Block Inc - Ordinary Shares - Class A

Strong Gross Profit Growth: Block reported $8.89 billion in gross profit for 2024, an 18% year-over-year increase, with Square growing by 15% and Cash App by 21%. The company anticipates at least 15% gross profit growth for 2025, projecting to reach $10.22 billion despite facing FX headwinds.

Profitability Improvement: Adjusted EBITDA was $3.03 billion in 2024, a significant increase of 69% YOY. Adjusted operating income rose to $1.61 billion, more than 4.5 times higher YOY, achieving 13 points of margin expansion. For 2025, Block expects adjusted operating income of $2.1 billion at a margin of approximately 21%.

Key Product Initiatives: The launch of Afterpay on Cash App Card and expansion of Cash App Borrow are positioned as strong growth drivers. Cash App Borrow ended 2024 with 5 million actives, and the company plans to broaden access and increase loan limits, targeting potentially strong engagement and profitability from these offerings.