Block, Inc. 10-Q

Item 1. Financial Statements BLOCK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) September 30, 2025 December 31, 2024 Assets (Unaudited) Current assets: Cash and cash equivalents $ 8,335,934 $ 8,075,247 Settlements receivable 1,222,342 1,060,966 Customer funds 4,803,716 4,182,872 Consumer receivables, net 2,076,126 2,504,879 Loans held for sale 778,039 1,111,107 Loans held for investment, less allowance for credit losses of $ 216.3 million and $ 23.1 million, respectively 2,203,273 365,062 Other current assets 2,648,295 2,580,068 Total current assets 22,067,725 19,880,201 Goodwill 11,807,858 11,417,422 Acquired intangible assets, net 1,326,091 1,433,067 Deferred tax assets 1,542,364 1,800,994 Other non-current assets 2,438,785 2,245,911 Total assets $ 39,182,823 $ 36,777,595 Liabilities and Stockholders’ Equity Current liabilities: Customers payable $ 6,799,672 $ 5,837,152 Accrued expenses and other current liabilities 1,578,830 1,525,149 Current portion of long-term debt (Note 12) 1,572,118 999,497 Warehouse funding facilities, current 157,370 185,000 Total current liabilities 10,107,990 8,546,798 Warehouse funding facilities, non-current 343,629 1,296,680 Long-term debt (Note 12) 5,713,382 5,105,939 Other non-current liabilities 544,614 593,216 Total liabilities 16,709,615 15,542,633 Commitments and contingencies (Note 17) Stockholders’ equity: Preferred stock, $ 0.0000001 par value: 100,000 shares authorized at September 30, 2025 and December 31, 2024. None issued and outstanding at September 30, 2025 and December 31, 2024. — — Class A common stock, $ 0.0000001 par value: 1,000,000 shares authorized at September 30, 2025 and December 31, 2024; 549,243 and 559,606 issued and outstanding at September 30, 2025 and December 31, 2024, respectively. — — Class B common stock, $ 0.0000001 par value: 500,000 shares authorized at September 30, 2025 and December 31, 2024; 60,001 and 60,070 issued and outstanding at September 30, 2025 and December 31, 2024, respectively. — — Additional paid-in capital 19,364,651 19,900,379 Accumulated other comprehensive loss ( 415,745 ) ( 1,001,065 ) Retained earnings 3,558,492 2,368,618 Total stockholders’ equity attributable to common stockholders 22,507,398 21,267,932 Noncontrolling interests ( 34,190 ) ( 32,970 ) Total stockholders’ equity 22,473,208 21,234,962 Total liabilities and stockholders’ equity $ 39,182,823 $ 36,777,595 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 BLOCK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue: Transaction-based revenue $ 1,873,477 $ 1,712,421 $ 5,241,606 $ 4,936,597 Subscription and services-based revenue 2,204,889 1,797,933 6,148,466 5,268,120 Hardware revenue 70,192 36,839 139,305 112,300 Bitcoin revenue 1,966,394 2,428,608 6,411,828 7,771,475 Total net revenue 6,114,952 5,975,801 17,941,205 18,088,492 Cost of revenue: Transaction-based costs 1,141,900 1,011,476 3,111,750 2,884,696 Subscription and services-based costs 299,554 271,286 872,671 832,755 Hardware costs 103,304 62,091 232,386 181,185 Bitcoin costs 1,894,767 2,364,077 6,193,760 7,559,416 Amortization of acquired technology assets 13,857 17,186 42,935 52,802 Total cost of revenue 3,453,382 3,726,116 10,453,502 11,510,854 Gross profit 2,661,570 2,249,685 7,487,703 6,577,638 Operating expenses: Product development 711,235 710,983 2,197,222 2,144,720 Sales and marketing 599,333 511,755 1,653,524 1,463,202 General and administrative 543,974 475,855 1,485,008 1,420,683 Transaction, loan, and consumer receivable losses 363,455 192,062 827,234 549,603 Amortization of customer and other acquired intangible assets 34,133 36,021 101,680 120,116 Total operating expenses 2,252,130 1,926,676 6,264,668 5,698,324 Operating income 409,440 323,009 1,223,035 879,314 Interest expense (income), net 34,652 13,811 75,582 ( 6,805 ) Remeasurement gain on bitcoin investment ( 59,588 ) ( 5,288 ) ( 178,402 ) ( 168,576 ) Other income, net ( 167,150 ) ( 9,661 ) ( 162,103 ) ( 24,665 ) Income before income tax 601,526 324,147 1,487,958 1,079,360 Provision for income taxes 139,928 43,011 299,304 137,532 Net income 461,598 281,136 1,188,654 941,828 Less: Net income (loss) attributable to noncontrolling interests 54 ( 2,618 ) ( 1,220 ) ( 9,199 ) Net income attributable to common stockholders $ 461,544 $ 283,754 $ 1,189,874 $ 951,027 Net income per share attributable to common stockholders: Basic $ 0.76 $ 0.46 $ 1.94 $ 1.54 Diluted $ 0.74 $ 0.45 $ 1.91 $ 1.50 Weighted-average shares used to compute net income per share attributable to common stockholders: Basic 610,199 616,428 614,117 616,830 Diluted 621,658 632,760 625,256 635,419 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 BLOCK, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 461,598 $ 281,136 $ 1,188,654 $ 941,828 Net foreign currency translation adjustments (i) ( 33,965 ) 334,915 585,828 176,692 Net unrealized gain (loss) on marketable debt securities, net of tax 133 7,542 ( 508 ) 11,703 Total comprehensive income $ 427,766 $ 623,593 $ 1,773,974 $ 1,130,223 (i) Includes foreign currency translation loss related to goodwill of $ 8.9 million and gain of $ 389.5 million for the three and nine months ended September 30, 2025, respectively. The three and nine months ended September 30, 2024 includes foreign currency translation gains related to goodwill of $ 225.6 million and $ 128.3 million, respectively. The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 6 BLOCK, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (In thousands) Class A and B common stock Common stock and additional paid-in Accumulated other comprehensive Retained Noncontrolling Total stockholders’ shares capital loss earnings interests equity Balance at December 31, 2024 619,676 $ 19,900,379 $ ( 1,001,065 ) $ 2,368,618 $ ( 32,970 ) $ 21,234,962 Net income (loss) — — — 189,872 ( 1,150 ) 188,722 Shares issued in connection with employee stock plans 4,004 2,283 — — — 2,283 Repurchases of common stock ( 6,805 ) ( 445,298 ) — — — ( 445,298 ) Change in other comprehensive loss — — 130,250 — — 130,250 Share-based compensation — 324,155 — — — 324,155 Balance at March 31, 2025 616,875 $ 19,781,519 $ ( 870,815 ) $ 2,558,490 $ ( 34,120 ) $ 21,435,074 Net income (loss) — — — 538,458 ( 124 ) 538,334 Shares issued in connection with employee stock plans 5,791 48,799 — — — 48,799 Repurchases of common stock ( 12,463 ) ( 692,204 ) — — — ( 692,204 ) Change in other comprehensive loss — — 488,902 — — 488,902 Share-based compensation — 303,987 — — — 303,987 Balance at June 30, 2025 610,203 $ 19,442,101 $ ( 381,913 ) $ 3,096,948 $ ( 34,244 ) $ 22,122,892 Net income — — — 461,544 54 461,598 Shares issued in connection with employee stock plans 4,381 7,165 — — — 7,165 Repurchases of common stock ( 5,340 ) ( 403,027 ) — — — ( 403,027 ) Change in other comprehensive loss — — ( 33,832 ) — — ( 33,832 ) Share-based compensation — 318,412 — — — 318,412 Balance at September 30, 2025 609,244 $ 19,364,651 $ ( 415,745 ) $ 3,558,492 $ ( 34,190 ) $ 22,473,208 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 7 BLOCK, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - Continued (Unaudited) (In thousands) Class A and B common stock Common stock and additional paid-in Accumulated other comprehensive Retained earnings (accumulated Noncontrolling Total stockholders’ shares capital loss deficit) interests equity Balance at December 31, 2023 615,821 $ 19,601,992 $ ( 378,307 ) $ ( 528,429 ) $ ( 2,420 ) $ 18,692,836 Net income (loss) — — — 472,005 ( 1,185 ) 470,820 Shares issued in connection with employee stock plans 4,806 19,943 — — — 19,943 Repurchases of common stock ( 3,563 ) ( 252,095 ) — — — ( 252,095 ) Change in other comprehensive loss — — ( 281,896 ) — — ( 281,896 ) Share-based compensation — 317,588 — — — 317,588 Balance at March 31, 2024 617,064 $ 19,687,428 $ ( 660,203 ) $ ( 56,424 ) $ ( 3,605 ) $ 18,967,196 Net income (loss) — — — 195,268 ( 5,396 ) 189,872 Shares issued in connection with employee stock plans 6,295 66,258 — — — 66,258 Repurchases of common stock ( 5,742 ) ( 389,508 ) — — — ( 389,508 ) Change in other comprehensive loss — — 127,834 — — 127,834 Share-based compensation — 331,343 — — — 331,343 Balance at June 30, 2024 617,617 $ 19,695,521 $ ( 532,369 ) $ 138,844 $ ( 9,001 ) $ 19,292,995 Net income (loss) — — — 283,754 ( 2,618 ) 281,136 Shares issued in connection with employee stock plans 4,100 1,852 — — — 1,852 Repurchases of common stock ( 5,328 ) ( 345,576 ) — — — ( 345,576 ) Change in other comprehensive loss — — 342,457 — — 342,457 Share-based compensation — 336,431 — — — 336,431 Balance at September 30, 2024 616,389 $ 19,688,228 $ ( 189,912 ) $ 422,598 $ ( 11,619 ) $ 19,909,295 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 8 BLOCK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income $ 1,188,654 $ 941,828 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 273,464 287,249 Amortization of discounts and premiums and other non-cash adjustments ( 834,950 ) ( 824,219 ) Non-cash lease expense 42,545 55,480 Share-based compensation 921,957 955,845 Loss (gain) on revaluation of equity investments ( 172,582 ) 470 Remeasurement gain on bitcoin investment ( 178,402 ) ( 168,576 ) Transaction, loan, and consumer receivable losses 827,234 549,603 Change in deferred income taxes 182,756 5,368 Purchases and originations of loans originally classified as held for sale ( 12,394,452 ) ( 10,887,619 ) Proceeds from repayments of loans originally classified as held for sale 12,457,575 10,419,823 Changes in operating assets and liabilities: Settlements receivable ( 291,388 ) 1,577,463 Customers payable 313,061 ( 1,319,654 ) Other assets and liabilities ( 376,758 ) 100,489 Net cash provided by operating activities 1,958,714 1,693,550 Cash flows from investing activities: Purchases of marketable debt securities ( 481,088 ) ( 1,035,477 ) Proceeds from maturities of marketable debt securities 423,312 790,748 Proceeds from sale of marketable debt securities 392,218 436,912 Payments for originations of consumer receivables ( 22,553,302 ) ( 20,197,450 ) Proceeds from principal repayments and sales of consumer receivables 23,721,275 21,142,547 Purchases and originations of loans originally classified as held for investment ( 7,643,830 ) — Proceeds from repayments of loans originally classified as held for investment 5,629,369 — Purchases of property and equipment ( 113,838 ) ( 126,954 ) Purchases of other investments ( 45,930 ) ( 37,218 ) Net cash provided by (used in) investing activities ( 671,814 ) 973,108 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 9 BLOCK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued (Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 Cash flows from financing activities: Proceeds from issuance of senior notes 2,200,000 2,000,000 Payments of debt issuance costs from issuance of senior notes ( 28,346 ) ( 26,619 ) Payments to redeem convertible notes ( 1,000,624 ) — Proceeds from warehouse facilities borrowings 448,530 406,359 Repayments of warehouse facilities borrowings ( 1,456,869 ) ( 1,054,091 ) Proceeds from the exercise of stock options and purchases under the employee stock purchase plan 58,247 88,053 Net increase in interest-bearing deposits 81,176 73,687 Repurchases of common stock ( 1,540,529 ) ( 987,179 ) Other financing activities ( 35,330 ) ( 18,473 ) Change in customer funds, restricted from use in the Company's operations 620,844 763,355 Net cash provided by (used in) financing activities ( 652,901 ) 1,245,092 Effect of foreign exchange rate on cash and cash equivalents 80,515 13,600 Net increase in cash, cash equivalents, restricted cash, and customer funds 714,514 3,925,350 Cash, cash equivalents, restricted cash, and customer funds, beginning of the period 13,230,512 9,009,087 Cash, cash equivalents, restricted cash, and customer funds, end of the period $ 13,945,026 $ 12,934,437 Reconciliation of cash, cash equivalents, restricted cash, and customer funds: Cash and cash equivalents $ 8,335,934 $ 8,299,804 Short-term restricted cash 731,590 630,933 Long-term restricted cash 73,786 69,915 Customer funds cash and cash equivalents 4,803,716 3,933,785 Total $ 13,945,026 $ 12,934,437 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 10 BLOCK, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ( Unaudited ) NOTE 1 - DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Block, Inc. (together with its subsidiaries, "Block" or the "Company") creates tools that empower businesses, sellers, and individuals to participate in the economy. Block is comprised of two reportable segments, Square and Cash App. Square is a cohesive commerce ecosystem that helps sellers start, run, and grow their businesses, including enabling sellers to accept card payments, providing reporting and analytics, and facilitating next-day settlement. Square’s point-of-sale software and other business services help sellers manage inventory, locations, and employees; access financial services; engage buyers; build a website or online store; and grow sales. Cash App is an ecosystem of financial products and services focused on helping consumers make their money go further by enabling customers to store, send, receive, spend, invest, buy now, pay later ("BNPL"), borrow, or save their money. Cash App seeks to redefine the world’s relationship with money by making it more relatable, instantly available, and universally accessible. Block was founded in 2009 and has offices globally. The Company does not designate a headquarters location as it adopted a distributed work model in 2021. Basis of Presentation The accompanying interim condensed consolidated financial statements of the Company are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") and the applicable rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The December 31, 2024 condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods. The condensed consolidated financial statements include the financial statements of Block and its wholly-owned and majority-owned subsidiaries, including variable interest entities for which the Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest, which is reported as a component of stockholders' equity on the condensed consolidated balance sheets. The interim results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, or for any other future annual or interim period. Beginning in the second quarter of 2025, the Company began classifying the majority of its newly originated customer loan products as loans held for investment. This classification change followed a comprehensive management review of all loan products, taking into account the Company’s business strategy, prevailing economic conditions, and market trends. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. 11 Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be materially affected. The Company bases its estimates on current and past experience, to the extent that historical experience is predictive of future performance and other assumptions that the Company believes are reasonable under the circumstances. The Company evaluates these estimates on an ongoing basis. Estimates, judgments, and assumptions in these condensed consolidated financial statements include, but are not limited to, those related to accrued transaction losses, contingencies, including outcomes from claims and disputes, valuation of loans held for sale, valuation of goodwill and acquired intangible assets, determination of goodwill and intangible asset impairment charges, determination of allowance for credit losses for loans held for investment, determination of allowance for credit losses for consumer receivables, allocation of acquired goodwill to reporting units, income and other taxes, operating and financing lease right-of-use assets and related liabilities, and share-based compensation. The Company's estimates of valuation of loans held for sale, allowance for credit losses associated with consumer receivables and loans held for investment, and accrued transaction losses are based on historical experience, adjusted for market data relevant to the current economic environment. The Company will continue to update its estimates as developments occur and additional information is obtained. Refer to Note 5, Fair Value Measurements for further details on amortized cost over fair value of the loans, Note 6, Consumer Receivables, net for further details on consumer receivables, Note 7, Customer Loans for further details on customer loans, and Note 9, Other Consolidated Balance Sheet Components (Current) for further details on transaction losses. Concentration of Credit Risk For the three and nine months ended September 30, 2025 and September 30, 2024, the Company had no customer that accounted for greater than 10% of total net revenue. The Company had four third-party payment processors that represented approximately 41 %, 15 %, 14 %, and 11 % of settlements receivable as of September 30, 2025. As of December 31, 2024, the Company had three third-party processors that represented approximately 42 %, 17 % and 13 % of settlements receivable. In both periods, all other third-party payment processors were insignificant. Certain of the Company's products are reliant on third-party service providers such as partner banks, card issuers, and payment service providers. The Company's relationships with third-party service providers may result in operational concentration risks for some of these products. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable debt securities, settlements receivable, customer funds, consumer receivables, loans held for sale, and loans held for investment. To mitigate the risk of concentration associated with cash and cash equivalents, as well as restricted cash, funds are held with creditworthy institutions and, at certain times, temporarily swept into insured programs overnight to reduce single firm concentration risk. Amounts on deposit may exceed federal deposit insurance limits. The associated risk of concentration for marketable debt securities is mitigated by holding a diversified portfolio of highly rated investments. Settlements receivable are amounts due from well-established payment processing companies and normally take one or two business days to settle, which mitigates the associated risk of concentration. The associated risk of concentration for loans and consumer receivables is partially mitigated by credit evaluations that are performed prior to facilitating the offering of loans and receivables and ongoing performance monitoring of the Company’s loan customers. 12 Sales and Marketing Expenses Advertising costs are expensed as incurred and in cluded in sales and marketing expenses on the condensed consolidated statements of operations. Total advertising costs w ere $ 137.4 million and $ 347.0 million for the three and nine months ended September 30, 2025, respectively, compared to $ 81.9 million and $ 221.8 million for the three and nine months ended September 30, 2024, respectively. The C ompany also records services, incentives, and other costs to acquire customers that are not directly related to a revenue generating transaction as sales and marketing expenses, as the Company considers these to be marketing costs to encourage the usage of Cash App. These expenses include, but are not limited to, Cash App peer-to-peer processing costs and related transaction losses, card issuance costs, customer referral bonuses, and promotional giveaways. These costs are expensed as incurred. The Company recorded $ 232.2 million and $ 647.2 million for the three and nine months ended September 30, 2025, respectively, compared to $ 234.4 million and $ 697.9 million for the three and nine months ended September 30, 2024, respectively, for such expenses. Recent Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). The amendments expand income tax disclosure requirements by requiring an entity to disclose (i) specific categories in the rate reconciliation, (ii) additional information for reconciling items that meet a quantitative threshold, and (iii) the amount of taxes paid disaggregated by jurisdiction. The Company adopted this guidance effective for the annual reporting period beginning January 1, 2025. The adoption of ASU 2023-09 will impact the Company’s annual disclosures only. Recently Issued Accounting Pronouncements Not Yet Adopted In September 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). The amendments are intended to clarify and modernize the accounting for costs related to internal-use software. The guidance removes all references to project stages and clarifies the threshold entities apply to begin capitalizing costs. The amendments are effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption to have a material impact on the Company's financial statements. In July 2025, the FASB issued ASU No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendments allow an entity to apply a practical expedient when estimating expected credit losses, which assumes that the current conditions as of the balance sheet date will not change for the remaining life of the accounts receivable and contract assets arising from contracts with customers. The amendments are effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those fiscal years, with early adoption permitted. If the practical expedient is elected, the amendments should be applied prospectively. The Company does not expect the adoption to have a material impact on the Company's financial statements. 13 NOTE 2 - REVENUE The following table presents the Company's net revenue disaggregated by revenue source (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue from contracts with customers: Transaction-based revenue $ 1,873,477 $ 1,712,421 $ 5,241,606 $ 4,936,597 Subscription and services-based revenue 1,330,171 1,254,659 3,904,288 3,730,719 Hardware revenue 70,192 36,839 139,305 112,300 Bitcoin revenue 1,966,394 2,428,608 6,411,828 7,771,475 Revenue from other sources: Subscription and services-based revenue (i) 874,718 543,274 2,244,178 1,537,401 Total net revenue $ 6,114,952 $ 5,975,801 $ 17,941,205 $ 18,088,492 (i) Subscription and services-based revenue from other sources relates to revenue generated from the Company's Square Loans, Cash App Borrow loans, and consumer receivables originated through our BNPL platform, interest income earned on customer funds, and interest income earned on funds held by Square Financial Services, Inc., which is a Utah state-chartered industrial loan company ("Square Financial Services"). NOTE 3 - INVESTMENTS IN DEBT SECURITIES The Company's short-term and long-term investments in debt securities as of September 30, 2025 and December 31, 2024 were as follows (in thousands): September 30, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 24,017 $ 12 $ — $ 24,029 Corporate bonds 65,035 201 ( 5 ) 65,231 Commercial paper 8,418 — — 8,418 Municipal securities 130 1 — 131 Certificates of deposit 1,246 — — 1,246 U.S. government securities 271,158 599 ( 40 ) 271,717 Total $ 370,004 $ 813 $ ( 45 ) $ 370,772 Long-term debt securities: U.S. agency securities $ 5,000 $ 5 $ — $ 5,005 Corporate bonds 47,448 111 ( 2 ) 47,557 Municipal securities 5,667 47 ( 171 ) 5,543 U.S. government securities 118,164 521 ( 6 ) 118,679 Total $ 176,279 $ 684 $ ( 179 ) $ 176,784 14 December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 34,454 $ 15 $ ( 1 ) $ 34,468 Corporate bonds 160,238 248 ( 96 ) 160,390 Commercial paper 333 — — 333 Municipal securities 398 1 — 399 Certificates of deposit 1,051 — — 1,051 U.S. government securities 206,340 449 ( 4 ) 206,785 Total $ 402,814 $ 713 $ ( 101 ) $ 403,426 Long-term debt securities: U.S. agency securities $ 49,017 $ 23 $ ( 10 ) $ 49,030 Corporate bonds 195,035 693 ( 384 ) 195,344 Municipal securities 4,592 4 ( 251 ) 4,345 U.S. government securities 222,164 1,218 ( 124 ) 223,258 Total $ 470,808 $ 1,938 $ ( 769 ) $ 471,977 The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments. The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2025 and December 31, 2024, aggregated by investment category and the length of time that individual securities have been in a continuous loss position were as follows (in thousands): September 30, 2025 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: Corporate bonds $ 5,330 $ ( 5 ) $ — $ — $ 5,330 $ ( 5 ) U.S. government securities 70,737 ( 35 ) 3,597 ( 5 ) 74,334 ( 40 ) Total $ 76,067 $ ( 40 ) $ 3,597 $ ( 5 ) $ 79,664 $ ( 45 ) Long-term debt securities: Corporate bonds $ 6,521 $ ( 2 ) $ — $ — $ 6,521 $ ( 2 ) Municipal securities 1,831 ( 41 ) 1,251 ( 130 ) 3,082 ( 171 ) U.S. government securities 12,908 ( 6 ) — — 12,908 ( 6 ) Total $ 21,260 $ ( 49 ) $ 1,251 $ ( 130 ) $ 22,511 $ ( 179 ) 15 December 31, 2024 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: U.S. agency securities $ 18,954 $ ( 1 ) $ — $ — $ 18,954 $ ( 1 ) Corporate bonds 50,905 ( 93 ) 1,995 ( 3 ) 52,900 ( 96 ) U.S. government securities — — 3,994 ( 4 ) 3,994 ( 4 ) Total $ 69,859 $ ( 94 ) $ 5,989 $ ( 7 ) $ 75,848 $ ( 101 ) Long-term debt securities: U.S. agency securities $ 9,990 $ ( 10 ) $ — $ — $ 9,990 $ ( 10 ) Corporate bonds 80,550 ( 384 ) — — 80,550 ( 384 ) Municipal securities 2,848 ( 128 ) 363 ( 123 ) 3,211 ( 251 ) U.S. government securities 58,681 ( 124 ) — — 58,681 ( 124 ) Total $ 152,069 $ ( 646 ) $ 363 $ ( 123 ) $ 152,432 $ ( 769 ) The Company does not intend to sell nor anticipate that it will be required to sell these securities before recovery of the amortized cost basis. Unrealized losses on available-for-sale debt securities were determined not to be related to credit related losses, therefore, an allowance for credit losses is not required. The contractual maturities of the Company's short-term and long-term investments as of September 30, 2025 were as follows (in thousands): Amortized Cost Fair Value Due in one year or less $ 370,004 $ 370,772 Due in one to five years 176,279 176,784 Total $ 546,283 $ 547,556 NOTE 4 - CUSTOMER FUNDS The following table presents the assets underlying customer funds (in thousands): September 30, 2025 December 31, 2024 Cash $ 3,659,949 $ 3,195,253 Cash equivalents: Money market funds 4,645 4,645 Reverse repurchase agreement (i) 1,139,122 982,974 Total customer funds $ 4,803,716 $ 4,182,872 (i) The Company has accounted for the reverse repurchase agreement with various third parties as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classifies the amounts due from the counterparties as cash equivalents due to their short-term nature. The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments. 16 NOTE 5 - FAIR VALUE MEASUREMENTS The Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, marketable equity investments, and bitcoin investment at fair value. The Company classifies these investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company’s assets and liabilities that are measured at fair value on a recurring basis were classified as follows (in thousands): September 30, 2025 December 31, 2024 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 2,268,416 $ — $ — $ 857,196 $ — $ — U.S. government securities 79,582 — — 26,951 — — Commercial paper — 1,564 — — 509 — Corporate bonds — 76 — — — — Restricted cash: Money market funds 96,641 — — 319,800 — — Customer funds: Reverse repurchase agreement 1,139,122 — — 982,974 — — Money market funds 4,645 — — 4,645 — — Short-term debt securities: U.S. government securities 271,717 — — 206,785 — — Corporate bonds — 65,231 — — 160,390 — U.S. agency securities — 24,029 — — 34,468 — Certificates of deposit — 1,246 — — 1,051 — Commercial paper — 8,418 — — 333 — Municipal securities — 131 — — 399 — Long-term debt securities: U.S. government securities 118,679 — — 223,258 — — Corporate bonds — 47,557 — — 195,344 — U.S. agency securities — 5,005 — — 49,030 — Municipal securities — 5,543 — — 4,345 — Other: Bitcoin investment (i) 1,001,419 — — 792,282 — — Investment in marketable equity securities 5,808 — — 5,407 — — Total $ 4,986,029 $ 158,800 $ — $ 3,419,298 $ 445,869 $ — (i) In addition to the Company's bitcoin investment, an immaterial amount of bitcoin is held for operating purposes and, given the bitcoin is held for a relatively short period of time, typically being purchased and sold within a day, the fair value approximates carrying value. Refer to Note 11, Bitcoin for more details. The carrying amounts of certain financial instruments, including settlements receivable, consumer receivables, accounts payable, customers payable, accrued expenses, and settlements payable, approximate their fair values due to their short-term nature. The carrying amounts of the Company's warehouse funding facilities approximate their fair values. 17 The Company estimates the fair value of its convertible and senior notes based on their last actively traded prices (Level 1) or market observable inputs (Level 2). The estimated fair value and carrying value of the convertible and senior notes were as follows (in thousands): September 30, 2025 December 31, 2024 Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) 2026 Senior Notes $ 998,117 $ 985,251 $ 996,017 $ 960,589 2030 Senior Notes 1,184,858 1,201,256 — — 2031 Senior Notes 992,018 923,827 990,971 873,868 2032 Senior Notes 1,977,040 2,046,612 1,975,026 1,999,220 2033 Senior Notes 987,265 1,011,473 — — 2025 Convertible Notes — — 999,497 991,941 2026 Convertible Notes 574,001 558,503 572,723 533,154 2027 Convertible Notes 572,201 521,847 571,202 497,517 Total $ 7,285,500 $ 7,248,769 $ 6,105,436 $ 5,856,289 The estimated fair value and carrying value of loans held for sale and loans held for investment were as follows (in thousands): September 30, 2025 December 31, 2024 Carrying Value Fair Value (Level 3) Carrying Value Fair Value (Level 3) Loans held for sale $ 778,039 $ 803,058 $ 1,111,107 $ 1,112,746 Loans held for investment 2,203,273 2,258,882 365,062 382,542 Total $ 2,981,312 $ 3,061,940 $ 1,476,169 $ 1,495,288 If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the three and nine months ended September 30, 2025 and September 30, 2024, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities. NOTE 6 - CONSUMER RECEIVABLES, NET Consumer receivables represent amounts due from consumers for outstanding installment payments on orders processed on the Company's BNPL platform. Consumer receivables are classified as held for investment. These receivables are typically interest free and are generally due within 14 to 56 days. The Company classifies consumer receivables as held for sale when the Company has the intent to sell all of its rights, title, and interest in these receivables to third-party investors, and there is an available market for such receivables. For the three and nine months ended September 30, 2025, $ 210.0 million and $ 630.0 million of consumer receivables were reclassified from loans held for investment to loans held for sale and sold to third parties, respectively. For the three and nine months ended September 30, 2024, $ 122.5 million and $ 254.1 million of consumer receivables were reclassified from loans held for investment to loans held for sale and sold to third parties, respectively. Net losses on sales of consumer receivables were immaterial for both the three and nine months ended September 30, 2025 and September 30, 2024. 18 The Company closely monitors credit quality for consumer receivables to manage and evaluate its related exposure to credit risk. The criteria the Company monitors when assessing the credit quality and risk of its consumer receivables portfolio is primarily based on internal risk assessments, as they provide insight into customer risk profiles and are useful as indicators of potential future credit losses. Consumer receivables are internally rated as "Pass" or "Classified." Pass rated consumer receivables generally consist of consumer receivables that are current or up to 60 days past due. Classified consumer receivables are generally comprised of consumer receivables that are greater than 60 days past due and have a higher risk of default. Internal risk ratings are reviewed and, generally, updated at least once a year. As of September 30, 2025, the amortized cost of Pass rated consumer receivables was $ 2.2 billion and the amount of Classified consumer receivables was $ 131.5 million. The following table presents an aging analysis of the amortized cost of consumer receivables by delinquency status (in thousands): September 30, 2025 December 31, 2024 Non-delinquent loans $ 1,839,027 $ 2,227,348 1 - 60 days past due 315,598 369,173 61 - 90 days past due 34,351 29,334 90+ days past due 97,122 80,817 Total amortized cost $ 2,286,098 $ 2,706,672 The amount listed as 1 - 60 days past due in the above table includes $ 220.2 million and $ 266.7 million of cash in transit as of September 30, 2025 and December 31, 2024, respectively, which reflects ongoing repayments from consumers that have been sent from consumers’ bank accounts but have not yet been received at the Company’s bank account as of the date of the financial statements. Consumer receivables are charged off when they are over 180 days past due as the Company has no reasonable expectation of recovery. When consumer receivables are charged off, the Company recognizes the charge against the allowance for credit losses. While the Company expects collections at that point to be unlikely, the Company may recover amounts from the respective consumers. Any subsequent recoveries following charge-off are credited to transaction, loan, and consumer receivable losses on the condensed consolidated statements of operations in the period they are recovered. The amount of recoveries for both the three and nine months ended September 30, 2025 and September 30, 2024 were immaterial. The following table summarizes activity in the allowance for credit losses for consumer receivables (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Allowance for credit losses, beginning of the period $ 211,981 $ 176,511 $ 201,793 $ 185,275 Provision for credit losses 82,671 69,970 226,420 194,117 Charge-offs and other adjustments ( 83,346 ) ( 82,058 ) ( 224,322 ) ( 214,766 ) Foreign exchange effect ( 1,334 ) 4,204 6,081 4,001 Allowance for credit losses, end of the period $ 209,972 $ 168,627 $ 209,972 $ 168,627 19 NOTE 7 - CUSTOMER LOANS Customer loans primarily consist of Square Loans and Cash App Borrow products. Square Loans are facilitated by the Company’s wholly-owned subsidiary, Square Financial Services, to qualified Square sellers. The majority of Square Loans are sold to third-party investors with a portion retained on the Company’s balance sheet. Cash App Borrow is a credit product for consumers that allows customers to access short-term loans for a small fee. Historically, Cash App Borrow loans were originated through a partnership with an industrial bank, from whom the Company purchased the loans obtaining all rights, title, and interest, and were classified as held for sale on the Company’s balance sheet. Beginning in the second quarter of 2025, the Company also began originating Cash App Borrow loans through Square Financial Services. The Cash App Borrow loans originated through Square Financial Services are retained on the Company’s balance sheet and classified as held for investment. Beginning July 1, 2025, Cash App Borrow loans and certain other customer loan products purchased from the industrial bank, along with all customer loan products originated through Square Financial Services, are retained on the Company's balance sheet and classified as held for investment. The Company classifies customer loans as held for investment when the Company has both the intent and ability to hold them for the foreseeable future, until maturity, or until payoff. Customer loans are classified as held for sale when there is an available market for such loans and it is the Company’s intent to sell all of its rights, title, and interest in these loans to third-party investors. The Company’s intent and ability in the future may change based on changes in the business strategies, the economic environment, and market conditions. The Company categorizes loans held for investment and loans held for sale by the intended customer of the loan product. Commercial loans primarily include Square Loans; Consumer loans include Cash App Borrow and consumer lending loans; and Other loans include those outside of consumer and commercial loans such as Square credit card. Loans Held for Investment Loans held for investment are recorded at amortized cost, less an allowance for potential uncollectible amounts. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. The following table presents the Company's loans held for investment by category (in thousands) as of September 30, 2025. The amount of charge-offs recorded and amount of recoveries for the three and nine months ended September 30, 2025 were immaterial. September 30, 2025 Consumer Commercial Other Total Amortized cost basis $ 1,887,256 $ 496,812 $ 35,512 $ 2,419,580 Allowance for credit losses ( 180,913 ) ( 31,081 ) ( 4,313 ) ( 216,307 ) Total loans held for investment, net of allowance $ 1,706,343 $ 465,731 $ 31,199 $ 2,203,273 As of December 31, 2024, the Company held $ 365.1 million of Commercial loans held for investment, net of allowance of $ 23.1 million. The amount of charge-offs recorded and amount of recoveries for the three and nine months ended September 30, 2024 were immaterial. The Company considers Square Loans that are greater than 60 days past due to be delinquent, and Square Loans 90 days or more past due to be nonperforming. Square Loans that are 120 days or more past due are generally considered to be uncollectible and are written off. When a Square Loan is identified as nonperforming, recognition of income is discontinued. Square Loans are restored to performing status after total overdue unpaid amounts are repaid and the Company has reasonable assurance that performance under the terms of the loan will continue. Cash App Borrow loans that are 1 day or greater past due are considered delinquent, and those that are 90 days or more past due are generally considered to be uncollectible and are written off. As of September 30, 2025 and December 31, 2024, the amount of loans that were identified as nonperforming loans was immaterial. 20 The Company closely monitors economic conditions and loan performance trends to assess and manage its exposure to credit risk. The criteria the Company monitors when assessing the credit quality and risk of its loan portfolio is primarily based on internal risk ratings, as they provide insight into borrower risk profiles and are useful as indicators of potential future credit losses. Loans are internally rated as "Pass" or "Classified." Pass rated Square Loans generally consist of loans that are current or up to 60 days past due. Classified Square Loans generally comprise of loans that are greater than 60 days past due and have a higher risk of default. Pass rated Cash App Borrow loans generally consist of loans that are current. Classified Cash App Borrow loans are comprised of loans that are 1 day or greater past due, due to their short-term nature and repayment period, and have a higher risk of default. Internal risk ratings are reviewed and, generally, updated at least annually. As of September 30, 2025 and December 31, 2024, the amortized cost of Pass rated loans was $ 2.2 billion and $ 385.2 million, respectively. The amount of Classified loans as of September 30, 2025 was $ 247.6 million and immaterial as of December 31, 2024. Loans Held for Sale The following table presents the Company’s loans held for sale by category (in thousands): September 30, 2025 December 31, 2024 Commercial $ 611,928 $ 404,844 Consumer 109,320 652,489 Other 56,791 53,774 Total $ 778,039 $ 1,111,107 Loans held for sale are recorded at the lower of amortized cost or fair value. Square Loans that are 120 days or more past due and Cash App Borrow loans that are 90 days or more past due are generally considered to be uncollectible and are written off. Past due status is based on contractual terms of the loans. For the three and nine months ended September 30, 2025, $ 1.1 billion and $ 3.3 billion of Square Loans were sold to third-party investors, respectively, and the Company recognized net gains on the sales of loans of $ 62.0 million and $ 189.7 million for the same periods. For the three and nine months ended September 30, 2024, $ 1.0 billion and $ 3.2 billion of Square Loans were sold to third-party investors, respectively, and the Company recognized net gains on sales of loans of $ 58.5 million and $ 178.4 million for the same periods. The net gains on sales of loans are recognized in net income through “Subscription and services-based revenue” in the Company’s condensed consolidated statements of operations. 21 NOTE 8 - ACQUIRED INTANGIBLE ASSETS The following table details acquired intangible assets (in thousands): Balance at September 30, 2025 Weighted Average Estimated Useful Life Cost Accumulated Amortization Net Technology assets 5 years $ 359,008 $ ( 284,046 ) $ 74,962 Customer assets 15 years 1,396,795 ( 366,020 ) 1,030,775 Trade names and other 9 years 389,137 ( 168,783 ) 220,354 Total $ 2,144,940 $ ( 818,849 ) $ 1,326,091 Balance at December 31, 2024 Weighted Average Estimated Useful Life Cost Accumulated Amortization Net Technology assets 5 years $ 353,791 $ ( 241,110 ) $ 112,681 Customer assets 15 years 1,401,102 ( 332,153 ) 1,068,949 Trade names and other 9 years 389,137 ( 137,700 ) 251,437 Total $ 2,144,030 $ ( 710,963 ) $ 1,433,067 All intangible assets are amortized over their estimated useful lives. The change in the carrying value of intangible assets was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Acquired intangible assets, net, beginning of the period $ 1,368,735 $ 1,629,183 $ 1,433,067 $ 1,761,521 Acquisitions 5,217 7,536 5,217 7,536 Amortization expense ( 47,990 ) ( 53,207 ) ( 144,615 ) ( 172,918 ) Foreign currency translation and other adjustments 129 24,424 32,422 11,797 Acquired intangible assets, net, end of the period $ 1,326,091 $ 1,607,936 $ 1,326,091 $ 1,607,936 The estimated future amortization expense of intangible assets as of September 30, 2025 was as follows (in thousands): Remainder of 2025 $ 52,655 2026 183,187 2027 139,623 2028 135,835 2029 135,204 Thereafter 679,587 Total $ 1,326,091 22 NOTE 9 - OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) Other Current Assets The following table presents the detail of other current assets (in thousands): September 30, 2025 December 31, 2024 Restricted cash (i) $ 731,590 $ 902,478 Processing costs receivable 445,157 478,767 Investments in short-term debt securities 370,772 403,426 Accounts receivable, net 176,455 148,898 Inventory, net 166,631 104,990 Prepaid expenses 158,430 129,343 Short-term deposits 78,106 87,968 Other 521,154 324,198 Total $ 2,648,295 $ 2,580,068 (i) Includes a portion invested in money market funds. Refer to Note 5, Fair Value Measurements for further details . Accrued Expenses and Other Current Liabilities The following table presents the detail of accrued expenses and other current liabilities (in thousands): September 30, 2025 December 31, 2024 Accrued expenses $ 671,940 $ 725,339 Customer deposits 323,061 241,884 Accounts payable 125,880 117,963 Accrued royalties 62,540 57,605 Operating lease liabilities, current 55,380 52,880 Accrued transaction losses (i) 53,249 58,580 Other 286,780 270,898 Total $ 1,578,830 $ 1,525,149 (i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Accrued transaction losses, beginning of the period $ 54,382 $ 81,309 $ 58,580 $ 54,042 Provision for transaction losses 27,935 5,617 89,414 86,167 Charge-offs to accrued transaction losses ( 29,068 ) ( 27,965 ) ( 94,745 ) ( 81,248 ) Accrued transaction losses, end of the period $ 53,249 $ 58,961 $ 53,249 $ 58,961 23 In addition to amounts reflected in the table above, the Company recognized additional provisions for transaction losses that was realized and written-off within the same period. Such losses are primarily related to Cash App transactions, such as peer-to-peer transactions and negative balances, that are uncertain in nature. Losses from peer-to-peer activity are classified within sales and marketing expenses, while other transaction losses, including negative balances, are presented within transaction, loan, and consumer receivable losses on the condensed consolidated statements of operations. In aggregate, t he Company recorded $ 72.2 million and $ 193.2 million for the three and nine months ended September 30, 2025, respectively, for such losses. The Company recorded $ 87.7 million and $ 219.4 million for the three and nine months ended September 30, 2024, respectively, for such losses. NOTE 10 - OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) Other Non-Current Assets The following table presents the detail of other non-current assets (in thousands): September 30, 2025 December 31, 2024 Bitcoin investment (i) $ 1,001,419 $ 792,282 Investment in non-marketable equity securities (ii) 418,198 245,557 Property and equipment, net 343,222 314,432 Operating lease right-of-use assets 213,944 219,954 Investments in long-term debt securities 176,784 471,977 Restricted cash 73,786 69,915 Other 211,432 131,794 Total $ 2,438,785 $ 2,245,911 (i) Refer to Note 11, Bitcoin for further details. (ii) Investment in non-marketable equity securities represents the Company's investments in equity of non-public entities. These investments are measured using the measurement alternative and are therefore carried at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. During the quarter ended September 30, 2025, one of the Company's investments closed on an additional financing round, which the Company assessed as an observable price change in an orderly transaction. The Company recorded a $ 171.6 million upward adjustment to the carrying value of this investment, resulting in a carrying value of $ 329.8 million as of September 30, 2025. Adjustments are recorded within other expense (income), net on the condensed consolidated statements of operations. The adjustments to the carrying value of the Company's non-marketable equity securities measured using the measurement alternative were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Carrying amount, beginning of period $ 246,558 $ 213,315 $ 245,557 $ 205,268 Net additions (reductions) — 500 1,001 4,500 Gross unrealized gains 171,640 — 171,640 4,145 Gross unrealized losses and impairments — ( 2,250 ) — ( 2,348 ) Carrying amount, end of period $ 418,198 $ 211,565 $ 418,198 $ 211,565 24 The following table summarizes the cumulative net unrealized upward and downward adjustments related to the Company's non-marketable equity securities measured using the measurement alternative (in thousands): September 30, 2025 December 31, 2024 Upward adjustments $ 326,969 $ 155,329 Downward adjustments (including impairment) $ ( 2,061 ) $ ( 2,061 ) Other Non-Current Liabilities The following table presents the detail of other non-current liabilities (in thousands): September 30, 2025 December 31, 2024 Operating lease liabilities, non-current $ 259,469 $ 278,617 Deferred tax liabilities 162,335 162,435 Other 122,810 152,164 Total $ 544,614 $ 593,216 NOTE 11 - BITCOIN A) Company Owned Bitcoin The Company holds bitcoin for long-term investment purposes ("bitcoin investment") and also holds bitcoin for the facilitation of customer sales and purchases of bitcoin on Cash App ("bitcoin for operating purposes"). The Company accounts for its bitcoin as an indefinite-lived intangible asset in accordance with Accounting Standards Codification ("ASC") 350, Intangibles—Goodwill and Other and has ownership of and control over its bitcoin. The Company's bitcoin investment, which is included within “Other non-current assets” on the condensed consolidated balance sheets, is initially recorded at cost, inclusive of transaction costs, and remeasured at fair value at the end of each reporting period. Changes in fair value are recognized in net income through “Remeasurement loss (gain) on bitcoin investment” in the Company’s condensed consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the Company held approximately 8,780 and 8,485 bitcoins for investment purposes with a cost basis of $ 282.2 million and $ 251.5 million, respectively. The following table summarizes the changes in the Company’s bitcoin investment in the period (in thousands, except amount of bitcoin): Amount of Bitcoin Value Balance at December 31, 2024 8,485 $ 792,282 Additions 99 9,519 Remeasurement loss — ( 93,351 ) Balance at March 31, 2025 8,584 $ 708,450 Additions 108 11,041 Remeasurement gain — 212,165 Balance at June 30, 2025 8,692 $ 931,656 Additions 88 10,175 Remeasurement gain — 59,588 Balance at September 30, 2025 8,780 $ 1,001,419 25 Amount of Bitcoin Value Balance at December 31, 2023 8,038 $ 339,898 Remeasurement gain — 233,404 Balance at March 31, 2024 8,038 $ 573,302 Additions 173 11,398 Remeasurement loss — ( 70,116 ) Balance at June 30, 2024 8,211 $ 514,584 Additions 152 9,709 Remeasurement gain — 5,288 Balance at September 30, 2024 8,363 $ 529,581 The Company’s bitcoin for operating purposes is initially recorded at cost, inclusive of transaction costs. Subsequent to purchase, any sales related to bitcoin occur at its current market price, plus a small margin. As such, any change in fair value of bitcoin purchased and sold for customer orders is captured within bitcoin revenue. Given the small amount of bitcoin for operating purposes held at any time, and that the bitcoin is held for a relatively short period of time, typically being purchased and sold within a day, the changes in fair value are not material to the Company. As of September 30, 2025 and December 31, 2024, the Company held approximately 144 and 158 bitcoins for operating purposes with a fair value of $ 16.5 million and $ 15.3 million, respectively, to facilitate the purchases and sales of bitcoin on behalf of Cash App customers. The bitcoin for operating purposes is reflected on the condensed consolidated balance sheets within “Other current assets.” B) Bitcoin Held for Other Parties The Company allows its Cash App customers to store their bitcoin in the Company’s digital wallets free of charge. The Company also holds an immaterial amount of bitcoin from select trading partners to facilitate bitcoin transactions for customers on Cash App. Other than bitcoin, the Company does not hold or store any other types of crypto-assets for customers or trading partners. The Company holds the cryptographic key information and maintains the internal recordkeeping of the bitcoin held for other parties. The Company's contractual arrangements state that its customers and trading partners retain legal ownership of the bitcoin; have the right to sell, pledge, or transfer the bitcoin; and also benefit from the rewards and bear the risks associated with the ownership, including as a result of any bitcoin price fluctuations. The customer also bears the risk of loss as a result of fraud or theft, unless the loss was caused by the Company’s gross negligence or the Company’s willful misconduct. The Company does not use any of the bitcoin custodied for customers or trading partners as collateral for any of the Company’s loans or other financing arrangements; nor does it lend or pledge bitcoin held for others to any third parties. The Company occasionally engages third-party custodians to store and safeguard bitcoin on the Company's behalf. The Company has concluded, under ASC 450-20, Loss Contingencies, that it does not have a probable loss that would require it to recognize a custodial obligation as of September 30, 2025. 26 NOTE 12 - INDEBTEDNESS A) Notes The 2025 Convertible Notes, 2026 Convertible Notes, and 2027 Convertible Notes (each, as defined below, and collectively, the “Convertible Notes”), together with the Senior Notes (as defined below), are collectively referred to as the “Notes.” The following tables summarize the Company's Notes as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 Principal Outstanding Unamortized Debt Issuance Costs Net Carrying Value 2026 Senior Notes (i) $ 1,000,000 $ ( 1,883 ) $ 998,117 2030 Senior Notes 1,200,000 ( 15,142 ) 1,184,858 2031 Senior Notes 1,000,000 ( 7,982 ) 992,018 2032 Senior Notes 2,000,000 ( 22,960 ) 1,977,040 2033 Senior Notes 1,000,000 ( 12,735 ) 987,265 2026 Convertible Notes (i) 575,000 ( 999 ) 574,001 2027 Convertible Notes 575,000 ( 2,799 ) 572,201 Total $ 7,350,000 $ ( 64,500 ) $ 7,285,500 December 31, 2024 Principal Outstanding Unamortized Debt Issuance Costs Net Carrying Value 2026 Senior Notes $ 1,000,000 $ ( 3,983 ) $ 996,017 2031 Senior Notes 1,000,000 ( 9,029 ) 990,971 2032 Senior Notes 2,000,000 ( 24,974 ) 1,975,026 2025 Convertible Notes (i) 1,000,000 ( 503 ) 999,497 2026 Convertible Notes 575,000 ( 2,277 ) 572,723 2027 Convertible Notes 575,000 ( 3,798 ) 571,202 Total $ 6,150,000 $ ( 44,564 ) $ 6,105,436 (i) Net carrying value disclosed as current portion of long-term debt within total current liabilities on the condensed consolidated balance sheet. 27 The Company recognized interest expense on the Notes as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Contractual interest expense $ 63,764 $ 48,822 $ 160,541 $ 99,550 Amortization of debt issuance costs 2,979 3,232 8,410 8,717 Total $ 66,743 $ 52,054 $ 168,951 $ 108,267 Senior Unsecured Notes due in 2030 and 2033 On August 18, 2025, the Company issued $ 2.2 billion in aggregate principal amount of senior unsecured notes, comprised of $ 1.2 billion in aggregate principal amount of senior notes due 2030 ("2030 Senior Notes") and $ 1.0 billion in aggregate principal amount of senior notes due 2033 ("2033 Senior Notes"). The 2030 Senior Notes mature on August 15, 2030, unless earlier redeemed or repurchased, and bear interest at a rate of 5.625 % payable semi-annually on February 15 and August 15 of each year, commencing on February 15, 2026. The 2033 Senior Notes mature on August 15, 2033, unless earlier redeemed or repurchased, and bear interest at a rate of 6.000 % payable semi-annually on February 15 and August 15 of each year, commencing on February 15, 2026. At any time prior to August 15, 2027, in the case of the 2030 Senior Notes, and at any time prior to August 15, 2028, in the case of the 2033 Senior Notes, the Company may redeem the applicable series, in whole or part, at a price equal to 100 % of the principal amount of the notes to be redeemed plus an applicable premium and accrued and unpaid interest, if any, to but excluding the redemption date. The applicable premium for the 2030 Senior Notes and the 2033 Senior Notes, respectively, is the greater of (1) 1.0 % of the principal amount of such series of notes, and (2) the excess, if any, of (a) the sum of the present values at the redemption date of (i) the applicable redemption price of such note that would apply if such note were redeemed on August 15, 2027, in the case of the 2030 Senior Notes, and August 15, 2028, in the case of the 2033 Senior Notes, plus (ii) the remaining scheduled payments of interest due on such note to, and including, August 15, 2027, in the case of the 2030 Senior Notes, and August 15, 2028, in the case of the 2033 Senior Notes, (excluding accrued but unpaid interest to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate (as defined in the applicable indenture) plus 50 basis points, over (b) the principal amount of such note to be redeemed. On and after August 15, 2027, in the case of the 2030 Senior Notes, and August 15, 2028, in the case of the 2033 Senior Notes, the Company may redeem the notes of the applicable series at specified prices as set forth in the applicable indenture plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If the Company experiences a change of control triggering event (as defined in the applicable indenture), the Company must offer to repurchase the 2030 Senior Notes or 2033 Senior Notes, as applicable, at a repurchase price equal to 101 % of the principal amount of the applicable notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date. The indentures governing the 2030 Senior Notes and 2033 Senior Notes each contain covenants that, among other things, restrict the ability of the Company and/or its domestic restricted subsidiaries to create certain liens and certain indebtedness, enter into sale and leaseback transactions, or to transfer all or substantially all of the Company and its subsidiaries assets to another person. These covenants are subject to a number of other limitations and exceptions, each as set forth in the applicable indenture governing the 2030 Senior Notes and 2033 Senior Notes. The indentures governing the 2030 Senior Notes and 2033 Senior Notes, as applicable, each provide for customary events of default, including, but not limited to, failure to pay principal and interest, failure to comply with covenants, agreements or conditions, and certain events of bankruptcy or insolvency involving the Company and its significant subsidiaries. In the case of an event of default arising from specified events of bankruptcy or insolvency involving the Company, all outstanding notes of the applicable series will become due and payable immediately without further action or notice. If any other event of default under the indenture governing the applicable notes occurs or is continuing, the trustee or holders of at least 25 % in aggregate principal amount of the outstanding applicable notes may declare all the applicable notes to be due and payable immediately. Aggregate debt issuance costs related to the 2030 Senior Notes and 2033 Senior Notes were comprised of commissions payable to the initial purchasers of $ 22.0 million and third party offering costs of $ 6.3 million. Issuance costs are amortized to interest expense using the effective interest method at effective interest rates of 5.9 % and 6.2 % for the terms of the 2030 Senior Notes and 2033 Senior Notes, respectively. 28 Convertible Notes due in 2026 and 2027 On November 13, 2020, the Company issued $ 1.2 billion in aggregate principal amount of convertible senior notes comprised of $ 575.0 million in aggregate principal amount of convertible senior notes due 2026 ("2026 Convertible Notes") and $ 575.0 million in aggregate principal amount of convertible senior notes due 2027 ("2027 Convertible Notes"). The 2026 Convertible Notes mature on May 1, 2026, unless earlier converted or repurchased, and bear a zero rate of interest. The 2027 Convertible Notes mature on November 1, 2027, unless earlier converted or repurchased, and bear interest at a rate of 0.25 % payable semi-annually on May 1 and November 1 of each year. The circumstances to allow the holders to convert their 2026 Convertible Notes and 2027 Convertible Notes were not met during the nine months ended September 30, 2025. As of September 30, 2025, no principal had converted and the if-converted value did not exceed the outstanding principal amount on either the 2026 Convertible Notes or 2027 Convertible Notes. Convertible Notes due in 2025 On March 5, 2020, the Company issued $ 1.0 billion in aggregate principal amount of convertible senior notes ("2025 Convertible Notes"). As of the maturity date on March 1, 2025, certain holders of the 2025 Convertible Notes had converted an immaterial aggregate principal amount of their 2025 Convertible Notes, which were settled through the issuance of an immaterial amount of shares of the Company's Class A common stock. The Company paid a total of $ 1.0 billion in cash to settle the remaining unconverted principal balance, and interest, as of March 1, 2025. B) Revolving Credit Facility & Other In May 2020, the Company entered into a revolving credit agreement (as amended, the “Credit Agreement”) with certain lenders, which provides for a $ 775.0 million senior unsecured revolving credit facility maturing on June 9, 2028. The Credit Agreement contains a financial covenant requiring the Company to maintain a minimum liquidity amount (consisting of the sum of Unrestricted Cash and Cash Equivalents plus Marketable Securities, each as defined in the Credit Agreement, plus undrawn available commitments under the Credit Agreement) of at least $ 250.0 million, tested on the last day of each fiscal quarter. The Company is obligated to pay customary fees for a credit facility of this size and type including a commitment fee of 0.10 % to 0.20 % per annum on the undrawn portion of the revolving loan commitments available under the Credit Agreement. As of September 30, 2025, no funds have been drawn and no letters of credit have been issued under the Credit Agreement. The Company incurred immaterial unused commitment fees during the three and nine months ended September 30, 2025 and September 30, 2024. As of September 30, 2025, the Company was in compliance with all financial covenants under the Credit Agreement. Loans under the Credit Agreement bear interest at the Company's option of (i) an annual rate based on the forward-looking term rate based on the Secured Overnight Financing Rate ("Term SOFR") or (ii) a base rate. Loans based on Term SOFR shall bear interest at a rate equal to Term SOFR plus a margin of between 1.25 % and 1.75 %, depending on the Company's total net leverage ratio. Loans based on the base rate shall bear interest at a rate based on the highest of the prime rate, the federal funds rate plus 0.50 %, and Term SOFR with a tenor of one-month plus 1.00 %, in each case, plus a margin ranging from 0.25 % to 0.75 %, depending on the Company's total net leverage ratio. The Credit Agreement also contains customary affirmative and negative covenants typical for a financing of this type that, among other things, restricts the Company and certain of its subsidiaries’ ability to incur additional indebtedness, create liens, merge or consolidate or make certain dispositions, pay dividends and make distributions, enter into restrictive agreements, enter into agreements with affiliates, and make certain investments and acquisitions. The Company also has uncommitted and unsecured lines of credit with certain third-party banks for short-term liquidity needs, subject to availability of funds, through Square Financial Services. There were no outstanding balances as of September 30, 2025 and December 31, 2024. 29 C) Warehouse Funding Facilities The Company has financing arrangements with financial institutions in Australia, New Zealand, the United States, and the United Kingdom (collectively, the “Warehouse Facilities”) in connection with the BNPL platform. The Warehouse Facilities have been arranged utilizing wholly-owned and consolidated entities (collectively, the "Warehouse Special Purpose Entities ("Warehouse SPEs")) formed for the sole purpose of financing the origination of consumer receivables to partly fund the Company's BNPL platform. Borrowings under the Warehouse Facilities are secured against the respective consumer receivables. While the Warehouse SPEs are included in our condensed consolidated financial statements, they are separate legal entities that maintain legal ownership of the receivables they hold. The assets of the Warehouse SPEs are not available to satisfy our claims or those of our creditors. These Warehouse Facilities have maturity dates through September 2028. As of September 30, 2025, the aggregate amount of the Warehouse Facilities, using the respective exchange rates at period-end, was $ 1.5 billion on a revolving basis, of which $ 501.0 million was drawn and $ 983.1 million remained available. All Warehouse Facilities contain portfolio parameters based on performance of the underlying consumer receivables, which each respective region has satisfied as of September 30, 2025. None of the Warehouse Facilities contain corporate financial covenants. All Warehouse Facilities are on a variable rate basis which aligns closely to the weighted-average life of the consumer receivables they finance. Borrowings under these facilities bear interest at (i) a base rate aligned to either the local risk free rate, such as Term SOFR and the Sterling Overnight Index Average or similar, and (ii) a margin which is set for the term of the availability period. The interest expense incurred on the Company's Warehouse Facilities is included within general and administrative as part of the Company's operating expenses. Interest expense on the Company's Warehouse Facilities was $ 10.7 million and $ 36.5 million for the three and nine months ended September 30, 2025, respectively, and $ 16.4 million and $ 52.3 million for the three and nine months ended September 30, 2024, respectively. In addition, each Warehouse Facility requires payment of immaterial commitment fees. The table below summarizes the future scheduled principal payments of amounts drawn on the Company's Warehouse Facilities (in thousands): September 30, 2025 2026 (i) $ 176,194 2027 284,805 2028 40,000 Total $ 500,999 (i) Includes $ 157.4 million of future scheduled principal payments in 2026, which are disclosed as warehouse funding facilities, current, within total current liabilities on the condensed consolidated balance sheet. NOTE 13 - INCOME TAXES The Company recorded an income tax expense of $ 139.9 million and $ 299.3 million for the three and nine months ended September 30, 2025, respectively, compared to an income tax expense of $ 43.0 million and $ 137.5 million for the three and nine months ended September 30, 2024, respectively. The difference between the income tax expense for the three and nine months ended September 30, 2025 and the income tax expense for the three and nine months ended September 30, 2024 primarily relates to the pre-tax results for each quarter and maintaining a valuation allowance on U.S. deferred tax assets through the third quarter of 2024. The difference between income tax at the U.S. federal statutory rate and the income tax expense recorded for the three and nine months ended September 30, 2025 is primarily due to the generation of tax credits and a change in the deferred tax valuation allowance in Ireland and Spain. 30 The Company is subject to income taxes in the U.S. and certain foreign tax jurisdictions. The tax provision for the three and nine months ended September 30, 2025 and September 30, 2024 is calculated on a jurisdictional basis. The Company estimated the worldwide income tax provision using the estimated annual effective income tax rate expected to be applicable for the full year. The Company’s effective tax rate may be subject to fluctuations during the year as new information is obtained, which may affect, among other things, the assumptions used to estimate the annual effective tax rate, including factors such as the mix of forecasted pre-tax earnings in the various jurisdictions in which the Company operates, changes in valuation allowances against deferred tax assets, the recognition and de-recognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where the Company conducts business. On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (H.R. 1), which includes significant changes to federal tax law. The Company has recognized the impacts in the third quarter of 2025, the period in which the law was enacted. The Company anticipates a material reduction for expected cash taxes paid in fiscal year 2025. While we continue to evaluate the impact for future years, we do not expect a material impact to our current year effective tax rates for income taxes. NOTE 14 - STOCKHOLDERS' EQUITY Share Repurchase Program In October 2023, the board of directors of the Company authorized the repurchase of up to $ 1 billion of the Company’s Class A common stock. On July 25, 2024, the board of directors of the Company authorized an increase to the Company's share repurchase program to repurchase up to an additional $ 3 billion of the Company’s Class A common stock. During the nine months ended September 30, 2025, the Company repurchased 24.6 million shares of its Class A common stock for an aggregate amount of $ 1.5 billion. As of September 30, 2025, $ 1.1 billion remained available and authorized for repurchases under this share repurchase program. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate the Company to acquire any particular amount of its Class A common stock and may be suspended at any time at the Company’s discretion. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. Conversion of Convertible Notes and Exercise of Convertible Note Hedges As of the maturity date on March 1, 2025, certain holders of the 2025 Convertible Notes had converted an immaterial aggregate principal amount of their 2025 Convertible Notes. The Company settled the conversions through the issuance of an immaterial amount of shares of the Company's Class A common stock and paid a total of $ 1.0 billion in cash to settle the remaining unconverted principal balance, and interest, as of March 1, 2025. Additionally, there were no convertible note hedges exercised, and no shares were received as of September 30, 2025. Warrants In conjunction with the 2025 Convertible Notes offering, the Company sold the 2025 Warrants whereby the counterparties had the option to purchase a total of approximately 8.3 million shares of the Company’s Class A common stock at a price of $ 161.34 per share. The 2025 Warrants expired evenly over a 60 trading day period starting on June 1, 2025 and ending on August 26, 2025. None of the warrants were exercised as of September 30, 2025. 31 Stock Plans The Company maintains two share-based employee compensation plans: the 2015 Equity Incentive Plan ("2015 Plan") and the 2025 Equity Incentive Plan ("2025 Plan"). The 2025 Plan became effective as of June 17, 2025 and replaced the 2015 Plan as of such date, such that no further awards will be granted under the 2015 Plan. Any awards outstanding under the 2015 Plan as of the date the 2025 Plan became effective will remain outstanding under the 2015 Plan in accordance with their existing terms. Under the 2025 Plan, shares of the Company's Class A common stock are reserved for the issuance of incentive and nonstatutory stock options (ISOs and NSOs, respectively), stock appreciation rights ("SARs"), restricted stock awards, restricted stock units ("RSUs"), performance awards, and other stock and cash-based awards to eligible employees, directors, and consultants. The awards must be granted at a price per share not less than the fair market value at the date of grant. A maximum aggregate of 80,000,000 shares were reserved for issuance pursuant to awards under the 2025 Plan. As of September 30, 2025, there were 127.6 million shares outstanding under the 2015 Plan and 77.9 million shares available for future issuance under our 2025 Plan. A summary of stock option activity for the nine months ended September 30, 2025 is as follows (in thousands, except per share data): Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, beginning of the year 2,578 $ 72.17 5.11 $ 67,966 Granted 1,769 55.66 Exercised ( 495 ) 24.81 Forfeited — — Expired ( 65 ) 157.02 Outstanding, end of the period 3,787 $ 69.23 7.38 $ 47,772 Exercisable, end of the period 1,805 $ 79.37 5.33 $ 21,373 Restricted Stock Activity Activity related to RSUs during the nine months ended September 30, 2025 is set forth below (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Unvested, beginning of the year 37,079 $ 70.51 Granted 17,420 62.55 Vested ( 12,731 ) 73.78 Forfeited ( 6,425 ) 67.77 Unvested, end of the period 35,343 $ 65.91 32 Share-Based Compensation The following table summarizes the effects of share-based compensation on the Company's condensed consolidated statements of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of revenue $ 131 $ 180 $ 422 $ 534 Product development 222,664 228,300 660,132 679,584 Sales and marketing 27,681 34,891 88,172 98,435 General and administrative 58,904 60,684 173,231 177,038 Total $ 309,380 $ 324,055 $ 921,957 $ 955,591 The Company capitalized $ 9.4 million and $ 24.6 million of share-based compensation expense related to software costs during the three and nine months ended September 30, 2025, respectively, compared to $ 12.4 million and $ 29.5 million during the three and nine months ended September 30, 2024, respectively. As of September 30, 2025, there was $ 2.3 billion of total unrecognized compensation cost related to outstanding stock options and RSUs that are expected to be recognized over a weighted-average period of 3 years. NOTE 15 - NET INCOME PER SHARE The Company computes net income (loss) per share attributable to our common stockholders using the two-class method required for multiple classes of common stock and participating securities. The holders of our Class A and Class B common stock (together, "common stock") have identical liquidation and dividend rights but different voting rights. Accordingly, we present net income (loss) per share for Class A and Class B common stock together. Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding adjusted for the dilutive effect of all potential shares of common stock. In periods when the Company reported a net loss, diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive. 33 The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Basic net income per share: Numerator Net income attributable to common stockholders $ 461,544 $ 283,754 $ 1,189,874 $ 951,027 Denominator Shares used to compute basic net income per share 610,199 616,428 614,117 616,830 Basic net income per share $ 0.76 $ 0.46 $ 1.94 $ 1.54 Diluted net income per share: Numerator Net income attributable to common stockholders $ 461,544 $ 283,754 $ 1,189,874 $ 951,027 Interest expense on convertible notes 864 — 3,245 — Net income used to compute diluted net income per share $ 462,408 $ 283,754 $ 1,193,119 $ 951,027 Denominator Shares used to compute basic net income per share 610,199 616,428 614,117 616,830 Stock options, restricted stock, and employee stock purchase plan 7,615 4,224 5,479 6,481 Convertible notes 3,844 12,108 5,660 12,108 Shares used to compute diluted net income per share 621,658 632,760 625,256 635,419 Diluted net income per share $ 0.74 $ 0.45 $ 1.91 $ 1.50 The following potential common shares were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Stock options, restricted stock, and employee stock purchase plan 35,901 41,498 36,900 39,090 Common stock warrants 5,535 12,109 9,732 12,109 Total anti-dilutive securities 41,436 53,607 46,632 51,199 NOTE 16 - RELATED PARTY TRANSACTIONS In July 2019, the Company entered into a lease agreement for office space in St. Louis, Missouri, from an affiliate of one of the Company’s co-founders and current member of its board of directors, Mr. Jim McKelvey, for a term of 15.5 years, with options to extend the lease term for two five-year terms. The lease possession date varied by floor, beginning in May 2020. As of September 30, 2025, the Company had recorded right-of-use assets of $ 9.9 million and associated lease liabilities of $ 15.0 million related to this lease arrangement. Under the lease agreement, the Company has an option to terminate the lease for the entire property on January 1, 2034. Termination penalties specified in the lease agreement will apply if the Company exercises the option to terminate the lease. 34 NOTE 17 - COMMITMENTS AND CONTINGENCIES Litigation and Regulatory Matters The Company is currently subject to, and may in the future be involved in, various litigation matters, legal claims, investigations, and regulatory proceedings. The Company received subpoenas from Attorneys General from multiple states, seeking the production of information related to, among other things, Cash App’s handling of customer complaints and disputes. In June 2024, the state Attorneys General presented the Company with the results of their investigations. In December 2024, the state Attorneys General presented the Company with potential terms for resolving this matter and the Company is engaging in conversations with the state Attorneys General to resolve this matter on acceptable terms. The Company is unable to predict the likely outcome of this matter, which may include one or more public orders, and cannot provide any assurance that the state Attorneys General will not ultimately take legal action against the Company or that the outcome of these matters will not have a material adverse effect on the Company. It is probable that the Company will incur a loss in connection with this matter, and the loss could be material; however, the Company cannot estimate the amount of reasonably possible loss or range of loss at this time. The Company also received inquiries from the SEC and Department of Justice (“DOJ”) shortly after the publication of a short seller report in March 2023. In July 2024, the Company received a follow-on inquiry from the SEC. The Company believes these inquiries primarily relate to the allegations raised in the short seller report, the Company’s compliance and risk practices, and related disclosures. The Company continues to cooperate with both agencies. The Company is unable to predict the likely outcome of these matters and cannot provide any assurance that the SEC or DOJ will not ultimately take legal action against the Company or that the outcome of any such action, if brought, will not have a material adverse effect on the Company. In June 2024, the Office of the Treasurer and Tax Collector of the City and County of San Francisco (the "Tax Collector") finalized its audit and issued an assessment of San Francisco’s gross receipts tax, including interest and penalties, following its gross receipt tax audit for fiscal years 2020, 2021 and 2022. The Tax Collector has asserted that incremental taxes are owed on a portion of the receipts generated by the Company related to sales of bitcoin. The Company strongly disagrees with the Tax Collector’s assessment and plans to vigorously pursue all available remedies. In January 2025, the Tax Collector rejected the Company’s request for redetermination, and the Company paid the assessed amount of $ 71.4 million. Given the assessed amount must be paid to initiate the dispute process and will be returned in full or used to settle any final amount due to the Tax Collector, the Company views the amount as a deposit asset. In May of 2025, the Tax Collector notified the Company that it had initiated a gross receipt tax audit for fiscal years 2023 and 2024. In June 2025, the Company filed a claim for refund for fiscal years 2020, 2021 and 2022. In September 2025, the Company received a Notice of Deficiency from the Tax Collector for fiscal years 2023 and 2024 reflecting an assessment of $ 42.7 million, including tax, penalties and interest, which the Company paid in October 2025. Similar to the amount paid in January 2025, the Company also views this amount as a deposit asset. In October 2025, the Company submitted a request for redetermination for fiscal years 2023 and 2024. The Tax Collector may also challenge the Company’s gross receipts tax position going forward. The Company estimates that it could incur losses associated with taxes, interest, and penalties up to $ 114 million in the aggregate for the fiscal years 2020 through 2024. Given the Company has currently concluded that a loss for this matter is not probable, the Company has not recorded a liability for the exposure related to the dispute with the Tax Collector on San Francisco’s gross receipts tax. The Company regularly assesses the likelihood of adverse outcomes resulting from litigation and regulatory proceedings and adjusts the financial statements based on such assessments. The eventual outcome of these matters may differ materially from the estimates the Company has currently accrued in the financial statements. In addition, the Company is subject to various legal matters, investigations, subpoenas, inquiries, audits, claims, lawsuits and disputes, including with regulatory bodies and governmental agencies. The Company cannot at this time fairly estimate a reasonable range of exposure, if any, of the potential liability, if any, with respect to any of these other matters. Although the Company may be subject to an adverse decision or settlement, it does not believe that the final disposition of any of these other matters will have a material adverse effect on its results of operations, financial position, or liquidity. However, the Company cannot give any assurance regarding the ultimate outcome of any of these matters, and their resolution could be material to the Company's operating results. 35 Purchase Commitments From time to time, we may enter into non-cancelable purchase obligations related to cloud computing infrastructure. The commitment amounts in the table below are associated with contracts that are enforceable and legally binding and that specify all significant terms, including fixed or minimum services to be used, and the approximate timing of the actions under the contracts. As of September 30, 2025, the future minimum payments under the purchase commitments were as follows (in thousands): Payments Due By Period Remainder of 2025 $ 64,915 2026 263,300 2027 315,100 Total $ 643,315 Other Contingencies The Company is under examination, or may be subject to examination, by several tax authorities. These examinations may lead to proposed adjustments to the Company's taxes or net operating losses with respect to years under examination, as well as subsequent periods. The Company regularly assesses the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of the Company's provision for direct and indirect taxes. The Company continues to monitor the progress of ongoing discussions with tax authorities and the effect, if any, on the Company's provision for direct and indirect taxes. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with the Company’s expectations, the Company could be required to adjust the Company's provision for direct and indirect taxes in the period such resolution occurs. NOTE 18 - SEGMENT AND GEOGRAPHICAL INFORMATION The Company reports its segments to reflect the manner in which the Company's chief operating decision maker ("CODM") reviews and assesses performance. The Company's CODM is the Block Head and Chairperson. The Company has two reportable segments, Square and Cash App. Products and services that are not assigned to a specific reportable segment, including but not limited to TIDAL and other emerging ecosystems, are aggregated and presented within a general corporate and other category. Square and Cash App are defined as follows: • Cash App includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. Cash App also includes Cash App Card which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM, as well as Cash App Borrow, which is a credit product that allows eligible customers to access short-term loans for a small fee. Cash App also includes the BNPL platform. • Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App. The primary financial measures used by the CODM to evaluate performance and allocate resources are revenue and gross profit. The CODM uses segment gross profit for each segment during the annual budgeting and forecasting process. Further, the CODM uses gross profit as the metric to guide the business trajectory and to consider the overall gross profit growth by segment on a quarterly basis, when making decisions about the allocation of operating and capital resources to each segment. The CODM does not evaluate performance or allocate resources based on segment asset data, and therefore such information is not included. 36 The following tables present information on the reportable segments revenue and segment gross profit, as well as amounts for the "Corporate and Other" category, which includes products and services not assigned to reportable segments and intersegment eliminations (in thousands): Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Cash App Square Corporate and Other Total Cash App Square Corporate and Other Total Revenue: Transaction-based revenue $ 56,113 $ 1,817,364 $ — $ 1,873,477 $ 182,866 $ 5,058,740 $ — $ 5,241,606 Subscription and services-based revenue 1,777,646 382,177 45,066 2,204,889 4,929,403 1,090,617 128,446 6,148,466 Hardware revenue — 40,653 29,539 70,192 — 109,271 30,034 139,305 Bitcoin revenue 1,965,742 652 — 1,966,394 6,411,176 652 — 6,411,828 Segment revenue $ 3,799,501 $ 2,240,846 $ 74,605 $ 6,114,952 $ 11,523,445 $ 6,259,280 $ 158,480 $ 17,941,205 Less: Cost of revenue 2,175,548 1,223,186 54,648 3,453,382 7,019,041 3,316,911 117,550 10,453,502 Segment gross profit $ 1,623,953 $ 1,017,660 $ 19,957 $ 2,661,570 $ 4,504,404 $ 2,942,369 $ 40,930 $ 7,487,703 Interest revenue $ 48,814 $ 11,025 $ — $ 59,839 $ 148,178 $ 29,510 $ — $ 177,688 Amortization of acquired technology assets $ 12,896 $ 961 $ — $ 13,857 $ 38,959 $ 3,976 $ — $ 42,935 Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 Cash App Square Corporate and Other Total Cash App Square Corporate and Other Total Revenue: Transaction-based revenue $ 69,995 $ 1,642,426 $ — $ 1,712,421 $ 278,126 $ 4,658,471 $ — $ 4,936,597 Subscription and services-based revenue 1,430,970 322,582 44,381 1,797,933 4,181,703 941,417 145,000 5,268,120 Hardware revenue — 36,729 110 36,839 — 111,377 923 112,300 Bitcoin revenue 2,428,608 — — 2,428,608 7,771,475 — — 7,771,475 Segment revenue $ 3,929,573 $ 2,001,737 $ 44,491 $ 5,975,801 $ 12,231,304 $ 5,711,265 $ 145,923 $ 18,088,492 Less: Cost of revenue 2,623,630 1,069,381 33,105 3,726,116 8,367,890 3,036,053 106,911 11,510,854 Segment gross profit $ 1,305,943 $ 932,356 $ 11,386 $ 2,249,685 $ 3,863,414 $ 2,675,212 $ 39,012 $ 6,577,638 Interest revenue $ 51,418 $ 10,218 $ — $ 61,636 $ 137,189 $ 27,933 $ — $ 165,122 Amortization of acquired technology assets $ 13,928 $ 1,493 $ 1,765 $ 17,186 $ 41,288 $ 6,219 $ 5,295 $ 52,802 37 The following table provides a reconciliation of total segment gross profit to the Company’s income (loss) before applicable income taxes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Total segment gross profit $ 2,661,570 $ 2,249,685 $ 7,487,703 $ 6,577,638 Less: Product development 711,235 710,983 2,197,222 2,144,720 Less: Sales and marketing 599,333 511,755 1,653,524 1,463,202 Less: General and administrative 543,974 475,855 1,485,008 1,420,683 Less: Transaction, loan, and consumer receivable losses 363,455 192,062 827,234 549,603 Less: Amortization of customer and other intangible assets 34,133 36,021 101,680 120,116 Less: Interest expense (income), net 34,652 13,811 75,582 ( 6,805 ) Less: Remeasurement gain on bitcoin investment ( 59,588 ) ( 5,288 ) ( 178,402 ) ( 168,576 ) Less: Other income, net ( 167,150 ) ( 9,661 ) ( 162,103 ) ( 24,665 ) Income before applicable income taxes $ 601,526 $ 324,147 $ 1,487,958 $ 1,079,360 Revenue Revenue by geography is based on the addresses of the sellers or customers. The following table details revenue by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 United States $ 5,584,897 $ 5,519,879 $ 16,494,950 $ 16,818,047 International 530,055 455,922 1,446,255 1,270,445 Total $ 6,114,952 $ 5,975,801 $ 17,941,205 $ 18,088,492 No individual country from the international markets contributed more than 10% of total revenue for the three and nine months ended September 30, 2025 and September 30, 2024. Long-Lived Assets The following table details long-lived assets by geography (in thousands): September 30, 2025 December 31, 2024 United States $ 7,346,692 $ 7,435,117 Australia 4,415,081 4,159,229 Other international 1,929,342 1,790,529 Total $ 13,691,115 $ 13,384,875 Assets by reportable segment were not included, as this information is not reviewed by the CODM to make operating decisions or allocate resources and is reviewed on a consolidated basis. 38 NOTE 19 - SUPPLEMENTAL CASH FLOW INFORMATION The supplemental disclosures of cash flow information consist of the following (in thousands): Nine Months Ended September 30, 2025 2024 Supplemental cash flow data: Cash paid for interest $ 124,220 $ 89,353 Cash paid for income taxes 116,548 205,697 Supplemental disclosures of non-cash investing and financing activities: Unsettled originations of consumer receivables $ 209,058 $ 214,465 Right-of-use assets obtained in exchange for operating lease obligations 26,772 28,232 Purchases of property and equipment in accounts payable and accrued expenses 6,121 1,857 39