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Block's BFCM Transactions Reach 142M: Is the Growth Strengthening?

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Key Takeaways

  • Block processed over 124M BFCM transactions, up 10% year over year across its platforms.
  • BFCM activity spanned 49.8M consumers and 1.3M businesses, with Midtown Atlanta leading loyalty.
  • BNPL engagement grew as average basket size rose 10% and spend per customer increased 6% over BFCM.

Block (XYZ - Free Report) recently announced its Black Friday, Cyber Monday (BFCM) performance results, showing a growing preference for local spending as Americans focus on neighborhood economies. Over the four-day shopping period, Block processed more than 124 million transactions across Square, Cash App and Afterpay, marking a 10% rise compared to last year.

Block's BFCM saw about 49.8 million unique consumers engaging with Square, Afterpay and Cash App Card, while serving more than 1.3 million businesses. Midtown Atlanta emerged as the local loyalty hotspot, recording the most repeat customers at 57.9k and 469k in local transactions throughout the weekend. The peak spending day over the BFCM weekend was Saturday across all neighborhoods.

The company continues to invest in Buy Now Pay Later (BNPL) to deepen engagement. For BFCM weekend, its average BNPL basket size grew 10%, indicating customers are buying more items per transaction. BNPL consumer spend per customer was up 6%, suggesting more habituation within the Afterpay app.

Block earns transaction revenues primarily through fees charged on payment processing across its Square and Cash App segments. In the third quarter of 2025, the company reported transaction-based revenues of $1.87 billion, up 9.4% year over year. The transaction-based revenues represented 30.6% of the company’s net revenues. Notably, XYZ’s Square transaction revenues increased 10.7% year over year.

The company continues to launch new products and international expansion across Square, thereby accelerating Gross Payment Volume (“GPV”) growth. In the third quarter of 2025, Block’s Square reported GPV of $67.15 billion, up 12.2% year-over-year. The company's robust Square portfolio is the key catalyst behind its improving GPV.

How Did Other Companies Perform During BFCM?

Adyen (ADYEY - Free Report) platform delivered a total volume of $43 billion across the BFCM weekend, up 27% year over year. This Black Friday, transactions peaked at 199,000 per minute. The share of POS revenues paid with digital wallets reached 33% this Black Friday, up from 21% last year. Also, 85% of in-store POS transactions were contactless, compared with 81% last year.

Shopify Inc. (SHOP - Free Report) recorded $14.6 billion in global sales from merchants over the BFCM weekend, up 27% from last year and 24% on a constant currency basis. At BFCM weekend, more than 81 million customers around the world bought from Shopify-powered brands.

XYZ’s Price Performance, Valuation & Estimates

Shares of Block have declined 29.3% year to date, underperforming both the broader industry and the S&P 500 Index.

 

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Image Source: Zacks Investment Research

 

From a valuation standpoint, Block shares are overvalued, as suggested by the Value Score of C.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Block’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for full-year 2025 EPS has been revised downward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests a 28.2% decrease year over year.

 

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Image Source: Zacks Investment Research

 

Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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