Block (XYZ) Stock: Fintech Giant Crosses $200 Billion Lending Milestone

TLDR

• Block announced it has provided over $200 billion in loans through Cash App Borrow, Afterpay, and Square Loans since 2013
• The company uses proprietary underwriting technology based on real-time behavioral data, resulting in 38% more Cash App Borrow approvals at the same loss rates
• Cash App Borrow shows 97% repayment rates, Afterpay reports 96% on-time payments, and Square Loans maintain under 3% loss rates
• Square Financial Services has originated more than $20 billion in loans and now handles all Cash App Borrow originations
• Truist raised Block’s price target to $72 from $68 while maintaining a Hold rating ahead of Q4 earnings

Block announced Tuesday it has extended more than $200 billion in loans across its three lending products. The company revealed the milestone covers Cash App Borrow, Afterpay, and Square Loans combined since 2013.

Block, Inc., XYZ

The announcement came as shares fell 5% to $62.63 on Tuesday. Broader market weakness hit Block hard, with the S&P 500 dropping 2.06% after renewed tariff threats from President Donald Trump.

Block rebounded slightly Wednesday morning, gaining 0.3% to $62.82 in premarket trading. The $40 billion market cap company maintains exposure to consumer spending and small-business activity.

Proprietary Underwriting Drives Approval Rates

The fintech’s lending approach relies on near real-time behavioral data instead of traditional credit bureau reports. Block claims this method delivers 38% more Cash App Borrow approvals at identical loss rates compared to conventional credit checks.

Cash App Borrow targets short-term consumer needs with an average loan duration of just 21 days. The company reports 97% of these loans are repaid on time.

Afterpay’s buy now, pay later service shows 96% of installment payments arrive on schedule. Square Loans, which serves small businesses, maintains loss rates below 3%.

Square Financial Services, Block’s in-house bank, has originated over $20 billion in loans through Square Loans and Cash App Borrow. The bank started originating all Cash App Borrow loans in 2025.

Competition and Quarterly Scrutiny Ahead

Block operates in a crowded field. Cash App competes with PayPal in consumer fintech. Afterpay faces rivals like Affirm in the BNPL space. Square battles other payment processors for merchant relationships.

Truist analyst Matthew Coad raised the firm’s price target on Block to $72 from $68. The Hold rating remains unchanged. Coad noted Q4 results should be solid but warned tougher year-over-year comparisons may limit volume-related beats.

The company recently piloted visibility into “Cash App Score” for select customers. This internal metric determines Cash App Borrow eligibility. Block maintains its models outperform traditional credit scoring across various loan types.

Block reports a current ratio of 2.18, showing liquid assets exceed short-term obligations. Return on assets stands at 8.24%.

Block’s quarterly earnings drop February 19. Investors will examine Cash App Borrow performance, Afterpay repayment trends, and Square payment volumes. Higher lending volumes create risk if delinquencies climb or small businesses reduce activity.

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