Q2 2025

Shareholder Letter

 

		investors.block.xyz

To Our Shareholders   We’re back on offense   We had a strong second quarter. Square GPV grew 10% year over year and Cash App gross profit grew 16% year over year, accelerating as we exited Q2. Our focus on products that can drive network expansion is already paying off as we started rolling out Pools on Cash App in July, just four months after kicking off development work. Our shipping velocity has accelerated and I’m confident in our ability to sustain strong growth at scale. As we head into Investor Day, I’ll share why we believe we have the best assets in the industry to deliver for our customers, starting with Cash App and featuring Square next quarter.   Cash App’s unique assets   Cash App is building the financial operating system for the next generation. We want everyone to be able to run their financial lives on Cash App, and we are already seeing this happen at scale, especially with younger customers. Actives under the age of 25 have higher Paycheck Deposit attach rates and a 40% higher Cash App Card attach rate compared to the rest of our customer base.1 Teens are central to our next-generation strategy and nearly 80% of parent - or guardian - sponsored teen accounts have a Cash App Card.   The next generation relies on Cash App because of the four key sets of capabilities we offer:   1.  A scaled P2P network that connects customers to their local communities   2.  A broad set of commerce tools that help customers manage their spending   3.  Deep banking functionality that supports customers saving, investing, borrowing, and more2   4.  Simple tools that make it easy for customers to transact in bitcoin   Our long-term strategy is to expand the depth of our ecosystem across these capabilities. We believe what we’ve launched, along with what we’ll soon release, provides a comprehensive set of financial tools that increasingly meets the needs of customers across the economic spectrum. And we believe we’re the only company that can deliver a complete money hub to customers. As we continue to launch new products, we will increase our ability to make each part of Cash App strengthen the others.						Q2’25 Highlights3     Gross Profit $2.54B +14% YoY Growth     Cash App Gross Profit $1.50B +16% YoY Growth     Square Gross Profit $1.03B +11% YoY Growth     Operating Income $484M 19% Margin4     Adjusted Operating Income5 $550M 22% Margin     Net Income6 $538M     Adjusted EBITDA7 $891M

 

 

¹ 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).

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 products,” “banking functionality,” or “Square Banking” 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 second quarter of 2025.

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

⁵ Adjusted Operating Income is a non-GAAP measure of operating performance and the profitability of our business, fully burdened by stock based compensation. For more information please refer to the “Key Operating Metrics and Non-GAAP Financial Measures” section of this letter.

⁶ Net income attributable to common stockholders.

⁷ Adjusted EBITDA is a non-GAAP measure we use to assess operating performance. It excludes certain expenses as well as stock based compensation. For more information please refer to the “Key Operating Metrics and Non-GAAP Financial Measures” section of this letter.

 

		1

Peer to peer drives network density

At its core, Cash App is a community network. We’re focused on increasing network virality through P2P innovation, and over the past year we processed $218 billion in P2P volume. We’re improving the P2P customer experience, increasing payments success rates, and improving search functionality to make it easier to find the connections you want to pay. And in July we introduced Pools, a new P2P product that helps customers share group expenses with their communities. We plan to expand access to more customers — including people who aren’t on Cash App yet.

P2P remains the foundation of our network and our go-to-market strategy. It enables the vast majority of new actives to join Cash App organically, which leads to highly efficient customer acquisition costs per active — 1/10th the cost some of our competitors pay.

Commerce solutions help customers run their day-to-day financial lives

Our commerce solutions span Cash App Card, Cash App Pay, Cash App Business, and a wide range of BNPL offerings across Afterpay and Cash App. Together, these products form our commerce network, which drove $183 billion in spending volume over the past 12 months, growing 16% year over year, or 21% excluding Cash App Business.

We’ve launched Cash App Afterpay, including post-purchase BNPL and Pay in 4, and we’re bringing more Afterpay merchants into the Cash App ecosystem through their existing Afterpay integrations. In July, we started making Offers on Cash App Card more personalized to help people save at the places they’re already shopping. We’re also focused on enabling customers to unlock higher value rewards as they spend more on Cash App, and this fall, we expect to launch auto-selection of rewards to help people save effortlessly.

Connecting small businesses and consumers to strengthen local communities has always been a foundational goal of Block. We plan to take the next step forward in this vision at our upcoming Square Releases event by expanding access to Cash Local. We’re building a set of tools that allow buyers to order ahead, earn rewards, and follow their favorite local businesses, all in Cash App. We expect these tools, along with a suite of associated marketing features, will help sellers establish a deeper relationship with their customers. This will also reduce the need for small businesses to build their own mobile apps, giving them access to digital capabilities that historically only large enterprise sellers could build.

Banking functionality to help customers build better financial futures

We’ve redesigned the money tab to better surface our financial tools and bring more awareness to our banking offerings. We’re also testing higher Borrow limits for paycheck deposit actives to drive increased conversion and incentivize millions of our most engaged customers to make Cash App their primary banking platform.⁸ Borrow origination volume grew 95% year over year in the second quarter to $18 billion on an annualized basis,⁹ and we’re focused on finding more ways to use Borrow to drive deeper ecosystem engagement.

We remain focused on growing paycheck deposit actives. But we also know our narrow definition does not reflect the full population of people who view Cash App as their primary bank, including independent wage earners and those who consider their primary bank to be where they spend their money, not where they get paid. We’re evolving our banking features to better serve more of our active customers, starting with a test that offers banking benefits to anyone who spends at least $500 a month with their Cash App Card.

As of June, we had 2.7 million paycheck deposit actives. If we define a banking customer based on how people use money in their everyday lives — depositing a paycheck or spending at least $500 per month across Cash App — we would have 8 million banking actives, growing 16% year over year. And if we count anyone who deposits $200+ in paychecks or transacts 15+ times a month, we’d have ended June with 11 million banking actives, adding over 1 million actives in the past year.¹⁰ However you define it, our banking scale is significant, and we remain focused on deepening banking engagement so more of our customers spend, save, borrow, and invest with Cash App.

 

 

⁸ A paycheck deposit active is a Cash App account that receives ACH inflows during a specified period, but excludes tax refunds and ACH transfers.

⁹ Borrow origination volume is calculated based on annualized Borrow originations during a given quarter.

¹⁰ References to spend or transactions across Cash App include Cash App Card, Cash App Pay, Cash App Afterpay, and ACH bill pay.

 

		2

Making bitcoin everyday money

The next generation of consumers has a different relationship with money and wants the option to use bitcoin and other forms of payment as part of their financial lives. For the last 8 years we’ve focused on making bitcoin more accessible — and we’ve delivered: millions of people have used Cash App to buy and sell over $58 billion in bitcoin. More recently, we’ve increased withdrawal limits for bitcoin, giving Cash App actives more flexibility to use bitcoin to meet their needs. And in May, we showcased the ability for Square sellers to accept bitcoin, giving both sellers and Cash App consumers more ways to manage their financial lives.

Our longstanding investment in bitcoin as a technology protocol represents a slow and steady conviction in a new open, decentralized paradigm for payments that doesn’t rely on gatekeepers. No matter how our customers choose to pay and get paid in the future, Block will be ready.

Cash App is just getting started

$218 billion in P2P volume. $183 billion in commerce volume. $18 billion in annualized Borrow originations and millions of banking actives. These numbers reflect the scale of our ecosystem and how we’re making Cash App a daily part of our customers’ lives. They also represent the trust millions of people place in us and our success in building the finance platform for the next generation. We’re just getting started.

 

 

		3

Business Highlights

Square

Sellers choose Square to help them grow and run more profitable businesses. We’re launching new products to fulfill that purpose.

We launched our new Square Handheld in May in the U.S. and have begun rolling it out in international markets, helping our sellers deliver a better customer experience, turn tables quicker, and run back office operations more efficiently. Product innovations like Square Handheld are gaining recognition in the market. We showcased this device and other recent product launches at the National Restaurant Association in May, making it clear to sellers and partners that we are a leading technology provider in the food and beverage industry.

In the second quarter, we also launched Square AI to give sellers instant, data-driven answers to their business questions. Leveraging our AI agent, codename goose, and powered by Square data, this tool is available directly in the Square Dashboard and it helps sellers work smarter and faster. Through a conversational interface, sellers can explore sales trends, top-selling items by time of day, customer spending patterns, and more. It’s the start of a broader push to bring powerful AI tools to our sellers.

We believe sellers should be able to take any form of payment that crosses the counter, and we’re connecting our ecosystems to make that a reality. In the second quarter, we showcased bitcoin payments on Square, which will enable sellers to accept bitcoin directly through Square hardware for near-instantaneous, low-cost transactions that settle in either bitcoin or local currency. We expect to begin rolling out this experience to millions of sellers in the second half of 2025.

As we execute on our product roadmap, we are reaching more sellers.

Since hiring our first field sales team last November, we’ve seen strong early returns and are increasing hiring through year-end to continue building on this momentum. We’ve also continued to scale our telesales team, maintaining strong ROI as we grow, and are encouraged by growth trends as we invest in sales across international markets. We’re empowering our sales team to sell Square upmarket, and our product is resonating with larger sellers.

We’re focused on winning the quick-service restaurant market and have rolled out new products and features for these sellers. We signed a number of new upmarket sellers including Colectivo Coffee, a coffee shop with more than 20 locations in the Midwest that partners closely with coffee farmers and cooperatives around the world. They chose Square due to our ability to integrate directly into their custom app. We also signed Shane’s Rib Shack, an American fast-casual BBQ restaurant chain with over 35 locations that specializes in slow-cooked baby back ribs, hand-chopped chicken and pork, and Southern-style side dishes. This October, we’ll host our next biannual Square Releases event, where we’ll showcase additional products and features designed for quick-service restaurants.

Our sales and partnership efforts are also driving success across other verticals. Square has established a strong presence in concerts and stadiums globally, and we are continuing to expand in this space. In the second quarter, we signed Live Nation Canada, making Square the exclusive payment processing partner at major concert venues and festivals across Canada. We also signed Midwest Vision Partners, a vision care provider with more than 70 locations, that chose Square due to our modern and flexible payment options.

We continue to build out our partnership motion and have exceeded our targets for partner-driven volume. We launched our first U.S. independent sales organization (“ISO”) partnership earlier this year, and signed multiple new ISO partners in the second quarter. While early, initial results are promising, and we’re continuing to invest in this channel.

 

		4

Cash App

We’re delivering product innovation to drive network virality and deepen engagement.

In July we started rolling out Pools, a group P2P product that makes collecting and managing shared money simple and social. Approximately 60% of adults pool money to manage shared expenses or contribute to shared goals — whether that’s rent, a group trip, or organizing a youth sports league. Now, Cash App will enable proactive contributions, allowing groups to fund collective expenses in advance and reducing the upfront individual cost. After moving from prototype to pilot in just four months, we plan to expand access more broadly, unlocking network growth by allowing group P2P participation — even from those outside the platform — and making it easier for new customers to discover Cash App.

We estimate that nearly 20% of our customers receive at least a portion of their pay in cash, and we’ve more than doubled paper money deposit limits to better serve them. We believe increasing transaction limits across Cash App will enable customers to conduct more of their financial lives with us, deepening engagement and loyalty.

In the second quarter we launched Tap to Pay on iPhone for Cash App Business sellers, powered by Square as a Tap to Pay processor. This unlocks card acceptance for millions of eligible Cash App Business sellers on iOS, and early beta testing found Cash App Business sellers using Tap to Pay saw an approximately 35% increase in gross payment volume (“GPV”). We’re going to continue to invest in Cash App Business, helping nanosellers grow with innovations powered by Square technology.¹¹

We see a major opportunity to grow our network by becoming the financial platform for the next generation.

We’re focused on winning teens early — driving viral adoption through their social circles and giving them and their sponsors tools to responsibly grow with Cash App as their financial needs evolve. As of June, we had 5 million monthly active sponsored teen accounts on Cash App and these actives are highly engaged: nearly 80% were Cash App Card Actives and over 25% were Cash App Pay actives as of June. When sponsored accounts turn 18, nearly half have made the choice to graduate to an individual Cash App account, with the vast majority of these active in June. As our product set grows, we expect our ability to grow with these customers will continue to improve.

In the second quarter we rolled out a new feature that instantly notifies sponsors whenever a teen transacts with a new connection on Cash App, giving sponsors more visibility and control over their teen’s Cash App experience.

Marketing investments are scaling alongside product innovation. In July, we increased teen-focused referrals and campaigns, and are now expanding into creator content, interactive ads, and new formats across various social media channels in an effort to drive broader awareness and adoption.

We’re continuing to scale our Commerce capabilities.

Cash App Pay volume grew 2x year over year in the second quarter. We continued to add new merchants across food delivery, gaming platforms, and general retail, giving millions of customers more ways to pay with Cash App. We also continued to grow Afterpay GMV and signed new merchants including Uber and Uber Eats in Australia.

Over the last three years advertising has become a meaningful new growth vector for Cash App Afterpay. Building on this success, we launched the Afterpay Media Network (“AMN”) late last year, an advertising platform that harnesses data from millions of Afterpay actives in Australia to deliver targeted marketing solutions for merchants. We’re empowering brands to reach the right audiences and have driven measurable sales and conversion improvements, with analysis from early case studies indicating up to 15x return on ad spend.

In the second quarter we launched Pay Monthly for Single Use Payments (“SUP”) in the U.S. SUP lets customers split purchases into installments at merchants that advertise on the Afterpay app, and we are now offering greater payment flexibility with 6- and 12-month term options for higher value purchases. We view advertising as a powerful growth vector for Afterpay and will continue to innovate to better serve merchants and consumers.

 

¹¹ Nanosellers are individuals or sellers who make less than $10,000 per year in GPV. Nanosellers make up the majority of Cash App Business sellers.

 

		5

Financial Discussion

We delivered strong financial performance in the second quarter, with gross profit growth accelerating to 14% year over year and Adjusted Operating Income margins expanding to 22%. We are executing on our strategic growth initiatives across Square and Cash App, accelerating GPV growth in Square and gross profit per monthly transacting active in Cash App. We are raising our full year guidance to reflect our strong execution. We expect to continue to accelerate gross profit growth in the second half of 2025 and to exit 2025 with year-over-year growth of 19%, while delivering 20% Adjusted Operating Income margin, positioning us well for 2026.¹²

Second Quarter 2025 Financial Highlights

 

Gross Profit		We outperformed our gross profit guidance as we continue to launch new products across Square and Cash App to sustain strong growth at scale.
Profitability		We drove year-over-year improvement across all key profitability measures and outperformed our profitability guidance in the second quarter of 2025. Operating income was $484 million while Adjusted Operating Income was $550 million. Net income attributable to common stockholders was $538 million and Adjusted EBITDA was $891 million.
Square Gross  Payment Volume  (GPV)		In the second quarter, Square GPV grew 10% year over year (9.9% in constant currency), with U.S. GPV growing 7.0% year over year and International GPV growing 25% year over year (24% in constant currency).13 We observed notable strength in food and beverage and retail.
Gross Profit  per Monthly  Transacting Active		In the second quarter, Cash App’s gross profit per monthly transacting active grew 15% year over year to $87.14 We continued to focus on increasing engagement of our 57 million actives and drove Borrow and BNPL attach rates higher while expanding Cash App Card actives to 26 million.
Guidance		We are raising our guidance to reflect the strength we are seeing across our business. We now expect $10.17 billion in gross profit for 2025, reflecting growth of over 14% year over year. We expect full-year Adjusted Operating Income of $2.03 billion, or 20% margin, representing a 2% margin expansion year over year. We expect gross profit in the third quarter to grow 16% year over year to $2.60 billion with Adjusted Operating Income margins of 18%.

 

 

¹² 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.

¹³ Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds.

¹⁴ 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. Cash App annualized gross profit includes gross profit from our post-purchase BNPL on Cash App Card. In the second quarter, BNPL platform gross profit (which does not include post-purchase BNPL on Cash App Card), was $261 million, up 18% year over year.

 

		6

Block Financial Metrics

 

Block grew gross profit 14% year over year in the second quarter, with 16% year-over-year growth in Cash App and 11% 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 software and integrated payments and banking products. On a GAAP basis, we generated $484 million of operating income compared to $307 million in the second quarter of 2024, a 58% improvement year over year. Adjusted Operating Income grew 38% year over year as we continued to focus on efficiently increasing product velocity. On a GAAP basis, we grew diluted EPS to $0.87 and Adjusted Diluted EPS to $0.62, representing a 181% and 32% increase year over year, respectively.

 

		7

Square

 

Square GPV in the second quarter was $64.2 billion, up 10% and 9.9% year over year on a reported and constant currency basis, respectively. On a year-over-year basis in the second quarter, GPV from food and beverage sellers was up 15% while GPV from retail sellers achieved the strongest growth since the first quarter of 2023, up 10%. GPV from services sellers grew 6% year over year. We saw faster growth in our mid-market seller segments (>$500K in annualized GPV) compared to our other seller segments during the second quarter.

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

 

		8

Cash App

 

Cash App gross profit increased 16% year over year, driven by growth across Cash App Borrow, Cash App Card, and BNPL.

Gross profit per transacting active reached $87 in the second quarter, up 15% year over year. Inflows per transacting active in the second quarter were $1,338, up 8% year over year, driven in part by more customers bringing their paychecks into Cash App. Cash App’s paycheck deposit monthly actives grew year over year and quarter over quarter to 2.7 million as we continued to execute on our “bank the base” strategy.

BNPL GMV, which now includes post-purchase BNPL on Cash App Card, reached $9.11 billion in the second quarter, growing 17% and 18% year over year on a reported and constant currency basis, respectively. Growth was driven by our Pay-in-Four offering, post-purchase BNPL, and Gift Cards from our eligibility expansion. BNPL gross profit, which now includes post-purchase BNPL on Cash App Card, was $268 million, up 22% year over year.¹⁹

 

¹⁵ 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.

¹⁶ 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 app.

¹⁷ We calculate monetization rate by dividing Cash App gross profit, excluding contributions from our BNPL platform, by Cash App inflows.

¹⁸ 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 $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, $237 million or $948 million on an annualized basis for Q1’25, and $261 million or $1.04 billion on an annualized basis for Q2’25.

¹⁹ In the second quarter, BNPL platform gross profit (which does not include post-purchase BNPL on Cash App Card) was $261 million, up 18% year over year.

 

		9

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

 

In the second quarter, we achieved significant leverage on our product development expenses as we reduced software and cloud costs, with spend up only 2% on a GAAP basis. Sales and marketing expenses grew 8% year over year on a GAAP basis, driven by an increase in go-to-market investments to support the growth of our business. Of this, Cash App marketing expenses were relatively flat year over year as we grew advertising and customer acquisition spend by over 50%, offset by improvements in peer-to-peer risk loss performance. Other sales and marketing expenses were up 22% year over year as we significantly increased go-to-market investment in Square. General and administrative expenses were down 5% year over year on a GAAP basis, driven primarily by decreased personnel costs and our continued focus on expense efficiency. Transaction, loan, and consumer receivable losses increased 53% year over year on a GAAP basis, driven primarily by growth in loan volumes, particularly from Cash App Borrow.

 

		10

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

 

 

 

²⁰ 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.

 

		11

Cash Flow ($M)

 

In the second quarter of 2025, we continued to prudently invest in our lending products, including growing Borrow given the strong unit economics and returns we have seen. We are also focused on returning capital to shareholders. In the second quarter of 2025, we repurchased 12.5 million shares of our Class A common stock for an aggregate amount of $692 million. As of June 30, 2025, we had $1.5 billion in remaining authorization for repurchases.

In the second quarter, we began originating Borrow loans through SFS. Borrow loans originated through SFS are classified as held-for-investment rather than held-for-sale, which has the effect of shifting those Borrow receivables from cash flow from operations to cash flow from investing activities. We plan to share a comprehensive overview of our cash generation capabilities at Investor Day.

We ended the quarter with $8.5 billion of total liquidity, with $7.7 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.

 

²¹ Quarterly figures presented may not sum precisely due to rounding.

 

		12

Guidance

2025 Outlook²²

 

				2025
		Gross Profit		$10.17B
		YoY Growth		14.4%
		Adjusted Operating Income		$2.03B
		% Margin		20%
		Rule of X		34%

We’re raising our gross profit and Adjusted Operating Income guidance by more than our second quarter outperformance to reflect our strong execution. We now expect $10.17 billion in gross profit for 2025, for growth of over 14% year over year. We expect gross profit in the third quarter to grow 16% year over year to $2.60 billion. We expect to accelerate gross profit growth further in the fourth quarter, exiting the year at 19% gross profit growth, with the drivers of acceleration consistent with our prior outlook. We expect Borrow to be the most meaningful contributor to growth acceleration in the third and fourth quarters. In addition, expansion of post purchase BNPL on Cash App Card, Square GPV acceleration from product and go to market investment, and Proto chip deliveries are all expected to drive gross profit growth. We continue to be mindful of the dynamic macro backdrop as we forecast our business.

We expect to deliver $460 million of Adjusted Operating Income in the third quarter and $2.03 billion in Adjusted Operating Income for the full year. We are raising our Adjusted Operating Income guidance even with our expectation for increased levels of go to market investment relative to our prior outlook. We’ve continued to see attractive returns on go to market spend and healthy risk loss in our underwriting products and we will continue to be data driven and prudent in our growth investments.

 

 

 

 

²² 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.

 

		13

Q3 2025 Outlook²³

 

				Q3 2025
		Gross Profit		$2.60B
		YoY Growth		16%
		Adjusted Operating Income		$460M
		% Margin		18%
		Rule of X		33%

 

 

 

 

 

²³ 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.

 

		14

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, August 7, 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 third quarter of 2025 on November 6, 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

 

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		16

 

		17

Condensed Consolidated Statements of Operations

Unaudited

In thousands, except per share data

 

				THREE MONTHS ENDED								SIX MONTHS ENDED
				June 30, 2025				June 30, 2024				June 30, 2025				June 30, 2024
		Revenue:
		Transaction-based revenue		$	1,817,398			$	1,712,967			$	3,368,129			$	3,224,176
		Subscription and services-based revenue			2,052,604				1,787,893				3,943,577				3,470,187
		Hardware revenue			40,423				42,960				69,113				75,461
		Bitcoin revenue			2,144,032				2,611,743				4,445,434				5,342,867
		Total net revenue			6,054,457				6,155,563				11,826,253				12,112,691
		Cost of revenue:
		Transaction-based costs			1,066,028				1,000,055				1,969,850				1,873,220
		Subscription and services-based costs			298,069				291,801				573,117				561,469
		Hardware costs			76,548				68,309				129,082				119,094
		Bitcoin costs			2,062,878				2,544,329				4,298,993				5,195,339
		Amortization of acquired technology assets			14,404				17,589				29,078				35,616
		Total cost of revenue			3,517,927				3,922,083				7,000,120				7,784,738
		Gross profit			2,536,530				2,233,480				4,826,133				4,327,953
		Operating expenses:
		Product development			725,288				713,163				1,485,987				1,433,737
		Sales and marketing			549,731				507,562				1,054,191				951,447
		General and administrative			449,237				473,568				941,034				944,828
		Transaction, loan, and consumer receivable losses			294,090				191,812				463,779				357,541
		Amortization of customer and other acquired intangible assets			33,891				40,813				67,547				84,095
		Total operating expenses			2,052,237				1,926,918				4,012,538				3,771,648
		Operating income			484,293				306,562				813,595				556,305
		Interest expense (income), net			23,687				(1,871	)			40,930				(20,616	)
		Remeasurement loss (gain) on bitcoin investment			(212,165)				70,116				(118,814	)			(163,288	)
		Other expense (income), net			13,389				(10,584	)			5,047				(15,004	)
		Income before income tax			659,382				248,901				886,432				755,213
		Provision for income taxes			121,048				59,029				159,376				94,521
		Net income			538,334				189,872				727,056				660,692
		Less: Net loss attributable to noncontrolling interests			(124)				(5,396	)			(1,274	)			(6,581	)
		Net income attributable to common stockholders		$	538,458			$	195,268			$	728,330			$	667,273
		Net income per share attributable to common stockholders:
		Basic		$	0.88			$	0.32			$	1.18			$	1.08
		Diluted		$	0.87			$	0.31			$	1.17			$	1.05
		Weighted-average shares used to compute net income per share attributable to common stockholders:
		Basic			612,882				617,666				616,108				617,033
		Diluted			618,928				634,221				627,103				636,751

 

		18

Condensed Consolidated Balance Sheets

In thousands, except per share data

 

				June 30, 2025				Dec 31, 2024
				UNAUDITED
		Assets
		Current assets:
		Cash and cash equivalents		$	6,384,224			$	8,075,247
		Settlements receivable			1,235,325				1,060,966
		Customer funds			4,937,814				4,182,872
		Consumer receivables, net			2,202,592				2,504,879
		Loans held for sale			1,411,653				1,111,107
		Loans held for investment, net of allowance			1,039,544				365,062
		Other current assets			2,496,510				2,580,068
		Total current assets			19,707,662				19,880,201
		Goodwill			11,816,794				11,417,422
		Acquired intangible assets, net			1,368,735				1,433,067
		Deferred tax assets			1,793,827				1,800,994
		Other non-current assets			2,171,373				2,245,911
		Total assets		$	36,858,391			$	36,777,595
		Liabilities and Stockholders’ Equity
		Current liabilities:
		Customers payable		$	6,957,104			$	5,837,152
		Accrued expenses and other current liabilities			1,423,231				1,525,149
		Current portion of long-term debt			1,570,979				999,497
		Warehouse funding facilities, current			120,000				185,000
		Total current liabilities			10,071,314				8,546,798
		Warehouse funding facilities, non-current			583,924				1,296,680
		Long-term debt			3,539,887				5,105,939
		Other non-current liabilities			540,374				593,216
		Total liabilities			14,735,499				15,542,633
		Commitments and contingencies
		Stockholders’ equity:
		Preferred stock, $0.0000001 par value: 100,000 shares authorized at June 30, 2025 and December 31, 2024. None issued and outstanding at June 30, 2025 and December 31, 2024.			—				—
		Class A common stock, $0.0000001 par value: 1,000,000 shares authorized at June 30, 2025 and December 31, 2024; 550,191 and 559,606 issued and outstanding at June 30, 2025 and December 31, 2024, respectively.			—				—
		Class B common stock, $0.0000001 par value: 500,000 shares authorized at June 30, 2025 and December 31, 2024; 60,012 and 60,070 issued and outstanding at June 30, 2025 and December 31, 2024, respectively.			—				—
		Additional paid-in capital			19,442,101				19,900,379
		Accumulated other comprehensive loss			(381,913)				(1,001,065	)
		Retained earnings			3,096,948				2,368,618
		Total stockholders’ equity attributable to common stockholders			22,157,136				21,267,932
		Noncontrolling interests			(34,244)				(32,970	)
		Total stockholders’ equity			22,122,892				21,234,962
		Total liabilities and stockholders’ equity		$	36,858,391			$	36,777,595

 

		19

Condensed Consolidated Statements of Cash Flows

Unaudited

In thousands

 

				SIX MONTHS ENDED
				June 30, 2025				June 30, 2024
		Cash flows from operating activities:
		Net income		$	727,056			$	660,692
		Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization			181,345				194,543
		Amortization of discounts and premiums and other non-cash adjustments			(546,560)				(537,806	)
		Non-cash lease expense			28,372				31,475
		Share-based compensation			612,577				631,791
		Gain on revaluation of equity investments			(1,456)				(2,483	)
		Remeasurement gain on bitcoin investment			(118,814)				(163,288	)
		Transaction, loan, and consumer receivable losses			463,779				357,541
		Change in deferred income taxes			52,019				3,528
		Purchases and originations of loans originally classified as held for sale			(10,634,603)				(6,911,321	)
		Proceeds from repayments of loans originally classified as held for sale			10,163,789				6,585,211
		Changes in operating assets and liabilities:
		Settlements receivable			(258,566)				(829,379	)
		Customers payable			315,632				871,931
		Settlements payable			(330)				(8,134	)
		Other assets and liabilities			(476,582)				124,486
		Net cash provided by operating activities			507,658				1,008,787
		Cash flows from investing activities:
		Purchases of marketable debt securities			(282,149)				(757,335	)
		Proceeds from maturities of marketable debt securities			278,624				458,029
		Proceeds from sale of marketable debt securities			373,759				395,455
		Payments for originations of consumer receivables			(14,638,790)				(12,866,904	)
		Proceeds from principal repayments and sales of consumer receivables			15,494,483				13,727,603
		Purchases and originations of loans originally classified as held for investment			(1,164,089)				—
		Proceeds from repayments of loans originally classified as held for investment			457,152				—
		Purchases of property and equipment			(63,192)				(70,355	)
		Purchases of other investments			(26,870)				(19,079	)
		Net cash provided by investing activities			428,928				867,414
		Cash flows from financing activities:
		Proceeds from issuance of senior notes			—				2,000,000
		Payments of debt issuance costs from issuance of senior notes			—				(26,619	)
		Payments to redeem convertible notes			(1,000,624)				—
		Proceeds from warehouse facilities borrowings			435,497				319,634
		Repayments of warehouse facilities borrowings			(1,242,317)				(968,045	)
		Proceeds from the exercise of stock options and purchases under the employee stock purchase plan			51,082				86,201
		Net increase in interest-bearing deposits			54,792				41,969
		Repurchases of common stock			(1,137,502)				(641,603	)
		Other financing activities			(35,330)				(18,473	)
		Change in customer funds, restricted from use in the Company’s operations			754,942				380,283
		Net cash provided by (used in) financing activities			(2,119,460)				1,173,347
		Effect of foreign exchange rate on cash and cash equivalents			94,932				(39,771	)
		Net increase (decrease) in cash, cash equivalents, restricted cash, and customer funds			(1,087,942)				3,009,777
		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		$	12,142,570			$	12,018,864

 

		20