Block "Cash App Borrow Primer, Analysis, & Opportunity Overview" (Buy) Chiodo

Research evidence excerpt

Block "Cash App Borrow Primer, Analysis, & Opportunity Overview" (Buy) Chiodo

Global Research

14 July 2026ab

Block Equities

United StatesCash App Borrow Primer, Analysis, &

Opportunity Overview Diversified Technology Services

12-month rating Buy

12m price target US$92.00Cash App Borrow supportive of monetization and engagement: Given growing

investor focus on Cash App Borrow and its strategic importance to Cash App

monetization, we provide a reference report and opportunity framework for the Price (14 Jul 2026) US$79.99

product. We view Borrow as both a direct monetization lever (fixed fees earned on loan RIC: XYZ.N BBG: XYZ US

amounts) and an indirect driver of engagement and subsequent monetization (e.g.,

higher inflows, card spend, and retention among Borrow users). Borrow has proven to Trading data and key metrics

be a key driver of improving monetization within the Cash App ecosystem, leveraging 52-wk range US$81.11-49.09

Block’s proprietary data advantage and embedded distribution to scale a high- Market cap. US$43.9b

frequency, short-duration lending product. The product has ramped meaningfully in Shares o/s 548m (COM)

recent periods, supported by expanding eligibility (including nationwide rollout and Free float 70%

Cash App Green), increasing loan sizes, and repeat usage, with performance Avg. daily volume ('000) 1,601

underpinned by stable credit trends and improving cohort behavior. Our analysis (Excel Avg. daily value (m) US$116.8

available by request) focuses on the incremental contribution from Borrow, with our Common s/h equity (12/26E) US$22.0b

illustrative framework suggesting the product can contribute ~mid 20s% adj. EPS

P/BV (12/26E) 2.2x

growth in 2026 and ~MSD - HSD% in 2027–2028 as the company laps the expansion of

Net debt to EBITDA (12/26E) 0.7x