Cash App's gross profit jumps 31% YoY, driving strong buy rating for Block with 11% projected growth.

Block, Inc.'s Cash App ecosystem saw a 31% year-over-year increase in gross profit to $1.97 billion in Q2, significantly outpacing growth in the Square-branded payments segment. The company is expected to achieve an average annual revenue growth of 11% through the end of the decade, surpassing PayPal's forecasted 5%. Strong cash inflows and expanding gross profits may enable management to support the stock price with a major share buyback. This robust performance underpins a 'Strong Buy' rating for Block shares.