Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
XYZ delivered flat revenue growth of +0.3% in FY2025 to $24.2B, but dramatically improved gross margin to 42.8% and nearly doubled operating income to $1.7B, while net income fell 54.9% to $1.3B due to non-operating items.
Revenue
$24.19B
+0.30% YoY
EPS (Diluted)
$2.10
-53.95% YoY
Gross Margin
42.8%
+6.0 pts YoY
Operating Income
$1.71B
+91.46% YoY
Source: SEC XBRL
Block (XYZ) reported FY2025 revenue of $24.19B, up 0.3% year over year. Operating margin was 7.1%, up 3.4 points from 3.7% a year earlier. Operating cash flow was $2.58B, up 51.1% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.02 | 0.88 | Beat +16.4% |
| Mar 2026 | 0.85 | 0.68 | Beat +24.4% |
| Dec 2025This filing | 0.65 | 0.66 | Miss -1.2% |
| Sep 2025 | 0.54 | 0.67 | Miss -19.9% |
Reported EPS of $0.65 versus the $0.66 analyst consensus — a -1.2% miss for Dec 2025.
Compiled by AI from this SEC filing
Total revenue grew marginally by +0.3% year-over-year to $24.2B in FY2025 (vs. $24.1B in the prior year), suggesting a mature or stabilizing top-line business with limited organic growth momentum.
Source: 10-K Income Statement, FY2025
Cost of Revenue declined sharply by 9.2% to $13.8B, driving gross profit up 16.5% to $10.4B and expanding gross margin by approximately 6 percentage points to 42.8% from 36.9% — a meaningful improvement in operational efficiency or product mix.
Source: 10-K Income Statement, FY2025
Operating income surged 91.5% to $1.71B from $892M, with operating margin expanding to 7.1% from 3.7%, reflecting the combined benefit of lower cost of revenue and relatively stable R&D spending of approximately $2.9B.
Source: 10-K Income Statement, FY2025
Despite strong operating performance, net income fell 54.9% to $1.31B from $2.90B, implying significant non-operating headwinds such as higher interest expense, tax charges, or one-time items that more than offset the operating gains.
Source: 10-K Income Statement, FY2025
Operating cash flow improved 51.1% to $2.58B, but investing cash flow swung to -$2.80B from +$650M in the prior year, indicating a major increase in capital expenditures or acquisitions, while share buybacks nearly doubled to $2.33B.
Source: 10-K Cash Flow Statement, FY2025
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Net income dropped 54.9% to $1.31B despite a 91.5% surge in operating income, signaling material non-operating losses or one-time charges. This disconnect between operating and net results creates uncertainty about the sustainability and quality of reported earnings. Investors should scrutinize below-the-line items carefully.
Source: 10-K Income Statement, FY2025
Investing cash outflows swung dramatically to -$2.80B from +$650M, and cash & equivalents declined 18.7% to $6.56B. Combined with a near-doubling of share buybacks to $2.33B, the company is deploying capital aggressively, which could strain liquidity if operating cash flows deteriorate. Current liabilities also rose 21.5%, outpacing current asset growth.
Source: 10-K Balance Sheet & Cash Flow Statement, FY2025
Total liabilities grew 11.8% to $17.4B while total assets grew only 7.5% to $39.5B, and current liabilities rose 21.5% to $10.4B. Although the current ratio remains healthy at 2.20, the faster growth in liabilities relative to assets and equity warrants monitoring for potential leverage creep.
Source: 10-K Balance Sheet, FY2025
Revenue grew only 0.3% year-over-year to $24.2B, indicating limited top-line momentum. If cost efficiencies that drove margin expansion in FY2025 are not repeatable, flat revenue could translate into stagnant or declining profitability in future periods.
Source: 10-K Income Statement, FY2025
ROE stands at 5.88% and ROA at 3.30%, which are relatively modest figures suggesting the company is not generating strong returns on its capital base. With stockholders' equity of $22.2B and total assets of $39.5B, capital efficiency remains a concern for long-term value creation.
Source: 10-K Key Ratios, FY2025
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 24.19 $B | 24.12 $B | +0.30% |
Cost of Revenue $B | 13.83 $B | 15.23 $B | -9.18% |
Gross Profit $B | 10.36 $B | 8.89 $B | +16.55% |
Operating Income $B | 1.71 $B | 0.89 $B | +91.46% |
Net Income $B | 1.31 $B | 2.90 $B | -54.93% |
EPS (Basic) $ | 2.13 $ | 4.70 $ | -54.68% |
EPS (Diluted) $ | 2.10 $ | 4.56 $ | -53.95% |
R&D Expense $B | 2.91 $B | 2.91 $B | -0.22% |
Answers draw on this SEC filing and the data on this page
Block’s Q2 FY2026 showcased robust gross profit growth from Cash App’s lending products, but net income plunged as surging loan losses and a large litigation charge erased those gains.
XYZ reported Q1 FY2026 revenue of $6.06B (+4.9% YoY) with a dramatically improved gross margin of 48.0%, but swung to a net loss of $308.7M driven by a 36.6% surge in R&D spending and a 152.2% collapse in operating income.
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