2027.
Still, the post-earnings share-price decline shows that investors are watching spending closely. Cash App active growth remains modest, lending growth should normalize, and increased AI and sales investments could limit additional margin expansion if returns take time to emerge. For existing investors, the improving fundamentals support staying with the position while waiting for clearer evidence that Block can sustain stronger growth and disciplined spending together.
At present, Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Square rozšířil službu Bill Pay, takže držitelé Square Credit Card mohou platit dodavatele i bez přijímání karet. Nově karta nabízí neomezený 3% cashback na transakce Square Bill Pay a 1,5% cashback na všechny ostatní nákupy.
Businesses can now use their Square Credit Card to pay vendors that don’t accept cards, as well as those that do, Square said in a Tuesday (Aug. 11) press release.
This enhanced Bill Pay feature lets sellers pay rent, insurance, marketing expenses and other vendor expenses, regardless of whether the vendors accept cards. Square routes the money to the vendor’s choice of a direct deposit into their bank account (ACH) or a check in the mail, according to the release.
Square Bill Pay provides an alternative to solutions that come with additional costs or require small business owners to spend their cash on hand, Andrea Raj, head of product for Square Banking, said in the release.
“We built the opposite,” Raj said. “Pay vendors on time, keep cash longer, and earn the right rewards for it, all in one place and while saving on fees. That’s only possible because it’s built into the platform sellers already run their business on.”
Square also announced Tuesday that the refreshed Square Credit Card now offers unlimited 3% cash back on Square Bill Pay transactions and 1.5% cash back on all other purchases. Sellers can redeem the rewards as cash deposits into their Square Savings account, statement credit or free processing, according to the release.
The new features join the existing benefits of the Square Credit Card, which include a dynamic credit line, no personal guarantee, no annual fees, no late fees and no foreign transaction fees, per the release.
Square and parent company Block have launched several other solutions for businesses in recent months.
In June, Square Financial Services launched a deposit tier that pays a higher APY to Square sellers who maintain a daily balance of $10,000 or more in their Square Savings account.
In May, Square and Homegrown announced that they partnered on a pilot program designed to offer expansion capital through flexible financing for Square sellers that have two or more locations and are ready to open another one.
In March, Square said it had begun extending credit to more sellers after improving its underwriting models to assess the creditworthiness of those with non-standard revenue patterns, including project-based earners, seasonal operators and businesses that are new to Square.
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Assenagon Asset Management S.A. boosted its holdings in Block, Inc. (NYSE:XYZ – Free Report) by 372.8% during the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 937,540 shares of the technology company’s stock after purchasing an additional 739,264 shares during the quarter. Assenagon Asset Management S.A. owned about 0.16% of Block worth $71,253,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also made changes to their positions in the company. Sound Income Strategies LLC grew its stake in shares of Block by 57.1% in the 4th quarter. Sound Income Strategies LLC now owns 443 shares of the technology company’s stock worth $29,000 after buying an additional 161 shares during the last quarter. Rachor Investment Advisory Services LLC purchased a new position in Block during the fourth quarter valued at $32,000. Global Assets Advisory LLC purchased a new position in Block during the first quarter valued at $31,000. Cary Street Partners Investment Advisory LLC boosted its holdings in Block by 57.6% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 610 shares of the technology company’s stock worth $40,000 after acquiring an additional 223 shares in the last quarter. Finally, Darwin Wealth Management LLC bought a new stake in Block in the second quarter worth $43,000. Institutional investors own 70.44% of the company’s stock.
Analyst Ratings Changes Several brokerages have recently weighed in on XYZ. Susquehanna raised their price target on Block from $90.00 to $100.00 and gave the company a “positive” rating in a report on Thursday. Cantor Fitzgerald reiterated an “overweight” rating and issued a $95.00 price target on shares of Block in a research note on Thursday. Canaccord Genuity Group increased their price objective on shares of Block from $80.00 to $85.00 and gave the company a “buy” rating in a research report on Monday, May 18th. BMO Capital Markets raised their price objective on shares of Block from $78.00 to $85.00 and gave the company a “market perform” rating in a research note on Wednesday, July 22nd. Finally, Oppenheimer restated an “outperform” rating and set a $97.00 price objective on shares of Block in a research note on Thursday. Three analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, Block currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.88.
Read Our Latest Report on Block
Key Block News Here are the key news stories impacting Block this week:
Positive Sentiment: Quarterly results exceeded expectations. Block reported second-quarter EPS of $1.02, well above estimates of $0.48–$0.86 and up from $0.62 a year earlier. Revenue increased 9.3% year over year to $6.62 billion, with Cash App and Square contributing to the performance. Block Q2 Earnings and Revenues Beat Estimates Positive Sentiment: Management raised its outlook. Block guided to third-quarter EPS of $1.02 versus the $0.93 consensus and fiscal 2026 EPS of $4.02 versus expectations of $3.62. Management also cited 25% gross-profit growth, record margins and improving momentum from AI-focused products. Block Q2 Earnings Call Highlights Positive Sentiment: Analysts became more bullish. Monness Crespi & Hardt raised its price target from $115 to $125 and initiated a “buy” rating. TD Cowen raised its target to $105, while RBC, Keefe, Bruyette & Woods, Susquehanna and Needham also increased targets, generally maintaining positive ratings. Positive Sentiment: Options activity suggested increased bullish interest. Investors bought 42,107 call options, approximately 55% above average daily call volume. This indicates heightened speculative interest, though it does not guarantee continued gains. Neutral Sentiment: Block’s AI and cost-reduction strategy is gaining investor attention. The company’s workforce reductions and greater emphasis on artificial intelligence appear to be supporting efficiency and profitability, but investors will want evidence that growth remains durable. Negative Sentiment: Insiders sold shares. Director Anthony Mathew Eisen sold 47,000 shares for approximately $4.0 million across two transactions, and Brian Grassadonia sold 25,908 shares for about $2.1 million. The sales were executed under pre-arranged Rule 10b5-1 plans, reducing their significance, but repeated insider selling may weigh on sentiment. Negative Sentiment: Valuation leaves limited room for disappointment. With Block trading near its 52-week high and at an elevated earnings multiple, the stock may remain sensitive to any slowdown in Cash App, Square or AI-related profitability. Block Stock Up 0.0% Shares of XYZ opened at $79.05 on Friday. The business’s 50 day moving average is $76.71 and its 200 day moving average is $68.03. The company has a current ratio of 2.21, a quick ratio of 1.99 and a debt-to-equity ratio of 0.26. Block, Inc. has a 12-month low of $48.21 and a 12-month high of $86.75. The company has a market capitalization of $47.05 billion, a PE ratio of 141.16, a price-to-earnings-growth ratio of 0.95 and a beta of 2.53.
Block (NYSE:XYZ – Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The technology company reported $1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.54. Block had a net margin of 1.43% and a return on equity of 8.10%. The firm had revenue of $6.62 billion for the quarter. During the same quarter in the previous year, the business earned $0.62 EPS. The company’s quarterly revenue was up 9.3% on a year-over-year basis. Block has set its FY 2026 guidance at 4.020-4.020 EPS and its Q3 2026 guidance at 1.020-1.020 EPS. Research analysts expect that Block, Inc. will post 2.61 earnings per share for the current fiscal year.
Insider Activity In related news, insider Brian Grassadonia sold 43,348 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $80.00, for a total transaction of $3,467,840.00. Following the completion of the transaction, the insider directly owned 557,654 shares of the company’s stock, valued at approximately $44,612,320. This represents a 7.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Amrita Ahuja sold 8,971 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $85.85, for a total value of $770,160.35. Following the transaction, the chief financial officer owned 454,275 shares of the company’s stock, valued at $38,999,508.75. This represents a 1.94% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 441,179 shares of company stock worth $34,543,835 over the last 90 days. Corporate insiders own 11.37% of the company’s stock.
Block Profile (Free Report)
Block (NYSE:XYZ) is a financial technology company that builds products and services to facilitate electronic payments, commerce, and consumer finance. Its principal business lines include a seller-focused ecosystem that provides point-of-sale hardware and software, payment processing, invoicing, payroll and lending services, and a consumer-facing platform that offers peer-to-peer payments, banking-like features, and investing. Block’s portfolio also encompasses music streaming and buy-now-pay-later capabilities through businesses acquired to broaden its reach beyond core payments.
The company was founded as Square in 2009 by Jack Dorsey and Jim McKelvey and later rebranded to Block to reflect a diversified set of businesses across payments, consumer finance, and emerging technologies.
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Block po reorganizaci hlásí rychlejší vývoj díky AI: počet změn kódu na inženýra vzrostl od začátku roku o 150 % a produktové náklady ve čtvrtletí klesly meziročně o 17 %.
Block drew plenty of attention earlier this year when CEO Jack Dorsey announced plans to cut roughly 40% of the company’s workforce and put artificial intelligence at the center of its operations. The move made Block one of the most closely watched tests of a question confronting corporate America: Can AI allow a large company to operate with far fewer people without sacrificing growth?
Nearly six months into the reorganization, Dorsey says the answer is beginning to emerge.
“The biggest proof point is our shipping velocity,” Dorsey told analysts during Block’s second-quarter earnings call. He pointed to Buzz, the company’s new platform where AI agents and employees can collaborate on software development and other work. “We have a very small team on a product like Buzz,” he said, adding that Block uses it internally to develop products and coordinate projects.
The company says the changes are allowing smaller teams to move faster. AI is now involved in nearly every change to Block’s production code, while the number of code changes per engineer has risen 150% since the beginning of the year. Square shipped 130 features during the first half, more than three times as many as it shipped during the same period last year.
Block also says the overhaul is lowering personnel costs. Product development expenses declined 17% year over year on a GAAP basis during the quarter, reflecting reduced employee-related costs following the February reorganization. The company has continued spending in areas where it sees growth opportunities, however, including sales, Cash App and AI infrastructure.
The next step is taking those internal AI capabilities to customers. Block launched Buzz publicly in July and plans to offer hosted versions for companies that don’t want to manage their own infrastructure. Dorsey said Block intends to make money from Buzz but hasn’t settled on a single pricing model.
Other AI agents are already moving into Block’s consumer and merchant products. Moneybot, Cash App’s financial assistant, has more than 1 million weekly engaged accounts. Managerbot is automating marketing, profit-margin analysis and operational fixes for Square sellers. Dorsey also identified agents that can make transactions as a “natural place” for Block to explore.
That AI push arrived alongside accelerating growth in the company’s main businesses:
Cash App: Gross profit increased 31% year over year to $1.97 billion. Commerce volume rose 17% to $56.5 billion, while consumer lending originations jumped 59% to $18.9 billion. Cash App had 59 million monthly transacting accounts in June, up 3%, while primary banking accounts increased 17% to 9.4 million. Square: Gross profit rose 13% to $1.16 billion and payment volume increased 13% to $72.8 billion. U.S. payment volume grew 10%, its strongest pace since the second quarter of 2023. International payment volume climbed 28%, or 25% after accounting for currency movements. Financial services: Gross profit from Block’s financial solutions business surged 43%, led by Cash App’s consumer lending products. Square’s credit card reached more than $1 billion in annualized spending. Square Financial Services also began offering eligible sellers a 3.5% annual percentage yield on savings and processed its first Square acquiring transaction in June. Block expects deposits eventually to provide a lower-cost source of funding for loans. Across the company, second-quarter revenue increased 9% to $6.62 billion. Gross profit rose 25% to $3.17 billion. Block reported operating income of $447 million and net income attributable to common shareholders of $89 million, or 15 cents per diluted share. Adjusted operating income reached a record $864 million and adjusted earnings rose 65% to $1.02 per diluted share.
Block raised its full-year outlook following the quarter. It now expects gross profit of $12.51 billion, up 21%, and adjusted operating income of $3.47 billion. Adjusted earnings are projected to rise 70% to $4.02 per share. Those figures don’t settle the broader debate over AI and jobs, but they give Block something concrete to show for an overhaul that was impossible to ignore.
Block ve 2. čtvrtletí překonal odhady: EPS činil 1,02 USD a tržby dosáhly 6,62 mld. USD. Akcie v prodlouženém obchodování klesly o 4,39 % na 80,50 USD.
XYZ stock is moving. Watch the price action here. Block Q2 Details Block reported quarterly earnings of $1.02 per share, which beat the consensus estimate of 87 cents by 17.24%
Quarterly revenue came in at $6.62 billion, which beat the analyst consensus estimate of $6.49 billion.
Cash App: Cash App Commerce Enablement volume grew 17% year over year to $56.5 billion, driven by Cash App Card and BNPL. Consumer Lending origination volume grew 59% year over year to $18.9 billion, driven by Cash App Borrow, while risk loss rates remained healthy. PBAs grew 17% year over year while Cash App monthly transacting actives were 59 million in June.
Square: Square GPV grew 13% year over year. Square’s U.S. GPV growth accelerated to 10% year over year, reflecting the strongest U.S. growth rate since the second quarter of 2023, while International GPV growth sustained strong performance, growing 28% year over year (25% in constant currency).
“AI will make software creation abundant. Judgment, trust, depth of understanding, and capability will become scarce. Our advantage is that we understand which things matter for the customers we serve, we own the hard capabilities behind them, and we’ve connected them into a network that compounds with every seller and every customer who joins,” said CEO Jack Dorsey.
XYZ Stock Price Activity: According to data from Benzinga Pro, Block stock was down 4.39% to $80.50 in Wednesday’s extended trading.
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Block před výsledky za 2. čtvrtletí míří na hrubý zisk 3,04 mld. USD, upravený provozní zisk 740 mil. USD a EPS 86 centů. Firma zároveň čeká tržby 1,8 mld. USD z bitcoinového ekosystému a ztrátu z přecenění Bitcoinu 88,5 mil. USD.
Key Takeaways Block targets $3.04B in gross profit, $740M in adjusted operating income and EPS of 86 cents.Cash App inflows, lending and BNPL may support growth, though banking activities could decline seasonally.Square adoption and AI products may aid growth, while spending and bitcoin losses could pressure margins. Block (XYZ - Free Report) is slated to release second-quarter 2026 results on Aug. 5, after market close.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 86 cents per share and $6.54 billion, respectively. The consensus mark for second-quarter 2026 EPS has been unchanged over the past 30 days, suggesting a 38.71% year-over-year increase. The Zacks Consensus Estimate for quarterly revenues implies a year-over-year rally of 7.96%.
For the current year, the Zacks Consensus Estimate for Block’s revenues is pegged at $26.14 million, indicating a year-over-year rise of 8.05%. The consensus mark for 2026 EPS stands at $3.90, calling for a 64.56% expansion from the year-ago period’s actual.
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Over the trailing four quarters, the company’s EPS surpassed the Zacks Consensus Estimate on two occasions, met in another and missed in the other period, the average beat being 3.51%. This is depicted in the graph below:
Here Is What Our Quantitative Model Predicts for XYZOur proven model does not conclusively predict an earnings beat for XYZ this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Block currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
What Should Investors Expect From Block's Q2 Earnings?Block heads into its second-quarter earnings release with management targeting gross profit of $3.04 billion (suggesting a 20% year-over-year jump), adjusted operating income of $740 million and adjusted EPS of 86 cents. The quarterly results will reflect whether momentum from early 2026 continued and whether operating margin expanded by roughly two percentage points as guided.
Cash App is expected to have supported gross profit through healthy inflows, deeper engagement and wider use of lending products. Pay Over Time for eligible peer-to-peer transfers and broader BNPL integration are likely to have contributed to transaction activity. Still, a seasonal decline in primary banking activities may have constrained sequential user growth.
Square is expected to have benefited from strength among food-and-beverage, mid-market and international sellers. Expanding field sales and ISO partnerships are expected to have improved revenue visibility, while the MarketMan restaurant inventory integration could have strengthened software adoption and retention. Higher go-to-market spending, however, is expected to have pressured profitability.
Block’s faster product rollout may also have supported the quarter. Wider availability of Moneybot and Managerbot is likely to have improved engagement, cross-selling and productivity, while Neighborhoods may have connected more Square sellers with Cash App users. AI-led efficiency is anticipated to have strengthened operating leverage, though continued investment is likely to have affected margins in the quarter under review.
Bitcoin is expected to have added volatility to the quarterly performance. Block preliminarily expects $1.8 billion in Cash App Bitcoin Ecosystem revenues and an $88.5-million remeasurement loss on its Bitcoin investment. The loss could have hurt GAAP earnings, but investors are likely to focus more on gross profit, adjusted profitability and execution across the company’s two main ecosystems.
XYZ’s Price Performance & ValuationBlock shares have gained 26.1% year to date, outperforming its peers, such as Affirm (AFRM - Free Report) and StoneCo (STNE - Free Report) , as well as the S&P 500 composite. Year to date, Affirm shares have inched up 1.6%, while StoneCo shares have declined more than 23%.
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In terms of forward 12-month Price/Earnings (P/E), Block is trading at 17.97X, which is at a discount to its industry’s 27.32X, as well as its one-year median of 33.70X. While Block is also trading at a discount to Affirm’s 41.71X, it is at a premium to STNE’s 4.99X.
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How to Play XYZ Stock Ahead of Q2 Earnings?Block appears well-positioned to deliver another quarter of healthy underlying growth, supported by improving Cash App engagement, expanding Square merchant adoption and continued AI-driven product innovation. Management's second-quarter guidance already reflects confidence in sustained gross profit growth and margin expansion, while offerings introduced during the quarter are anticipated to have strengthened customer activity and long-term monetization opportunities.
However, normalization in Borrow growth, seasonal trends in banking activities, higher go-to-market investments, and bitcoin-related earnings volatility could temper near-term investor enthusiasm. Given this balanced outlook, maintaining current exposure appears appropriate until the company demonstrates sustained execution against its raised financial targets.
Key Takeaways XYZ's Q1 gross profit rose 27.1%, led by 38.3% growth in Cash App and 9.4% growth in Square.Square GPV climbed 13.2%, while AI commerce tools aim to help sellers reach customers through AI assistants.PayPal's Venmo TPV grew 14% year over year, while its plan targets more than $1.5B in savings. Block (XYZ - Free Report) and PayPal Holdings (PYPL - Free Report) stand out as key players in the fintech space. They continue to transform digital payments and commerce, albeit with distinct strategies: PayPal leverages its global, two-sided payments and commerce platform, whereas Block excels through the dual ecosystem of Square and Cash App.
PayPal is gaining ground through Venmo’s growth and cost savings plan, whereas Block stands out for its expanding Square merchants network and Cash App usage. Let’s examine the pros and cons of each to see which might earn a place in your portfolio.
The Case for BlockBlock continues to expand its integrated fintech platform, with its Square and Cash App ecosystems providing end-to-end solutions across payments, commerce, banking, investing and lending. In first-quarter 2026, the company reported decent performance, with net revenues increasing 4.9% year over year. Total gross profit climbed 27.1%, with Cash App rising 38.3% and Square increasing 9.4%.
Square, Block’s merchant-facing ecosystem, remains strong. In the first quarter of 2026, Square Gross Payment Volume (GPV) rose 13.2% year over year. Additionally, the company partners with more than 140 independent sales organizations to complement its direct sales and extend reach to new sellers. In July 2026, Dimassi’s Mediterranean Buffet and Honolulu Cookie Company expanded their partnerships with Square, deepening their use of the platform to scale their footprint.
Square is expanding its AI commerce strategy with a new ChatGPT app and Claude plugin. The initiative is designed to help sellers appear when customers ask AI assistants where to eat, shop or book services, while enabling users to place orders directly through those AI experiences. The initial rollout covers U.S. food and beverage sellers using Square Online Ordering.
Cash App is the primary engine behind Block’s momentum, evolving from a simple peer-to-peer payments tool into a comprehensive financial platform for digitally native users. It now spans payments, banking, commerce and Bitcoin trading, embedding itself deeper into customers’ financial lives. Cash App continues to make transactions fast, more convenient and more personalized. In June 2026, it launched Cash App Tags, NFC-enabled physical payment accessories that let customers pay with a single tap without a phone or a card.
While Block faces headwinds, including sensitivity to macroeconomic conditions, intensifying competition and a younger-user base concentration, its diversified revenue streams, solid fundamentals and ongoing product innovation counterbalance those risks. These strengths position the company for durable growth and make it an attractive fintech investment.
The Case for PayPalPayPal is a global digital payments company that enables consumers and merchants to send, receive and manage money securely across nearly 200 markets worldwide. The company provides a wide range of solutions, including consumer payments, merchant services, peer-to-peer transfers via Venmo and Braintree (now PayPal Enterprise Payments). PayPal delivered decent first-quarter results, with revenues rising 7.2% year over year and Total Payment Volume (“TPV”) climbing 11%.
Venmo, PayPal’s money movement platform, has become a go-to wallet for younger, digitally native consumers. In the first quarter of 2026, Venmo TPV hit new records, growing sequentially to 14% year over year and marking the sixth consecutive quarter of double-digit growth. In March 2026, Venmo broadened its reach by enabling users to send and receive funds with hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.
PayPal is executing a major transformation plan aimed at saving more than $1.5 billion over the next two to three years. The company expects the first wave of savings to come from structural realignment, including removing duplication and layers from its organizational structure. A second wave is expected to result from broader AI deployment and automation initiatives. Management believes these savings will provide greater flexibility to reinvest in growth initiatives and strengthen the company’s long-term financial profile.
However, PayPal faces macroeconomic headwinds and operates in a highly competitive global payments industry. The nature of the business makes it vulnerable to foreign exchange fluctuations. The company reiterated its 2026 guidance while reporting first-quarter 2026 results, with TM$ expected to decline slightly and non-GAAP EPS projected to range from a low single-digit decline to slightly positive growth.
How Do Zacks Estimates Compare for XYZ & PYPL?The Zacks Consensus Estimate for Block’s 2026 sales and EPS implies a year-over-year increase of 8.05% and 64.56%, respectively. EPS estimates have been trending northward over the past month.
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Meanwhile, the consensus estimates for PayPal’s 2026 sales and EPS indicate a year-over-year rise of 3.40% and 0.19%, respectively. EPS estimates have been trending upward over the past month.
Image Source: Zacks Investment Research
Price Performance: XYZ vs. PYPLOver the past six months, shares of XYZ have outperformed PYPL and the S&P 500 composite.
Image Source: Zacks Investment Research
Valuation: XYZ vs. PYPLIn terms of forward 12-month Price/Sales (P/S), XYZ stock is trading at 1.74X, above PYPL, which is currently trading at 1.41X. XYZ is trading above its one-year median of 1.53x, while PYPL is trading below its one-year median of 1.18x.
From a valuation perspective, we note that Block shares are trading at a premium to PayPal.
Image Source: Zacks Investment Research
Conclusion: Block Remains StrongBlock and PayPal are reshaping digital payments and commerce, though they are taking different routes. PayPal’s emphasis on global wallet connectivity and cost savings program targets scale and margin improvement, but mixed macroeconomic conditions, intense competition and foreign exchange fluctuations cloud its growth outlook.
In contrast, Block maintains a robust payments ecosystem with strong historical foundations. For investors choosing now, Block stands out as the smarter, lower-risk pick because of its powerful ecosystem, profitability, long-term potential and positive trend in earnings estimates revisions.
Currently, Block sports a Zacks Rank #1 (Strong Buy), while PayPal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Block (XYZ) letos roste o 26,6 % díky síle Cash App a Square. Firma rozšiřuje BNPL, AI commerce i partnerství, ale čelí vyšším úvěrovým ztrátám a konkurenci.
Key Takeaways Block's 19% YTD gain has outpaced peers, driven by Cash App and Square momentum. XYZ is expanding BNPL, AI commerce and partnerships to drive user and merchant growth. Block faces rising credit losses, intense competition and macro risks that could pressure growth. Block (XYZ - Free Report) shares have gained 26.6% year to date, which can be attributed to the combined strength of its Square merchant ecosystem and Cash App consumer platform. The rally also reflects the strength of its AI implementations, which have improved customer engagement, as well as strategic partnerships that have expanded distribution opportunities.
XYZ stock has not only outperformed its peers, such as Affirm (AFRM - Free Report) and StoneCo Ltd. (STNE - Free Report) , but has also outperformed the S&P 500 composite over the same time frame. Year to date, Affirm shares have gained 9.6%, while StoneCo shares have declined 24%.
However, the question remains whether Block’s fundamentals are sufficient to gain momentum now, or a challenging macroeconomic environment could jeopardize its growth tempo. Here, we analyze XYZ in detail to determine whether it will be prudent enough to buy the stock for now, hold or fold.
Image Source: Zacks Investment Research
What’s Supporting Block’s Progress?Cash App has been a key contributor to Block’s momentum, evolving well beyond its origins as a peer-to-peer payments platform. It now operates as a comprehensive financial platform, particularly for younger, digitally native consumers. By offering services across payments, banking, commerce and bitcoin transactions, Cash App continues to deepen its role in users’ everyday financial activities.
Growth in Primary Banking Actives also remained strong, supporting continued momentum for the Cash App Card in the first quarter. In March 2026, Cash App Primary Banking Actives increased 18% year over year to 9.7 million, reflecting sustained gains in user engagement. While the company expects a slight seasonal sequential decline in the second quarter compared with the first, it still anticipates continued year-over-year growth in Primary Banking Actives.
In early June, Block announced the launch of Afterpay on Cash App Card, making Buy Now, Pay Later (“BNPL”) available to eligible Cash App Card customers. The feature targets American earners with variable incomes and customers who are underserved by the current financial system. It is being rolled out to Cash App’s roughly 59 million monthly transacting active users. Block stands to benefit from increased card usage and merchant volume while capturing BNPL fees.
Square, Block’s merchant business, continues to perform well, posting double-digit gross payment volume (GPV) growth in first-quarter 2026. Innovations like the next generation of Square Register also highlight the company’s efforts to keep Square competitive in the evolving point-of-sale and software landscape. Square is expanding its AI commerce strategy with a new ChatGPT app and Claude plugin. The initiative is designed to help sellers appear when customers ask AI assistants where to eat, shop or book services, while enabling users to place orders directly through those AI experiences. The initial rollout covers U.S. food and beverage sellers using Square Online Ordering.
Block is expanding its partner base to scale its distribution network. Last month, Sherwin-Williams selected Square as its payment solutions partner for its extensive network of PRO+ customers through the Digital Alliance Program. Additionally, the company partners with more than 140 independent sales organizations (ISOs) to complement its direct sales and extend reach to new sellers. Its merchant wins, including Ladurée Canada, Sofive Soccer Centers, Coffee Dose and Baker St Café, demonstrate its growing penetration across restaurants, specialty food, sports centers and retail businesses.
What Hinders Block Stock's Performance?Despite its strengths, Block faces material headwinds. The company’s performance remains vulnerable to macroeconomic fluctuations and changes in consumer spending patterns. As a result, external forces may play a larger role than internal execution in shaping its trajectory in the upcoming quarters.
Cash App Borrow, Afterpay and Square Loans increase Block’s exposure to consumer and merchant credit risk as the lending portfolio scales. In first-quarter 2026, transaction, loan and consumer receivable losses rose to $500 million from $170 million a year earlier, reflecting rapid growth in Cash App Borrow originations and scaling of Afterpay Post-Purchase.
The company operates in crowded, fast-moving markets across merchant acquiring, POS/ software, consumer wallets and BNPL, where feature and pricing parity can change quickly. If competitors match features or undercut pricing, or if seller and consumer behavior shifts, Block may need to reinvest incremental gross profit to defend share, limiting the pace of operating leverage even when volume growth remains healthy.
XYZ’s Earnings Estimate Revision Trends UpwardThe Zacks Consensus Estimate for Block’s 2026 sales calls for a year-over-year rise of 8.08%, while that for earnings per share (EPS) suggests a 64.56% increase year over year. EPS estimates have been trending upward to $3.90 per share over the past month.
Image Source: Zacks Investment Research
XYZ Shares Trade at a DiscountIn terms of forward 12-month Price/Earnings (P/E), Block is trading at 25.97X, which is at a discount to Affirm’s 47.59X.
Image Source: Zacks Investment Research
Final Take on BlockBlock is reinforcing its status as a leading fintech innovator through the steady expansion of the Square and Cash App ecosystems, reflecting the company’s strong execution.
While macroeconomic headwinds, changes in consumer spending, rising credit risk and competition warrant caution, Block’s discounted valuation, positive earnings estimates and solid fundamentals make XYZ stock an attractive buy for patient investors.
At present, Block carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ředitel společnosti Block Anthony Mathew Eisen prodal 18 000 akcií za 1,4 milionu USD v rámci předem připraveného plánu 10b5-1. Block zároveň uvedl, že hrubý zisk Cash App v prvním čtvrtletí vzrostl o 38 %.
Anthony Mathew Eisen, a director at Block, Inc. (XYZ +1.90%), sold 18,000 shares of Class A Common Stock between July 9, 2026 and July 13, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$1.4 millionShares sold18,000Post-transaction shares (directly held)1,838,672Post-transaction value$144.74 millionKey questionsWhat is the regulatory context for this transaction?
This sale was completed under a Rule 10b5-1 trading plan, which Eisen adopted on March 2, 2026. Such plans allow insiders to schedule future stock sales in advance to avoid potential concerns regarding material non-public information.What is the scale of the insider's remaining direct equity exposure?
Following this transaction, the Director continues to hold about 1.8 million shares directly. This remaining position represents a market value of $144.74 million as of the July 13, 2026 market close.How does the current stock performance compare to the transaction price?
The shares were sold at a weighted average price of $77.80, while the stock closed at $77.30 on July 10, 2026. The company currently maintains a market capitalization of $46 billion and has reported trailing twelve-month revenue of $24.5 billion.What is the breakdown of the Director's total beneficial interest?
The reported holdings consist exclusively of direct ownership, with 1,838,672 shares remaining in the director's name.Company OverviewMetricValueShare Price (as of market close 2026-07-10)$77.30Market Capitalization$46.0 billionRevenue (TTM)$24.5 billionNet Income (TTM)$807.1 millionCompany SnapshotBlock is a fintech company that develops and operates a comprehensive suite of payment processing solutions, including hardware readers (Magstripe, Contactless and chip readers supporting EMV and NFC technologies) and software platforms that enable merchants to process card payments and access advanced reporting and analytics capabilities.The company generates revenue through transaction processing fees, hardware sales, and software-as-a-service offerings, with a business model centered on providing integrated payment infrastructure and next-day fund settlement services to merchants of varying sizes.Block serves a diverse merchant base ranging from small independent retailers to larger enterprises, targeting businesses across multiple verticals that require reliable payment processing, financial visibility, and capital management solutions.Block, Inc. operates as a leading infrastructure software provider in the payments ecosystem, with TTM revenues of $24.5 billion and a market capitalization of roughly $46 billion. The company leverages its integrated hardware and software platform to deliver comprehensive payment solutions that address merchant needs for transaction processing, financial analytics, and working capital optimization. Block's competitive positioning is strengthened by its end-to-end payment infrastructure, next-day settlement capabilities, and robust reporting analytics that differentiate its offerings in the competitive payments technology sector.
What this transaction means for investorsThis sale ultimately looks like a co-founder trimming a corner of a very large position, not a signal about where Block is headed. Eisen sold on a plan set back in March, and 18,000 shares barely dents the roughly 1.8 million he still holds, worth about $145 million. Eisen co-founded Afterpay, the buy-now-pay-later business Block acquired in 2021, so his stake reflects a company he helped build. When someone with nine figures still on the table sells a fraction of a percent on a preset schedule, the tax-and-diversification read is the honest one.
Meanwhile, the business is running well beneath a somewhat messy headline, with shares seesawing recently and settling about 15% up for the year. Block's first-quarter gross profit rose 27% to $2.91 billion, led by 38% growth at Cash App, and adjusted operating income hit a record $728 million. Management raised full-year gross-profit guidance to $12.33 billion, and CEO Jack Dorsey leaned into AI tools like MoneyBot as the next growth lever. The firm is planning to report second-quarter earnings on August 5.
For long-term investors, the sale is noise, but the GAAP-versus-adjusted gap is worth understanding. Block posted a $309 million net loss on restructuring and bitcoin charges even as the underlying business accelerated, so it’ll be important to see whether Cash App's momentum holds as its lending boom normalizes.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
Block v 1. čtvrtletí 2026 zvýšil objem spotřebitelských úvěrů o 82 % na 17,6 mld. USD, hlavně díky Cash App Borrow a Afterpay. Růst ale doprovodily vyšší úvěrové ztráty.
Key Takeaways Block's consumer-lending originations rose 82% year over year to $17.6 billion in first-quarter 2026.XYZ expanded Cash App Borrow and Afterpay offerings, lifting Financial Solutions gross profit 55%.Block's lending growth came with higher credit losses, though cash and operating cash flow remain strong. Block Inc.’s (XYZ - Free Report) consumer-lending business is emerging as a key growth driver, fueled by the rapid adoption of Cash App Borrow and Afterpay. Consumer-lending originations reached $17.6 billion in the first quarter of 2026, up 82% year over year, led by a roughly 175% increase in Cash App Borrow originations as eligibility expanded to more Cash App Green customers.
Block continues to broaden its lending ecosystem through Afterpay's installment offerings, including Post-Purchase, Pre-Purchase, Pay Monthly and BNPL options integrated into Cash App Pay and peer-to-peer payments. The strategy is driving higher engagement and monetization. Financial Solutions gross profit climbed 55% year over year in the first quarter, while Cash App Financial Solutions gross profit per active customer increased 60%. Overall, Cash App gross profit rose 38%, with lending among the largest contributors.
Rapid expansion, however, has been accompanied by higher credit costs. Transaction, loan and consumer receivable losses rose to $500 million in the first quarter from $170 million a year earlier. The allowance for credit losses on loans held for investment increased 26% sequentially to $482.8 million, while classified higher-risk loans grew 23% to $467.3 million.
Cash App Borrow gross loss rates ranged from 3.16% for newer borrowers to 2.67% for customers with more than 13 months of tenure, indicating relatively stable cohort performance. With $6.86 billion in cash and strong operating cash flow, Block appears well positioned to support lending growth, provided gross profit continues to outpace normalized credit losses.
How Are Block’s Competitors Faring?Dave Inc.’s (DAVE - Free Report) offers ExtraCash advances of up to $500 with no interest, credit checks or late fees. In first quarter 2026, DAVE reported $158.4 million in revenue, up 47%, while ExtraCash originations rose 37% to $2.1 billion. DAVE also reached roughly 3 million monthly transacting members.
SoFi Technologies (SOFI - Free Report) competes through larger unsecured personal loans for debt consolidation and major expenses. SOFI originated $8.3 billion in personal loans in the first quarter 2026. Unlike short-term cash advances, SOFI uses fixed monthly installments and serves borrowers seeking larger loan amounts.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have rallied 20.5% over the past three months, outperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.30X, which is at a discount to the Zacks Internet Software industry’s 27.09X.
Image Source: Zacks Investment Research
Block’s earnings estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised marginally northward. The figure indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Block souhlasil se zaplacením 45 milionů USD za urovnání sporu s 46 americkými státy kvůli tomu, že Cash App podle nich nedostatečně chránila uživatele před podvody. Firma má zároveň zlepšit prevenci podvodů a zákaznickou podporu.
Image Credits:Thomas Fuller/SOPA Images/LightRocket / Getty Images Block has agreed to pay $45 million to settle claims brought by 46 U.S. states alleging that its peer-to-peer payments app, Cash App, failed to adequately protect users from fraud.
State attorneys general said they found that Block misled users by falsely advertising that Cash App provided bank-like protections, including advanced fraud detection. Block denied wrongdoing.
According to the states, Cash App allowed users to create accounts without a Social Security number or date of birth, and didn’t place limits on the number of accounts a person could open, making it easier for scammers to exploit the platform. The states also alleged that because Cash App didn’t provide an official customer support phone number, many users who were locked out of their accounts turned to fake customer service numbers that were operated by scammers.
Many Americans rely on fintech apps as their banking services, which has led to increased oversight. Block’s settlement marks the latest chapter in regulators’ scrutiny of Cash App’s business practices. It follows earlier action by the Consumer Financial Protection Bureau, which had similarly accused Block of failing to investigate fraud claims or provide adequate customer service, resulting in $175 million in penalties and other redress to consumers.
Under the new settlement, Block will improve Cash App’s fraud prevention measures and customer service, including by providing live customer support for users of the mobile payments platform.
News of the settlement was first reported by Reuters. Block did not immediately respond to TechCrunch’s request for comment.
Anthony Mathew Eisen, člen představenstva společnosti Block, prodal 18 000 akcií za zhruba 1,4 milionu USD podle plánu Rule 10b5-1. Po transakci mu zůstává asi 1,9 milionu akcií.
Anthony Mathew Eisen, a member of the Board of Directors of Block, Inc. (XYZ 1.33%), sold 18,000 shares of Class A Common Stock on July 6, July 7, and July 8, 2026, according to the SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$1.4 millionShares sold18,000Post-transaction shares (directly held)1,856,672Post-transaction value$142.13 millionTransaction value based on SEC Form 4 weighted average sale price ($78.31); post-transaction value based on July 8, 2026 market close ($76.55).
Key questionsWhat mechanism governed the timing of this transaction?
The sale was conducted pursuant to a Rule 10b5-1 trading plan established on March 2, 2026, which allows corporate insiders to schedule equity transactions in advance to address personal financial objectives.What is the magnitude of the director's remaining equity position?
Following the completion of these sales, Anthony Eisen maintains a substantial direct stake of ~1.9 million shares, carrying a market value of $142.13 million as of the July 8, 2026 market close.How has the company's equity performed leading up to this disclosure?
As of the transaction date, the company had generated a one-year return of 12.84%, with the stock priced at $77.56 as of the July 7, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-07-07)$77.56Market Capitalization$45.5 billionRevenue (TTM)$24.5 billionNet Income (TTM)$807.1 millionCompany SnapshotBlock, Inc. develops comprehensive payment processing solutions and hardware devices that enable merchants to accept card transactions, including Magstripe readers and EMV-compliant contactless and chip readers, while providing advanced reporting and analytics capabilities alongside next-day fund settlement services.The company generates revenue through a diversified model encompassing payment processing fees, hardware sales, subscription-based analytics and reporting services, and settlement services that facilitate rapid capital access for merchants of all sizes.Block serves a broad customer base of merchants ranging from small independent retailers to large enterprises, with particular strength in the small-to-medium business segment seeking accessible, integrated payment infrastructure solutions.Block, Inc. operates as a leading financial infrastructure provider with a $45.5 billion market capitalization and $24.5 billion in TTM revenue, positioning the company among the largest payment technology platforms globally. The company's competitive advantage derives from its integrated ecosystem combining hardware, software, and financial services, enabling merchants to streamline payment operations while accessing real-time business insights.
Block's strategic focus on merchant empowerment through technology innovation and expedited settlement capabilities has driven consistent growth, with the stock appreciating 12.84% over the past year.
What this transaction means for investorsBoard of Directors member Anthony Eisen’s sale of Block shares on July 6 through July 8 was executed at a time when the stock was soaring. His dispositions at a weighted average sale price of $78.31 were near the 52-week high of $82.50 reached last August.
Even so, these transactions are not a cause for investor concern. Considering they were performed as part of a Rule 10b5-1 trading plan, the dispositions were non-discretionary in nature. This combined with his substantial equity stake of nearly two million shares suggests his interests remain aligned with investors.
Block stock rose thanks to the company’s excellent first-quarter earnings report. In Q1, Block exceeded its guidance across gross profit, adjusted operating income, and adjusted earnings per share. Gross profit soared 27% in the quarter to $2.9 billion.
Block also raised its full-year forecast, projecting 19% year-over-year growth in gross profit. These factors helped to propel shares skyward, just at the time of Eisen’s sales.
Key Takeaways Block's Square GPV rose 13% year over year to $61.2B in Q1 2026, with strong international growth.Square expanded in larger merchants as food and beverage GPV and mid-market seller GPV each topped 20% growth.Block added commerce tools and customer wins that support higher payment activity and future GPV growth. Block Inc.'s (XYZ - Free Report) Square business is positioned for faster Gross Payment Volume (“GPV”) growth as international expansion, stronger traction with larger sellers and new commerce solutions drive higher payment activity across its ecosystem. Square's GPV, a key measure of payment activity, increased 13% year over year to $61.2 billion in the first quarter of 2026, or 11.5% on a constant-currency basis.
Growth was broad-based. U.S. GPV rose 8.2% year over year, while international GPV jumped 35%, or 26% on a constant-currency basis. International markets accounted for 22% of total Square GPV, up from 18% a year ago, reflecting the platform's expanding global presence.
Momentum is also accelerating in high-value segments. Food and beverage GPV increased 21% year over year, while mid-market seller GPV grew 22%, marking the strongest growth in both categories since the first quarter of 2023. Larger merchants typically generate higher payment volumes, creating a favorable mix for sustained GPV growth.
Product innovation is opening additional transaction opportunities. Square's Drive-Thru solution enables quick-service restaurants to manage drive-thru, kiosk and in-store orders on one platform, while Neighborhoods, which connects Square sellers with Cash App consumers, expanded to merchants representing $320 million in annualized GPV, up 190% from December.
Customer wins further support GPV’s growth prospects. Square is expanding across larger and multi-location merchants, including Steak Escape, GOLFTEC, Magnolia Soap & Bath Co., Sofive Soccer Centers and Ladurée Canada, aiding continued GPV acceleration.
How Are Block’s Competitors Faring?Toast (TOST - Free Report) supports restaurant POS, payments, ordering and kitchen workflows. In first-quarter 2026, Toast’s ARR grew 26% year over year to $2.2 billion. It added about 7,000 net new locations and generated $126 million of net income plus $179 million of adjusted EBITDA. This scale makes Toast a strong rival in restaurants and QSRs.
Shift4 Payments (FOUR - Free Report) offers integrated payments for restaurants, hospitality, stadiums, gaming and larger merchants. In first-quarter 2026, Shift4 reported $549 million of revenues, up 49% year over year, with EPS of 97 cents. Its strength in high-volume merchant categories makes it relevant as Square moves further upmarket.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have rallied 24.1% over the past three months, outperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.35X, which is at a discount to the Zacks Internet Software industry’s 27.03X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward marginally. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Block rozšiřuje Square o aplikaci ChatGPT a doplněk Claude, aby zákazníci mohli přes AI vyhledávat a objednávat u prodejců. První nasazení míří na americké potravinářské a nápojové obchodníky na Square Online Ordering.
Key Takeaways Block's Square now adds ChatGPT app and Claude plugin for AI-powered seller discovery and ordering. Eligible Square F&B sellers are opted in with no extra setup, new tools, or added marketplace commissions.Square's AI push builds on growing GPV and gross profit as it expands long-term seller discovery. Block’s (XYZ - Free Report) Square is expanding its AI commerce strategy with a new ChatGPT app and Claude plugin. The initiative is designed to help sellers appear when customers ask AI assistants where to eat, shop or book services, while enabling users to place orders directly through those AI experiences.
The initial rollout covers U.S. food and beverage sellers using Square Online Ordering. Eligible merchants are opted in without extra technical setup, new tools or added Square marketplace commissions. Square syncs menu data, operating hours, business information and ordering details in real time through the existing Square Dashboard.
The timing is important because AI is quickly becoming a discovery channel for everyday purchases. Square cited data showing that more than 42% of consumers already use AI tools for shopping tasks, while agentic shoppers could drive nearly $385 billion in U.S. e-commerce spending by 2030.
The move fits Square’s wider strategy. Block’s Square is built to simplify commerce, automate operations and connect neighborhood sellers, including leveraging Cash App’s network of 59 million monthly actives. In the first quarter of 2026, Square Gross Payment Volume (GPV) rose 13% year over year to $61.2 billion, with international GPV up 35%, highlighting healthy demand across markets.
Block is also backing the product push with stronger financial momentum. In first-quarter 2026, the company’s gross profit grew 27% year over year to $2.91 billion, while Square’s gross profit rose 9% to $982 million. Block expects 2026 gross profit of $12.33 billion, representing 19% growth. While the outlook reflects execution across the broader business, the new AI integrations also underscore Square's long-term strategy to expand seller discovery.
How Are Its Competitors Expanding Through AI?PayPal Holdings (PYPL - Free Report) competes with Block through digital wallets, checkout solutions and merchant payments. Its agentic-commerce capabilities connect merchants to AI shopping via Agent Ready, Store Sync and OpenAI/ChatGPT checkout integrations, helping sellers become discoverable and purchasable within AI agents. In 2025, PayPal processed $1.79 trillion in total payment volume (TPV), up 7%.
Shopify (SHOP - Free Report) competes with Block in merchant commerce software, POS, and payments. Its AI integrations include Sidekick, Shopify Catalog with live inventory/pricing sync, Universal Commerce Protocol and ChatGPT Instant Checkout, enabling merchants to sell through AI conversations while keeping order attribution in Shopify. In 2025, Shopify’s revenues reached $11.6 billion, up 30%.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 11.4% over the past year, outperforming the broader industry but underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 25.53X, which is at a discount to the Zacks Internet Software industry’s 26.22X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised a cent northward to $3.90 over the past week. It indicates a 64.56% increase year over year.
Image Source: Zacks Investment Research
Block currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Square od Blocku uzavřel dohodu se Sherwin-Williams a bude pro její zákazníky PRO zajišťovat platby i firemní nástroje. Součástí jsou Square for Services, Square Invoices a Square Checking.
Key Takeaways Block's Square will power payment and business tools for Sherwin-Williams PRO customers.XYZ's Square for Services supports estimates, scheduling, payments and client coordination.Square Invoices and Square Checking help speed payments, improve cash flow and reduce admin work. Block Inc.’s (XYZ - Free Report) Square recently announced that Sherwin-Williams, the world’s largest paint and coatings company, has adopted its payment solutions for its extensive network of PRO+ customers through the Digital Alliance Program.
As part of the collaboration, Sherwin-Williams will use Square for Services to streamline business operations, including creating estimates, scheduling jobs, collecting payments and coordinating with clients from the initial consultation through final invoicing.
Square Invoices further simplifies payment management by enabling painters and contractors to collect deposits upfront, schedule milestone payments within a single invoice, set up recurring billing for long-term clients and send automated payment reminders. These capabilities help reduce administrative burden, improve cash flow predictability and accelerate payment collection. Square Checking provides instant access to funds, enhancing financial flexibility for business owners.
Final Take on BlockThe Sherwin-Williams partnership strengthens Square's position in the professional services ecosystem by expanding the reach of its integrated business and payment solutions. As more contractors adopt Square's platform to manage operations and payments, Block is well-positioned to deepen customer engagement, drive ecosystem growth and support long-term revenue expansion.
Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have rallied 29.6% compared with the industry's growth of 3.5%.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and Reddit Inc. (RDDT - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BILL’s 2026 earnings per share (EPS) has moved northward 1.9% to $2.64 over the past month.
The consensus estimate for RDDT’s 2026 EPS has moved up significantly to $4.83 over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
