Q3 2025

Shareholder Letter

 

		investors.block.xyz

To Our Shareholders   Continued momentum   We had another strong quarter delivering for our customers with high quality and high velocity. Square GPV growth accelerated to 12% and we gained profitable market share through product innovation and expanded distribution. Cash App gross profit growth accelerated to 24%, and in September we hit 58 million Cash App monthly actives.1 Proto generated its first revenue, seeding what we believe will become our next major ecosystem. Last quarter, I outlined Cash App’s strategy to become the financial platform for the next generation.2 This quarter, I want to outline how Square will continue to take market share by being the best platform to help sellers grow, run, and automate their businesses.   Square powers the neighborhood   Square works for everyone, from the corner store to the national chain. We believe we are the only company that designs the hardware, operating system, software, commerce capabilities, and financial tools for sellers. That vertical integration lets us move fast, serve more customers, and ultimately give them time back. Our ability to do this stems from our obsession with simplicity. We built for self-service from day one and that foundation powers our scale as we move upmarket and expand internationally. Our strategy is to enable the success of sellers in their neighborhoods. We are:   ●   Connecting Square and Cash App to deliver more value to our sellers, their employees, and their customers   ●   Delivering AI tools so more sellers can put their operations and finances on autopilot   ●   Making selling easier with software solutions and commerce tools for our sellers   ●   Meaningfully scaling our go-to-market efforts to serve every seller that wants to work with us   Connecting our ecosystems   At Square Releases last month, we introduced Neighborhoods on Cash App. We set out to give every neighborhood business access to an enterprise-quality mobile app. For sellers, it’s everything they’d want in a mobile app, without the complexity of maintaining it across multiple platforms. For customers, it’s a seamless way to support local businesses while enjoying the same convenience they’ve come to expect from the biggest brands.				Q3’25 Highlights3     Gross Profit $2.66B +18% YoY Growth     Cash App Gross Profit $1.62B +24% YoY Growth     Square Gross Profit $1.02B +9% YoY Growth     Operating Income $409M 15% Margin4     Adjusted Operating Income5 $480M 18% Margin     Net Income6 $462M     Adjusted EBITDA7 $833M

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 third 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 share-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 share-based compensation. For more information, please refer to the “Key Operating Metrics and Non-GAAP Financial Measures” section of this letter.

 

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For neighborhoods, it’s a powerful step toward preserving the culture, resilience, and vibrancy that make them thrive. And because it’s built on Block’s ecosystem, it gives sellers benefits that only we can deliver:

 

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A base of 58 million monthly actives in Cash App that sellers can connect with and offer customizable rewards, tied to free marketing and discovery tools that let local sellers build stronger connections with followers through messages and campaigns right on Cash App

 

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Network-wide rewards designed to drive repeat visits and attract new customers that can be redeemed with any seller in the network to keep money local

 

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Stored balances from over $300 billion that flowed into Cash App over the past year, driving our ability to offer a 1% payment processing rate for all in-app orders8

Shipping faster and reinventing the interface with AI

Our vertically integrated platform allows us to move quickly, and we believe it gives us unique advantages in launching AI tools for sellers. Our engineering team has been on the frontier of AI development for years, building internal tools like codename goose to ship features faster, reinvent the interface for our sellers, and pioneer new underwriting methodologies to expand access to our credit products. Now, we’re using these tools to help make our sellers more successful.

Today, Square AI enables sellers to easily explore their data to uncover even more complex insights. Soon, it will proactively suggest actions to optimize growth or improve efficiency and implement them with a tap. We expect the AI tools we build will be available to all our sellers across our product tiers to help every seller in the neighborhood grow and run their business better. Square changed how sellers reach customers and grow by creating simple, intuitive tools. We’re doing it again with AI.

Helping sellers grow and run their business

We’re continuing to build new products and features in our core commerce platform to drive value to sellers. We’ve enhanced our financial tools, empowering sellers to make informed choices about vendors and pricing. Our Payroll product now provides same-day payroll, and we’re testing daily tip distribution so workers get paid faster.

Over the past year, we’ve focused on winning the quick-serve restaurant (QSR) industry. We launched products including Multichannel Menus, Kiosk, AI Voice Ordering, and Order Guide to help these sellers grow and streamline their operations. At the same time, we scaled field sales to reach bigger QSR customers. Our approach has worked. Food and beverage GPV growth accelerated to 17% in Q3 2025 from 10% a year ago, and food and beverage new volume added (NVA) accelerated to 30% from 2% over that same time period.⁹ We believe the results we’ve seen can be adapted and repeated across other verticals and international markets.

We’re also connecting our ecosystems through Square bitcoin to help sellers grow and never miss a sale because of how their customer wants to pay. Square bitcoin is the first fully integrated bitcoin payments and wallet solution for businesses that will enable sellers to accept bitcoin payments and automatically convert sales into bitcoin. And it will be fully rolled out this month.

Expanding distribution to reach more sellers

We believe this will be the strongest NVA year for Square ever, which we’ve accomplished through expanded field sales, partner programs, and targeted marketing. Year to date through September, sales-led NVA has grown by 28%, and we expect it to grow by over 40% by the end of the year.

 

⁸ 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.

⁹ New Volume Added (NVA) is the total gross payment volume (GPV) processed, or expected to be processed, by new sellers during their first 12 months on Square. While intended to represent incremental volume from new cohorts, it may also include GPV from existing sellers in cases such as new locations or event-based merchant tokens.

 

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Even as we ramp our sales efforts, one of Square’s advantages continues to be how easily sellers can get started on their own. Self-onboard growth has accelerated as we have invested in marketing, with growth expected to more than double in Q4 vs. Q1. We’re making it simpler to work with Square, with new pricing and packaging that helps sellers discover more of our software solutions. This intuitive experience is a superpower for Square and we will continue to invest to drive strength.

The neighborhood is the future

We’re giving sellers in neighborhoods everywhere the tools they need to grow and navigate challenges. We’ve shown we can win in QSR by combining deep product and go-to-market investment. Now, we’re expanding that approach across verticals, using AI and Neighborhoods on Cash App to help sellers even more. We’re doing all of this while ramping our sales team, expanding partnerships, and investing in self-onboarding growth. We believe we are the only company that can serve every seller in every neighborhood around the world. And we’re going to keep building for them.

 

 

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Business Highlights

Cash App

Cash App hit 58 million monthly actives in September. Our focus on expanding the network and increasing network density is working.

In August, we launched Cash App Pools to make group money collection simple, and we have seen strong adoption, surpassing 1 million cumulative pools as of September. Pools are strengthening connections among existing customers and driving participation from people outside of Cash App. Pools have increased network density and activity: Nearly half of contributors to the same pool have never paid each other before.

We’re reaching teens at the start of their financial journey, helping them save, spend, and build healthy financial habits. Cash App Card is one of the most popular debit cards for teens in the US, and we’re continuing to launch products to serve this audience.¹⁰ In September, we launched Teen Savings Yield, offering teens a 3.5% yield on their savings deposits. We also rolled out new parental controls including limits on peer-to-peer transactions and Cash App Card spending, and sponsor-approved contact lists, empowering families to build healthy financial habits together.

We’re rolling out a number of marketing initiatives, giveaways, and influencer partnerships focused on driving adoption of financial services products and reengaging actives who use Cash App infrequently. These targeted incentives are encouraging deeper adoption of products like Cash App Card: for example, a $20 activation offer for less engaged actives without a Cash App Card led to a 13% uplift in new card activations in testing.¹¹

We’re continuing to deepen engagement and increase product attach rates.

We have seen Square Releases drive engagement and excitement with our seller base, while increasing development velocity. We’re now bringing that playbook to Cash App. On November 13, we’ll showcase our first Cash App Release to bring greater awareness of all the products we’re delivering to improve the financial lives of our customers. At Cash App Releases we will unveil more about the future of AI and bitcoin in Cash App, and how we’re driving growth across our banking products.

We’re introducing “primary banking actives” as a key measure of how many customers use Cash App in their daily financial lives. As of September, we served 8.3 million primary banking actives, up 18% year over year.¹² In October we launched the Holo card, our latest addition to Cash App Card designs, which enable customers to personalize what’s in their wallet and how their Cash App looks. We’ve seen prior card launches lead to increased interest in Cash App’s banking products, and we will share more about how we’re tying spending across Cash App more closely to primary banking benefits at Cash App Releases.

We have continued to experience strong growth in post-purchase BNPL on Cash App Card. We ended July at over $2 billion in annualized post-purchase originations, and in early October we crossed $3 billion.¹³ We also continued to expand access to Cash App Borrow in the third quarter, with originations growing 134% year over year. We’re scaling Borrow while delivering strong annualized net margins of 24% and stable risk loss in the third quarter.¹⁴

 

 

 

¹⁰ Custom survey questions requested by Cash App through Morning Consult’s Omnibus Platform, August 2025.

¹¹ These results are from a test in June 2025 across a few thousand Cash App actives.

¹² Primary Banking Active is a Cash App account that receives inflows from ACH or certain original credit transactions relating to earned wages, excluding tax refunds and ACH transfers, or spent at least $500 per month across Cash App, including Cash App Card, Cash App Pay, Afterpay through Cash App and ACH bill pay during a specified period.

¹³ Post-purchase BNPL origination volume is calculated based on annualized post-purchase BNPL originations during the period noted.

¹⁴ Cash App Borrow annualized net margin is calculated by taking Cash App Borrow variable profit margins on a per cohort basis and dividing it by the weighted average life of the loan cohort and multiplying by 365. We calculate Cash App Borrow variable profit margins as variable profit divided by originations. We define variable profit as gross profit less processing costs and losses.

 

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Square

At our second Square Releases event in October we showcased our unique AI capabilities to deliver differentiated value to sellers.

Since its launch earlier this year, Square AI has answered hundreds of thousands of questions from sellers, helping them get more done, faster. Sellers are using it to get fast insights on a new menu item, identifying the top customers at every location each week, or running granular reports in seconds that previously took hours. Recent enhancements include local data insights, pinned data on Dashboard, and mobile access on the Square Dashboard app. Donnie McClanahan, a Square seller who owns four cafes in Knoxville, Tennessee, uses Square AI to navigate complex business decisions. It’s helped him avoid cutting top-performing menu items and adjust store hours to save on costs without meaningfully impacting revenue.

We began rolling out a new Square AI voice ordering tool in October to help sellers handle peak-hour demand. This tool gives sellers an AI assistant that can take orders over the phone and integrates seamlessly with Square ordering and kitchen display technology. We also launched Order Guide, Square’s new AI-powered centralized procurement tool that helps restaurants bring all their vendor data into one place and gives sellers instant clarity to compare offerings, track trends, and spot gaps across suppliers. Menus can be uploaded and automatically converted into complete ingredient lists, saving hours of manual work and streamlining procurement to give sellers more control over their margins.

At Square Releases, we also highlighted several new features to better serve the needs of our sellers including Multichannel Menus, which give complex omnichannel sellers operating across multiple locations with multiple menu items a single, streamlined way to set up and manage their menus across every channel and location.

We’re expanding distribution and reinvigorating our brand.

We launched a new campaign that spotlights individual neighborhoods and the sellers that bring them to life. It shows how we help sellers of all sizes and verticals thrive — and positions Square as the preferred commerce platform for local businesses. We’re running the campaign nationally and in local markets, and we’re investing in pop-up experiences and partnerships with iconic sellers to build brand awareness for Square and engage with sellers in their local communities.

We’re leveraging the strength of the Block ecosystem to help our partners and customers thrive. We announced a new partnership with Grubhub in the third quarter that will provide sellers a more efficient way to manage delivery and pickup operations with a seamless integration embedded right in Square. We also announced Grubhub as a new Cash App Pay partner, providing Cash App customers more choice and flexibility in how they want to pay and offering Grubhub a low-cost payment option that builds relationships with new customers.

As we increase our brand investments, we are simplifying our Square pricing and packaging into three tiers with different software and processing price options, with the goal of increasing software attach rates in our seller base. We have seen that sellers that adopted our software solutions grew their GPV 9% faster and have higher retention after 12 months. We want to enable more sellers to discover Square’s software functionality to help them succeed.

We are continuing to scale field sales and partnerships, ending the third quarter with 90 field sales representatives. We’re also executing on our distribution strategies effectively in international markets with new volume added (NVA) growth accelerating, driven in part by the strength we’re seeing in telesales.

We believe our efforts to move upmarket are working as we continue to sign new, large upmarket sellers. We recently signed Katz Deli, a 137-year-old iconic New York institution, and Purdys Chocolatier, Canada’s chocolatier since 1907, which has more than 80 locations, marking Square’s largest Canadian retail seller and one of our largest sellers globally.

 

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Financial Discussion

Our financial performance was strong in the third quarter, with gross profit growth of 18% year over year and Adjusted Operating Income exceeding our guidance. We are seeing strong momentum across Square and Cash App, with Square GPV growth and Cash App gross profit per monthly transacting active growth accelerating. In the third quarter, we increased Cash App monthly transacting actives to 58 million and Proto generated its first revenue, demonstrating velocity and innovation across Block. We are raising our fourth quarter and full-year guidance to reflect our strong execution. We expect to continue to accelerate gross profit growth in the fourth quarter, exiting 2025 with year-over-year growth of over 19%, while delivering over 39% Adjusted Operating Income growth.

Third Quarter 2025 Financial Highlights

 

Gross Profit		We outperformed our gross profit guidance with growth of 18% year over year in the third quarter as we continued to launch new products and invest in go-to-market efforts across Square and Cash App to sustain strong growth at scale.
Profitability		We drove year-over-year improvement across all key profitability measures in the third quarter of 2025. Operating income was $409 million while Adjusted Operating Income was $480 million. Net income attributable to common stockholders was $462 million and Adjusted EBITDA was $833 million.
Square Gross Payment Volume (GPV)		In the third quarter, Square GPV grew 12% year over year (reported and constant currency), with U.S. GPV growing 8.9% year over year and International GPV growing 26% year over year (25% in constant currency).15 We observed notable strength from our food and beverage and retail sellers.
Gross Profit per Monthly Transacting Active		In the third quarter, Cash App’s gross profit per monthly transacting active grew 25% year over year to $94.16 Monthly transacting actives grew to 58 million, with primary banking actives growing 18% year over year to 8.3 million, up from 8.0 million in the second quarter. We continue to invest in Cash App Borrow and BNPL to deepen engagement.
Guidance		We are raising our guidance to reflect the strength we are seeing across our business. We now expect $10.243 billion in gross profit for 2025, reflecting growth of over 15% year over year. We expect full year Adjusted Operating Income of $2.056 billion, or 20% margin, growing nearly 28% year over year. We expect gross profit in the fourth quarter to grow 19% year over year to $2.755 billion with Adjusted Operating Income of $560 million, for Adjusted Operating Income margins of 20%.

 

 

 

¹⁵ Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds.

¹⁶ 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 third quarter, BNPL platform gross profit (which does not include post-purchase BNPL on Cash App Card) was $269 million.

 

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Block Financial Metrics

 

Block grew gross profit 18% year over year in the third quarter, with 24% 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, BNPL, and Cash App Card. For Square, growth was driven by software and integrated payments and banking products. On a GAAP basis, we generated $409 million of operating income compared to $323 million in the third quarter of 2024, a 27% improvement year over year. Adjusted Operating Income grew 8% year over year. On a GAAP basis, we grew diluted EPS to $0.74 and Adjusted Diluted EPS to $0.54, representing a 64% and 2% increase year over year, respectively.

 

 

 

 

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Cash App

 

Cash App gross profit increased 24% year over year, driven by growth across Cash App Borrow, BNPL, and Cash App Card. Gross profit per transacting active reached $94 in the third quarter, up 25% year over year. Inflows per transacting active growth accelerated to 10% year over year in the third quarter driven in part by more customers bringing their paychecks into Cash App. Primary banking actives reached 8.3 million, up 18% year over year as we continued to deliver more value and drive deeper engagement with more customers.

BNPL GMV reached $9.70 billion in the third quarter, growing 17% and 18% year over year on a reported and constant currency basis, respectively. Growth was driven by post-purchase BNPL on Cash App Card, Gift Cards, and Single Use Payments. BNPL gross profit was $299 million, up 23% year over year.²² Commerce volume grew 17% year over year to $49.7 billion in the third quarter, accelerating from 14% year-over-year growth in the second quarter driven by Cash App Card, BNPL, and Cash App Pay.²³

¹⁷ We have recast prior period inflows to include refunds on Cash App Card transactions. This presentation is consistent with the current period and affects reported inflows, inflows per active, and monetization rate.

¹⁸ 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.

¹⁹ 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.

²⁰ We calculate monetization rate by dividing Cash App gross profit, excluding contributions from our BNPL platform, by Cash App inflows.

²¹ 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 $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, $261 million or $1.04 billion on an annualized basis for Q2’25, and $269 million or $1.08 billion on an annualized basis for Q3’25.

²² BNPL GMV and BNPL gross profit include contributions from post-purchase BNPL on Cash App Card.

²³ Commerce volume includes Cash App Card, Cash App Pay, Cash App Business, and our BNPL offerings across Afterpay and Cash App.

 

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Square

 

Square GPV grew 12% year over year in the third quarter to $67.2 billion, reflecting our strongest growth since the second quarter of 2023. GPV from food and beverage sellers was up 17% year over year in the third quarter, our strongest growth rate since the first quarter of 2023. GPV from retail sellers grew 12% year over year, our strongest growth rate since the third quarter of 2022. GPV from services sellers grew 7% 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 third quarter.

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

 

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

 

In the third quarter, product development expenses remained flat year over year as we reduced our software and cloud costs. Sales and marketing expenses grew 17% year over year on a GAAP basis, driven by an increase in go-to-market investments to support the growth of our business. Cash App sales and marketing expenses were up 14% year over year driven primarily by Cash App customer acquisition spend, which grew by 60% year over year. Other sales and marketing expenses were up 23% year over year as we significantly increased go-to-market investment in Square. General and administrative expenses were up 14% year over year on a GAAP basis, driven in part by an in-person company event. Excluding this expense, general and administrative expenses remained roughly flat year over year in the third quarter. Transaction, loan, and consumer receivable losses increased 89% year over year on a GAAP basis, driven primarily by growth in loan volumes, particularly from Cash App Borrow (originations volume up 134% year over year).

 

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

 

 

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Cash Flow ($M)

 

In the third quarter of 2025, we continued to prudently invest in our lending products, including growing Cash App Borrow given the strong unit economics and returns we have seen. We remain focused on returning capital to shareholders. In the third quarter of 2025, we repurchased 5.3 million shares of our Class A common stock for an aggregate amount of $403 million. As of September 30, 2025, we had $1.1 billion in remaining authorization for repurchases.

We ended the quarter with $10.5 billion of total liquidity, with $9.7 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.²⁵

 

 

²⁴ Quarterly figures presented may not sum precisely due to rounding.

²⁵ During the third quarter of 2025, we issued $2.2 billion in aggregate principal amount of senior unsecured notes, comprising $1.2 billion in aggregate principal amount of senior notes due 2030 and $1.0 billion in aggregate principal amount of senior notes due 2033.

 

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Guidance

2025 Outlook²⁶

 

				2025
		Gross Profit		$10.243B
		YoY Growth		15%
		Adjusted Operating Income		$2.056B
		% Margin		20%
		Rule of X27		35.3%

We are raising our full year guidance to reflect the strength we’re seeing across Block. Our full year guidance increase incorporates our third quarter outperformance and an increase to our prior expectations for the fourth quarter. We expect to deliver $10.243 billion in gross profit for the full year, reflecting more than 15% year over year growth, consistent with the initial outlook for 2025 that we provided a year ago. We expect Adjusted Operating Income of $2.056 billion in 2025, growing nearly 28% year over year even while meaningfully investing in sales and marketing and scaling Borrow and other lending products.

 

 

 

 

²⁶ 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.

²⁷ 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.

 

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Q4 2025 Outlook²⁸

 

				Q4 2025
		Gross Profit		$2.755B
		YoY Growth		19%
		Adjusted Operating Income		$560M
		% Margin		20%
		Rule of X		39.5%

 

 

 

 

 

 

  

²⁸ 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.

 

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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, November 6, 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 fourth quarter of 2025 on February 26, 2026, 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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Condensed Consolidated Statements of Operations

Unaudited

In thousands, except per share data

 

				THREE MONTHS ENDED								NINE MONTHS ENDED
				Sept. 30, 2025				Sept. 30, 2024				Sept. 30, 2025				Sept. 30, 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

 

		18

Condensed Consolidated Balance Sheets

In thousands, except per share data

 

				Sept. 30, 2025				Dec 31, 2024
				UNAUDITED
		Assets
		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, net of allowance			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			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			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
		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

 

		19