Block

XYZ

Software - Infrastructure · Technology

Price

$79.94

-1.58 (-1.94%)

Market Cap

$47.58B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+24.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 501.8M (2021) → 622.8M (2025)

Block, Inc. builds financial tools for two main groups: small businesses and everyday people. Its Square products help shops and restaurants accept card payments, track sales, and manage payroll. Its Cash App lets regular people send money, spend with a debit card, buy stocks, and trade Bitcoin.

Block makes money by taking a small cut of every payment processed through Square, charging businesses for software subscriptions, and earning fees and interest through Cash App's financial services. The company operates mainly in the United States, with a growing presence in Canada, Australia, and the UK. Its large base of interconnected Square sellers and Cash App users creates a network that is hard for smaller rivals to replicate. The biggest risk Block faces is that a large portion of its gross profit depends on Cash App's Bitcoin trading activity, which swings sharply with cryptocurrency prices and could hurt results during prolonged crypto downturns.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-267.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$2.9B/ year

→ Flat (-0% vs prior year)

12.0% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

10.9%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$6.9B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Block is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

48.0%

Healthy — 48.0% gross margin

Operating Margin

-2.8%

Losing money on operations — -2.8%

ROCE

-0.7%

Weak — -0.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+2.3%

Nearly flat sales (2.3% YoY)

EPS YoY

-69.3%

Earnings shrinking (-69.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

424%

Turns 424% of profit into real cash

FCF Margin

13.3%

Converts sales into free cash efficiently (13.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.07

Conservative — low debt load (0.07)

Interest Cover

6.27x

Adequate interest coverage (6.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

61.5x

Expensive — P/E 61.5

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+49.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (61.5 → 12.3)

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Dividends

Not applicable for this business.

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