Block Inc. (NYSE: XYZ) reported Q4 earnings below estimates, stock down 8%, potential long-term gains.

From Nasdaq: 2025-02-25 02:39:57

Block Inc. (NYSE: XYZ) reported Q4 earnings of $0.71 per share on sales of $6.03 billion, missing estimates. Despite offering digital payments, loans, and banking services, the stock underperformed the S&P 500. However, the Trefis High-Quality Portfolio has outperformed the S&P with over 91% returns since inception.

In Q4, Block’s revenue rose 4.5% year-over-year to $6.03 billion. Transaction revenue grew 5.1% to $1.7 billion, while subscription and services revenue increased 16.8% to $1.9 billion. Hardware revenue declined, but gross payment volume reached $61.95 billion, beating estimates. EBITDA also surpassed expectations at $757 million.

Despite a strong Q4 performance, Block’s stock plunged 8% in after-hours trading. The stock has underperformed the broader market in recent years, but its current valuation may offer long-term gains. With a price-to-sales ratio of 2.0x, Block stock could present an attractive entry point for investors looking for growth potential.



Read more at Nasdaq: Down 10% What’s Happening With Block (XYZ) Stock?