Block, Inc. (XYZ)

FairStock Score: 23/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Block as a payments and financial-services ecosystem, with Square serving merchants and Cash App serving consumers. The business has scale—fiscal 2025 revenue was $24.2B—and it generates meaningful cash, with trailing free cash flow of $3.9B and an 8.6% FCF yield, both FairStock calculations tied to the 2026-10-26 close. Revenue is growing modestly—fiscal Q2 2026 revenue was $6.6B versus $6.1B in fiscal Q2 2025—but profit fell sharply over the same comparison. The reported profit record is uneven: fiscal 2024 net income was $2.9B, fiscal 2025 net income fell to $1.3B, and fiscal Q2 2026 net income was just $88.5M versus $538.5M in fiscal Q2 2025. The Lynch category is a computed TURNAROUND because Block returned to profit after a loss within the last three years; fiscal Q1 2026 showed a $308.7M loss before fiscal Q2 2026’s $88.5M profit. Financial health is not alarming—debt-to-equity is 0.33 and the Piotroski F-Score is 7/9—but returns are weak: ROE is 1.61% and ROCE is 2.01%, both FairStock calculations. At $74.55 on 2026-10-26, the FairStock P/E is 133.13 and the Graham Number is $21.50, a negative margin of safety of 255.63%; the FairStock Score is 23/100. The ecosystem may have switching costs, but I do not see a wide, proven moat in these returns. I prefer to see durable profit and return-on-capital improvement rather than pay a premium for a turnaround with volatile earnings.

In plain English: Block runs Square tools for sellers and Cash App money services. It generates cash but reported profits are thin and uneven: fiscal 2025 revenue was $24.2B while net income fell to $1.3B from $2.9B in fiscal 2024, and fiscal Q2 2026 net income was only $88.5M. At $74.55 on 2026-10-26, the price looks expensive compared with reported earnings and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer