Q1 2025

Shareholder Letter

 

		investors.block.xyz

To Our Shareholders   Our growth in the first half of this year does not meet our bar, and we remain confident in our ability to accelerate Block’s gross profit growth in the second half of 2025 and beyond. Cash App gross profit growth came in below our expectations, largely driven by softer inflows and Cash App Card spend than we had forecasted. We saw changes to consumer spending as the quarter progressed that we believe drove the majority of our forecast miss.   We understand the drivers behind our recent deceleration in growth and have incorporated updated views on the macro environment into our revised guidance for the year. We believe Cash App gross profit growth, and Block gross profit growth overall, will significantly accelerate starting in the third quarter.   We’re currently rolling out a number of new features that we’ve been testing at scale for some time. First, we are rolling out Cash App Borrow (small dollar, short duration loans) to millions more Cash App actives and nearly doubling the number of actives we can serve after receiving FDIC approval to use Square Financial Services to issue consumer loans for Cash App Borrow nationwide. Second, we are evolving Borrow terms which we expect will allow us to increase limits and improve the customer experience. Our machine learning models leverage real-time customer data, which we’ve used to maintain healthy loss rates for Borrow across historical cohorts. Third, we will be increasing Borrow limits for Paycheck Deposit actives as a tool to drive paycheck deposit engagement with our base.   We expect these enhancements to Cash App Borrow will drive gross profit growth through increased originations and improved unit economics. In addition, we believe they will drive benefits to retention, customer engagement, direct deposit attach rates, and inflows. More than half of Borrow loans are used within the Cash App ecosystem. We’ve also seen paycheck deposit actives that receive a Borrow offer are nearly 2.5x more likely to accept it compared to Cash App Card actives and over 13x more likely than non Cash App Card actives.1   While we’ve made progress on banking adoption, we’ve been too narrow in our focus.2 We want to expand the underlying Cash App network to drive actives growth and density. We’re now addressing 3 key areas:   1) Network density: We’ve prioritized web-based signup, new P2P features, and improving our referrals/invites and funnel. We’re also re-prioritizing a more concerted effort to attract and engage teens and families, a group we believe is massively underserved and one we’re well-positioned to support. With Cash App’s product depth, scale, and cultural relevance, we’re in a strong position to serve teens needs in a safe and trusted way.						Q1’25 Highlights3     Gross Profit $2.29B   +9% YoY Growth     Cash App Gross Profit $1.38B   +10% YoY Growth     Square Gross Profit $898M   +9% YoY Growth     Operating Income4 $329M   14% Margin     Adjusted Operating Income $466M   20% Margin     Net Income5 $190M       Adjusted EBITDA $813M

¹ Based on the number of Borrow loans offered in March 2025 that were accepted between March 1, 2025 and April 29, 2025.

² Square and Cash App are financial services platforms, not banks. Throughout this letter, any reference to Square or Cash App’s banking offerings such as “bank our base,” “banking offerings,” “banking capabilities”, “banking products,” “digital banking,” “Square Banking,” or “Square Checking” refer to products and services that are offered through Block’s Industrial Bank, Square Financial Services, Inc., or through our third-party bank partners.

³ Reconciliations of non-GAAP financial measures used in this letter to their nearest GAAP equivalents are provided at the end of this letter.

Please see these reconciliations for additional detail and a description of certain items that affected operating income (loss) and net income (loss) in the first quarter of 2025.

⁴ Margins are all calculated as a percent of gross profit.

⁵ Net income attributable to common stockholders.

 

		1

2) Optimizing product controls: We’ve done a lot of work to make Cash App healthier and more resilient. However, we’ve observed that some of the controls we implemented unintentionally disrupted good customers. We’re refining our approach and increasingly focused on ensuring customers can rely on Cash App to run their financial lives, without compromising our ability to prevent and remove unwanted activity from the platform. These changes will contribute positively to growth going forward.

3) Increasing high-ROI marketing spend: After resetting marketing measurement last year, we’re continuing to increase our investment across channels. We’re increasing marketing spend nearly 50% in Q2 compared to Q1 to drive actives growth and engagement while maintaining strong ROI thresholds. We’re scaling our national Banking campaign in Q2 and we’re launching a new campaign focused on commerce and Cash App Afterpay.

Our updated 2025 outlook is not dependent on these 3 initiatives, but we believe there’s something meaningful here.

Square has shipped products and features faster and we’ve increased our go-to-market investments across sales, partnerships, and marketing. In Q4 we saw initial signs that this was driving progress. After Q1 we’re increasingly confident these investments are paying off. In the first quarter, we gained market share in our core verticals and we exceeded volume targets across our sales and partnerships channels. This gives us the confidence to continue ramping our go-to-market investments.

More large sellers are seeing Square as a partner to help them grow their business, and we’re going to keep delivering products that give our sellers time back through automation and AI. We grew GPV 8.2% year over year on a constant currency basis in Q1 and believe we will only improve growth from here.

We will be hosting our first ever seasonal release event for Square on May 13th where we will share over 100 product and feature launches with new and existing sellers. We expect these events to be a key part of our product release cadence going forward. This is a key part of the overall go-to-market motion changes we’ve been executing against as we focus on re-accelerating customer acquisition and deepening engagement across our product suite with existing sellers.

Finally, we’re shifting the entire company to build and use agentic systems. We helped lead the industry here with codename:goose and MCP, which many of our peers have taken an interest in and expanded. Our initial focus was to improve engineering productivity, which it has by ~30% already. We’re now expanding the use of these agentic systems to every role in the company.

Our first goal is to make goose our single interface for all of our functions to enable us to ship faster and be more efficient, and effectively automate the entire company in a way that wasn't possible before. Our second goal is to weave goose into our consumer and seller interfaces so that our customers have a personal CFO and COO respectively to help automate nearly all of their financial and operational workflows. We are creating an intuitive natural language interface (typed or spoken) that can prompt our customers proactively given our deep understanding of them based on 16 years of experience. We’ll achieve both of these goals by the end of this year.

Taken together, we anticipate Block topline growth to accelerate from a low point in the first half to the mid-teens in Q4. Improvements in Cash App gross profit will be the primary driver of the overall acceleration in Block topline but we also expect to see faster growth in Square and the first gross profit contributions from Proto, as we deliver our first chips and systems in the second half of the year. Removing macro volatility, we believe we’re now focused on all the right drivers to call this the bottom, and we’ll be able to achieve acceleration of everything going forward.

 

 

		2

Business Highlights

Cash App

We are focused on driving adoption of our financial services products.

In March, Square Financial Services — our industrial bank — received approval from the FDIC to offer consumer loans nationwide through Cash App Borrow. This milestone enables us to accelerate gross profit by increasing loan availability as we expand into more states and improves unit economics by originating and servicing the loans ourselves. This reflects the power of our ecosystem and the unique value of our shared infrastructure across Square and Cash App.

In the first quarter, we started allowing eligible paycheck deposit actives to immediately access our Borrow offering.⁶ To showcase this new benefit and drive paycheck deposit adoption, we are leveraging in-app notifications, emails, and alerts to highly engaged Cash App Card actives.

We’re also increasing our use of incentives and targeted campaigns across the customer journey. Cash App Card remains a key entry point into our broader ecosystem. Our strategy focuses on attracting these customers and encouraging deeper engagement through products like Cash App Borrow and direct deposit. To drive new customer growth, we’re testing Cash App Card referrals.

In March, we launched Cash App Afterpay in the U.S., allowing eligible Cash App actives to use Afterpay’s Pay-in-Four or pay monthly products directly when shopping online at partner merchant sites — a meaningful product unlock as we deepen the connection between our ecosystems.⁷ We’re focused on driving customer awareness for this offering, and we are incredibly excited by the long-term value of helping drive demand for our merchant partners while expanding access to credit for consumers.

We see an opportunity to expand our network over time.

We launched our largest-ever national brand campaign in March, which will run throughout the year in 15 priority markets — selected for their strong network and Cash App Card density. The campaign highlights the full suite of Cash App’s financial services products with a goal of building trust and awareness, as well as shifting perceptions towards Cash App being an all-in-one financial solution. These ads will air across multiple in-person and digital channels, and upcoming videos will focus on our newly branded Cash App Afterpay, building awareness for our customers.

Beyond brand, we’re scaling performance and life-cycle marketing to drive growth, while finding ways to make Cash App more easily discoverable. In April, we enabled new customers to sign up for Cash App on a desktop. We believe this can be a major acquisition channel for Cash App because it unlocks new marketing opportunities such as paid search and makes Cash App more easily discoverable.

We believe we have significant network growth potential with teen customers. By winning these customers early in their financial journey we can grow with them as they mature, as their income grows, and as they engage with more of our banking products over time. In April, we launched our first teen referrals campaign.

 

⁶ A paycheck deposit active is a Cash App account that receives ACH inflows during a specified period, but excludes tax refunds and ACH transfers.

⁷ A transacting active is a Cash App account that has at least one financial transaction using any product or service within Cash App during a specified period. A transacting active for a specific Cash App product has at least one financial transaction using that product during the specified period and is referred to as an active. Examples of transactions include sending or receiving a peer-to-peer payment, transferring money into or out of Cash App, making a purchase using Cash App Card, earning a dividend on a stock investment, and paying back a loan, among others. Certain of these accounts may share an alias identifier with one or more other transacting active accounts. This could represent, among other things, one customer with multiple accounts or multiple customers sharing one alias identifier (for example, families).

 

		3

Square

We’re establishing ourselves as the leading technology platform for neighborhood businesses, increasing market share across verticals as we accelerate product velocity and enhance our go-to-market motion.

We’re giving sellers better visibility into our ongoing cadence of product innovation by showcasing more than 100 commerce, software, hardware, and banking product and feature launches at our first biannual product release event on May 13.

We expect to drive better discovery of our ongoing product innovation for sellers, including our new Square Online experience. This product automatically sets up food and beverage sellers with a simple, effective online ordering page as soon as they sign up for Square and allows them to easily manage their online store via a new, simplified experience built into their Square Dashboard.

We continue to make it easier for sellers to get paid faster.

We believe Square Checking is the fastest way for our sellers to get paid, and we’re making it the default settlement option for solo entrepreneurs. We believe making Square Checking the default option will drive higher retention by enabling more sellers to discover our banking features at the beginning of their relationship with us.

We’ve made improvements to our core risk capabilities to enable sellers to send larger invoice amounts, up to $1 million. Many of our professional services sellers have less frequent but large invoices, and these improvements help us serve them more effectively and capture more wallet share.

We’re delivering tangible results for quick-serve restaurants, a key early focus of our neighborhood network strategy.

We’ve been able to lower on-demand delivery fees for key courier partners, allowing our sellers to keep more of their sales made through third parties.

Square is launching an enhanced integration experience for UberEats and DoorDash, improving the onboarding, setup, menu and order syncing experience for sellers so they can integrate with delivery partners in a matter of minutes.

We’re scaling with larger businesses that operate across multiple channels, process higher volumes, and act as trendsetters in their local communities.

Our rapidly growing field sales team is delivering results. This quarter we signed several new large sellers including Bambu Dessert and Drinks, a 60-location food and beverage seller in the U.S. that chose Square to be its partner as it expands into hundreds of locations across the country. Bambu Dessert and Drinks chose Square due to our ability to provide more advanced control over the franchise’s backend menu and loyalty options. We also signed Five O Fore Entertainment — a premium golf and entertainment venue in New Orleans that chose Square because of our ability to provide an integrated system that streamlined its complex restaurant, bar, retail, and event booking operations.

Partnerships have helped expand our reach and accelerate lead generation across both domestic and international markets.

We continue to sign new partnerships globally across vertical, horizontal, and third-party sales organizations. We expect to continue investing in these channels, which enable us to expand our distribution footprint to serve more sellers locally. We are seeing strong success with third-party sales organizations internationally, as they are now driving a growing percentage of new sales leads across our international markets.

We grew marketing spend by 33% year over year in the first quarter and continued to see strong returns.

 

		4

Financial Discussion

We grew gross profit 9% year over year and achieved a 20% Adjusted Operating Income margin in the first quarter. While the gross profit growth we delivered in the first quarter was lower than our expectations, we continue to make strong progress on our strategic initiatives across Block. We are maintaining our focus on enhancing profitability while investing in long-term growth. We continue to expect to accelerate growth in the second half of 2025 and expect to exit 2025 with gross profit growth in the mid-teens range. We continue to view Rule of 40 as our guiding financial framework and believe we are well positioned entering 2026.⁸

First Quarter 2025 Financial Highlights

 

Gross Profit		We delivered year-over-year gross profit growth of 9% as we continue to launch new products across Square and Cash App to accelerate our growth at scale.
Profitability		We drove strong operating income and outperformed our Adjusted Operating Income guidance in the first quarter of 2025. Operating income was $329 million while Adjusted Operating Income was $466 million. Net income attributable to common stockholders was $190 million and Adjusted EBITDA was $813 million.
Square Gross  Payment  Volume (GPV)		In the first quarter, total Square GPV grew 7.2% (8.2% in constant currency), with U.S. GPV growing 5.6% and International GPV growing 15% (21% in constant currency).9 Excluding leap day in 2024, Square GPV grew 9.4% in constant currency as we continued to gain market share across our target verticals.
Gross Profit  per Monthly  Transacting  Active		In the first quarter, Cash App’s gross profit per monthly transacting active grew 9% year over year to $81.10 We continued to invest in products like Cash App Borrow and Cash App Card as we lean into increasing engagement of our actives.
Guidance		We recognize we are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year. We now expect $9.96 billion in gross profit for 2025, for growth of 12% year over year. We expect gross profit in the second quarter to grow 9.5% year over year to $2.45 billion and we expect to accelerate gross profit growth meaningfully in the second half of the year as we execute on our strategies to deepen engagement with Cash App customers as we expand Borrow and retroactive BNPL to more customers.

 

⁸ Rule of 40 is the sum of our gross profit growth and Adjusted Operating Income margin as a percent of gross profit. We may refer to a “Rule of” number other than 40 to refer to the sum of gross profit growth and Adjusted Operating Income margin as a percent of gross profit for the period given.

⁹ Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds.

¹⁰ Gross profit per monthly transacting active is calculated based on Cash App annualized gross profit excluding our BNPL platform during a given quarter divided by the monthly transacting actives for the last month of the quarter. Gross profit for our BNPL platform was $237 million for the first quarter of 2025.

 

		5

Block Financial Metrics

 

Block grew gross profit 9% year over year in the first quarter, with 10% year-over-year growth in Cash App and 9% year-over-year growth in Square. Within Cash App, gross profit growth was driven by Cash App Borrow, Cash App Card, and BNPL. For Square, growth was driven by banking products and software and integrated payments. On a GAAP basis, we generated $329 million of operating income compared to $250 million in the first quarter of 2024. We achieved our highest-ever quarterly Adjusted Operating Income at $466 million, which grew 28% year over year as we continued to focus on speed of execution and product velocity. On a GAAP basis, we delivered diluted EPS of $0.30 and grew Adjusted EPS to $0.56, representing a 19% increase year over year.

 

 

 

¹¹ Beginning in fiscal 2025, we revised our definition of Adjusted Net Income Per Share (“Adjusted EPS”) to include stock-based compensation. We believe this change provides a more comprehensive view of our operating performance and aligns with our non-GAAP measure of Adjusted Operating Income. Prior period amounts have been recast to reflect the updated presentation.

 

		6

Cash App

 

Cash App gross profit increased 10% year over year, driven by growth across Cash App Borrow, Cash App Card, and BNPL.

Gross profit per transacting active reached $81 in the first quarter, up 9% year over year, and inflows per transacting active in the first quarter were $1,355, up 8% year over year, driven by more customers bringing their paychecks into Cash App. Cash App’s paycheck deposit monthly actives grew year over year as we continued to execute on the “bank our base” strategy.

Our BNPL platform gross merchandise value (GMV) reached $7.89 billion, growing 13% and 16% year over year on a reported and constant currency basis, respectively, driven by sustained growth in our Pay-in-Four offering and Gift Cards’ eligibility expansion. BNPL platform gross profit was $237 million, up 14% year over year.

 

¹² Historically, our Cash App ecosystem has experienced improvements in revenue, gross profit, and inflows related to the distribution of government funds as customers have deposited more funds into Cash App during these times, including during the first quarter when U.S. tax refunds are typically distributed.

¹³ Inflows per transacting active refers to total inflows in the quarter divided by monthly actives for the last month of the quarter. Inflows refers to funds entering the Cash App ecosystem. Inflows does not include the movement of funds when funds remain in the Cash App ecosystem or when funds leave the Cash App ecosystem, or inflows related to the Afterpay or Verse apps. Inflows from Verse actives were not material to overall inflows.

¹⁴ We calculate monetization rate by dividing Cash App gross profit, excluding contributions from our BNPL platform, by Cash App inflows.

¹⁵ Gross profit per monthly transacting active is calculated based on Cash App annualized gross profit excluding our BNPL platform during a given quarter divided by the monthly transacting actives for the last month of the quarter. Gross profit for our BNPL platform was $208 million or $831 million on an annualized basis for Q1’24, $220 million or $881 million on an annualized basis for Q2’24, $242 million or $968 million on an annualized basis for Q3’24, $298 million or $1.19 billion on an annualized basis for Q4’24, and $237 million or $948 million on an annualized basis for Q1’25.

 

		7

Square

 

Square GPV in the first quarter was $54.1 billion, up 7.2% and 8.2% year over year on a reported and constant currency basis, respectively. On a year-over-year basis in the first quarter, GPV from food and beverage was up 10% and GPV from retail and services were up 7% and 5%, respectively. We saw a more pronounced acceleration in year-over-year growth for our mid-market seller segments (>$500K in annualized GPV) compared to our other seller segments during the first quarter.

Growth in Square gross profit was driven primarily by our banking products and software and integrated payments as we continued to move upmarket and expand our market share in our target verticals.

 

 

 

		8

Operating Expenses and Non-GAAP Operating Expenses ($M)

 

In the first quarter, product development expenses were up 6% year over year on a GAAP basis, driven primarily by an increase in restructuring costs, including severance and other related expenses, as well as cloud costs. Sales and marketing expenses grew 14% year over year on a GAAP basis, driven by an increase in go-to-market investments across our business. Cash App marketing expenses were up 9% on a GAAP basis in the first quarter, driven primarily by brand awareness campaigns partially offset by improvements in peer-to-peer risk loss. Other sales and marketing expenses were up 20% year over year on a GAAP basis as we significantly increased go-to-market investment in Square. General and administrative expenses were up 4% year over year on a GAAP basis. The increase was driven primarily by restructuring costs, including severance and other related expenses.

 

 

 

 

		9

Key Profitability Measures and EPS ($M, except per share figures)

 

Cash Flow ($M)

 

 

¹⁶ Beginning in fiscal 2025, we revised our definition of Adjusted EPS to include stock-based compensation. We believe this change provides a more comprehensive view of our operating performance and aligns with our non-GAAP measure of Adjusted Operating Income. Prior period amounts have been recast to reflect the updated presentation.

 

		10

Net cash provided by operating activities was $1.4 billion for the twelve months ended March 31, 2025, compared to $296 million for the twelve months ended March 31, 2024. We grew Adjusted FCF by more than 43% year over year to $1.5 billion for the twelve months ended March 31, 2025. In the first quarter of 2025, we continued to prudently invest in our lending products while focusing on returning capital to shareholders. We sell a majority of Square Loans to investors and utilize warehouse facilities to reduce Block capital required to fund BNPL growth. We invested in growing Cash App Borrow given the strong unit economics and returns we have seen, and are evaluating balance sheet diversification strategies.

In the first quarter of 2025, we repurchased 6.8 million shares of our Class A common stock for an aggregate amount of $445 million. As of March 31, 2025, $2.2 billion of our $4 billion share repurchase authorization remained available and authorized for repurchases.

We ended the quarter with $9.2 billion of total liquidity, with $8.5 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as $775 million available to be withdrawn from our revolving credit facility.

 

 

 

 

		11

Guidance

2025 Outlook¹⁷

 

				2025
		Gross Profit		$9.96B
		YoY Growth		12%
		Adjusted Operating Income		$1.90B
		% Margin		19%
		Rule of X		31%

We recognize we are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year. We now expect $9.96 billion in gross profit for 2025, for growth of 12% year over year.

We expect gross profit in the second quarter to grow 9.5% year over year to $2.45 billion and we expect to accelerate gross profit growth meaningfully in the second half of the year as we execute on our strategies to deepen engagement with Cash App customers as we expand Borrow and retroactive BNPL to more customers. We expect to deliver low-double-digit gross profit growth in the third quarter and mid-teens gross profit growth in the fourth quarter. Our expectation for accelerating growth includes the more cautious stance on the macro outlook, which is now factored into our guidance.

We expect to deliver $450 million of Adjusted Operating Income in the second quarter and $1.90 billion in Adjusted Operating Income for the full year. We have continued to see attractive returns on go to market spend and healthy risk loss in our underwriting products. Our go to market and underwriting decisions are data driven and our updated guidance assumes that our investment plans entering the year remain largely unchanged based on the strong returns we have seen. We will continue to be data driven and prudent in our growth investments as we monitor any changes in the macro environment.

 

¹⁷ We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP metrics, including Adjusted Operating Income (Loss), or GAAP reconciliations of any of the aforementioned, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as contingencies, restructuring and other charges. Accordingly, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation S-K to exclude such reconciliations, as the reconciliations of these non-GAAP guidance metrics to their corresponding GAAP equivalents are not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided reconciliations of other historical GAAP to non-GAAP metrics in tables at the end of this letter, as well as relevant non-GAAP definitions.

 

		12

Q2 2025 Outlook¹⁸

 

				Q2 2025
		Gross Profit		$2.45B
		YoY Growth		9.5%
		Adjusted Operating Income		$450M
		% Margin		18%
		Rule of X		28%

 

 

 

¹⁸ We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP metrics, including Adjusted Operating Income (Loss) or GAAP reconciliations of the aforementioned, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as contingencies, restructuring, and other charges. Accordingly, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation S-K to exclude such reconciliations, as the reconciliations of these non-GAAP guidance metrics to their corresponding GAAP equivalents are not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided reconciliations of other historical GAAP to non-GAAP metrics in tables at the end of this letter.

 

		13

Earnings Webcast

Block (NYSE:XYZ) will host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time, May 1, to discuss these financial results. To register to participate in the conference call, or to listen to the live audio webcast, please visit the Events & Presentations section of Block’s Investor Relations website at investors.block.xyz. A replay will be available on the same website following the call. We will release financial results for the second quarter of 2025 on August 7, 2025, after the market closes, and will also host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time on the same day to discuss those financial results.

 

Media Contact

press@block.xyz

Investor Relations Contact

ir@block.xyz

 

Jack Dorsey		Amrita Ahuja

 

 

 

		14

 

		15

 

		16

Condensed Consolidated Statements of Operations

Unaudited

In thousands, except per share data

 

				THREE MONTHS ENDED
				Mar. 31, 2025				Mar. 31, 2024
		Revenue:
		Transaction-based revenue		$	1,550,731			$	1,511,209
		Subscription and services-based revenue			1,890,973				1,682,294
		Hardware revenue			28,690				32,501
		Bitcoin revenue			2,301,402				2,731,124
		Total net revenue			5,771,796				5,957,128
		Cost of revenue:
		Transaction-based costs			903,822				873,165
		Subscription and services-based costs			275,048				269,668
		Hardware costs			52,534				50,785
		Bitcoin costs			2,236,115				2,651,010
		Amortization of acquired technology assets			14,674				18,027
		Total cost of revenue			3,482,193				3,862,655
		Gross profit			2,289,603				2,094,473
		Operating expenses:
		Product development			760,699				720,574
		Sales and marketing			504,460				443,885
		General and administrative			491,797				471,260
		Transaction, loan, and consumer receivable losses			169,689				165,729
		Amortization of customer and other acquired intangible assets			33,656				43,282
		Total operating expenses			1,960,301				1,844,730
		Operating income			329,302				249,743
		Interest expense (income), net			17,243				(18,745	)
		Remeasurement loss (gain) on bitcoin investment			93,351				(233,404	)
		Other income, net			(8,342	)			(4,420	)
		Income before income tax			227,050				506,312
		Provision for income taxes			38,328				35,492
		Net income			188,722				470,820
		Less: Net loss attributable to noncontrolling interests			(1,150	)			(1,185	)
		Net income attributable to common stockholders		$	189,872			$	472,005
		Net income per share attributable to common stockholders:
		Basic		$	0.31			$	0.77
		Diluted		$	0.30			$	0.74
		Weighted-average shares used to compute net income per share attributable to common stockholders:
		Basic			619,370				616,401
		Diluted			635,342				637,360

 

 

 

		17

Condensed Consolidated Balance Sheets

In thousands, except per share data

 

				Mar. 31, 2025				Dec 31, 2024
				UNAUDITED
		Assets
		Current assets:
		Cash and cash equivalents		$	7,088,831			$	8,075,247
		Settlements receivable			1,102,538				1,060,966
		Customer funds			5,248,730				4,182,872
		Consumer receivables, net			2,068,800				2,504,879
		Loans held for sale			1,322,049				1,111,107
		Other current assets			2,881,431				2,945,130
		Total current assets			19,712,379				19,880,201
		Goodwill			11,503,741				11,417,422
		Acquired intangible assets, net			1,391,242				1,433,067
		Deferred tax assets			1,766,132				1,800,994
		Other non-current assets			2,022,073				2,245,911
		Total assets		$	36,395,567			$	36,777,595
		Liabilities and Stockholders’ Equity
		Current liabilities:
		Customers payable		$	7,102,749			$	5,837,152
		Accrued expenses and other current liabilities			1,583,962				1,525,149
		Current portion of long-term debt			—				999,497
		Warehouse funding facilities, current			—				185,000
		Total current liabilities			8,686,711				8,546,798
		Warehouse funding facilities, non-current			618,999				1,296,680
		Long-term debt			5,108,385				5,105,939
		Other non-current liabilities			546,398				593,216
		Total liabilities			14,960,493				15,542,633
		Commitments and contingencies
		Stockholders’ equity:
		Preferred stock, $0.0000001 par value: 100,000 shares authorized at March 31, 2025 and December 31, 2024. None issued and outstanding at March 31, 2025 and December 31, 2024.			—				—
		Class A common stock, $0.0000001 par value: 1,000,000 shares authorized at March 31, 2025 and December 31, 2024; 556,826 and 559,606 issued and outstanding at March 31, 2025 and December 31, 2024, respectively.			—				—
		Class B common stock, $0.0000001 par value: 500,000 shares authorized at March 31, 2025 and December 31, 2024; 60,049 and 60,070 issued and outstanding at March 31, 2025 and December 31, 2024, respectively.			—				—
		Additional paid-in capital			19,781,519				19,900,379
		Accumulated other comprehensive loss			(870,815	)			(1,001,065	)
		Retained earnings			2,558,490				2,368,618
		Total stockholders’ equity attributable to common stockholders			21,469,194				21,267,932
		Noncontrolling interests			(34,120	)			(32,970	)
		Total stockholders’ equity			21,435,074				21,234,962
		Total liabilities and stockholders’ equity		$	36,395,567			$	36,777,595

 

 

 

		18

Condensed Consolidated Statements of Cash Flows

Unaudited

In thousands

 

				THREE MONTHS ENDED
				Mar. 31, 2025				Mar. 31, 2024
		Cash flows from operating activities:
		Net income		$	188,722			$	470,820
		Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization			88,948				97,640
		Amortization of discounts and premiums and other non-cash adjustments			(265,168	)			(266,991)
		Non-cash lease expense			14,369				14,512
		Share-based compensation			315,236				311,168
		Loss on revaluation of equity investments			126				1,111
		Remeasurement loss (gain) on bitcoin investment			93,351				(233,404)
		Transaction, loan, and consumer receivable losses			169,689				165,729
		Change in deferred income taxes			7,599				(7,984)
		Purchases and originations of loans			(5,032,615	)			(3,010,609)
		Proceeds from payments and forgiveness of loans			4,721,581				2,824,953
		Changes in operating assets and liabilities:
		Settlements receivable			(88,267	)			(542,070)
		Customers payable			164,904				465,891
		Settlements payable			(330	)			(7,341)
		Other assets and liabilities			(244,809	)			205,970
		Net cash provided by operating activities			133,336				489,395
		Cash flows from investing activities:
		Purchases of marketable debt securities			(162,188	)			(184,048)
		Proceeds from maturities of marketable debt securities			147,508				204,737
		Proceeds from sale of marketable debt securities			265,191				327,128
		Payments for originations of consumer receivables			(6,898,769	)			(6,095,104)
		Proceeds from principal repayments and sales of consumer receivables			7,602,325				6,824,596
		Purchases of property and equipment			(31,882	)			(31,998)
		Purchases of other investments			(7,477	)			(2,924)
		Net cash provided by investing activities			914,708				1,042,387
		Cash flows from financing activities:
		Payments to redeem convertible notes			(1,000,624	)			—
		Proceeds from warehouse facilities borrowings			222,824				160,587
		Repayments of warehouse facilities borrowings			(1,091,137	)			(790,592)
		Proceeds from the exercise of stock options and purchases under the employee stock purchase plan			2,283				19,943
		Net increase in interest-bearing deposits			34,463				18,650
		Repurchases of common stock			(445,298	)			(252,095)
		Change in customer funds, restricted from use in the Company’s operations			1,065,857				875,916
		Net cash provided by (used in) financing activities			(1,211,632	)			32,409
		Effect of foreign exchange rate on cash and cash equivalents			22,249				(41,755)
		Net increase (decrease) in cash, cash equivalents, restricted cash, and customer funds			(141,339	)			1,522,436
		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		$	13,089,173			$	10,531,523

 

 

 

		19

Reportable Segment Disclosures

Unaudited

Information on the reportable segments revenue and segment operating 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
				Mar. 31, 2025
				Cash App				Square				Corporate and Other				Total
		Revenue:
		Transaction-based revenue		$	66,238			$	1,484,493			$	—			$	1,550,731
		Subscription and services-based revenue			1,511,374				339,150				40,449				1,890,973
		Hardware revenue			—				28,518				172				28,690
		Bitcoin revenue			2,301,402				—				—				2,301,402
		Segment revenue		$	3,879,014			$	1,852,161			$	40,621			$	5,771,796
		Less: Cost of revenue			2,499,063				954,262				28,868				3,482,193
		Segment gross profit		$	1,379,951			$	897,899			$	11,753			$	2,289,603
		Interest revenue		$	49,238			$	7,937			$	—			$	57,175
		Amortization of acquired technology assets		$	13,166			$	1,508			$	—			$	14,674

 

				THREE MONTHS ENDED
				Mar. 31, 2024
				Cash App				Square				Corporate and Other				Total
		Revenue:
		Transaction-based revenue		$	109,220			$	1,401,989			$	—			$	1,511,209
		Subscription and services-based revenue			1,332,560				296,218				53,516				1,682,294
		Hardware revenue			—				31,830				671				32,501
		Bitcoin revenue			2,731,124				—				—				2,731,124
		Segment revenue		$	4,172,904			$	1,730,037			$	54,187			$	5,957,128
		Less: Cost of revenue			2,914,377				909,765				38,513				3,862,655
		Segment gross profit		$	1,258,527			$	820,272			$	15,674			$	2,094,473
		Interest revenue		$	40,772			$	8,118			$	—			$	48,890
		Amortization of acquired technology assets		$	13,725			$	2,537			$	1,765			$	18,027

 

		20