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If you're familiar with the payments industry, you might be wondering how to invest in Block, Inc. (XYZ -0.15%). Over the past several years, Block has established itself as a pioneer in payment processing, making it one of the renowned fintech firms in existence.
Block Inc. (formerly Square Inc.) originally changed its name in 2021 to better differentiate itself from other payment processing companies. It's important to note that in January 2025, Block changed its stock ticker from SQ to XYZ.
Here, we'll explore how to invest in Block stock, review its financial health, how it can fit into your specific portfolio, and how to invest in Block indirectly (through exchange-traded funds) if direct investment feels too risky for you.
Whether Block is a good fit for your portfolio ultimately comes down to your risk tolerance. Some investors see single-stock investing as too risky, while others view Block’s long-term growth potential as worth the volatility.
Block operates widely used point-of-sale systems that help sellers accept payments and manage transactions, while Cash App serves the consumer side of the ecosystem. Both products have become well-known in a relatively short time, and revenue growth reflects that momentum. Sales have nearly doubled over the past few years, rising from under $10 billion to nearly $20 billion.
That said, the stock’s history hasn’t been smooth. From mid-2021 to mid-2023, Block lost nearly 80% of its market value. While shares have since rebounded to roughly their 2024 levels, the company has continued to post sizable net losses, driven by high operating expenses and heavy investment in product development. There are also lingering concerns around Cash App, including scrutiny over fraud and illicit use.
Block also won’t appeal to income-focused investors. The company has never paid a dividend and is unlikely to do so anytime soon.
Overall, Block may make sense as a speculative position for investors willing to wait for profitability improvements and stronger cost control. For more conservative or income-oriented investors, it’s probably not the right fit.
Block, Inc. reported a gross profit of $2.53 billion during the second quarter of 2025, marking a 12% year-over-year increase.
Despite consistent revenue and gross profit growth, the second quarter of 2025 total revenue of roughly $6 billion marked a decrease in total revenue. This proves that Block has struggled with consistent net profitability. While its financial performance shows significant operational progress, profitability has remained elusive in recent periods.
According to the most recent data, Block does not pay a dividend to its shareholders. This is characteristic of many growth-focused firms in the space and doesn't present a concern from a financial health standpoint.
There isn't any forecast for a Block stock split in the near future, and the company hasn't split its common stock in the past. If the stock were to get prohibitively expensive in the future, it's conceivable that a stock split may occur. In late 2025, however, there were no plans for Block to split.
Block has gained tremendous press coverage for its revenue growth and the reach of its two primary components, Square and Cash App. Still, the company has struggled to maintain its net margin over the past several quarters and to justify its once-astronomical share price.
Overall, shares of Block remain compelling for investors confident in the company's management team's ability to control non-operating expenses and for those willing to take a flier on the company's ability to further expand revenue.
Before investing in any stock, try to make a commitment to hold it for the long term, regardless of its day-to-day fluctuations. At the same time, make sure you understand how the stock fits into your broader financial portfolio.
Diversification is one of the foundational pillars of sound investing; in other words, you don't want to put all your eggs in one basket. Investing a large percentage of your portfolio in any one company can come back to bite you if that company were to experience significant share price declines.
That's where ETFs, or exchange-traded funds, come in. Instead of investing directly in Block company stock, you can invest in a single fund that holds many different companies in the same sector (along with Block itself).
If this sounds appealing, consider ETFs like the iShares Blockchain and Tech ETF (IBLC -0.70%) or the Ark FinTech Innovation ETF (ARKF +0.43%).
ETFs can help to diversify some of the risk associated with investing in single stocks. This way, you'll still be able to invest in Block without being exposed to its unique business risks.
