Block (XYZ): Square Expansion and Cash App Monetization Support Growth
Block (NYSE: XYZ) is a U.S.-based fintech company operating an ecosystem of financial and commerce services for businesses and consumers. Its two core segments are Square, which provides payment, software and financial solutions for merchants, and Cash App, a consumer financial platform.
Square serves approximately 4 million merchants, while Cash App offers P2P transfers, debit cards, investing, lending and BNPL services. As of the end of Q2 2026, Cash App had 59 million monthly transacting active users.
Latest completed close: $76.22
12-month price target: $105.00
Potential upside: ~37.8%
Stop-loss: $45.00
The investment case centers on accelerating merchant acquisition at Square and increasingly diversified monetization across Cash App.
Square continues to benefit from expanding distribution channels and improved restaurant-focused solutions.
In Q2 2026, Square’s total gross payment volume increased 13% year over year, while U.S. GPV growth accelerated to 10%, its fastest pace since Q2 2023.
Payment volumes increased 20% in the restaurant segment and more than 20% among mid-market merchants.
Expansion of direct sales teams and independent sales organization partnerships, together with improvements in restaurant-specific software and hardware, is supporting merchant acquisition and strengthening Square’s competitive position.
The research also highlights accelerating New Volume Added, a leading indicator of future GPV growth. Based on these trends, the investment thesis expects continued double-digit Square gross profit growth in 2027, supported by merchant acquisition and broader adoption of the platform’s financial services.
Cash App provides another important growth driver as monetization expands beyond lending.
Cash App gross profit increased 31% year over year in Q2 2026, while Cash App Card spending volumes grew more than 20%, significantly faster than the broader U.S. debit-card market.
An important monetization opportunity is expansion of the Primary Banking Active user base. According to the research, these users generate approximately $300 in annual revenue per user, compared with around $20 for P2P-only users.
Expansion of Cash App Green, integration of Afterpay with Cash App Card, and the launch of Managed Accounts for children aged 6–12 could support engagement and transaction-based revenue growth.
At the same time, Cash App increased Borrow fees from 5% to 7.5% and extended loan terms from four to six weeks, which could improve lending profitability.
Our research expects lending growth to moderate while gross-profit drivers become more diversified, potentially easing investor concerns around credit risk.
Our 12-month price target is $105, with a recommended stop-loss at $45.
At the latest completed close of $76.22, the $105 target implies approximately 37.8% potential upside.
Block (NYSE: XYZ) is a U.S.-based fintech company operating an ecosystem of financial and commerce services for businesses and consumers. Its two core segments are Square, which provides payment, software and financial solutions for merchants, and Cash App, a consumer financial platform.
Square serves approximately 4 million merchants, while Cash App offers P2P transfers, debit cards, investing, lending and BNPL services. As of the end of Q2 2026, Cash App had 59 million monthly transacting active users.
Latest completed close: $76.22
12-month price target: $105.00
Potential upside: ~37.8%
Stop-loss: $45.00
The investment case centers on accelerating merchant acquisition at Square and increasingly diversified monetization across Cash App.
Square continues to benefit from expanding distribution channels and improved restaurant-focused solutions.
In Q2 2026, Square’s total gross payment volume increased 13% year over year, while U.S. GPV growth accelerated to 10%, its fastest pace since Q2 2023.
Payment volumes increased 20% in the restaurant segment and more than 20% among mid-market merchants.
Expansion of direct sales teams and independent sales organization partnerships, together with improvements in restaurant-specific software and hardware, is supporting merchant acquisition and strengthening Square’s competitive position.
The research also highlights accelerating New Volume Added, a leading indicator of future GPV growth. Based on these trends, the investment thesis expects continued double-digit Square gross profit growth in 2027, supported by merchant acquisition and broader adoption of the platform’s financial services.
Cash App provides another important growth driver as monetization expands beyond lending.
Cash App gross profit increased 31% year over year in Q2 2026, while Cash App Card spending volumes grew more than 20%, significantly faster than the broader U.S. debit-card market.
An important monetization opportunity is expansion of the Primary Banking Active user base. According to the research, these users generate approximately $300 in annual revenue per user, compared with around $20 for P2P-only users.
Expansion of Cash App Green, integration of Afterpay with Cash App Card, and the launch of Managed Accounts for children aged 6–12 could support engagement and transaction-based revenue growth.
At the same time, Cash App increased Borrow fees from 5% to 7.5% and extended loan terms from four to six weeks, which could improve lending profitability.
Our research expects lending growth to moderate while gross-profit drivers become more diversified, potentially easing investor concerns around credit risk.
Our 12-month price target is $105, with a recommended stop-loss at $45.
At the latest completed close of $76.22, the $105 target implies approximately 37.8% potential upside.
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คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน