Block has raised its full-year 2025 guidance twice, reflecting accelerating growth across its payments and subscription businesses. The company’s 2028 targets imply a compound annual revenue growth rate well into double digits, driven by improved operating leverage as fixed costs are spread over a larger transaction base. At a forward P/E of 28.88x and a three-year PEG of 0.80x, Block’s valuation remains compelling relative to peers. Management is targeting a long-term adjusted operating margin north of 20%, up from roughly 12% in fiscal 2024, and projects free cash flow conversion exceeding 60% of EBITDA by 2028. Analysts see more than 100% upside to a $158.80 long-term price objective, thanks to new AI-driven seller tools, demographic expansion into underserved markets and aggressive cross-selling of Cash App financial services.

In the third quarter of 2025, Block delivered revenue of $6.12 billion, up 2.33% year-over-year. Subscription and services revenue climbed 23% on continued adoption of developer tools and Seller Dashboard subscriptions, while transaction revenue rose 9%, offsetting weakness in bitcoin trading volumes. Cash App’s user network expanded by 8% sequentially, driven by rollout in three new U.S. states and partnerships with regional banks. The Neighborhoods loyalty feature, launched in July, enrolled over 150,000 small businesses in its first two months, boosting repeat customer rates by 30%. Management also began deploying automation in key back-office functions, targeting a 5% reduction in operating expenses by early 2026 and laying the groundwork for higher margins in 2027 and beyond.