Block's Q1 shows strong revenue and margin growth, driven by Cash App's user engagement despite slow user growth.

Block, Inc. reported a 23.8% increase in Q1 revenue and a 29.3% rise in gross profit excluding Bitcoin trading, with gross margin improving to 66.7%. The growth is largely driven by Cash App's increasingly engaged user base, which boosts average revenue per user despite slower overall user growth. While intense competition and slow user growth pose challenges, the company is rated a buy due to its understated growth potential and AI-driven innovation, which are expected to drive long-term value.