Slide 1: Underwriting Strategy
INVESTOR DAY 2025 Underwriting Strategy Brian Boates
Slide 2: We have a long history in credit
BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY We have a long $56.4B history in credit Underwriting small businesses $41.6B and consumers for over a decade at scale. $31.0B $24.4B $19.4B Afterpay Pay-in-Four Originations $9.7B $6.8B Afterpay Post-Purchase Originations $4.0B $2.1B $2M $0.1B $0.4B $0.9
Slide 3: We remain disciplined about risk as we grow
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY We remain $300 20% disciplined about $250 $254 $244 10% risk as we grow Average Borrow Limit $202 This year weʼve doubled Loss Rate Borrow limits while loss rates $200 have remained stable. $168 5% $161 $153 $154 $150 Average Borrow Limit $
Slide 4: Risk expertise embedded in product design
BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Risk expertise Typical Lender Block embedded in Repayment Mechanism Mail a statement Top of wallet: seller revenue, cash flows, linked cards product design Loan Duration ● Consumer loans: ● Cash App Borrow: (average) 33 months 21 days ● SMB loans: ● Afte
Slide 5: Differentiated underwriting outcomes powered by proprietary technology
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Differentiated underwriting outcomes powered by proprietary technology P2P Cash App Card Cash App Pay Near-Real-Time ML Models Paycheck Deposits Cash App score Updates Savings versus lagged built to serve data at bureaus the underserved Inv
Slide 6: Traditional credit scores use lagged data
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Traditional credit scores use 714 714 715 715 lagged data 711 Score inflation during pandemic 703 led to increasing scores even as 701 3.1% 3.08% delinquencies rose. 2.54% 2.61% 2.26% 2.1% 1.57% Traditional Credit Score US Average) US Cred
Slide 7: We can approve more customers without increasing risk
BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY We can approve more customers without increasing risk 38% You can include a short sentence about the statistic right here but only if necessary higher Cash App Borrow approval rate 63% You can include a short sentence about the statistic right here but o
Slide 8: Cash App Score distribution
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Cash App Score distribution The score powers underwriting across our entire customer base and optimizes for profitability and growth. Cash App Borrow Credit Score Approx.) Approximate distribution of Cash App credit scores for Borrow month
Slide 9: We use our scores to prepare for economic uncertainty
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY We use our scores to prepare for economic uncertainty Understanding how credit outcomes would evolve across our population in various macro scenarios. Example: Consumer Sentiment Index CSI) drops by 40 pts, similar to 20072009 crisis Curr
Slide 10: Innovating on explaining scores to customers
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Innovating on explaining scores to customers Deepening engagement with Cash App actives and helping them increase credit access. Customer-Friendly Explanations “You did a great job avoiding declined card transactions this monthˮ Raw Model F
Slide 11: Introducing Cash App Score to customers
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Introducing Cash App Score to customers Piloting fall 2025
Slide 12: Significant opportunity to transform how the credit scoring industry works
BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Significant opportunity to transform how the credit scoring industry works Cash App Short-Term Loans BNPL Scores & Data Customers External Lenders Auto Loans Student Loans Mortgages Secured Loans
Slide 13: Key takeaways
Section Title BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Key takeaways → Block has built a proven, disciplined foundation for lending — combining responsible growth with strong returns. → Our proprietary near-real-time data and technology gives us a differentiated edge in assessing risk and expan
Slide 14: Thank You!
THANK YOU!
Slide 15: Appendix
INVESTOR DAY 2025 Appendix
Slide 16: Appendix
BLOCK INVESTOR DAY 2025 UNDERWRITING STRATEGY Appendix 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 transa