Square's Cash App Is Close to Breaking Even
Square's (NYSE: SQ) Cash App has been on a tear this year. The company's peer-to-peer payments app generated adjusted revenue of $159 million in the third quarter, more than a quarter of the company's total. Still, it's the company's merchant services business that's producing all of its profits.
Management said its seller business is on target to produce an adjusted EBITDA margin of 30% for 2019. Applying that margin to its third-quarter results suggests the Cash App business produced only a small adjusted EBITDA loss last quarter. But with increasing scale and positive revenue retention, the digital payments app should move from a drag on EBITDA to a contributor as soon as next year.
Image source: Square.
Source Fool.com
