XYZ: The Afterpayoff on Cash App; Updated Thoughts on the Afterpay Flex Card

Research evidence excerpt

XYZ: The Afterpayoff on Cash App; Updated Thoughts on the Afterpay Flex Card

Payments, Processors, & IT Services

Payments & Processors - Market Overweight

BLOCK, INC. (XYZ) July 1, 2026

XYZ: The Afterpayoff on Cash App; Updated Thoughts on Rating:

the Afterpay Flex Card Outperform

Price:

$76.00

The Wolfe Byte Price Target:

As a follow up to our prior note on Cash App (see here), we provide our $90

% Upside:updated thoughts on Afterpay on Cash App Card, underscoring potential upside 18.4%

to interchange revenue, elevated volume/txn, and net new users. We also touch

View XYZ Model

on MDL settlement implications. View Comp Table

Company Information

52-Week Range $49 - $81

●While Cash App will face tougher compares into 2H26, we continue to Market Cap. (MM) $40,675

see strong and sustainable growth for Cash App gross profit in the mid- Enterprise Value (MM) $45,573

Shares Out. (MM) 535.2

teens+ levels into 2027. Our recent note on Cash App (see here) highlighted Avg. Value Traded (MM) $551.30

this point, given we believe that Borrow has more room from limit increases SI% of Float 3.9%

and more users following SFS, and our view that Afterpay on Cash App Card

will be another key driver into 2H26 and 2027+ (similar to AFRM and KLAR 85

flexible-credential card success). After further research into Afterpay, we see 75

ways that we believe the card can drive an uplift to Cash App gross profit. 70

These include: 1) BNPL providers offering a flexible credential card earn credit 6560

card interchange when the transaction is used for BNPL, which we estimate 55

is ~80bps-100bps higher than unregulated debit interchange rates earned on 5045

the Cash App card today, 2) BNPL transactions are typically higher volume vs.