Block vs Toast: Revenue, Profit and Business Model
Block reported $24.2B of revenue in FY2025 and $1.3B of net income. Toast reported $6.2B of revenue in FY2025 and $342M of net income.
Latest financial snapshot
Financial summary
Block
Revenue was nearly flat in 2025, $24.19 billion against $24.12 billion, because bitcoin sales fell from $10.36 billion to $8.50 billion. Gross profit, which strips out the cost of the bitcoin Block resells, rose 17% to $10.36 billion and adjusted operating income rose 30% to about $2.3 billion. Net income attributable to common stockholders was $1.31 billion, down from $2.90 billion in 2024, a year lifted by a large fourth-quarter tax benefit. 2026 opened with a $308.7 million first-quarter net loss as layoff costs landed (about $495 million of restructuring charges across the first half), then second-quarter gross profit grew 25% to $3.17 billion with a record 27% adjusted operating margin. Block now guides to $12.51 billion of 2026 gross profit and $3.47 billion of adjusted operating income. It bought back $2.3 billion of stock in 2025, had $4.6 billion of repurchase authorization left at June 30, 2026, and pays no dividend.
Toast
Toast's revenue rose from $665 million in 2019 to $1.71 billion in 2021, the year of its NYSE IPO, $3.87 billion in 2023, $4.96 billion in 2024 and $6.15 billion in 2025. It reported its first full year of GAAP net income in 2024 ($19 million) and earned $342 million in 2025, with adjusted EBITDA of $633 million. In Q2 2026, revenue grew 23% to $1.91 billion, net income was $154 million, GAAP operating margin reached 26% and the company raised its full-year adjusted EBITDA guidance. Market capitalization was roughly $16-18 billion in September 2026, with shares down about 20% over the prior year.
Revenue and profit by year
Block
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $24.2B | $1.3B | 5.4% | +0.3% | Source |
| FY2024 | $24.1B | $2.9B | 12.0% | +10.1% | Source |
| FY2023 | $21.9B | $9.8M | 0.0% | +25.0% | Source |
| FY2022 | $17.5B | -$541M | -3.1% | -0.7% | Source |
| FY2021 | $17.7B | $166M | 0.9% | +85.9% | Source |
| FY2020 | $9.5B | $213M | 2.2% | +101.5% | Source |
| FY2019 | $4.7B | $375M | 8.0% | +42.9% | Source |
| FY2018 | $3.3B | -$38M | -1.2% | +49.0% | Source |
| FY2017 | $2.2B | -$63M | -2.8% | +29.5% | Source |
| FY2016 | $1.7B | -$172M | -10.1% | — | Source |
Toast
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $6.2B | $342M | 5.6% | +24.1% | Source |
| FY2024 | $5B | $19M | 0.4% | +28.3% | Source |
| FY2023 | $3.9B | -$246M | -6.4% | +41.5% | Source |
| FY2022 | $2.7B | -$275M | -10.1% | +60.2% | Source |
| FY2021 | $1.7B | -$487M | -28.6% | +107.2% | Source |
| FY2020 | $823M | -$248M | -30.1% | +23.8% | Source |
| FY2019 | $665M | -$209M | -31.4% | — | Source |
Where the revenue comes from
Block
- Commerce enablement revenue47.6%
$11.51 billion in 2025: Square payment processing, software and hardware for sellers, plus Afterpay.
- Financial solutions revenue17.3%
$4.18 billion in 2025: Cash App Card interchange, instant transfer fees, Borrow and Square Loans, and banking products. It is the fastest-growing line and carries high margins.
- Bitcoin ecosystem revenue35.1%
$8.50 billion in 2025, down from $10.36 billion in 2024. Bitcoin sold to Cash App customers is booked at full value, so gross profit is small: $72 million in the second quarter of 2026.
Toast
- Financial Technology Solutions~80%
Card processing fees on restaurant payment volume (about $195 billion of GPV in 2025), plus Toast Capital lending fees.
- Subscription Services~15%
Recurring fees for POS software, kitchen display, online ordering, payroll, scheduling, inventory and marketing modules.
- Hardware and Professional Services~5%
Terminals, Toast Go handhelds and installation, usually priced to win accounts rather than for profit.
Business model and strategy
Block
How it makes money
Block runs a two-sided network. On the seller side, Square charges a fee on each card payment (in the U.S. on its free plan, 2.6% plus 15 cents in person and 3.3% plus 30 cents online) and adds paid software, hardware, payroll, banking and Square Loans. On the consumer side, basic Cash App transfers are free;
Growth strategy
Block's 2026 plan has four parts. Square is selling to larger and international sellers through a field sales team and independent sales organization partners; international GPV grew 28% in the second quarter of 2026. Cash App wants to be the main bank account for people with several income sources, using direct deposit and Cash App Green rewards status;
Competitive advantage
Block's advantage is owning both ends of many small transactions. Cash App's peer-to-peer network spreads by itself, since receiving money means downloading the app, and every added product (the Cash App Card, direct deposit, Borrow, Afterpay) raises revenue per customer without new acquisition cost.
Toast
How it makes money
Toast sells restaurants a bundled platform and monetizes it in three ways. Financial technology solutions, mainly card processing on the gross payment volume that runs through Toast terminals and online ordering, make up the large majority of revenue (roughly four-fifths in recent filings), though payments carry thinner margins than software.
Growth strategy
Toast's growth strategy has four parts: keep adding small and mid-sized US restaurants through local field sales; win enterprise chains; expand into adjacent food and beverage verticals and international markets (Canada, the UK and Ireland); and raise revenue per location by attaching more software modules, including AI-driven marketing and analytics under the Toast IQ brand.
Competitive advantage
Toast's advantages are its restaurant-only focus, a single platform that ties POS, kitchen display, online ordering, payroll and payments to one data set, field sales density in major US metro areas, and switching costs once staff, menus, kitchens and payroll run on Toast. Its offline mode lets terminals keep taking orders during internet outages.
Questions about Block vs Toast
Which company has higher revenue — Block Inc or Toast, Inc.?
Block Inc reported $24.2B (FY2025), while Toast, Inc. reported $6.2B (FY2025). By last reported revenue, Block Inc is the larger business, with Toast, Inc. reporting a smaller revenue base.
What is the market cap of Block Inc vs Toast, Inc.?
Block Inc's market capitalisation stands at $44.5B, while Toast, Inc.'s is $17.0B. Block Inc carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Toast, Inc..
Which is more financially efficient — Block Inc or Toast, Inc.?
Block Inc generates $2.37M / employee in revenue per employee, while Toast, Inc. generates $947k / employee. Block Inc shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Block Inc and Toast, Inc. make money?
Block Inc and Toast, Inc. generate revenue in fundamentally different ways. Block Inc: Block runs a two-sided network. Toast, Inc.: Toast sells restaurants a bundled platform and monetizes it in three ways.
Which company is valued higher relative to revenue — Block Inc or Toast, Inc.?
On a price-to-sales (P/S) basis, Block Inc trades at 1.8x P/S and Toast, Inc. at 2.8x P/S. Toast, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Block Inc. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Block Inc bigger than Toast, Inc.?
By last reported revenue, Block Inc ($24.2B (FY2025)) is the larger company compared to Toast, Inc. ($6.2B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Block vs Toast overview