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XYZ · Forward model · Commerce Enablement · Bull case

What has to happen in Commerce Enablement

Model as of

This page changes Commerce Enablement inside the complete XYZ model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

XYZ forward model
Horizon
Consolidated fair value $137.95 all other verticals held in this portfolio case
Final-quarter revenue $7.85B 60% of company revenue
Explicit segment contribution $44.12B EBITDA less segment capex, before corporate items

The volume side re-accelerates while the cost base stays where the February reorganisation left it. Square's US recovery is real, Afterpay attach keeps lifting the Cash App monetization rate, Borrow scales into a bigger eligible base, and bitcoin stops shrinking as a share of revenue so reported growth and real growth converge. The multiple re-rates to 2.2x revenue. What this case does not claim is that anything changes about the credit book.

Commerce Enablement

Basis quarter$3.34B
Final quarter$7.85B
Implied CAGR+19%
Final revenue mix60%

The take rate on everything Block moves: Square payments, point-of-sale software and hardware, Cash App Card and Cash App Pay, Afterpay BNPL, Cash App Business and TIDAL. Half of Block's revenue and 57% of its gross profit, and the line where the cost-cutting story has to reappear as volume rather than as savings.

Last four quarters
2025 Q3 $3.00B Reported
2025 Q4 $3.05B Reported
2026 Q1 $2.94B Estimated
2026 Q2 $3.34B Reported
Square payments and point-of-sale softwareSquare hardwareCash App Card and Cash App PayAfterpay Pay in 4, Pre-Purchase and Post-PurchaseCash App Business accountsTIDAL and other emerging ecosystems
Units 129348/qtr growing +3.5% per quarter Square GPV $72,848M plus Cash App enablement volume $56,500M = $129,348M in Q2 2026. One unit is $1M of volume.
Price per unit $25834 drifting −0.2% per quarter $3,341.6M of revenue on $129,348M of volume is a 2.583% blended take rate. Q2 2025 was 2.575%.
Commerce Enablement

Latest: $7.85B (2031Q2E)

Period Value
2025Q1 $2.57B
2025Q2 $2.90B
2025Q3 $3.00B
2025Q4 $3.05B
2026Q1 $2.94B
2026Q2 $3.34B
2026Q3E $3.48B
2026Q4E $3.63B
2027Q1E $3.79B
2027Q2E $3.95B
2027Q3E $4.12B
2027Q4E $4.30B
2028Q1E $4.49B
2028Q2E $4.69B
2028Q3E $4.89B
2028Q4E $5.10B
2029Q1E $5.33B
2029Q2E $5.56B
2029Q3E $5.81B
2029Q4E $6.06B
2030Q1E $6.33B
2030Q2E $6.60B
2030Q3E $6.90B
2030Q4E $7.20B
2031Q1E $7.52B
2031Q2E $7.85B

Assumptions & reasoning

  • SEASONALITY: none applied, and the evidence cannot support any. Ratio-to-centred-four-quarter-moving-average on the six disclosed quarters yields a factor for 2025 Q3 (1.025) and 2025 Q4 (1.008) and nothing at all for Q1 or Q2, because a centred window needs two quarters either side. One window per factor means the window-to-window spread is not even measurable, so two of the four factors would be invented outright. Left ASEASONAL. Derived from the actuals in this vertical.
  • The volume denominator is ours, not Block's. It sums Square GPV and Cash App Commerce Enablement volume, two separately disclosed pools that can overlap where Cash App Pay or Afterpay is spent at a Square seller. That makes the 2.583% a modelling construct - but it has moved less than one basis point in a year, so it is a stable one.
  • From Q1 2026 Cash App Commerce Enablement volume includes Tap to Pay GPV inside Cash App Business GPV and Block did not recast prior periods. The 2025-to-2026 volume comparison is therefore not clean, which is a second reason no seasonal shape was fitted across that break.
  • Q2 2026 Commerce Enablement gross profit grew 18% year over year 'led by strength in Cash App'. Square's 13% gross-profit growth included 'approximately two points' from a one-time tariff reimbursement, roughly offsetting the lapping of a network remediation payment a year earlier.
  • Neighborhoods reached sellers representing $1 billion of annualised GPV as of June, 'up over 220% from March', with over 90% of recent auto-enabled cohorts staying enabled. It is a customer-acquisition channel, not a revenue line, so it shows up here only as volume.
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