Is the business good?
How good a business is XYZ?
Block, Inc. earns 4.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
4.2%
Return on invested capital · cost of capital 9.0% · 4.8 points below what the capital costs: growth destroys value
- Operating margin
- 4.7%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q2 2026
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 12%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −0.20% |
| FY2021 | 0.91% |
| FY2022 | −3.6% |
| FY2023 | −1.3% |
| FY2024 | 3.7% |
| FY2025 | 7.1% |
Details›
- Gross margin12 months to Q2 2026
- 46%
- Operating margin12 months to Q2 2026
- 4.7%
- Net margin12 months to Q2 2026
- 1.4%
- Free cash flow margin
- 16%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $25.0B
- Free cash flow, trailing twelve months
- $3.88B
- Net income, trailing twelve months
- $357M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #69 of 78 by Smart Score