What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-24 compared with 2024-02-22 · 151 added, 123 removed, 296 unchanged (48% of the section changed)

At Block, Inc.

(together with its subsidiaries, "Block" or "we"), we are building an ecosystem of ecosystems, each focused on distinct customer audiences.

We define an ecosystem as a set of tools and services that work together cohesively, often positively reinforcing one another.

This helps create resilient relationships with customers as they use our tools and services to satisfy multiple needs.

Our ecosystems are united by our shared purpose of economic empowerment, with each ecosystem serving different people — sellers, consumers, artists, fans, and developers.

As we scale, we are focused on investing in developing connections between our ecosystems and by creating more connections to increase the resilience of our overall company.

(together with its subsidiaries, "Block" or "we"), we are building an ecosystem dedicated to economic empowerment and unlocking access to the financial system for people around the world.

We do this by building the most relevant products and tools for the communities we serve including sellers, consumers, artists, fans and developers.

Our brands work together cohesively, often positively reinforcing one another and creating resonant relationships with people who use our products to meet multiple needs across the different aspects of their lives.

As we scale, we are focused on investing in building deeper connections between our ecosystems and increasing the resilience of our company.

On December 1, 2021, we changed our corporate name from Square, Inc.

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Block is the name for the company as a corporate entity.

Since our start in 2009 with the Square business, we have added Cash App, TIDAL, and TBD as businesses.

Since our start in 2009 with the Square business, we have added Cash App, and relatively nascent businesses with TIDAL and two bitcoin businesses, Bitkey and Proto.

Our two reportable segments are Square, formerly referred to as Seller, and Cash App, which reflects our two primary ecosystems and the manner in which the Company's chief operating decision maker ("CODM") reviews and assesses performance.

We have historically allocated the financial results from our buy now, pay later ("BNPL") platform equally to the Cash App and Square segments.

In the fourth quarter of 2023, we changed our management reporting structure and moved the business activities and management of our BNPL platform fully under Cash App.

We believe that this transition will allow us to better focus on consumer based commerce as well as the development of its financial tools within Cash App.

Square Ecosystem

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We combine software, hardware, and financial services to create products and services that are cohesive, fast, self-serve, and elegant.

These attributes differentiate Square in a fragmented industry that traditionally forces sellers to stitch together products and services from multiple vendors, and often rely on inefficient non-digital processes and tools.

Our ability to add new sellers efficiently, help them grow their business, and cross-sell our products and services has historically led to continued and sustained long-term growth.

These attributes differentiate Square in a fragmented industry that traditionally forced sellers to stitch together products and services from multiple vendors, and often rely on inefficient non-digital processes and tools.

Our ability to add new sellers efficiently, help them grow their business, and cross-sell our products and services has historically contributed to our long-term growth.

Cash App Ecosystem

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Cash App’s goal is to redefine the world’s relationship with money by making it more relatable, instantly available, and universally accessible.

While Cash App started with the single ability to send and receive money, it now provides an ecosystem of financial services focused on helping consumers make their money go further by enabling customers to store, send, receive, spend, invest, borrow or save their money with Cash App.

Emerging Ecosystems

We are also making modest investments in two relatively nascent and emerging ecosystems related to TIDAL and bitcoin, in order to serve new audiences.

Similar to our Square ecosystem, we believe the aggregation of these products into one app differentiates Cash App from competitors and provides greater utility for customers, allowing Cash App to build retentive relationships with its customers.

Over time, with its bank partners, Cash App is aiming to become one of the top providers of banking services to households in the United States that earn up to $150,000 per year.

TIDAL Ecosystem

In 2021, we completed the acquisition of a majority ownership interest in TIDAL, expanding our purpose of economic empowerment to artists.

TIDAL expands our purpose of economic empowerment to artists.

TIDAL is a global platform for musicians and their fans that uses unique content, experiences, and features to bring fans closer to artists and to provide artists with tools to succeed as entrepreneurs.

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Bitcoin Ecosystem

Our bitcoin ecosystem includes TBD, which is an open developer platform focused on making the decentralized financial world accessible for everyone, our bitcoin hardware projects, which include Bitkey, a self-custody bitcoin wallet, a bitcoin mining system, Spiral, an independent team focused on contributing to bitcoin open source work.

Our bitcoin ecosystem includes our bitcoin hardware projects, which include Bitkey, a self-custody bitcoin wallet, Proto, a bitcoin mining system, as well as Spiral, an independent team focused on contributing to bitcoin open source work.

We believe our bitcoin ecosystem can help address inefficiencies in the current financial system, especially with respect to identity and trust.

In the fourth quarter of 2024, we announced our decision to wind down TBD, which was an open developer platform for decentralized finance.

Our Customers

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Square sellers represent a diverse range of industries (including services, food-related, and retail businesses) and sizes, ranging from sole proprietors to multinational businesses.

Square sellers span geographies, including the United States, Canada, Japan, Australia, New Zealand, the United Kingdom, Ireland, France, and Spain.

Square sellers span geographies, including the United States, Canada, Japan, Australia, the United Kingdom, Ireland, France, and Spain.

We believe the diversity of our sellers underscores the accessibility and flexibility of our offerings.

We are also increasingly serving mid-market sellers, which we define as sellers that generate more than $500,000 in annualized Square Gross Payment Volume (“Square GPV”), due to our ability to offer more flexible and complex solutions than traditional alternatives, as well as a growing product suite.

We have also increasingly served mid-market sellers, which we define as sellers that generate more than $500,000 in annualized Square Gross Payment Volume (“Square GPV”), due to our ability to offer more flexible and complex solutions than traditional alternatives, as well as a growing product suite.

For the years ended December 31, 2024, 2023, and 2022, none of our customers accounted for greater than 5% of Square GPV.

We define Square GPV as the total dollar amount of all card payments processed by sellers using Square, net of refunds, and ACH transfers.

We define Square GPV as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds.

In the year ended December 31, 2024, more than 4 million sellers used the Square ecosystem to make 5.2 billion individual sales transactions totaling $228 billion of Square GPV.

These sales transactions originated from 733 million payment cards, across 271 million buyer profiles.

These sales transactions originated from more than 800 million payment cards, across more than 300 million buyer profiles.

The charts below show the percentage mix of our Square GPV by seller industry and seller size for the year ended December 31, 2024:

Our Cash App Customers

As of December 2023, Cash App had 56 million monthly transacting actives across the United States and the U.K.

In 2023, across the iOS App Store and Google Play, Cash App was the number one finance app and the number ten app overall in the United States, based on downloads.

Cash App has a diverse mix of customers, and in the United States, Cash App had monthly transacting actives in each of the 50 states and nearly every county as of December 2023.

In 2023, Cash App transacting actives brought more than $248 billion in inflows into Cash App.

As of December 2024, Cash App had 57 million monthly transacting actives across the United States.

In 2024, Cash App was the number one finance app on Google Play and number two finance app on iOS based on downloads in the United States.

Cash App has a diverse mix of customers and, in the United States, had monthly transacting actives in each of the 50 states and nearly every county as of December 2024.

In 2024, Cash App transacting actives brought $283 billion in inflows into Cash App.

Customers can fund their Cash App accounts with inflows in a variety of ways, including by receiving money from another Cash App customer through the app’s core peer-to-peer transfer service, transferring money from a bank account, depositing mobile checks, adding physical cash at participating retailers, and receiving a recurring paycheck by direct deposit.

In 2023, each Cash App monthly transacting active brought in an average of $384 of inflows in a given month during the year.

In the fourth quarter of 2024, our Cash App monthly transacting actives brought in an average of $1,255 of inflows during the quarter.

A transacting active is a Cash App account that has at least one financial transaction using any product or service within Cash App during the specified period.

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Square Ecosystem

Our Square ecosystem consists of more than 30 distinct software, hardware, and financial services products that provide cohesive Commerce, Customer Relationship Management, Staff Management, and Banking capabilities.

Our Square ecosystem consists of more than 30 distinct software, hardware, and financial services products.

Our products are designed to be self-serve and intuitive to make initial setup and new employee training fast and easy, although we also offer full-service setup and support.

They are also flexible enough to serve the needs of both small, single location and large, complex multi-location sellers.

Our products are also flexible enough to serve the needs of both small, single location and large, complex multi-location sellers.

Our products are integrated to create a seamless experience and enable a holistic view of sales, customers, employees, and finances.

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Square's commerce products help sellers make sales and track orders, inventory, and fulfillment across in-person and online channels, as well as first-party and third-party channels.

Most of our Square software products have a free tier (without a subscription fee), which we monetize only through transaction fees on card payments.

Most software products also have premium tiers with additional functionality, which we monetize through subscription fees in addition to transaction fees on payments.

• Square for Restaurants is a vertical solution tailored for both quick-service and full-service restaurants.

Most of our Square commerce products have a free tier (without a subscription fee), which we monetize only through transaction fees on card payments.

Some commerce products also have premium tiers with additional functionality, which we monetize through subscription fees in addition to transaction fees on payments.

Square Point of Sale is our primary commerce application for sellers, and provides an easy-to-use, customizable point-of-sale solution that adapts across business types and stages.

Over the past year, we have modernized and simplified our Point of Sale applications, combining our vertical software solutions into one Square Point of Sale app, which now includes:

• A vertical solution tailored for both quick-service and full-service restaurants.

It includes table, order, and course management;

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and revenue and cost reporting.

• Square Appointments is a vertical solution tailored for appointment-based businesses that need a point-of-sale application with integrated booking capabilities.

Square Appointments includes a free online booking site so buyers can easily schedule appointments and select their preferred time, service, and staff member.

It is also integrated with Square Assistant, an AI-enabled automated messaging tool that responds to buyers efficiently and professionally, saving sellers' time and helping prevent missed appointments.

• Square for Retail is a vertical solution tailored for sellers in the retail industry.

• A vertical solution tailored for appointment-based businesses that need a point-of-sale application with integrated booking capabilities.

Our features include a free online booking site so buyers can easily schedule appointments and select their preferred time, service, and staff member.

It is also integrated with Square Assistant, an AI-enabled automated messaging tool designed to respond to buyers efficiently and professionally, saving sellers' time and helping prevent missed appointments.

• A vertical solution tailored for sellers in the retail industry.

It includes advanced inventory management, cost of goods sold reporting, purchase orders, vendor management, and barcode scanning.

• Square Point of Sale is a general purpose point-of-sale application for businesses that need an easy-to-use, customizable point-of-sale solution that adapts across business types and stages.

• A customizable digital invoicing solution with integrated and secure online payment acceptance.

This eliminates the need to print and mail statements to customers and wait for checks to arrive.

Sellers use Square Invoices for upcoming, recurring, or previously delivered goods and services, such as catering orders, contractor services, lessons, and retail orders.

Square Invoices also lets sellers send estimates and collect partial payments for goods and services.

Our commerce products also include:

• Square Online makes it easy to build a website and online store as well as sell on Instagram and Facebook.

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Fulfillment options include pickup, delivery managed by our sellers, and integrations with partner delivery platforms.

Orders, items, inventory, and customer data stay in sync when selling both online and in-person.

The system is designed for orders, items, inventory, and customer data to stay in sync when selling both online and in-person.

• Square Online Checkout makes it easy to sell online without a website by allowing sellers to create a checkout link with only a name and price for their good or service.

• Square Invoices is a customizable digital invoicing solution with integrated and secure online payment acceptance.

This eliminates the need to print and mail statements to customers and wait for checks to arrive.

Sellers use Square Invoices for upcoming, recurring, or previously delivered goods and services, such as catering orders, contractor services, lessons, and retail orders.

Square Invoices also lets sellers send estimates and collect partial payments for goods and services.

• Square Virtual Terminal allows sellers to use a computer as a card terminal.

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• Risk Manager gives sellers insight into online payment fraud patterns and enables them to set custom rules and alerts to manage risk.

Machine-learning algorithms automatically identify fraud patterns and adapt to fit a seller's operations.

Machine-learning algorithms are designed to automatically identify fraud patterns and adapt to fit a seller's operations.

• Order Manager allows sellers to manage online orders that originate from Square Online, their own website on another platform, and third-party websites including online marketplaces such as DoorDash.

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For example, as the merchant of record, we can more efficiently onboard new sellers through our website, leveraging our risk assessment models, and we have insights into transaction-level data that we use to inform our sellers and launch new products.

Square custom-designs hardware that can process all major card payment forms, including magnetic stripe, EMV chip, and NFC (contactless).

Sellers are able to accept cards issued by Visa, Mastercard, American Express, Discover, JCB, Interac Flash (in Canada), e-Money (in Japan), and eftpos (in Australia).

Square hardware can be integrated with additional accessories such as cash drawers, receipt printers, scales, and barcode scanners to provide sellers with a comprehensive point-of-sale solution.

Square's hardware portfolio includes the following:

• Square Register is an all-in-one offering that combines our hardware, point-of-sale software, and payments technology.

The dedicated hardware consists of two screens:

a seller display and a customer display with a built-in card reader that accepts tap, dip, and swipe payments.

• Square Terminal is a portable, all-in-one payments device and receipt printer to replace traditional keypad terminals.

It accepts tap, dip, and swipe payments and has a battery that lasts all day, enabling payments anywhere in the store.

• Square Stand enables an iPad to be used as a payment terminal or full point-of-sale solution.

It features an integrated contactless and chip reader.

• Square Reader for contactless and chip accepts EMV chip cards and NFC payments, enabling acceptance via Apple Pay, Google Pay, and other mobile wallets.

• Square Reader for magstripe enables swiped transactions of magnetic-stripe cards by connecting with an iOS or Android smartphone or tablet via the headphone jack or Lightning connector.

Most of our Square software products have a free tier (without a subscription fee), which we monetize only through transaction fees on card payments.

Most software products also have premium tiers with additional functionality, which we monetize through subscription fees in addition to transaction fees on payments.

Square’s Customer capabilities help sellers grow their business.

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• Square Loyalty helps sellers keep their buyers coming back.

Buyers that enroll in a Square Loyalty program are twice as likely to be repeat customers and spend 50% more, on average.

We have found that buyers that enroll in a Square Loyalty program have been more than three times as likely to be repeat customers and spend 50% more on average.

• Square Marketing helps sellers drive traffic by sending emails or texts to promote in-store events, new products, last-minute deals, or seasonal offers.

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Square's staff management products give sellers digital tools to streamline their operations.

These tools seamlessly integrate with other Square products eliminating the latent, time-consuming, and error-prone processes typically used to copy and sync data between disparate systems.

These tools are designed to seamlessly integrate with other Square products eliminating the latent, time-consuming, and error-prone processes typically used to copy and sync data between disparate systems.

We typically monetize these products via software fees.

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The Square ecosystem drives competitive differentiation for our Payroll product with the ability to use Payroll in conjunction with our point-of-sale products, Team Management, and Cash App.

We offer a growing number of banking services that make it easier for sellers to manage cash flow and get faster access to funds.

Financial Services

Through our wholly-owned subsidiary bank, Square Financial Services, Inc.

(“Square Financial Services”) and with our third-party bank partners, we offer a growing number of banking services that make it easier for sellers to manage cash flow and get faster access to funds.

• Square Lending provides a platform of lending products to qualified Square sellers.

Square Loans (formerly Square Capital) facilitates loans to qualified Square sellers through our subsidiary Square Financial Services, Inc.

(“SFS Financial Services”), which is an industrial loan company (“ILC").

Square Loans (formerly Square Capital) facilitates loans to qualified Square sellers through Square Financial Services, which is an industrial loan company (“ILC").

Square Loans eliminates the lengthy (and often unsuccessful) loan application process.

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Since its public launch in May 2014, Square Loans has facilitated more than 3.1 million loans and advances, representing more than $25.8 billion in principal amount loaned or advanced.

This includes approximately 150,000 loans to small businesses representing more than $1.5 billion of Paycheck Protection Program (“PPP”) loans facilitated in 2020 and 2021, excluding canceled loans.

We launched Square Credit Card in 2023 to provide another lending option.

We launched Square Credit Card in 2023 to provide another lending option to qualified Square sellers.

• Instant Transfer enables sellers to receive funds from their payments instantly or later that same day.

Instant Transfer is an important tool for sellers that need faster access to their funds in order to better manage their cash flow or working capital.

• Square Checking provides sellers with an FDIC-insured account that gives them instant access to their sales and the ability to immediately use those funds via a debit card (Square Debit Card), withdraw funds from an ATM, or transfer funds via ACH.

• Square Savings is a high-yield business savings account, with no monthly fees or minimums, designed to make cash flow management easier for sellers.

• Square Checking provides sellers with an account provided by our bank partner that is eligible for FDIC deposit insurance if certain conditions are met.

Square Checking gives sellers instant access to their sales and the ability to immediately use those funds via a debit card (Square Debit Card), withdraw funds from an ATM, or transfer funds via ACH.

• Square Savings is an FDIC-insured, interest earning business savings account at Square Financial Services, with no monthly fees or minimums, designed to make cash flow management easier for sellers.

With Square Savings, sellers can easily and automatically put aside a portion of their sales in their savings account while also organizing their money within folders, streamlining the process of saving funds for specific goals and priorities, such as quarterly tax obligations.

Square custom-designs hardware that can process all major card payment forms, including magnetic stripe, EMV chip, and NFC (contactless).

Sellers are able to accept cards issued by Visa, Mastercard, American Express, Discover, JCB (in Japan), Interac Flash (in Canada), e-Money (in Japan), and eftpos (in Australia).

Square hardware can be integrated with additional accessories such as cash drawers, receipt printers, scales, and barcode scanners to provide sellers with a comprehensive point-of-sale solution.

Square's hardware portfolio includes the following:

• Square Register is an all-in-one offering that combines our hardware, point-of-sale software, and payments technology.

The dedicated hardware consists of two screens:

a seller display and a customer display with a built-in card reader that accepts tap, dip, and swipe payments.

• Square Terminal is a portable, all-in-one payments device and receipt printer to replace traditional keypad terminals.

It accepts tap, dip, and swipe payments, enabling payments anywhere in the store.

• Square Stand enables an iPad to be used as a payment terminal or full point-of-sale solution.

It features an integrated contactless and chip reader.

• Square Reader for contactless and chip accepts EMV chip cards and NFC payments, enabling acceptance via Apple Pay, Google Pay, and other mobile wallets.

• Square Reader for magstripe enables swiped transactions of magnetic-stripe cards by connecting with an iOS or Android smartphone or tablet via the headphone jack or Lightning connector.

Cash App Ecosystem

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Cash App is primarily in the United States and has a diverse set of customers across demographics and regions.

We use our inflows framework to assess the performance of Cash App across actives, inflows per active, and the monetization rate on inflows.

We use our inflows framework to assess the performance of Cash App across transacting actives, inflows per active, and the monetization rate on inflows.

Strategic Priorities

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Our approach for Cash App is to combine these three areas together in a unique manner to define a new product category and reinvent banking for our customers.

Our primary focus with Cash App, in alliance with our bank partners, is on earning the primary banking relationship of our existing customer base in the U.S.

With its bank partners, Cash App aims to become one of the top providers of banking services to households in the United States that earn up to $150,000 per year.

To achieve this, we have a three-part strategy:

(1) bank our base, (2) move upmarket by serving families, and (3) build the next-generation social bank.

The majority of our near term focus and current investments are on Banking our Base, the first part of our strategy, where we see the most direct opportunity to drive meaningful top line growth for Cash App.

As part of our strategy we plan to continue to build trust with our customers and enhance our safety, security, and support for current and prospective customers.

• Bank Our Base:

Cash App Card is generally customers’ entry point into a deeper banking relationship with Cash App.

Beyond Cash App Card, we want to provide other banking services to our customers through our third-party bank partners.

Cash App offers a compelling financial services offering to eligible customers that utilize direct deposit on a monthly basis, including an attractive savings rate, free in-network ATM withdrawals, free overdraft coverage up to a certain amount, and priority phone support.

We plan to continue launching additional products and features to strengthen our value proposition and also to invest in incentives and marketing to drive awareness and adoption of direct deposit.

• Move Upmarket by Serving Families:

Over the last few years, we made Cash App available to individuals aged 13 and older, first starting with Cash App Card and peer to peer transfers and then expanding into additional banking features.

We’ve been focused on building trust and safety for teens and their parents by giving parents transparency into their family’s activity, allowing them to set permissions, and offering a robust set of oversight and controls.

Through this effort, we’re positioning Cash App for long-term growth by serving families in the near-term and then growing with our teen customer base as they mature, their income grows, and they engage more deeply with the full suite of banking products and financial services that Cash App offers through our third-party bank partners.

• Build the Next-Generation Social Bank:

We are continuing to invest in building our social-driven feature set through areas like expanded profile functionality, sharing/recommendations, and exploring new ways for our customer base to transact together through financial services that have historically been disconnected from the community.

A big part of this vision is linking Square’s local priority with Cash App.

We want to enable more local commerce by connecting our two largest ecosystems, with Cash App customers buying from Square sellers.

Inflows and Outflows

Customers can use Cash App to inflow funds in a variety of ways, including by receiving money from another Cash App customer through the app’s core peer-to-peer transfer service, transferring money from a bank account, depositing mobile checks, adding physical cash at participating retailers, receiving a recurring paycheck by direct deposit, and through other inflow channels.

These funds can then be sent to another customer through the app, spent anywhere that accepts Visa cards or Cash App Pay, withdrawn from an ATM using the Cash App Card, invested in stocks or exchange-traded funds (“ETFs”), used to buy bitcoin, or transferred to a bank account (either instantly for a fee or for free in one to three days).

Financial Services

We serve our customers through a broad suite of financial services, and earning their trust is a key factor in how we can deepen our financial relationship with them.

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We believe building and maintaining deep trust with our customers will drive greater product adoption and increased inflows into our ecosystem.

Product Categories

Banking Services

Through third-party bank partners, we offer a growing number of banking services that are designed to make it easier for customers to manage cash flow and provide them with fast access to funds.

• Cash App Card is a debit card, issued by our bank partner, and linked directly to a customer’s Cash App balance.

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Customers can also purchase and send gift cards at specific merchants to other customers, and recipients can spend them with their Cash App Card.

• Direct deposit capabilities, in alliance with our partner bank and system processor, allow customers to receive their recurring paycheck, tax refund, or government disbursement into their Cash App account, which they can then use to send, spend, store, or invest.

• Direct deposit capabilities, in alliance with our bank partner and system processor, allow customers to receive their recurring paycheck, tax refund, or government disbursement into their Cash App account, which they can then use to send, spend, store, or invest.

• Savings allows customers to hold a separate savings balance at our bank partner, and easily set and track towards financial goals.

Customers can add money to Savings using their Cash App balance, a linked debit card, or through Round Ups on purchases with Cash App Card.

• Cash Boost is a free and instant rewards program that offers customers discounts at specific businesses (e.g., 10% off a purchase on DoorDash) or at certain business types (e.g., grocery stores).

Customers can select the Cash Boost they want to apply to their Cash App Card, and the discount is instantly applied to their Cash App balance for eligible transactions.

Some Cash Boosts are selected and funded by Cash App, while others are funded by our partners.

Costs related to the Cash Boost rewards program that are funded by Cash App are recognized as reductions to revenue.

• Cash Offers (formerly Boost) is a free and instant rewards program that offers customers discounts at specific businesses (e.g., 10% off a purchase on DoorDash) or at certain business types (e.g., grocery stores).

Customers can select the Cash Offers they want to apply to their Cash App Card, and the discount is instantly applied to their Cash App balance for eligible transactions.

Some Cash Offers are selected and funded by Cash App, while others are funded by our partners.

Costs related to the Cash App rewards program that are funded by Cash App are recognized as reductions to revenue.

• Cash App Borrow:

We believe credit is an area within our financial services offerings where we can provide simple, fair, and accessible products that promote financial health.

Cash App Borrow, our first credit product for consumers, allows customers to access short-term loans for a small fee.

The product offers eligible Cash App customers up to $500 during a given month that they can pay back in scheduled installments or as a percentage of what they receive into Cash App.

The product offers eligible Cash App customers up to $1,000 at any one time that they can pay back in scheduled installments or as a percentage of what they receive into Cash App.

We determine a Cash App customer’s eligibility based on prudent risk management by using our unique data set that includes a customer’s inflows and engagement on Cash App.

The average Cash App Borrow loan was repaid in less than four weeks in 2024.

Tax Preparation

Cash App Taxes provides a seamless, mobile-first solution for consumers to file their taxes for free.

Stock Brokerage

Customers can also use Cash App to invest their funds for free in U.S.

listed stocks and ETFs.

We believe this makes investing more accessible by giving customers access to hundreds of listed stocks and ETFs that they can purchase using their Cash App balance or a linked debit card for as little as $1.

Once the order is filled, all investments are viewable through the stocks applet.

We have a simple bitcoin exchange and custody solution that provides customers with an onramp and offramp to buy and sell bitcoin with Cash App for as little as $1 and a custodial account to store it securely without needing to keep track of any private keys.

Our solution offers features that allow customers to complete auto buys and custom limit orders, as well as direct deposit to auto-convert their paycheck into bitcoin and earn instant bitcoin rewards on Cash App Card purchases.

We have also focused on payments through bitcoin.

Given our network scale, we believe Cash App can help bitcoin evolve beyond an asset class to an investment that possesses real transactional utility, which is why we launched our offering in 2018 with the ability to deposit and withdraw bitcoin across the blockchain.

We have since added the ability for customers to send bitcoin across the Cash App network to any phone number or $Cashtag, creating an easy-to-use off-chain network for bitcoin payments that settles instantly between transacting actives.

We also allow U.S.

actives to send and receive bitcoin to/from anyone with a compatible wallet via the Lightning Network.

The Lightning Network is a second layer technology applied to the bitcoin blockchain that enables faster transactions with little to no fees.

Peer-to-peer payments form the basis of our Community development pillar because customers engage in financial transactions with other members of the Cash App community.

When customers use peer-to-peer, they are inviting their friends, family, and coworkers to download Cash App so that they can send each other money.

Peer-to-peer becomes more useful for our customers as their communities expand, so our customers are naturally incentivized to bring more people into their networks.

We offer the peer-to-peer service to our Cash App customers for free when a linked debit account is used to fund a transaction, as we consider peer-to-peer to be a marketing tool to encourage Cash App usage.

We charge a fee to the sender when transactions are funded using a credit card, and a fee to the recipient if it is a business account.

Instant Deposit was the first feature we started monetizing on Cash App.

Customers are able to instantly transfer funds from Cash App to a bank account for a small fee.

We believe our customer base values fast access to funds, and this speed is one example of how we differentiate our ecosystem.

BNPL Platform

Cash App is focused on driving greater commerce between consumers and merchants.

Our BNPL platform facilitates commerce between retail merchants and consumers by allowing its retail merchant clients to offer their customers the ability to buy goods and services on a BNPL basis.

Our BNPL platform serves as a connection point between our Square and Cash App ecosystems as we build out a marketplace that acts as a shopping destination for consumers to search for merchants and find offers.

Our BNPL platform provides consumers the ability to get desired items now but pay for them later, while simultaneously helping merchants increase sales and order values.

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The structure of the product includes no late fees and no compounding interest with a cap on total interest owed.

Similar to Pay in 4, we pay retail merchants the full order value up front (less a percentage fee) and assume the risk of non-payment from the consumer.

• Advertising and affiliate:

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The Afterpay Card allows consumers to shop in-store at Afterpay merchants and is free for the consumer.

The Afterpay Plus Card is currently available to select Afterpay consumers for a monthly fee and allows them to shop in-store anywhere that Apple Pay or Google Pay is accepted.

The Afterpay Plus Card is currently available to select Afterpay consumers in certain regions for a monthly fee and allows them to shop in-store anywhere that Apple Pay or Google Pay is accepted.

Peer-to-peer payments form the basis of our Community development pillar because customers engage in financial transactions with other members of the Cash App community.

When customers use peer-to-peer, they are inviting their friends, family, and coworkers to download Cash App so that they can send each other money.

Peer-to-peer becomes more useful for our customers as their communities expand, so our customers are naturally incentivized to bring more people into their networks.

We charge a fee to the sender when transactions are funded using a credit card, and a fee to the recipient if it is a business account.

Instant Deposit was the first feature we started monetizing on Cash App.

Customers are able to instantly transfer funds from Cash App to a bank account for a small fee.

We believe our customer base values fast access to funds, and this speed is one example of how we differentiate our ecosystem.

Cash App Pay is a simple, mobile-friendly way for Cash App customers to pay at merchants across online and in-person channels.

As of December 2023, Cash App Pay is enabled for a subset of Square sellers that are using certain Square hardware and software products, as well as a subset of Afterpay merchants, and most recently launched with large payment service providers who can offer it to their merchants.

With Cash App Pay, Cash App customers can pay by simply scanning a QR code or tapping a button on their mobile device at checkout.

Cash App Pay allows customers to seamlessly pay with a Cash App account at participating merchants like DoorDash, Lyft, Google Play Store, Temu, and many more, including thousands of Square sellers.

For in-person and desktop web transactions customers simply scan a merchant’s QR code at checkout.

On mobile devices, customers can click the Cash App Pay button at checkout for a payment process that is fast, elegantly designed, and secure.

We have also focused on payments through bitcoin.

Given our network scale, we believe Cash App can help bitcoin evolve beyond an asset class and enable transactional utility, which is why we launched our offering in 2018 with the ability to deposit and withdraw bitcoin across the blockchain.

We also allow U.S.

actives to send and receive bitcoin to/from anyone with a compatible wallet via the Lightning Network.

The Lightning Network is a second layer technology applied to the bitcoin blockchain that enables faster transactions with little to no fees.

Tax Preparation

Cash App Taxes provides a seamless, mobile-first solution for consumers to file their taxes for free.

Stock Brokerage

Customers can also use Cash App to invest their funds for free in U.S.

listed stocks and ETFs.

Once the order is filled, all investments are viewable through the stocks applet.

Business Accounts

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The Square ecosystem has a strong brand affinity among its sellers.

Our Net Promoter Score (“NPS”) has averaged 54 over the past four quarters, which is nearly double the average score for banking providers.

Our Net Promoter Score (“NPS”) has averaged 53 over the past four quarters, which is notably higher than the average score for banking providers.

Our high NPS means Square sellers recommend our services to others, which we believe strengthens the Square brand and helps drive efficient customer acquisition.

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Our direct sales and account management teams also contribute to the acquisition and support of larger sellers.

Historically, our sales team was primarily focused on converting inbound leads from interest generated through other acquisition channels, and in more recent years, we have built out an outbound sales team focused on outreach to new prospective sellers.

These outbound sales were traditionally done remotely via telephone.

In the fourth quarter of 2024, we began hiring a field sales team to focus exclusively on in-person seller outreach to further increase acquisition of larger sellers.

Our direct, ongoing interactions with our sellers help us tailor offerings to them, at scale, and in the context of their usage.

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Through the Square App Marketplace, Square partners are able to expand their own addressable market by reaching the millions of sellers using Square.

As of December 31, 2023, Square had nearly 1,000 managed partners connected to its platform.

As of December 31, 2024, Square had more than 900 managed partners connected to its platform.

Cash App Ecosystem

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Cash App also uses paid marketing, including referrals, advertising spend, partnerships, and social media campaigns, to expand its network, as these programs help reach new customers, enhance its brand, and improve retention among existing customers.

Cash App has a dedicated sales team focused on products like BNPL, Monthly Payment Solution, Cash App Pay, and other new and emerging products.

This team builds relationships with several of the largest and most well known merchants in the US and relevant international markets for BNPL.

Additionally, we see the launch and advertising of new Cash App features as an important way to attract new customers and engage existing customers.

Features such as Cash App Card and Boost rewards, bitcoin buying and selling, investing in stocks and ETFs, cross-border payments, Cash App Pay, and a tax preparation service enhance Cash App’s utility for customers and provide reasons for consumers to try Cash App.

Features such as Cash App Card and Offers rewards, bitcoin buying and selling, investing in stocks and ETFs, Cash App Pay, and a tax preparation service enhance Cash App’s utility for customers and provide reasons for consumers to try Cash App.

Product Development and Technology

We design both our Square and Cash App products and services to be cohesive, fast, self-serve, and elegant, and we organize our product teams accordingly, combining individuals from product management, engineering, data science, analytics, design, and product marketing.

We design both our Square and Cash App products and services to be cohesive, fast, self-serve, and elegant, and product development is a cross-functional effort combining individuals from product management, engineering, data science, analytics, design, and product marketing.

Our products and services are platform-agnostic with most supporting iOS, Android, and web.

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In addition to these contractual measures, we also rely on a combination of trademarks, trade dress, copyrights, registered domain names, trade secrets, and patent rights to help protect our brand and our other intellectual property.

Additionally, we regularly contribute software source code under open source and other permissive licenses and have made other technology we developed available under such licenses, and we include open source software in our products.

We have developed a patent program and strategy to identify, apply for, and secure patents for innovative aspects of our products, services, and technologies where appropriate.

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entities are, or may be, supervised by regulatory authorities in the jurisdictions in which they operate.

For instance, we hold an Australian Financial Services License issued by the Australian Securities and Investments Commission to provide non-cash payments in Australia, and we are licensed as an Electronic Money Institution to provide payments services and electronic money in the United Kingdom by the Financial Conduct Authority and in the European Union by the Central Bank of Ireland and the Bank of Lithuania.

Our payments services may be or become subject to regulation by other authorities, and the laws and regulations applicable to the payments industry in any given jurisdiction are always subject to interpretation and change.

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Anti-Money Laundering, Anti-Corruption, and Sanctions

We are subject to anti-money laundering ("AML"), anti-corruption, and economic, trade and sanctions laws and regulations in the United States and other jurisdictions in which we operate.

We are subject to anti-money laundering ("AML"), anti-corruption, and economic and trade sanctions laws and regulations in the United States and other jurisdictions in which we operate.

The anti-corruption laws, such as the U.S.

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Economic and trade sanctions programs that are administered by the U.S.

Department of the Treasury’s Office of Foreign Assets Controls and equivalent applicable foreign authorities prohibit or restrict transactions to or from, or dealings with, specified countries, governments, individuals and entities that are specially designated nationals of those countries, including narcotics traffickers and terrorists or terrorist organizations.

We have implemented an AML program designed to comply with the laws and regulations to which we are subject.

Department of the Treasury’s Office of Foreign Assets Controls and equivalent applicable foreign authorities prohibit or restrict transactions to or from, or dealings with, specified countries, governments, individuals and entities, including narcotics traffickers and terrorists or terrorist organizations.

We have implemented compliance programs and controls designed to comply with the laws and regulations to which we are subject.

Bank Regulation

We obtained approval from the Federal Deposit Insurance Corporation ("FDIC") and the Utah Department of Financial Institutions to open an ILC.

The opening of Square Financial Services, Inc., our ILC, in March 2021 subjects us to direct state and federal regulatory supervision and requires compliance with applicable banking regulations and requirements.

The opening of Square Financial Services, Inc., our ILC, in March 2021 subjects us to direct state and federal regulatory supervision and requires compliance with applicable banking regulations.

Our partnerships with FDIC-insured financial institutions to offer certain banking products to customers also subject us to certain federal banking regulations.

Lending Regulation

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Afterpay US Services, LLC holds and maintains lending licenses to support its product offerings.

These lending licenses subject us to the supervision and examination authority of state regulators, and our partnerships with FDIC-insured financial institutions to offer certain lending products to customers subjects us to federal regulatory supervision.

Outside the United States, we provide localized versions of some of our lending services to customers, including through our various foreign subsidiaries.

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For example, we hold an Australian Credit Licence issued by the Australian Securities and Investments Commission.

Our lending services may be, or may become, subject to regulation by other applicable authorities or jurisdictions, and the laws and regulations applicable to the lending industry in any given jurisdiction are always subject to interpretation and change.

Our lending services have been and may continue to be subject to regulation by other applicable authorities or jurisdictions, and the laws and regulations applicable to the lending industry in any given jurisdiction are always subject to interpretation and change.

Broker-Dealer Regulation

Our subsidiary, Cash App Investing LLC ("Cash App Investing"), operates as a broker-dealer and is therefore registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA").

As a broker-dealer, Cash App Investing is subject to SEC and FINRA laws and regulations including, without limitation, how it markets its services, handles customer assets, keeps records, and reports to the SEC and FINRA.

Cash App Investing is also registered in each state where we conduct business, and subject to those states’ securities laws and regulations.

As a broker-dealer, Cash App Investing is subject to SEC and FINRA rules and regulations concerning matters that include, without limitation, how it markets its services, handles customer assets, keeps records, and reports to the SEC and FINRA.

Cash App Investing is also registered in each state where it conducts business, and subject to those states’ securities laws and regulations.

Virtual Currency Regulation

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Hardware revenue generally demonstrates less seasonality than transaction-based revenue, with most fluctuations tied to periodic product launches, promotions, or other arrangements with our retail partners.

Historically, our Cash App ecosystem has experienced improvements in revenue and gross profit related to the distribution of government funds as customers have deposited more funds into Cash App during these times, including during the first quarter when U.S.

Historically, our Cash App ecosystem has experienced improvements in revenue, gross profit, and inflows related to the distribution of government funds as customers have deposited more funds into Cash App during these times, including during the first quarter when U.S.

tax refunds are typically distributed.

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In November 2023, we announced we would implement an absolute cap of 12,000 on the number of employees we have at our company.

We plan to operate below this cap through a combination of performance management, centralizing teams and functions to reduce duplication, and prioritization of our scope.

We expect to keep this cap in place until we believe the growth of the business has meaningfully outpaced the growth of our company.

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Our distributed work model has unlocked opportunities to hire and retain talent in more locations, as we can hire employees in locations where we do not have office space, and employees can continue to work for us if they need or want to relocate.

A key focus of our human capital management approach is our commitment to promoting inclusion and diversity in our workplace.

In 2023, we equipped managers with tools to build and lead inclusive teams, expanded professional development opportunities for employees from traditionally underrepresented backgrounds, and continued to elevate diversity as a central component of our recruiting strategy.

Each year, we publish our workforce demographics to show how far we have come, where there is room to grow, and how our workforce is evolving.

The 2023 report is available at:

https://block.xyz/inside/report-workforce-data-2023.

The contents of the report and our websites are not incorporated by reference into this Annual Report on Form 10-K.

A key focus of our human capital management approach is our commitment to promoting inclusion and fairness in our workplace.

We consider it a business requirement to build a company that reflects the customers and communities we serve.

In 2024, we established company-wide manager expectations, including their responsibility to break down silos and hierarchy, maintain physiological safety and seek divergent perspectives.

Across our employee programs, we have embedded policies and practices to ensure that hiring, promotion and compensation decisions are based on merit alone.

From a total rewards perspective, Block offers a competitive compensation and benefits package, which is reviewed and updated each year.

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In 2020, we adopted a distributed work model and we no longer have a designated headquarters location.

Our principal executive office, which we are required to identify under Securities and Exchange Commission rules, is 1955 Broadway, Suite 600 Oakland, CA 94612.

Our principal executive office, which we are required to identify under Securities and Exchange Commission ("SEC") rules, is 1955 Broadway, Suite 600 Oakland, CA 94612.

Our telephone number is (415) 375-3176.

Our website is located at www.block.xyz, and our investor relations website is located at investors.block.xyz.

The information contained in, or accessible through, our website is not part of or incorporated into, this Annual Report on Form 10-K.

The information contained in, or accessible through, our website (including any referenced reports or documents) is not part of or incorporated into, this Annual Report on Form 10-K.

We use various trademarks and trade names in our business, including “Block,” “Square,” “Cash App” and “Afterpay,” which we have registered in the United States and in various other countries.

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Available Information

Copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), are available, free of charge, on our investor relations website as soon as reasonably practicable after we electronically file or furnish such material with the Securities and Exchange Commission ("SEC").

The SEC also maintains a website that contains our SEC filings.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business