Block (XYZ) Stock: Company Crosses $200 Billion in Total Lending Volume

TLDR

• Block hit $200 billion in total loans across Cash App Borrow, Afterpay, and Square Loans since launch
• Proprietary underwriting delivers 38% more approvals than traditional methods at identical loss rates
• Cash App Borrow posts 97% repayment rate, Afterpay 96% on-time payments, Square Loans under 3% losses
• Square Financial Services originated $20 billion and now handles all Cash App Borrow loans
• Stock fell 5% Tuesday to $62.63, recovered 0.3% Wednesday morning to $62.82

Block revealed Tuesday it has issued more than $200 billion in loans through its three lending platforms. The total spans Cash App Borrow, Afterpay, and Square Loans since the company started lending in 2013.

Block, Inc., XYZ

Shares dropped 5% to $62.63 Tuesday as broader markets tumbled. The S&P 500 fell 2.06% after President Trump threatened new tariffs on Europe.

Block recovered slightly Wednesday, climbing 0.3% to $62.82 in premarket action. The company carries a $40 billion market cap.

Real-Time Data Powers Approval Gains

Block’s underwriting system uses behavioral data collected in real time rather than traditional credit reports. The company says this approach generates 38% more Cash App Borrow approvals while maintaining identical loss rates to conventional methods.

Cash App Borrow focuses on short-term consumer loans averaging 21 days. Block reports 97% of borrowers repay on schedule.

Afterpay’s buy now, pay later model records 96% of payments arriving on time. Square Loans, designed for small businesses, keeps loss rates under 3%.

Risk lead Brian Boates said the company uses scale for inclusion instead of selectivity. Block estimates nearly 100 million Americans lack access to affordable credit under traditional scoring systems.

Square Financial Services operates as Block’s in-house bank. It has originated over $20 billion across Square Loans and Cash App Borrow. The bank began handling all Cash App Borrow originations in 2025.

Earnings and Analyst Updates

Truist analyst Matthew Coad lifted Block’s price target to $72 from $68. The Hold rating stays in place. Coad expects solid Q4 results but warned tougher comparisons could limit upside surprises.

Block recently tested showing select customers their “Cash App Score.” This internal metric determines Cash App Borrow eligibility. The company claims its models beat traditional credit scores across multiple loan categories.

Financial metrics show Block maintains a 2.18 current ratio and 8.24% return on assets.

Competitive Landscape Heats Up

Block faces rivals across all three lending products. Cash App competes with PayPal in consumer fintech. Afterpay battles Affirm and other BNPL providers. Square fights established payment processors for merchant share.

Higher lending volumes bring risk if the economy weakens. Rising delinquencies or reduced small-business activity could pressure the stable loss rates Block touts.

Block reports Q4 earnings February 19. Investors will focus on Cash App Borrow trends, Afterpay repayment data, and Square payment volumes.

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