The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 45 | 56.8x | 20.8x | Around median | |
Growth | 54 | 2.3% | 6.1% | Around median | |
Quality | 65 | 4.3% | 6.6% | Around median | |
Safety | 73 | — | 0.7x | Top tier | |
Capital Return | 58 | — | 2.02% | Around median | |
Momentum | 77 | 5.7% | 4.1% | Top tier | |
Sentiment | 58 | 26 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Block, Inc. is a financial technology company that operates through two main ecosystems, Square for sellers and Cash App for consumers, with related products such as Afterpay, Cash App Card, Cash App Pay, Cash App Borrow, and Bitcoin payments. The company generates its revenue and gross profit from payment processing and gross payment volume GPV among Square sellers, from commerce solutions and financial services within Cash App, from buy now, pay later functions through Afterpay, and from banking and lending products provided through Square Financial Services or banking partners. In the first quarter of fiscal 2026, management said growth came from a clear acceleration in both Cash App and Square, with a particular focus on artificial intelligence through Moneybot and Managerbot as a new operational and product layer.
In the latest reported quarter, 2026 Q1, Block recorded revenue of 6.1 billion dollars and gross profit of 2.9 billion dollars, equivalent to a gross margin of about 48%, but it recorded a net loss of 308.7 million dollars and negative earnings per share of 0.52 dollars according to EDGAR data. On the adjusted metrics presented by management in the May 7, 2026 call, gross profit grew 27% year over year to 2.91 billion dollars, adjusted operating income reached 728 million dollars with a 25% margin, adjusted EBITDA reached 1.0 billion dollars, while adjusted diluted EPS reached 0.85 dollars with growth of 52%. This divergence between the net loss under GAAP and adjusted profitability means that the quality of reported earnings requires a dual reading between adjusted operating performance and the net accounting result.
In terms of performance mix, gross profit in Cash App grew 38% year over year in the first quarter, supported by acceleration in Commerce Enablement and Financial Solutions, while monthly transacting accounts in Cash App grew 4% and inflows per transacting account increased 10%. In Square, gross profit growth accelerated to 9% and GPV grew 13%, with GPV growth of 21% among food and beverage sellers, 22% among mid-market sellers, and 35% internationally or 26% on a constant currency basis. On the trailing twelve months ending 2026, the company recorded revenue of 24.0 billion dollars, gross profit of 10.4 billion dollars, net income of 881.2 million dollars, and earnings per share of 1.47 dollars, compared with annual net income of 1.3 billion dollars and earnings per share of 2.10 dollars in 2025.
Block’s valuation should be read from two angles: there is no stated price-to-earnings multiple in the data, while the company recorded a net loss in Q1 2026 despite generating positive net income on a TTM basis of 881.2 million dollars. The analyst consensus is buy and the average price target is 84.5 dollars, with a target range between 74 and 98 dollars, and this average is above the 52-week range high of 82.5 dollars, meaning that if the stock is within its reported annual range, it is below the consensus target. In contrast, the heavy reliance on adjusted metrics and the presence of a strong sell signal from insiders make the valuation sensitive to management’s ability to convert gross profit growth into sustainable net profit under GAAP.
Figures in the text are as of 2026-06-25; the live price is shown at the top of the page.
Block announced on May 7, 2026 revenue of 6.1 billion dollars and gross profit of 2.9 billion dollars according to EDGAR data. In the adjusted metrics presented by management, gross profit grew 27% to 2.91 billion dollars, and adjusted operating income reached 728 million dollars with a 25% margin. Nevertheless, the statements showed a net loss of 308.7 million dollars and negative earnings per share of 0.52 dollars in Q1 2026. Therefore, the quarter was strong operationally in terms of gross profit and adjusted metrics, but weak from an accounting perspective in terms of net income under GAAP.
Gross profit in Cash App grew 38% year over year in Q1 2026, driven by acceleration in Commerce Enablement and Financial Solutions. Monthly transacting actives increased 4%, while inflows per transacting active rose 10%, indicating greater depth of usage. Primary banking actives also grew 18% to 9.7 million, and management said consumer lending originations increased 82%. The company also launched Afterpay Pre-Purchase, expanded Buy Now, Pay Later to peer-to-peer and Cash App Pay, and made Moneybot generally available.
In Square, gross profit growth accelerated to 9% and GPV grew 13% in Q1 2026, or 11.5% on a constant currency basis. Growth was stronger in specific areas, as GPV among food and beverage sellers increased 21%, among mid-market sellers by 22%, while international GPV grew 35% or 26% in constant currency. The company launched the new generation of Square Register and expanded Square Bitcoin payments to the retail and services sectors. Managerbot also became available to more than one million sellers, and management is targeting its availability to all Square sellers in June.
Automated analysis for informational purposes only — not investment advice.
Jack Dorsey said that Block is transforming into a company focused on intelligence, and that Moneybot and Managerbot are the first two practical applications of this direction. Moneybot became generally available within Cash App, and management said that more than one million active users used it in about a week without in-app or external marketing. Managerbot is available to more than one million sellers and includes more than 100 native agents that act on behalf of the seller through sales data, catalog, customer tools, and reports. Internally, the company said production code changes per engineer rose by more than 2.5 times from January to April, linking the artificial intelligence strategy to the speed of product development.
Block raised its annual guidance for 2026 after first-quarter results, and now expects gross profit of 12.33 billion dollars with growth of 19%. It also expects adjusted operating income of 3.34 billion dollars and adjusted diluted EPS of 3.85 dollars with year-over-year growth of 62%. For the second quarter, the company expects gross profit of 3.04 billion dollars with growth of 20%, adjusted operating income of 740 million dollars, and adjusted diluted EPS of 0.86 dollars. At the same time, management expects to exit 2026 with a gross profit growth rate in the mid-teens, while Cash App actives continue to grow at a low single-digit pace.
The provided insider activity is clearly negative, as the signal carries a strong_sell rating. Over the last three months, net insider activity was negative 22.1 million dollars, with 0 purchases and 30 sales. The latest mentioned transaction was dated 2026-06-24, which is after the Q1 2026 earnings call held on May 7, 2026. This does not by itself explain the company’s fundamentals, but it is an important risk factor alongside the net loss recorded in the first quarter.