Revenue growth has slowed significantly from 24.1% in 2023Q4 to 4.9% in 2026Q1, while operating income has deteriorated into a $172.0 million loss during the same period.
| 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 |
|---|
| Sales/Revenue | 24.48B | 24.19B | 24.12B | 21.92B | 17.53B | 17.66B | 9.5B | 4.71B | 3.3B | 2.21B | 1.71B | 1.27B | 850.19M | 552.43M |
| Revenue Growth % | 2.27% | 0.3% | 10.06% | 25.01% | -0.73% | 85.95% | 101.5% | 42.91% | 48.95% | 29.59% | 34.85% | 49.04% | 53.9% | - |
| Cost of Goods Sold | 13.47B | 13.83B | 15.23B | 14.58B | 11.54B | 13.35B | 6.84B | 2.89B | 2.05B | 1.41B | 1.16B | 910.14M | 631.87M | 423.65M |
| COGS % of Revenue | - | 57.18% | 63.15% | 66.55% | 65.82% | 75.61% | 71.99% | 61.35% | 62.07% | 63.47% | 67.9% | 71.83% | 74.32% | 76.69% |
| Gross Profit | 11.01B | 10.36B | 8.89B | 7.33B | 5.99B | 4.31B | 2.66B | 1.82B | 1.25B | 808.76M | 548.5M | 356.97M | 218.32M | 128.78M |
| Gross Margin % | 44.99% | 42.82% | 36.85% | 33.45% | 34.18% | 24.39% | 28.01% | 38.65% | 37.93% | 36.53% | 32.1% | 28.17% | 25.68% | 23.31% |
| Gross Profit Growth % | - | 16.55% | 21.26% | 22.35% | 39.1% | 61.91% | 46.04% | 45.64% | 54.67% | 47.45% | 53.65% | 63.51% | 69.53% | - |
| Operating Expenses | 9.98B | 8.65B | 8B | 6.7B | 6.62B | 3.85B | 2.49B | 1.67B | 1.19B | 795.95M | 667.72M | 476.82M | 344.23M | 215.77M |
| OpEx % of Revenue | - | 35.76% | 33.15% | 30.56% | 37.74% | 21.8% | 26.23% | 35.39% | 36.22% | 35.95% | 39.08% | 37.63% | 40.49% | 39.06% |
| Selling, General & Admin | 4.65B | 2B | 4.13B | 3.98B | 3.74B | 2.53B | 1.66B | 1.04B | 730.57M | 491.02M | 412.37M | 288.48M | 206.3M | 132.9M |
| SG&A % of Revenue | - | 8.26% | 17.14% | 18.15% | 21.36% | 14.32% | 17.48% | 22.16% | 22.15% | 22.18% | 24.13% | 22.77% | 24.26% | 24.06% |
| Research & Development | 2.48B | 0 | 2.91B | 2.72B | 2.14B | 1.32B | 831.72M | 623.82M | 464.17M | 304.93M | 255.35M | 188.34M | 137.94M | 82.86M |
| R&D % of Revenue | - | - | 12.08% | 12.41% | 12.18% | 7.47% | 8.76% | 13.23% | 14.07% | 13.77% | 14.94% | 14.86% | 16.22% | 15% |
| Other Operating Expenses | 4M | 6.65B | 948.93M | 0 | 736.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.04B | 1.71B | 892.33M | 632.83M | -624.53M | 458.34M | 168.91M | 153.52M | 56.16M | 12.81M | -119.22M | -119.85M | -125.91M | -86.98M |
| Operating Margin % | 4.24% | 7.06% | 3.7% | 2.89% | -3.56% | 2.6% | 1.78% | 3.26% | 1.7% | 0.58% | -6.98% | -9.46% | -14.81% | -15.75% |
| Operating Income Growth % | - | 91.46% | 41.01% | 201.33% | -236.26% | 171.35% | 10.03% | 173.34% | 338.36% | 110.75% | 0.53% | 4.81% | -44.75% | - |
| EBITDA | 1.83B | 1.82B | 1.27B | 1.04B | -284.01M | 676.23M | 323.37M | 258.81M | 117.12M | 50.09M | -81.47M | -92.22M | -107.32M | -78.71M |
| EBITDA Margin % | 7.46% | 7.52% | 5.26% | 4.75% | -1.62% | 3.83% | 3.4% | 5.49% | 3.55% | 2.26% | -4.77% | -7.28% | -12.62% | -14.25% |
| EBITDA Growth % | -16.33% | 43.42% | 21.8% | 466.67% | -142% | 109.12% | 24.95% | 120.97% | 133.82% | 161.48% | 11.66% | 14.07% | -36.35% | - |
| D&A (Non-Cash Add-back) | 789.35M | 0 | 376.13M | 408.56M | 340.52M | 217.89M | 154.47M | 105.29M | 60.96M | 37.28M | 37.74M | 27.63M | 18.59M | 8.27M |
| EBIT | 1.64B | 1.82B | 1.69B | -29.14M | -27.28M | 190.59M | 272.91M | 399.73M | -18.14M | -52.61M | -169.67M | -174.91M | -151.59M | -103.98M |
| Net Interest Income | -165.31M | -129.36M | -9.3M | 47.22M | -36.23M | -33.12M | -56.94M | -21.52M | -17.98M | -10.05M | 533K | 1.61M | -2.16M | 12K |
| Interest Income | 0 | 0 | 0 | 47.22M | 0 | 0 | 0 | 0 | 0 | 0 | 533K | 1.61M | 0 | 12K |
| Interest Expense | 165.31M | 129.36M | 9.3M | 0 | 36.23M | 33.12M | 56.94M | 21.52M | 17.98M | 8.46M | 0 | 0 | 2.16M | 0 |
| Other Income/Expense | 33.18M | -18.5M | 464.83M | -661.97M | 59.22M | -300.87M | 47.06M | 224.7M | -92.29M | -75.48M | -50.45M | -56.22M | -26.74M | -17M |
| Pretax Income | 1.07B | 1.69B | 1.36B | -29.14M | -565.32M | 157.46M | 215.97M | 378.21M | -36.13M | -62.66M | -169.67M | -176.07M | -152.65M | -103.98M |
| Pretax Margin % | 4.37% | 6.98% | 5.63% | -0.13% | -3.22% | 0.89% | 2.27% | 8.02% | -1.1% | -2.83% | -9.93% | -13.9% | -17.96% | -18.82% |
| Income Tax | 263.39M | 385.7M | -1.51B | -8.02M | -12.31M | -1.36M | 2.86M | 2.77M | 2.33M | 149K | 1.92M | 3.75M | 1.44M | 513K |
| Effective Tax Rate % | 24.61% | 22.82% | -111.21% | 27.52% | 2.18% | -0.87% | 1.33% | 0.73% | -6.44% | -0.24% | -1.13% | -2.13% | -0.94% | -0.49% |
| Net Income | 805.66M | 1.3B | 2.9B | 9.77M | -540.75M | 166.28M | 213.1M | 375.45M | -38.45M | -62.81M | -171.59M | -179.82M | -154.09M | -104.49M |
| Net Margin % | 3.29% | 5.39% | 12.01% | 0.04% | -3.08% | 0.94% | 2.24% | 7.97% | -1.17% | -2.84% | -10.04% | -14.19% | -18.12% | -18.92% |
| Net Income Growth % | -69.19% | -54.98% | 29546.41% | 101.81% | -425.19% | -21.97% | -43.24% | 1076.38% | 38.78% | 63.39% | 4.58% | -16.69% | -47.47% | - |
| Net Income (Continuing) | 806.81M | 1.3B | 2.87B | -21.12M | -553M | 158.83M | 213.1M | 375.45M | -38.45M | -62.81M | -171.59M | -179.82M | -154.09M | -104.49M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -34.31M | -34.4M | -32.97M | -2.42M | 28.48M | 40.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.35 | 2.10 | 4.55 | 0.02 | -0.93 | 0.33 | 0.44 | 0.81 | -0.09 | -0.17 | -0.50 | -0.63 | -0.54 | -0.37 |
| EPS Growth % | -68.78% | -53.85% | 28516.35% | 101.71% | -381.82% | -25% | -45.68% | 954.43% | 44.24% | 66% | 20.63% | -16.67% | -45.95% | - |
| EPS (Basic) | - | 2.13 | 4.70 | 0.02 | -0.93 | 0.36 | 0.48 | 0.88 | -0.09 | -0.17 | -0.50 | -0.63 | -0.54 | -0.37 |
| Diluted Shares Outstanding | 597.59M | 622.84M | 636.39M | 614.02M | 578.95M | 501.78M | 482.17M | 466.08M | 405.73M | 379.34M | 341.56M | 327.13M | 284.31M | 284.31M |
| Basic Shares Outstanding | 597.59M | 612.24M | 616.99M | 608.86M | 578.95M | 458.43M | 443.13M | 425M | 405.73M | 369.49M | 341.56M | 327.13M | 284.31M | 284.31M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and Competitive Saturation
As reported in recent financial filings, Block's year-over-year revenue growth has decelerated significantly from 24.1% in 2023Q4 to 4.9% in 2026Q1, suggesting that the company's core transaction-based model is encountering market saturation and increased competitive pressure within its primary domestic operating environment.
The transition from double-digit growth to low single digits indicates that the company's reliance on transaction volume is becoming a drag on top-line expansion. Investors should monitor whether the shift toward subscription-based services can offset the cooling demand in the merchant and consumer segments.
According to the provided income statement data, Block achieved a gross margin of 48.0% in 2026Q1, reflecting a steady climb from 34.3% in 2023Q4, though this improvement appears heavily influenced by shifts in product mix rather than pure pricing power in the core merchant business.
While the expansion in gross margin is a positive signal, it warrants further investigation into how much of this gain is attributable to higher-margin software services versus the volatile impact of Bitcoin-related accounting. The structural reliance on low-margin transaction processing suggests that true margin durability remains unproven.
Based on reported figures, Block's operating income swung to a loss of $172.0 million in 2026Q1, demonstrating that despite gross profit growth, the company has struggled to scale its operating expenses efficiently, with SG&A and R&D costs frequently outpacing the gains in core profitability.
The inability to maintain positive operating margins suggests that the company's current cost structure is not yet optimized for a slower-growth environment. The persistent high level of stock-based compensation further complicates the assessment of true operating efficiency and shareholder value creation.
As indicated by the financial statements, Block's net income remains highly volatile, with a significant $308.7 million loss in 2026Q1, largely driven by the ongoing impact of substantial stock-based compensation expenses that consistently exceed $300 million per quarter, obscuring the company's underlying cash-generative potential.
The recurring reliance on equity-based incentives suggests that GAAP earnings may not accurately reflect the company's operational performance. Investors should be cautious of the disconnect between reported net income and the actual cash flow generated from core business activities.
Based on an analysis of the income statement, the primary risk to the narrative is that Block's recent pivot toward the 'Rule of 40' may be undermined by a structural inability to control costs while simultaneously facing a plateau in its core user acquisition metrics.
Short-term margin improvements may be insufficient to counter the long-term threat of vertical-specific competitors displacing the Square ecosystem. The company's heavy exposure to the US consumer and small business sectors leaves it vulnerable to any sustained downturn in discretionary spending or regulatory tightening.
Quick answers to the most common questions about buying XYZ stock.
For fiscal year 2025, Block, Inc. (XYZ) reported total revenue of $24.19B. This represents a 4279.5% increase compared to $552.4M in 2013.
Block, Inc. (XYZ) is profitable, generating $1.30B in net income for the fiscal year ending 2025 with a net profit margin of 5.4%.
Block, Inc. (XYZ) reported an operating income of $1.71B, resulting in an operating profit margin of 7.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Block, Inc. (XYZ) generated $10.36B in gross profit for the year, representing a gross profit margin of 42.8%. This demonstrates the company's core pricing power and production efficiency.