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Free cash flow surged to $1.9B (28.7% margin) in 2026Q2, but working capital swings (ranging from -$486.4M to +$482.3M) and cumulative buybacks of $4.8B over ten quarters suggest cash generation is volatile and heavily deployed to shareholders.
Block, Inc. (XYZ) cash flow statement — 13-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 5.02B | 2.58B | 1.71B | 100.96M | 175.9M | 847.83M | 173.11M | 327.63M | 295.08M | 127.71M | 23.13M | 21.12M | -112.38M | -60.58M |
| Operating CF Margin % | - | 10.66% | 7.08% | 0.46% | 1% | 4.8% | 1.82% | 6.95% | 8.95% | 5.77% | 1.35% | 1.67% | -13.22% | -10.97% |
| Operating CF Growth % | 5566.49% | 51.09% | 1591.1% | -42.6% | -79.25% | 389.76% | -47.16% | 11.03% | 131.05% | 452.12% | 9.51% | 118.8% | -85.51% | - |
| Net Income | 357.14M | 1.3B | 2.9B | -21.12M | -553M | 158.83M | 213.1M | 375.45M | -38.45M | -62.81M | -171.59M | -179.82M | -154.09M | -104.49M |
| Depreciation & Amortization | 195.25M | 369.53M | 376.13M | 408.56M | 340.52M | 134.76M | 84.21M | 75.6M | 60.96M | 37.28M | 37.74M | 27.63M | 18.59M | 8.27M |
| Stock-Based Compensation | 1.54B | 1.22B | 1.27B | 1.28B | 1.07B | 608.04M | 397.8M | 297.86M | 216.88M | 155.84M | 138.79M | 82.29M | 36.1M | 14.66M |
| Deferred Taxes | 253.54M | 335.04M | 0 | -85.88M | -69.59M | -10.44M | -8.02M | -1.38M | -646K | -1.39M | 58K | 26K | -2.66M | 33.83M |
| Other Non-Cash Items | 2.47B | 196.96M | -2.25B | -791.43M | -13.36M | 178.04M | -504.82M | -269.04M | 72.42M | 42.12M | 10.58M | 48.79M | 19.56M | -13.61M |
| Working Capital Changes | 514.69M | -841.5M | -590.18M | -685.26M | -599.94M | -221.4M | -9.17M | -150.86M | -16.08M | -43.33M | 7.55M | 48.67M | -26.88M | 771K |
| Change in Receivables | -284.13M | -487.32M | 1.95B | -1.11B | -1.5B | -346.22M | -473.87M | -326.6M | 245.79M | -305.83M | -178.41M | -27.42M | -50.36M | -27.7M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -34.92M | -10.23M | 59.81M | 14.57M | -34.8M | 7.63M |
| Change in Payables | -23.02M | 373.6M | -1.86B | 802.54M | 1.27B | 186.8M | 1.88B | 223.22M | -45.05M | 369.93M | 170.3M | 83.84M | 53.13M | 20.21M |
| Cash from Investing | -2.94B | -2.8B | 649.95M | 683.2M | 1.23B | -1.31B | -606.64M | 95.19M | -905.85M | -340.61M | -122.73M | -45.1M | -24.55M | -10.8M |
| Capital Expenditures | -206.21M | -155.04M | -153.95M | -151.15M | -170.81M | -134.32M | -138.4M | -62.5M | -61.2M | -26.1M | -25.43M | -37.43M | -28.79M | -47.93M |
| CapEx % of Revenue | 0.82% | 0.64% | 0.64% | 0.69% | 0.97% | 0.76% | 1.46% | 1.33% | 1.86% | 1.18% | 1.49% | 2.95% | 3.39% | 8.68% |
| Acquisitions | 0 | 0 | 0 | 0 | 539.45M | -163.97M | -79.22M | 288.95M | -112.4M | -1.92M | -1.36M | -4.5M | 11.71M | -2.87M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 19.14B | 14.87B | 603.98M | 272.86M | -169.4M | -170M | -50M | 0 | -1.58M | 0 | -104K | -1.29M | -7.47M | 40M |
| Cash from Financing | -354.19M | -613.1M | 1.95B | -240.14M | 97.58M | 2.65B | 3.68B | 243.4M | 515.75M | 454.93M | 90.74M | 264.76M | 194.15M | 18.91M |
| Debt Issued (Net) | 249.38M | 1.17B | 1.93B | -209.02M | -323.14M | 2.01B | 2.58B | 0 | 636.28M | 428.25M | -168K | -30M | 30M | 0 |
| Equity Issued (Net) | -2.45B | -2.24B | -1.17B | -156.81M | 0 | 126.72M | 0 | 0 | 0 | 0 | 0 | 281.21M | 148.75M | 1K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.53B | -2.33B | -1.17B | -156.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.84B | 457.59M | 1.2B | 125.7M | 420.72M | 520.05M | 1.1B | 243.4M | -120.52M | 26.68M | 90.91M | 13.55M | 15.4M | 18.91M |
| Net Change in Cash | 584.54M | -1.34B | 4.22B | 573.18M | 1.46B | 2.18B | 3.26B | 670.07M | -102.23M | 246.34M | -807K | 240.89M | 56.14M | -53.23M |
| Free Cash Flow | 4.82B | 2.42B | 1.55B | -50.19M | 5.09M | 543.51M | -15.29M | 265.13M | 232.29M | 101.61M | -2.7M | -17.59M | -141.57M | -108.51M |
| FCF Margin % | 19.24% | 10.02% | 6.44% | -0.23% | 0.03% | 3.08% | -0.16% | 5.62% | 7.04% | 4.59% | -0.16% | -1.39% | -16.65% | -19.64% |
| FCF Growth % | 354.66% | 56.09% | 3195.04% | -1086.44% | -99.06% | 3654.21% | -105.77% | 14.14% | 128.6% | 3860.7% | 84.64% | 87.57% | -30.47% | - |
| FCF per Share | 7.91 | 3.89 | 2.44 | -0.08 | 0.01 | 1.08 | -0.03 | 0.57 | 0.57 | 0.27 | -0.01 | -0.05 | -0.50 | -0.38 |
| FCF Conversion (FCF/Net Income) | 13.49x | 1.98x | 0.59x | 10.33x | -0.33x | 5.10x | 0.81x | 0.87x | -7.67x | -2.03x | -0.13x | -0.12x | 0.73x | 0.58x |
| Interest Paid | 0 | 246.33M | 205.78M | 130.01M | 84.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 129.39M | 270.31M | 81.38M | 39.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying XYZ stock.
Block, Inc. (XYZ) generated $2.58B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Block, Inc. (XYZ) generated $2.42B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Block, Inc. (XYZ) spent $155.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Block, Inc. (XYZ) spent $2.33B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Revenue growth stagnation and margin volatility
Metrics are mathematically derived from official filings.
Cash Conversion Diverges Sharply
Block's operating cash flow exceeded net income by 22.4x in 2026Q2, per reported figures, but 2026Q1 showed negative net income with positive OCF, indicating significant non-cash distortions.
The OCF/NI ratio swung from -3.13 in 2026Q1 to 22.43 in 2026Q2, reflecting the volatility in net income driven by non-operating items. The persistent gap between net income and operating cash flow suggests that earnings quality is heavily influenced by non-cash adjustments, such as stock-based compensation and changes in working capital, rather than core operational profitability.
FCF Rebound Masks Underlying Volatility
Free cash flow surged to $1.9B in 2026Q2, a 28.7% margin, from a negative -$13.2M in 2024Q4, based on financial statements, but the trajectory is uneven with wide quarterly swings.
The FCF margin improved from -0.2% in 2024Q4 to 28.7% in 2026Q2, but this is not a smooth progression; 2025Q1 saw a margin of only 1.8%. The volatility suggests that FCF is not yet a reliable indicator of sustained cash generation, and investors should monitor whether the recent strength can be maintained.
Capital Intensity Remains Minimal
Capital expenditures averaged under 1% of revenue across the last ten quarters, per reported data, indicating a highly asset-light model with minimal reinvestment needs.
CapEx/Rev peaked at 1.3% in 2026Q2, but generally stayed below 1%, which is typical for software companies. This low capital intensity means that FCF is largely a function of operating cash flow, and the company can return substantial cash to shareholders without heavy reinvestment.
Working Capital Swings Drive Cash Flow
Working capital changes ranged from -$486.4M to +$482.3M over the past ten quarters, as reported, indicating that Block's cash flow is highly sensitive to timing of collections and payables.
The large fluctuations in working capital, such as the -$486.4M drag in 2025Q4 and the +$482.3M boost in 2026Q2, suggest that Block's operating cash flow is not purely driven by earnings but also by short-term balance sheet movements. This may reflect the company's payment processing business, where settlement timing can cause significant swings.
Aggressive Buybacks Outpace Cash Generation
Block repurchased $700.9M of stock in 2026Q2, exceeding its $1.9B FCF, and cumulative buybacks over ten quarters reached $4.8B, per financial statements, signaling a strong commitment to returning capital.
Despite no dividends, Block has consistently allocated significant cash to buybacks, with quarterly repurchases ranging from $183.2M to $790.1M. This deployment strategy appears to be a priority, but it also reduces the cash buffer and may indicate that management views the stock as undervalued. Investors should monitor whether buybacks are accretive given the volatile earnings.
Cumulative Earnings vs Cash Gap Widens
Over the last ten quarters, cumulative net income was $3.8B while operating cash flow reached $7.3B, per reported data, a gap of $3.5B that underscores the impact of non-cash charges.
The cumulative OCF exceeding net income by nearly 2x suggests that reported earnings understate the company's cash-generating ability, likely due to large non-cash expenses like stock-based compensation and depreciation. This divergence may indicate that the market should focus on cash flow metrics rather than net income when valuing Block.
What Could Invalidate the Base Case
Block's cash flow strength may be overstated if working capital swings reverse, as seen in 2025Q4 when OCF dropped to $621M despite positive net income, per reported figures.
The reliance on working capital timing and non-cash adjustments means that reported OCF may not be sustainable. If the company faces a prolonged period of negative working capital changes, as in 2025Q4, cash flow could deteriorate sharply. Additionally, the aggressive buyback program could strain liquidity if FCF does not remain at recent levels, warranting close monitoring of cash generation sustainability.