Revenue growth decelerated from 19.4% in 2024Q1 to 9.3% in 2026Q2, while gross margin improved to 47.8%, but operating margin volatility (6.7% in 2026Q2 vs. 15.9% in 2025Q4) and a 82.8% year-over-year net income decline highlight earnings instability.
Block, Inc. (XYZ) annual income statement — 13-year revenue, gross profit & net income history
| 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 | 25.04B | 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 % | 5.07% | 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 | 13.43B | 13.83B | 15.23B | 14.41B | 11.54B | 13.24B | 6.76B | 2.82B | 1.99B | 1.37B | 1.13B | 910.14M | 631.87M | 423.65M |
| COGS % of Revenue | - | 57.18% | 63.15% | 65.76% | 65.82% | 74.97% | 71.22% | 59.91% | 60.47% | 62.1% | 66.29% | 71.83% | 74.32% | 76.69% |
| Gross Profit | 11.61B | 10.36B | 8.89B | 7.5B | 5.99B | 4.42B | 2.73B | 1.89B | 1.3B | 839.31M | 576.04M | 356.97M | 218.32M | 128.78M |
| Gross Margin % | 46.36% | 42.82% | 36.85% | 34.24% | 34.18% | 25.03% | 28.78% | 40.09% | 39.53% | 37.9% | 33.71% | 28.17% | 25.68% | 23.31% |
| Gross Profit Growth % | - | 16.55% | 18.44% | 25.25% | 35.57% | 61.7% | 44.65% | 44.95% | 55.33% | 45.7% | 61.37% | 63.51% | 69.53% | - |
| Operating Expenses | 9.07B | 7.31B | 7.2B | 7.12B | 6.02B | 4.26B | 2.75B | 1.86B | 1.34B | 893.51M | 746.49M | 476.82M | 344.23M | 215.77M |
| OpEx % of Revenue | - | 30.23% | 29.86% | 32.5% | 34.33% | 24.11% | 28.98% | 39.53% | 40.64% | 40.35% | 43.69% | 37.63% | 40.49% | 39.06% |
| Selling, General & Admin | 5.27B | 4.27B | 4.13B | 4.23B | 3.74B | 2.6B | 1.69B | 1.06B | 750.4M | 503.72M | 425.87M | 288.48M | 206.3M | 132.9M |
| SG&A % of Revenue | - | 17.65% | 17.14% | 19.29% | 21.36% | 14.72% | 17.78% | 22.53% | 22.75% | 22.75% | 24.92% | 22.77% | 24.26% | 24.06% |
| Research & Development | 3.07B | 2.91B | 2.91B | 2.72B | 2.14B | 1.38B | 885.68M | 674.16M | 497.48M | 321.89M | 268.54M | 188.34M | 137.94M | 82.86M |
| R&D % of Revenue | - | 12.02% | 12.08% | 12.41% | 12.18% | 7.84% | 9.33% | 14.3% | 15.08% | 14.54% | 15.72% | 14.86% | 16.22% | 15% |
| Other Operating Expenses | 4M | 135.73M | 154.71M | 174.04M | 138.76M | 274.86M | 177.67M | 126.96M | 92.44M | 67.9M | 52.09M | 0 | 0 | 0 |
| Operating Income | 2.54B | 3.05B | 1.69B | 381.82M | -27.28M | 161.11M | -18.82M | 26.56M | -36.61M | -54.21M | -170.45M | -119.85M | -125.91M | -86.98M |
| Operating Margin % | 10.15% | 12.59% | 6.99% | 1.74% | -0.16% | 0.91% | -0.2% | 0.56% | -1.11% | -2.45% | -9.98% | -9.46% | -14.81% | -15.75% |
| Operating Income Growth % | - | 80.58% | 341.71% | 1499.75% | -116.93% | 956.3% | -170.85% | 172.53% | 32.45% | 68.2% | -42.22% | 4.81% | -44.75% | - |
| EBITDA | 2.74B | 3.42B | 2.06B | 790.38M | 313.25M | 295.87M | 65.4M | 102.16M | 24.35M | -16.93M | -132.71M | -92.22M | -107.32M | -78.71M |
| EBITDA Margin % | 10.93% | 14.12% | 8.55% | 3.61% | 1.79% | 1.68% | 0.69% | 2.17% | 0.74% | -0.76% | -7.77% | -7.28% | -12.62% | -14.25% |
| EBITDA Growth % | 23.27% | 65.57% | 160.97% | 152.32% | 5.87% | 352.42% | -35.98% | 319.58% | 243.84% | 87.24% | -43.9% | 14.07% | -36.35% | - |
| D&A (Non-Cash Add-back) | 284.16M | 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 |
| EBIT | 909.73M | 1.82B | 1.37B | -29.14M | -529.09M | 420.23M | 272.91M | 399.73M | -18.14M | 12.81M | -119.22M | -174.91M | -151.59M | -103.98M |
| Net Interest Income | -197.35M | -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 | 197.35M | 129.36M | 9.3M | 0 | 36.23M | 33.12M | 56.94M | 21.52M | 17.98M | 10.05M | 0 | 0 | 2.16M | 0 |
| Other Income/Expense | -1.83B | -1.36B | -329.39M | -410.97M | -538.04M | -3.65M | 234.78M | 351.66M | 487K | -8.46M | 780K | -56.22M | -26.74M | -17M |
| Pretax Income | 712.38M | 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 % | 2.84% | 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 | 356.75M | 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 % | 50.08% | 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 | 357.14M | 1.31B | 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 % | 1.43% | 5.4% | 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 % | -87.93% | -54.93% | 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) | 355.63M | 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 | -35.76M | -34.4M | -32.97M | -2.42M | 28.48M | 40.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.59 | 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 % | -87.98% | -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 | 608.85M | 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 | 597.83M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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 $1.31B 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 $3.05B, resulting in an operating profit margin of 12.6%. 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.
Key Metrics
Top Statement Risk
Revenue growth stagnation and margin volatility
Metrics are mathematically derived from official filings.
Growth Stalls Amid Macro Headwinds
Block's revenue growth decelerated from 19.4% in 2024Q1 to 9.3% in 2026Q2, with the latest quarter showing a slight uptick from 4.9% prior, per income statement data.
The deceleration is broad-based, with quarterly revenue growth oscillating between -3.1% and 11.2% over the past two years, indicating a lack of sustained momentum. The recent uptick to 9.3% in 2026Q2 may reflect a stabilization, but it remains well below the double-digit growth seen in early 2024. This suggests that Block's core businesses are maturing, and investors should monitor whether new initiatives can reaccelerate growth.
Gross Margin Expansion Drives Profitability
Gross margin improved from 35.2% in 2024Q1 to 47.8% in 2026Q2, a 12.6 percentage point increase, as reported in financial statements, signaling a favorable mix shift.
The consistent gross margin expansion across the period indicates that Block is successfully shifting toward higher-margin revenue streams, possibly including software and financial services. This trend is a key driver of operating profitability, as it has allowed operating margin to expand from 4.2% to 6.7% despite rising operating expenses. However, the pace of expansion may slow as the mix stabilizes, and competitive pressures could erode pricing power.
Operating Leverage Emerges but Remains Inconsistent
Operating income scaled from $249.7M in 2024Q1 to $446.6M in 2026Q2, but quarterly swings are wide, with 2025Q4 showing $995.4M, per income statement data.
The operating margin has improved from 4.2% to 6.7% over the period, but the path has been volatile, with a peak of 15.9% in 2025Q4. This suggests that operating leverage is not yet a stable feature, as SG&A and R&D expenses fluctuate significantly. The recent quarter's operating income of $446.6M is below the prior year's $778.4M, indicating that cost control may be slipping, and investors should watch for sustained efficiency gains.
Earnings Volatility Masks Underlying Operations
Net income swung from $1.9B in 2024Q4 to -$308.7M in 2026Q1, with EPS ranging from $3.04 to -$0.52, based on reported figures, highlighting non-operating distortions.
The extreme volatility in net income and EPS, including a $1.9B gain in 2024Q4, suggests that one-time items, such as tax benefits or investment gains, are significantly impacting reported earnings. Stock-based compensation remains high at $598.5M in 2026Q2, which dilutes shareholders and reduces the quality of reported EPS. Investors should focus on operating income and cash flow to assess underlying performance, as net income is not a reliable indicator.
R&D and SG&A Costs Outpace Revenue Growth
R&D and SG&A combined grew from $1.6B in 2024Q1 to $2.1B in 2026Q2, a 31% increase, while revenue grew only 10%, per income statement data.
The disproportionate growth in operating expenses, particularly R&D which spiked to $1.0B in 2026Q1, indicates that Block is investing heavily in future growth initiatives. However, this has pressured operating margins, which remain below the peer average of 18.3% for PayPal. The elevated SBC, which is included in these costs, further inflates expense growth, and management's discipline in controlling these costs will be critical to improving profitability.
2025Q4 Marks a Profitability Inflection
In 2025Q4, operating margin jumped to 15.9% from 8.6% in the prior quarter, with operating income of $995.4M, as reported in financial statements, a clear inflection point.
The sharp improvement in operating margin in 2025Q4, driven by a combination of higher gross margin and lower SG&A, suggests that Block achieved a step-change in operational efficiency. However, this level was not sustained, as operating margin fell to 6.7% in 2026Q2, indicating that the inflection may have been temporary or due to one-time factors. The lasting impact is uncertain, and investors should assess whether the company can replicate this efficiency on a consistent basis.
Growth and Margin Sustainability in Question
Despite gross margin expansion, revenue growth has decelerated to single digits, and operating margin remains volatile, with 2026Q2 net income down 82.8% year-over-year, per income statement data.
Short-sellers would argue that Block's revenue growth is stagnating, with the latest quarter's 9.3% growth barely above inflation, and that the gross margin expansion may be reaching its limits. The high SBC, which exceeds net income in some quarters, suggests that reported earnings are overstated, and the volatile operating margins indicate a lack of pricing power or cost control. If growth does not reaccelerate, the market may re-rate the stock lower, especially given the competitive pressures from peers like PayPal and Affirm.