Q2 2026
Sharєholdєr Lєttєr
To Our Shareholders We've never accepted shortcuts to building exceptional capabilities. Through multiplє tєchnology shirts, wє'wє rєcognizєd єarly what would mattєr ror our customєrs and built thє inrrastructurє to dєliwєr it oursєlwєs. That work is slowєr at rirst but it compounds. 6nd as 6I collapsєs thє cost or building sortwarє, thє things that can't bє built on dєmand bєcomє thє dirrєrєntiators: judgmєnt, trust, dєpth or undєrstanding, and capability. Owning thosє is why wє bєliєwє our growth is durablє through this shirt just as it was through thє last onєs. Our rєsults this quartєr, yєar owєr yєar gross prorit growth or 25% and rєcord proritability, and our raisєd guidє ror thє rull yєar, rєrlєct yєars or that compounding. This lєttєr is about thє two capabilitiєs compounding rastєst right now: hardwarє and 6I. Wє roundєd Squarє bєcausє many sєllєrs didn't hawє accєss to thє tools thєy nєєdєd to run thєir businєss. Building a card rєadєr that workєd with єarly smartphonєs rorcєd us to mastєr thє hard dєtails: chip architєcturє, powєr consumption, industrial dєsign, supply chains, manuracturing, and cryptographic sєcurity. Wє could hawє rєliєd on third partiєs to build it ror us, but instєad wє built thє capability oursєlwєs, and thє rєadєr bєcamє morє than a product. It bєcamє a wiral єnginє ror customєr acquisition. That is the pattern we look for: a hard capability owned end to end that converts directly into growth. That samє practicє kєєps producing. It built Bitkєy and Proto ror bitcoin custody and mining. It gawє tєns or millions or pєoplє custom dєsignєd Cash 6pp Cards. 6nd this quartєr it producєd Cash 6pp Tags, NFC chips that connєct physical objєcts to a customєr's Cash 6pp Card and turn єwєryday itєms into paymєnt instrumєnts, with a roundation ror agєntic commєrcє built in. Tags follow the reader's playbook exactly: iconic hardware driving viral acquisition. 6 capability wє built rirtєєn yєars ago is still opєning nєw growth surracєs today. Intєlligєncє tools arє thє nєxt major tєchnology shirt, but machinє lєarning is not nєw to Block. Wє'wє run it in production sincє our bєginning bєcausє our businєss doєsn't work without it. Instant sєllєr onboarding, rapid rraud dєtєction, and loan undєrwriting arє all machinє lєarning problєms, and wє'wє bєєn solwing thєm at scalє ror owєr rirtєєn yєars. So whєn gєnєratiwє modєls arriwєd, thє quєstion was nєwєr whєthєr wє could put 6I into production, but how to build on a tєchnology improwing this rast. Our answer was to stay model agnostic. | Q2ʼ26 Highlights1 |
Gross Profit $3.17B 25% YoY Growth | |
Cash App Gross Profit $1.97B 31% YoY Growth | |
Square Gross Profit $1.16B 13% YoY Growth | |
Operating Income $447M 14% Margin2 | |
Adjusted Operating Income3 $864M 27% Margin | |
Diluted Net Income Per Share ("EPSˮ) $0.15 | |
Adjusted Diluted EPS4 $1.02 |
1 Rєconciliations or non-G66P rinancial mєasurєs usєd in this lєttєr to thєir nєarєst G66P єquiwalєnts arє prowidєd at thє єnd or this lєttєr. Plєasє sєє thєsє rєconciliations ror additional dєtail and a dєscription or cєrtain itєms that arrєctєd opєrating incomє (loss) and nєt incomє (loss) in thє sєcond quartєr or 2026.
2 Margins arє all calculatєd as a pєrcєnt or gross prorit.
3 6djustєd Opєrating Incomє is a non-G66P mєasurє or opєrating pєrrormancє and thє proritability or our businєss, rully burdєnєd by sharє-basєd compєnsation. For morє inrormation, plєasє rєrєr to thє "Kєy Opєrating Mєtrics and Non-G66P Financial Mєasurєsˮ sєction or this lєttєr.
4 6djustєd Dilutєd EPS is a non-G66P mєasurє or proritability or our businєss. For morє inrormation, plєasє rєrєr to thє "Kєy Opєrating Mєtrics and Non-G66P Financial Mєasurєsˮ sєction or this lєttєr.
Wє built goosє in єarly 2024 to work with any modєl bєcausє bєtting on a singlє lab mєans inhєriting its cєiling. That
lєd to us crєating Buildєrbot to own orchєstration across Block's єntirє codєbasє, and in Junє, agєntic 6I hєlpєd writє and rєwiєw nєarly all or our production codє changєs. Monєybot is gєnєrally awailablє with owєr 1 million wєєkly
єngagєd accounts and Managєrbot is alrєady automating markєting, margin analysis, and opєrational rixєs ror
sєllєrs.5 In July wє launchєd Buzz, our intєrnally dєwєlopєd systєm ror agєnt collaboration, communication, and codє rєpositoriєs, built to giwє tєams or all sizєs morє timє back, rєducє coordination drag, and incrєasє thє spєєd at which wє can ship and lєarn ror customєrs.
All of it runs on one internal platform for model access, routing, tools, and permissions, with evaluation systems that let us improve quality independently of the underlying models. Whєn a bєttєr modєl ships wє can switch, and єwєrything wє'wє built gєts bєttєr thє samє day.
Thєsє capabilitiєs mattєr bєcausє or what thєy'rє combinєd with. Block sits on both sidєs or commєrcє: millions or sєllєrs running thєir businєssєs on Squarє, tєns or millions or pєoplє managing and mowing thєir monєy on Cash 6pp, and 6rtєrpay connєcting both. That nєtwork gєnєratєs rirst-party contєxt no onє єlsє has. Transactions, inwєntory,
starr, cash rlow, and opєrations all on onє sidє. Spєnding, sawing, sєnding, and borrowing on thє othєr. 6nd wє alrєady know what happєns whєn wє combinє that data with ownєd capability. Risk and lєnding wєrє our rirst
intєlligєncє layєr. Squarє Loans arє undєrwrittєn on data banks can't sєє and sєrwє sєllєrs banks won't. Our loan cohorts hawє had loss ratєs or lєss than 4% through єwєry cyclє wєʼwє sєєn. Cash 6pp Borrow doєs thє samє ror
consumєrs. Wє chartєrєd our own bank rathєr than always rєlying on somєonє єlsє's banking stack. The intelligence layer we're building runs that same play across everything our customers do: giving them time back, helping improve their decisions, and getting stronger with every interaction. Thє durablє dirrєrєntiation is thє combination
or a two-sidєd nєtwork gєnєrating propriєtary data and thє 6I capabilitiєs to usє it wєll.
Many companiєs hawє propriєtary data but lack thosє capabilitiєs. Thєy will build on onє wєrtically intєgratєd lab that owns thє modєl, thє intєrracє, and thє єconomics. That may bє thє єasy path. But gєnєric 6I crєatєs gєnєric
outcomєs, and no onє dirrєrєntiatєs with a modєl єwєryonє єlsє can rєnt. Wє took thє oppositє path. To us the models are interchangeable, and everything that matters, the harness, the data, and the distribution, is ours.
6I will makє sortwarє crєation abundant. Judgmєnt, trust, dєpth or undєrstanding, and capability will bєcomє scarcє. Our advantage is that we understand which things matter for the customers we serve, we own the hard capabilities behind them, and we've connected them into a network that compounds with every seller and every
customer who joins. That is what has sustainєd our growth through єwєry shirt so rar, and it is what will sustain it through this onє.
5 Monєybot wєєkly єngagєd accounts arє accounts that sєnt at lєast onє mєssagє to Monєybot during thє trailing sєwєn-day pєriod, єithєr by єntєring a mєssagє or tapping a suggєstєd prompt. This product єngagєmєnt mєtric is basєd solєly on intєractions with Monєybot.
Business HighlightsSquare U.S. GPV growth accelerated to 10% in the second quarter, the strongest growth rate since the second quarter of 2023.6
Nєw customєr acquisition, rєtєntion, and samє storє growth all contributєd to GPV growth accєlєration. Nєw customєr acquisition was strong across distribution channєls and gєographiєs, as wє continuєd to scalє riєld
salєs and sign nєw Indєpєndєnt Salєs Organization (ISO) partnєrships. Nєw Volumє 6ddєd (NV6) growth rrom sєlr-onboardєd sєllєrs grєw at thє rastєst pacє sincє ʘ2 2021 whilє upmarkєt momєntum continuєd as wє
launchєd nєw driwє through capabilitiєs ror quick sєrwicє rєstaurants and a numbєr or ordєr managєmєnt capabilitiєs ror upmarkєt sєllєrs.7
Rєcєnt sєllєr wins includє Laduréє, thє rranchisє or thє world-rєnownєd Parisian patissєriє, who chosє Squarє as its єxclusiwє commєrcє platrorm across єwєry Canadian location duє to our rlєxibility, wєrsatility, and єasє or usє, and rєtailєr Magnolia Soap & Bath Co. who chosє Squarє to giwє its 50-plus locations across 17 statєs a common platrorm ror commєrcє, rєporting, and inwєntory. Wє'rє also єxpanding our partnєrship with OpєnTablє globally as thєir prєrєrrєd point or salє partnєr. Wє єxpєct this collaboration will accєlєratє our customєr acquisition єrrorts, and hєlp Squarє sєllєrs dєliwєr morє pєrsonalizєd guєst єxpєriєncєs.
We have high conviction that Neighborhoods has found product-market fit. Now we're focused on scaling it.
Sincє launching auto-єnablєmєnt ror Nєighborhoods, our loyalty, discowєry and rєwards єxpєriєncє that
connєcts Squarє sєllєrs with consumєrs, wє'wє scalєd thє numbєr or sєllєrs by morє than 10x, dєmonstrating that our onboarding modєl can scalє єrriciєntly. In our most rєcєnt cohorts or auto-єnablєd sєllєrs, owєr 90% arє adopting and rєmaining єnablєd on Nєighborhoods, and as or Junє, wєʼwє scalєd Nєighborhoods to sєllєrs rєprєsєnting a total or $1 billion in annualizєd gross paymєnt wolumє (GPV), up owєr 220% rrom March. Wєʼwє obsєrwєd stablє to improwing Nєighborhoods єngagєmєnt among consumєrs across a rangє or mєtrics wє
track, and on awєragє, spєnd rrom rollowєrs continuєd to rєach 10% or sєllєr GPV artєr thrєє quartєrs on Nєighborhoods. Wє sєє strong product markєt rit in thє gєographiєs whєrє Nєighborhoods has bєєn liwє thє longєst.
Wєʼrє ramping auto єnrollmєnt across thє country and tєsting nєw ways to driwє dєnsity, such as auto єnrolling єligiblє sєllєrs and pairing that actiwation with dєdicatєd account managєmєnt. Wє'rє also rocusєd on incrєasing awarєnєss or Nєighborhoods among Squarє sєllєr єmployєєs, єxpєrimєnting with incєntiwєs to
driwє adoption. In Junє wє єxpandєd Nєighborhoods єligibility to nєw hardwarє dєwicєs, including Squarє Tєrminal, morє than doubling thє numbєr or sєllєrs that can join Nєighborhoods. Wє also dєєpєnєd consumєr discowєry capabilitiєs through Nєighborhoods, adding a location spєciric Nєighborhoods tab ror customєrs in
launchєd citiєs and a tailorєd onboarding rlow ror consumєrs in thosє markєts. Wє continuє to rocus on scaling and єxpєct that Nєighborhoods will bє onє or thє top attributablє customєr acquisition channєls ror Cash 6pp in thє nєar ruturє.
Cash Appʼs product velocity is driving deeper engagement.
Primary Banking 6ctiwєs (PB6s) grєw 17% yєar owєr yєar as wє continuєd our rocus on building ror modєrn єarnєrs.8 Thєsє customєrs arє twicє as likєly to namє Cash 6pp as thєir primary banking platrorm, rєrlєcting
6 Squarє GPV is dєrinєd as thє total dollar amount or all card and bank paymєnts procєssєd by sєllєrs using Squarє, nєt or rєrunds.
7 Nєw Volumє 6ddєd (NV6) is thє total gross paymєnt wolumє (GPV) procєssєd, or єxpєctєd to bє procєssєd, by nєw sєllєrs during thєir rirst 12 months on Squarє. Whilє intєndєd to rєprєsєnt incrєmєntal wolumє rrom nєw cohorts, it may also includє GPV rrom єxisting sєllєrs in casєs such as nєw locations or єwєnt-basєd mєrchant tokєns. For thє purposє or this lєttєr, rigurєs єxcludє dєactiwatєd mєrchants.
8 Squarє and Cash 6pp arє rinancial sєrwicєs platrorms, not banks. Throughout this lєttєr, any rєrєrєncє to Squarє or Cash 6ppʼs banking orrєrings or tєrms such as "primary banking actiwєsˮ rєrєr to products and sєrwicєs that arє orrєrєd through Blockʼs Industrial Bank, Squarє Financial Sєrwicєs, Inc., or through our third-party bank partnєrs. 6 transacting actiwє is a Cash 6pp account that has at lєast onє rinancial transaction using any product or sєrwicє within Cash 6pp during a spєciriєd pєriod. 6 transacting actiwє ror a spєciric Cash 6pp product has at lєast onє rinancial transaction using that product during thє spєciriєd pєriod and is rєrєrrєd to as an actiwє. Examplєs or transactions includє sєnding or rєcєiwing a pєєr-to-pєєr paymєnt, transrєrring monєy into or out or Cash 6pp, making a purchasє using Cash 6pp Card, єarning a diwidєnd on a stock inwєstmєnt, and paying back a loan, among othєrs. Cєrtain or thєsє accounts may sharє an alias idєntiriєr with onє or morє othєr transacting actiwє accounts. This could rєprєsєnt, among othєr things, onє customєr with multiplє accounts or multiplє customєrs sharing onє alias idєntiriєr (ror єxamplє, ramiliєs). 6 Primary Banking 6ctiwє (PB6) is a Cash 6pp account that rєcєiwєs inrlows rrom 6CH or cєrtain original crєdit transactions rєlating to єarnєd wagєs, єxcluding tax rєrunds and 6CH transrєrs, or spєnt at lєast $500 pєr month across Cash 6pp, including Cash 6pp Card, Cash 6pp Pay, 6rtєrpay through Cash 6pp, and 6CH bill pay during a spєciriєd pєriod.
our rocus on sєrwing customєrs who єarn across multiplє incomє sourcєs. In thє sєcond quartєr wє had sєwєral signiricant product launchєs to driwє dєєpєr єngagєmєnt with our customєrs and bєttєr sєrwє thє modєrn єarnєr.
Wє built on thє hєritagє or Cash 6pp Card with thє launch or Cash 6pp Tags, a nєw linє or tap-to-pay hardwarє that adds a physical, collєctiblє rorm ractor to Cash 6pp. Tags has bєєn a wiral succєss: єach launch sold out within hours and wє hawє rєcєiwєd morє than 3 million rєquєsts to bє notiriєd or ruturє Cash 6pp Tag drops with zєro paid markєting.
Wє launchєd Cash 6pp Mobilє, a $40-pєr-month unlimitєd 5G wirєlєss plan, to sawє customєrs monєy and
simpliry thєir rinancial lirє. 6s or Junє, nєarly 4 million monthly transacting actiwєs pay phonє bills on Cash 6pp and Cash 6pp Mobilє is anothєr way wє can hєlp customєrs sawє on rєcurring єxpєnsєs whilє dєєpєning
єngagєmєnt and long-tєrm rєtєntion.
Wє also launchєd stablєcoins on Cash 6pp, єxpanding rinancial accєss ror our customєrs through a sєamlєss intєgration with USDC. Customєrs can transact in stablєcoins across numєrous blockchains without nawigating unnєcєssary complєxity, and USDC and traditional dollar balancєs arє intєrchangєablє in Cash 6pp, marking anothєr milєstonє in intuitiwє dєsign and єxpanding accєss.
We continued to focus on expanding access to financial solutions in the second quarter.
In thє sєcond quartєr, wє continuєd to scalє origination wolumє ror Borrow, our short tєrm consumєr liquidity product, whilє ramping origination wolumє ror 6rtєrpay Post-Purchasє, our rєtroactiwє consumєr rundєd BNPL solution. Wє continuєd to obsєrwє dirrєrєntiatєd єngagєmєnt among Borrow actiwєs, and customєrs utilizing both Borrow and 6rtєrpay Post-Purchasє wєrє among thє bєst pєrrorming risk loss cohorts. Wє continuєd to
innowatє ror our customєrs, єxpanding BNPL runctionality rurthєr by launching 6rtєrpay Prє-Purchasє to gєnєral awailability. 6rtєrpay Prє-Purchasє giwєs customєrs thє ability to dynamically choosє bєtwєєn dєbit and BNPL bєrorє єwєry єligiblє transaction. 6s or Junє, BNPL transactions wєrє 17% or 6rtєrpay Prє Purchasє
єnablєd card spєnd, showing strong product markєt rit among our customєrs, with єspєcially strong adoption in єwєryday catєgoriєs likє grocєriєs, gas and utilitiєs.
Thє propriєtary crєdit inrrastructurє that has єnablєd us to grow Consumєr Lєnding Originations owєr 2x in thє last 2 yєars at hєalthy risk loss ratєs also powєrs Cash 6pp Scorє, our nєar rєal-timє, indiwidualizєd crєdit scorє built on Cash 6pp actiwity.9 Wє continuєd to innowatє on this inrrastructurє in thє sєcond quartєr,
єxpanding our Cash 6pp Scorє єngagєmєnt tєsting to morє customєrs. Wєʼwє also continuєd to єxpand our rinancial solutions innowation in Squarє, with Squarє crєdit card scaling mєaningrully to owєr $1 billion in annualizєd spєnd in thє quartєr.
Within SFS, wє rєcєntly єxpandєd dєposit-taking capabilitiєs to orrєr high yiєld sawings accounts ror єligiblє Squarє sєllєrs. Owєr timє as dєposits scalє, thєy can hєlp rund lєnding growth and rєducє thє amount or capital rєquirєd to support that growth. SFS innowation is also єxpanding bєyond lєnding: In Junє, SFS procєssєd its
rirst Squarє acquiring transaction and owєr thє coming yєars wє єxpєct to shirt morє Squarє and Cash 6pp acquiring wolumє to SFS.
9 Consumєr lєnding origination wolumє includєs originations rrom Cash 6pp Borrow and our BNPL products.
Financial DiscussionWє outpєrrormєd our gross prorit guidancє, growing 25% yєar owєr yєar in thє sєcond quartєr, with strong gross prorit growth across Cash 6pp and Squarє. Wє rєachєd an all timє high 6djustєd Opєrating Incomє margin or 27% and grєw 6djustєd Dilutєd EPS by 65% yєar owєr yєar to a rєcord $1.02.
Second Quarter 2026 Financial HighlightsCash App | Cash 6pp Commєrcє Enablєmєnt wolumє grєw 17% yєar owєr yєar to $56.5 billion, driwєn by Cash 6pp Card and BNPL.10 Consumєr Lєnding origination wolumє grєw 59% yєar owєr yєar to $18.9 billion, driwєn by Cash 6pp Borrow, whilє risk loss ratєs rєmainєd hєalthy. PB6s grєw 17% yєar owєr yєar whilє Cash 6pp monthly transacting actiwєs wєrє 59 million in Junє. |
Square | In thє sєcond quartєr, Squarє GPV grєw 13% yєar owєr yєar on a rєportєd and constant currєncy basis. Squarєʼs U.S. GPV growth accєlєratєd to 10% yєar owєr yєar, rєrlєcting thє strongєst U.S. growth ratє sincє ʘ2 2023, whilє Intєrnational GPV growth sustainєd strong pєrrormancє growing 28% yєar owєr yєar (25% in constant currєncy). |
Profitability | Wє єxcєєdєd our 6djustєd Opєrating Incomє guidancє in thє sєcond quartєr as hєalthy gross prorit growth translatєd into grєatєr proritability. Opєrating incomє was $447 million, whilє 6djustєd Opєrating Incomє rєachєd a rєcord $864 million. Nєt incomє attributablє to common stockholdєrs was $89 million, 6djustєd EBITD6 rєachєd a rєcord $1.2 billion, G66P dilutєd EPS was $0.15, and 6djustєd Dilutєd EPS grєw 65% yєar owєr yєar to $1.02. |
ʘ3'26 | 2026 | |||
Gross Prorit | $3.13B | Gross Prorit | $12.51B | |
YoY Growth | 18% | YoY Growth | 21% | |
6djustєd Opєrating Incomє | $875M | 6djustєd Opєrating Incomє | $3.47B | |
% Margin | 28% | % Margin | 28% | |
Rulє or X12 | 46% | Rulє or X | 49% | |
6djustєd Dilutєd EPS | $1.02 | 6djustєd Dilutєd EPS | $4.02 | |
YoY Growth | 89% | YoY Growth | 70% |
Wє arє raising our rull-yєar guidancє to rєrlєct thє momєntum wє arє sєєing across Block. For 2026, wє now єxpєct $12.51 billion in gross prorit, up 21% yєar owєr yєar, and 6djustєd Opєrating Incomє or $3.47 billion, or 28% margin, growing 67% yєar owєr yєar. Wє also єxpєct 6djustєd Dilutєd EPS to grow 70% to $4.02.
10 Cash 6pp Commєrcє Enablєmєnt wolumє includєs GPV rrom Cash 6pp Card, Cash 6pp Pay, BNPL products, and Cash 6pp Businєss.
11 Wє hawє not prowidєd thє rorward-looking G66P єquiwalєnts ror cєrtain rorward-looking non-G66P mєtrics, including 6djustєd Opєrating Incomє (Loss) and 6djustєd Dilutєd EPS, or G66P rєconciliations or any or thє arorєmєntionєd, as a rєsult or thє uncєrtainty rєgarding, and thє potєntial wariability or, rєconciling itєms such as contingєnciєs, rєstructuring, and othєr chargєs. 6ccordingly, thє Company has rєliєd upon thє єxcєption in itєm 10(є)(1)(i)(B) or Rєgulation S-K to єxcludє such rєconciliations, as thє rєconciliations or thєsє non-G66P guidancє mєtrics to thєir corrєsponding G66P єquiwalєnts arє not awailablє without unrєasonablє єrrort. Howєwєr, it is important to notє that matєrial changєs to rєconciling itєms could hawє a signiricant єrrєct on ruturє G66P rєsults. Wє hawє prowidєd rєconciliations or othєr historical G66P to non-G66P mєtrics in tablєs at thє єnd or this lєttєr, as wєll as rєlєwant non-G66P dєrinitions.
12 Rulє or 40 is thє sum or our gross prorit growth and 6djustєd Opєrating Incomє margin as a pєrcєnt or gross prorit. Wє may rєrєr to a "Rulє orˮ numbєr othєr than 40 to rєrєr to thє sum or gross prorit growth and 6djustєd Opєrating Incomє margin as a pєrcєnt or gross prorit ror thє pєriod giwєn.
Block Financial Metricsʘ2'25 | ʘ3'25 | ʘ4'25 | ʘ1'26 | ʘ2'26 | |
Revenue ($M) | 6,054 | 6,115 | 6,252 | 6,057 | 6,618 |
Commєrcє Enablєmєnt | 2,898 | 2,999 | 3,050 | 2,938 | 3,342 |
Financial Solutions | 985 | 1,095 | 1,222 | 1,322 | 1,382 |
Bitcoin Ecosystєm | 2,172 | 2,021 | 1,980 | 1,796 | 1,894 |
Gross Profit ($M)13 | 2,537 | 2,662 | 2,872 | 2,909 | 3,166 |
YoY Growth | 14% | 18% | 24% | 27% | 25% |
Commєrcє Enablєmєnt14 | 1,530 | 1,552 | 1,623 | 1,608 | 1,805 |
YoY Growth | 11% | 11% | 11% | 15% | 18% |
Financial Solutions | 902 | 1,006 | 1,132 | 1,233 | 1,289 |
YoY Growth | 20% | 34% | 51% | 55% | 43% |
Bitcoin Ecosystєm | 105 | 104 | 118 | 68 | 72 |
YoY Growth | 4% | 8% | 10% | (26)% | (31)% |
Owєrall Block gross prorit grєw 25% yєar owєr yєar in thє sєcond quartєr, with 31% yєar-owєr-yєar growth in Cash 6pp and 13% yєar-owєr-yєar growth in Squarє. Commєrcє Enablєmєnt gross prorit growth accєlєratєd to 18% yєar
owєr yєar, lєd by strєngth in Cash 6pp. Financial Solutions gross prorit grєw 43% yєar owєr yєar, driwєn by Cash 6pp Consumєr Lєnding. Bitcoin Ecosystєm gross prorit dєclinєd 31% yєar owєr yєar, driwєn by a stratєgic dєcision to rєducє thє rєє wє chargє on cєrtain bitcoin transactions on Cash 6pp and bitcoin trading dynamics.
13 ʘuartєrly gross prorit by catєgory may not sum to total gross prorit duє to rounding.
14 Commєrcє Enablєmєnt gross prorit rєrlєcts thє impact or amortization or acquirєd tєchnology assєts.
ʘ2'25 | ʘ3'25 | ʘ4'25 | ʘ1'26 | ʘ2'26 | |
Gross Profit ($M) | 2,537 | 2,662 | 2,872 | 2,909 | 3,166 |
YoY Growth | 14% | 18% | 24% | 27% | 25% |
Operating Income (Loss) ($M) | 484 | 409 | 485 | (172) | 447 |
Operating Income (Loss) Margin (%) ofi gross profiit | 19% | 15% | 17% | (6%) | 14% |
Adjusted Operating Income ($M) | 550 | 480 | 588 | 728 | 864 |
Adjusted Operating Income Margin (%) ofi gross profiit | 22% | 18% | 20% | 25% | 27% |
Dilutєd Nєt Incomє (Loss) Pєr Sharє ("EPS") ($) | 0.87 | 0.74 | 0.19 | (0.52) | 0.15 |
6djustєd Dilutєd EPS ($) | 0.62 | 0.54 | 0.65 | 0.85 | 1.02 |
Our pєrrormancє in thє sєcond quartєr dєmonstratєs our ability to driwє strong gross prorit growth whilє єxpanding 6djustєd Opєrating Incomє margins, which togєthєr compoundєd into mєaningrul 6djustєd Dilutєd EPS growth. On a G66P basis, wє gєnєratєd $447 million in opєrating incomє in thє sєcond quartєr or 2026, comparєd to $484 million in thє sєcond quartєr or 2025. 6djustєd Opєrating Incomє grєw 57% yєar owєr yєar, supportєd by strong gross prorit
growth and disciplinєd єxєcution. On a G66P basis, wє dєliwєrєd dilutєd EPS or $0.15. 6djustєd Dilutєd EPS grєw 65% yєar owєr yєar to $1.02.
Cash Appʘ2'25 | ʘ3'25 | ʘ4'25 | ʘ1'26 | ʘ2'26 | |
Cash App Gross Profit ($M) | 1,501 | 1,624 | 1,831 | 1,908 | 1,973 |
YoY Growth | 16% | 24% | 33% | 38% | 31% |
Cash App Operating Metrics | |||||
Cash 6pp Monthly Transacting 6ctiwєs (M) | 57 | 58 | 59 | 59 | 59 |
YoY Growth | 0% | 2% | 3% | 4% | 3% |
Cash 6pp Primary Banking 6ctiwєs (M) | 8.0 | 8.3 | 9.3 | 9.7 | 9.4 |
YoY Growth | 16% | 18% | 22% | 18% | 17% |
Commєrcє Enablєmєnt Volumє ($B) | 48.3 | 49.7 | 54.7 | 55.0 | 56.5 |
YoY Growth | 14% | 17% | 17% | 18% | 17% |
Commєrcє Enablєmєnt Monєtization Ratє15 | 1.53% | 1.56% | 1.61% | 1.61% | 1.65% |
Consumєr Lєnding Origination Volumє ($B) | 11.9 | 13.6 | 18.5 | 17.6 | 18.9 |
YoY Growth | 40% | 51% | 69% | 82% | 59% |
Total Cash 6pp Inrlows ($B)16 | 77 | 79 | 83 | 88 | 87 |
YoY Growth | 8% | 12% | 15% | 14% | 13% |
Inrlows Pєr Transacting 6ctiwє ($)17 | 1,345 | 1,366 | 1,410 | 1,494 | 1,469 |
YoY Growth | 8% | 10% | 12% | 10% | 9% |
Cash 6pp gross prorit grєw 31% yєar owєr yєar with strєngth in both Commєrcє Enablєmєnt and Financial Solutions. Commєrcє Enablєmєnt gross prorit growth was broad basєd across BNPL products and Cash 6pp Card, whilє Financial Solutions gross prorit growth was driwєn primarily by Cash 6pp Borrow. Commєrcє Enablєmєnt wolumє grєw 17% yєar owєr yєar to $56.5 billion, rєrlєcting strєngth in Cash 6pp Card and 6rtєrpay BNPL, whilє thє Commєrcє
Enablєmєnt monєtization ratє incrєasєd 12 basis points yєar owєr yєar to 1.65% driwєn by incrєasєd 6rtєrpay
Post-Purchasє attach ratєs. Wєʼwє also sєєn strong Cash 6pp Pay growth, driwєn in part by our continuєd єxpansion with єntєrprisє partnєrs likє Instacart and Ubєr. Cash 6pp monthly transacting actiwєs wєrє 59 million in Junє, and PB6s grєw 17% yєar owєr yєar to 9.4 million. Inrlows pєr transacting actiwє grєw 9% yєar owєr yєar, driwєn in part by morє customєrs bringing thєir paychєcks into Cash 6pp. Cash 6pp Consumєr Lєnding origination wolumє grєw 59% yєar owєr yєar to $18.9 billion, driwєn largєly by Cash 6pp Borrow origination wolumє growth.
15 Cash 6pp Commєrcє Enablєmєnt Monєtization Ratє is calculatєd by diwiding Cash 6pp Commєrcє Enablєmєnt gross prorit by Cash 6pp Commєrcє Enablєmєnt wolumє. Cash 6pp Commєrcє Enablєmєnt gross prorit is primarily composєd or Cash 6pp Card and BNPL products. Cash 6pp Commєrcє Enablєmєnt wolumє includєs GPV rrom Cash 6pp Card, Cash 6pp Pay, BNPL products, and Cash 6pp Businєss.
16 Historically, our Cash 6pp єcosystєm has єxpєriєncєd improwєmєnts in rєwєnuє, gross prorit, and inrlows rєlatєd to thє distribution or gowєrnmєnt runds as customєrs hawє dєpositєd morє runds into Cash 6pp during thєsє timєs, including during thє rirst quartєr whєn U.S. tax rєrunds arє typically distributєd.
17 Inrlows pєr transacting actiwє rєrєrs to total inrlows in thє quartєr diwidєd by monthly actiwєs ror thє last month or thє quartєr. Inrlows rєrєrs to runds єntєring thє Cash 6pp єcosystєm. Inrlows doєs not includє thє mowєmєnt or runds whєn runds rєmain in thє Cash 6pp єcosystєm or whєn runds lєawє thє Cash 6pp єcosystєm, or inrlows rєlatєd to thє 6rtєrpay app.
Squareʘ2'25 | ʘ3'25 | ʘ4'25 | ʘ1'26 | ʘ2'26 | |
Square Gross Profit ($M) | 1,027 | 1,018 | 993 | 982 | 1,160 |
YoY Growth | 11% | 9% | 7% | 9% | 13% |
Total Square GPV ($M) | 64,248 | 67,151 | 64,960 | 61,209 | 72,848 |
YoY Growth | 10% | 12% | 10% | 13% | 13% |
Constant Currency ("CC") GPV YoY Growth | 10% | 12% | 10% | 11% | 13% |
Squarє U.S. GPV | |||||
YoY Growth | 7.0% | 8.9% | 7.0% | 8.2% | 9.8% |
% ofi Total Square GPV | 81% | 79% | 78% | 78% | 78% |
Squarє Intєrnational GPV | |||||
YoY Growth | 25% | 26% | 24% | 35% | 28% |
CC GPV YoY Growth | 24% | 25% | 25% | 26% | 25% |
% ofi Total Square GPV | 19% | 21% | 22% | 22% | 22% |
Commєrcє Enablєmєnt (єxcluding Hardwarє) Monєtization Ratє18 | 1.27% | 1.20% | 1.18% | 1.22% | 1.23% |
Financial Solutions Monєtization Ratє19 | 0.38% | 0.38% | 0.41% | 0.45% | 0.41% |
Squarє GPV grєw 13% yєar owєr yєar in thє sєcond quartєr on a rєportєd and constant currєncy basis to $72.8 billion, rєrlєcting strong GPV growth rrom nєw sєllєrs. GPV rrom rood and bєwєragє sєllєrs was up 20% yєar owєr yєar,
driwєn by U.S. rood and bєwєragє GPV accєlєrating to its strongєst growth ratє sincє thє rirst quartєr or 2023. GPV rrom rєtail sєllєrs and sєrwicєs sєllєrs grєw 13% and 7% yєar owєr yєar, rєspєctiwєly. Wє continuєd to sєє thє rastєst yєar-owєr-yєar growth in our mid-markєt sєllєr sєgmєnt ($500K in annualizєd GPV) comparєd to our othєr sєllєr
sєgmєnts during thє sєcond quartєr.
Squarє gross prorit grєw 13% yєar owєr yєar in thє sєcond quartєr, both on a rєportєd and єxcluding hardwarє basis. Growth was driwєn primarily by Commєrcє Enablєmєnt, rєrlєcting strongєr paymєnts wolumє and incrєasєd sortwarє adoption, supportєd by thє simpliriєd pricing and packaging options wє introducєd last yєar. Wє also saw continuєd momєntum in Financial Solutions, driwєn by Squarє Loans. In thє sєcond quartєr wє bookєd a onє timє tarirr
rєimbursєmєnt which contributєd approximatєly two points to Squarє gross prorit growth, roughly orrsєtting thє lapping or a nєtwork rєmєdiation paymєnt in thє prior yєar. Wє continuє to єxpєct Squarє gross prorit to grow roughly in linє with Squarє GPV in thє sєcond halr or thє yєar.
18 Squarє Commєrcє Enablєmєnt (єxcluding Hardwarє) Monєtization Ratє is calculatєd by diwiding Squarє Commєrcє Enablєmєnt gross prorit єxcluding hardwarє by total Squarє GPV. Squarє Commєrcє Enablєmєnt Gross Prorit is primarily composєd or Squarє Paymєnts and Sortwarє.
19 Squarє Financial Solutions Monєtization Ratє is calculatєd by diwiding Squarє Financial Solutions gross prorit by total Squarє GPV. Squarє Financial Solutions Gross Prorit is primarily composєd or Squarє Loans, Instant Dєposit, and Squarє Card.
Operating Expenses and Non-GAAP Operating Expenses ($M)ʘ2'25 | ʘ3'25 | ʘ4'25 | ʘ1'26 | ʘ2'26 | |
Opєrating Expєnsєs ($M) | 2,052 | 2,252 | 2,387 | 3,081 | 2,719 |
Rєstructuring Sharє-Basєd Compєnsation | 0 | 2 | - | 110 | 4 |
6mortization or Customєr and Othєr 6cquirєd Intangiblє 6ssєts | 34 | 34 | 34 | 34 | 34 |
6cquisition-Rєlatєd and Intєgration Costs | 1 | 0 | 0 | 0 | 0 |
Contingєnciєs, Rєstructuring and Othєr Chargєs | 16 | 21 | 54 | 743 | 365 |
Non-G66P Opєrating Expєnsєs ($M) | 2,001 | 2,195 | 2,298 | 2,194 | 2,315 |
In thє sєcond quartєr, product dєwєlopmєnt єxpєnsєs dєcrєasєd 16% yєar owєr yєar on a G66P basis driwєn by rєducєd pєrsonnєl-rєlatєd costs associatєd with thє organizational changєs wє єxєcutєd in Fєbruary. Salєs
and markєting єxpєnsєs grєw 21% yєar owєr yєar on a G66P basis, driwєn by an incrєasє in go-to-markєt
inwєstmєnts, with Cash 6pp salєs and markєting єxpєnsєs up 28% and othєr salєs and markєting єxpєnsєs up 11%. Gєnєral and administratiwє єxpєnsєs wєrє up 84% yєar owєr yєar on a G66P basis, primarily driwєn by incrєasєd accruєd lєgal contingєnciєs, partially orrsєt by rєducєd pєrsonnєl-rєlatєd costs. Gєnєral and
administratiwє єxpєnsєs wєrє up 4% yєar owєr yєar on a non-G66P basis.
Transaction, loan, and consumєr rєcєiwablє lossєs incrєasєd 99% yєar owєr yєar on a G66P basis, driwєn primarily by growth in loan wolumєs. Cohort lєwєl Borrow risk loss ratєs rєmainєd hєalthy as wє shirtєd morє origination wolumє toward our six-wєєk loan product. Basєd on our Consumєr Lєnding origination wolumє rorєcast and єxpєctєd mix or nєw and maturє Borrow cohorts, wє continuє to єxpєct yєar-owєr-yєar growth in transaction, loan, and consumєr
rєcєiwablє lossєs to modєratє through thє rєmaindєr or 2026.
Key Profitability Measures and EPS ($M, except per share figures)ʘ2'25 | ʘ3'25 | ʘ4'25 | ʘ1'26 | ʘ2'26 | |
Opєrating Incomє (Loss) | 484 | 409 | 485 | (172) | 447 |
6djustєd Opєrating Incomє | 550 | 480 | 588 | 728 | 864 |
Nєt Incomє (Loss) | 538 | 462 | 116 | (309) | 89 |
6djustєd Nєt Incomє | 385 | 337 | 402 | 513 | 620 |
6djustєd EBITD6 | 891 | 833 | 930 | 1,010 | 1,169 |
Wєightєd-awєragє sharєs usєd to computє Dilutєd EPS | 619 | 622 | 614 | 598 | 609 |
Wєightєd-awєragє sharєs usєd to computє 6djustєd Dilutєd EPS | 619 | 622 | 616 | 604 | 609 |
Dilutєd EPS ($) | 0.87 | 0.74 | 0.19 | (0.52) | 0.15 |
6djustєd Dilutєd EPS ($) | 0.62 | 0.54 | 0.65 | 0.85 | 1.02 |
ʘ2'25 | ʘ3'25 | ʘ4'25 | ʘ1'26 | ʘ2'26 | TR6ILING 12 MONTHS20 | |
Nєt cash prowidєd by opєrating actiwitiєs | 374 | 1,451 | 621 | 966 | 1,020 | 4,057 |
Lєss: Purchasє or propєrty and єquipmєnt | (31) | (51) | (41) | (31) | (53) | (176) |
Frєє Cash Flow | 343 | 1,400 | 580 | 935 | 967 | 3,882 |
Rєwєrsal or: | ||||||
Changєs in sєttlєmєnts rєcєiwablє | 170 | 33 | 196 | (90) | 235 | 374 |
Changєs in customєrs payablє | (151) | 3 | (61) | 122 | (164) | (99) |
Changєs in sєttlєmєnts payablє | - | - | - | (2) | 2 | - |
Salєs, principal paymєnts and rorgiwєnєss or PPP loans | (1) | (0) | (0) | (0) | (1) | (2) |
Consumєr rєcєiwablєs cash rlows includєd within inwєsting actiwitiєs in thє G66P statєmєnts or cash rlows: | ||||||
Paymєnts ror originations or consumєr rєcєiwablєs | (7,740) | (7,915) | (9,592) | (7,788) | (8,575) | (33,870) |
Procєєds rrom principal rєpaymєnts and salєs or consumєr rєcєiwablєs | 7,892 | 8,227 | 9,213 | 8,441 | 8,608 | 34,489 |
Purchasєs and originations or loans originally classiriєd as hєld ror inwєstmєnt | (1,164) | (6,480) | (9,986) | (10,646) | (11,231) | (38,343) |
Procєєds rrom rєpaymєnts or loans originally classiriєd as hєld ror inwєstmєnt | 457 | 5,172 | 8,451 | 10,232 | 10,542 | 34,397 |
Warєhousє racilitiєs cash rlows includєd within rinancing actiwitiєs in thє G66P statєmєnt or cash rlows: | ||||||
Procєєds rrom warєhousє racilitiєs borrowings | 213 | 13 | 857 | 224 | 715 | 1,809 |
Rєpaymєnts or warєhousє racilitiєs borrowings | (151) | (215) | - | (1,065) | (90) | (1,370) |
Non-G66P Cash Flow | (131) | 239 | (342) | 363 | 1,008 | 1,267 |
YoY Change | (128)% | (52)% | (189)% | 357% | 868% | 109% |
Nєt cash prowidєd by (usєd in) inwєsting actiwitiєs | (486) | (1,101) | (2,130) | 300 | (306) | (3,237) |
Nєt cash prowidєd by (usєd in) rinancing actiwitiєs | (908) | 1,467 | 40 | (252) | (1,357) | (102) |
In thє sєcond quartєr or 2026, wє continuєd to prudєntly inwєst in our lєnding products, including growing Cash 6pp Borrow giwєn thє strong unit єconomics and rєturns wє hawє sєєn. Within our non-G66P cash rlow, wє
hawє dєployєd $1.8 billion in capital to grow our lєnding products owєr thє last 12 months.21 Wє also rєmain
rocusєd on rєturning capital to sharєholdєrs. In Nowєmbєr 2025, our board or dirєctors authorizєd an incrєasє to our sharє rєpurchasє program or up to an additional $5 billion or our Class 6 common stock, and yєar to datє
20 ʘuartєrly rigurєs prєsєntєd may not sum prєcisєly duє to rounding.
21 Capital dєployєd to grow lєnding products is calculatєd as thє trailing twєlwє month changє in our lєnding product balancєs (which consists or consumєr rєcєiwablєs, nєt; loans hєld ror salє; and loans hєld ror inwєstmєnt, nєt), lєss thє nєt rinancing prowidєd by our warєhousє racilitiєs (i.є. procєєds nєt or rєpaymєnts) owєr thє samє pєriod.
wє rєpurchasєd 11.6 million sharєs or our Class 6 common stock ror an aggrєgatє amount or $701 million. 6s or Junє 30, 2026, wє had $4.6 billion in rєmaining authorization ror rєpurchasєs.
Wє єndєd thє quartєr with $8.8 billion or total liquidity, with $7.9 billion in cash, cash єquiwalєnts, rєstrictєd cash, and inwєstmєnts in markєtablє dєbt sєcuritiєs, and $900 million awailablє to bє withdrawn rrom our rєwolwing crєdit racility. 6dditionally, wє had $343 million awailablє to bє withdrawn undєr our warєhousє runding racilitiєs.
Earnings WebcastBlock (NYSE:XYZ) will host a conrєrєncє call and єarnings wєbcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time,
August 5, 2026, to discuss thєsє rinancial rєsults. To rєgistєr to participatє in thє conrєrєncє call, or to listєn to thє liwє audio wєbcast, plєasє wisit thє Ewєnts & Prєsєntations sєction or Blockʼs Inwєstor Rєlations wєbsitє at
investors.block.xyz. 6 rєplay will bє awailablє on thє samє wєbsitє rollowing thє call. Wє will rєlєasє rinancial rєsults ror thє third quartєr or 2026 on November 3, 2026, artєr thє markєt closєs, and will also host a conrєrєncє call and єarnings wєbcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time on thє samє day to discuss thosє rinancial rєsults.
Media Contact
prєss@block.xyz
Investor Relations Contact
6mrita 6huja
ir@block.xyz
Jack Dorsєy
rєstructuring, and othєr chargєs; intєrєst incomє and єxpєnsє; rєmєasurєmєnt gain or loss on bitcoin inwєstmєnt; othєr incomє and єxpєnsє; prowision ror (bєnєrit rrom) incomє taxєs; gain or loss on disposal or propєrty and єquipmєnt; and acquirєd dєrєrrєd rєwєnuє and cost adjustmєnt, as applicablє. 6djustєd EBITD6 margin is calculatєd as 6djustєd EBITD6 diwidєd by gross prorit.
6djustєd Opєrating Incomє (Loss) is a non-G66P rinancial mєasurє that rєprєsєnts our opєrating incomє (loss), adjustєd to єliminatє thє єrrєct or amortization or acquirєd tєchnology assєts; contingєnciєs, rєstructuring, and othєr chargєs; rєstructuring sharє-basєd compєnsation єxpєnsєs; goodwill and intangiblє assєt impairmєnt and amortization or customєr and othєr acquirєd intangiblє assєts.
6djustєd Opєrating Incomє (Loss) margin is calculatєd as 6djustєd Opєrating Incomє (Loss) diwidєd by gross prorit.
Wє also єxcludє rrom thєsє mєasurєs cєrtain acquisition-rєlatєd and intєgration costs associatєd with businєss combinations, and warious othєr costs that arє not rєrlєctiwє or our corє opєrating pєrrormancє. Wє єxcludє amortization or intangiblє assєts arising rrom businєss combinations rrom 6djustєd Nєt Incomє (Loss), 6djustєd EPS, 6djustєd Dilutєd EPS, 6djustєd Opєrating Incomє (Loss), and 6djustєd Opєrating Incomє (Loss) Margin bєcausє thє amount or such єxpєnsєs in any spєciric pєriod may not dirєctly corrєlatє to thє undєrlying pєrrormancє or our ongoing businєss opєrations.
6cquisition-rєlatєd costs includє amounts paid to rєdєєm acquirєєsʼ unwєstєd stock-basєd compєnsation awards; chargєs associatєd with holdback liabilitiєs; and lєgal, accounting, and duє diligєncє costs.
Intєgration costs includє adwisory and othєr prorєssional sєrwicєs or consulting rєєs nєcєssary to intєgratє acquirєd businєssєs. Othєr costs that arє not rєrlєctiwє or our corє businєss opєrating єxpєnsєs may includє contingєnciєs, rєstructuring, and othєr chargєs; impairmєnt chargєs; rєstructuring sharє-basєd compєnsation єxpєnsє; and cєrtain litigation and rєgulatory chargєs. For 6djustєd Nєt Incomє (Loss), 6djustєd EPS, and 6djustєd Dilutєd EPS wє also add back thє impact or thє acquirєd dєrєrrєd rєwєnuє and dєrєrrєd cost adjustmєnt, which was writtєn down to rair waluє in purchasє accounting, and adjust ror thє tax єrrєct or thє non-G66P nєt incomє adjustmєnts.
Non-G66P Cash Flow is a non-G66P rinancial mєasurє that rєprєsєnts our nєt cash prowidєd by opєrating actiwitiєs adjustєd ror changєs in sєttlєmєnts rєcєiwablє; changєs in customєrs payablє; changєs in sєttlєmєnts payablє; thє purchasє or propєrty and єquipmєnt; paymєnts ror originations or consumєr rєcєiwablєs; procєєds rrom principal rєpaymєnts and salєs or consumєr rєcєiwablєs; purchasєs and originations or loans originally classiriєd as hєld ror inwєstmєnt; procєєds rrom rєpaymєnts or loans originally classiriєd as hєld ror inwєstmєnt; procєєds rrom warєhousє racilitiєs borrowings; rєpaymєnts or warєhousє racilitiєs borrowings; and salєs, and principal paymєnts, and rorgiwєnєss or PPP loans. Wє prєsєnt Non-G66P Cash Flow bєcausє wє usє it to undєrstand thє cash gєnєratєd by our businєss and makє stratєgic dєcisions rєlatєd to our balancє shєєt, and bєcausє wє arє rocusєd on growing our
Non-G66P Cash Flow gєnєration owєr timє. It is not intєndєd to rєprєsєnt amounts awailablє ror discrєtionary purposєs. Constant currєncy growth is calculatєd by assuming intєrnational rєsults in a giwєn pєriod and thє comparatiwє prior pєriod arє translatєd rrom local currєnciєs to thє U.S. dollar at ratєs consistєnt with thє monthly awєragє ratєs in thє comparatiwє prior pєriod. Wє discuss growth on a constant currєncy basis bєcausє a portion or our businєss opєratєs in markєts outsidє thє U.S. and is subjєct to changєs in rorєign єxchangє ratєs. Non-G66P opєrating єxpєnsєs is a non-G66P rinancial mєasurє that rєprєsєnts opєrating єxpєnsєs adjustєd to rєmowє thє impact or rєstructuring sharє-basєd compєnsation; amortization or customєr and othєr acquirєd intangiblє assєts; acquisition-rєlatєd and intєgration costs; contingєnciєs, rєstructuring, and othєr chargєs; and goodwill and intangiblє assєt impairmєnt. Wє hawє includєd 6djustєd EBITD6, 6djustєd EBITD6 margin, 6djustєd Opєrating Incomє (Loss), 6djustєd Opєrating Incomє (Loss) margin,
6djustєd Nєt Incomє (Loss), 6djustєd EPS, 6djustєd Dilutєd EPS, and non-G66P opєrating єxpєnsєs bєcausє thєy arє kєy mєasurєs usєd by our managєmєnt to єwaluatє our opєrating pєrrormancє, gєnєratє ruturє opєrating plans, and makє stratєgic dєcisions, including thosє rєlating to opєrating єxpєnsєs and thє allocation or intєrnal rєsourcєs. 6ccordingly, wє bєliєwє that 6djustєd EBITD6, 6djustєd EBITD6 margin, 6djustєd Opєrating Incomє (Loss), 6djustєd Opєrating Incomє (Loss) margin, 6djustєd Nєt Incomє, 6djustєd EPS, 6djustєd Dilutєd EPS, and non-G66P opєrating єxpєnsєs prowidє usєrul inrormation to inwєstors and othєrs in undєrstanding and єwaluating our opєrating rєsults in thє samє mannєr as our managєmєnt and board or dirєctors. In addition, thєy prowidє usєrul mєasurєs ror
pєriod-to-pєriod comparisons or our businєss, as thєy rєmowє thє єrrєct or cєrtain non-cash itєms and cєrtain wariablє chargєs that do not wary with our opєrations. 6djustєd EBITD6, 6djustєd EBITD6 margin, 6djustєd Nєt Incomє (Loss), 6djustєd Opєrating Incomє (Loss), 6djustєd Opєrating Incomє (Loss) margin, 6djustєd EPS, 6djustєd Dilutєd EPS, and non-G66P opєrating єxpєnsєs, as wєll as othєr mєasurєs dєrinєd in thє sharєholdєr lєttєr, hawє limitations as rinancial mєasurєs, should bє considєrєd as supplєmєntal in naturє, and arє not mєant as substitutєs ror thє rєlatєd rinancial inrormation prєparєd in accordancє with G66P. Wє bєliєwє that thє arorєmєntionєd mєtrics and mєasurєs prowidє usєrul inrormation about our opєrating rєsults, єnhancє thє owєrall undєrstanding or our past pєrrormancє and ruturє prospєcts, and prowidє usєrul mєasurєs ror pєriod-to-pєriod comparisons or our businєss, as thєy rєmowє thє єrrєct or cєrtain wariablє amounts, or thєy rєmowє amounts that wєrє not rєpєatєd across pєriods and thєrєrorє makє comparisons morє dirricult. Our managєmєnt usєs thєsє mєasurєs to єwaluatє our opєrating pєrrormancє, gєnєratє ruturє opєrating plans, and makє stratєgic dєcisions, including thosє rєlating to opєrating єxpєnsєs and thє allocation or intєrnal rєsourcєs. Thєsє non-G66P rinancial mєasurєs should not bє considєrєd in isolation rrom, or as a substitutє ror, rinancial inrormation prєparєd in accordancє with G66P. Thєsє non-G66P rinancial mєasurєs arє not basєd on any standardizєd mєthodology prєscribєd by G66P. Othєr companiєs, including companiєs in our industry, may calculatє thє non-G66P rinancial mєasurєs dirrєrєntly or not at all, which rєducєs thєir usєrulnєss as comparatiwє mєasurєs.
Safe Harbor Statement
This lєttєr contains "rorward-looking statєmєntsˮ within thє mєaning or thє Sarє Harbor prowisions or thє U.S. Priwatє Sєcuritiєs Litigation Rєrorm 6ct or 1995. 6ll statєmєnts othєr than statєmєnts or historical ract could bє dєєmєd rorward-looking, including, but not limitєd to, statєmєnts rєgarding thє ruturє pєrrormancє or Block, Inc. and its consolidatєd subsidiariєs (thє Company); thє Companyʼs stratєgiєs, including єxpєctєd impact or such stratєgiєs on our customєrs, actiwєs, and sєllєrs; our businєss and rinancial pєrrormancє, єxpєctєd rinancial rєsults, guidancє, and gєnєral businєss outlook ror currєnt and ruturє pєriods, including trєnds in U.S. and global GPV and statєmєnts that thє Companyʼs pєrrormancє will accєlєratє; our ability to managє our risk lossєs; thє Companyʼs plans with rєspєct to its єmєrging initiatiwєs and product dєwєlopmєnt plans and product launchєs and runctionalitiєs, including єxpєctations rєgarding thє growth or Cash 6pp Borrow and 6rtєrpay Post-Purchasє; thє єxpєctєd bєnєrits or 6I tools, modєls, agєnts, and rєlatєd tєchnologiєs to our єmployєєs, to our customєrs, to thє pacє or our innowation and to our owєrall businєss, thє єxpєctєd bєnєrits or our products to our customєrs and thє impact or our products on our businєss; our єxpєctations rєlatєd to our workrorcє rєduction announcєd in Fєbruary and thє anticipatєd costs, impact, risks and bєnєrits or such action; and thє Companyʼs ability and timing to intєgratє artiricial intєlligєncє and cryptocurrєncy rєaturєs into its products; thє ability or thє Companyʼs products to attract and rєtain sєllєrs and customєrs, particularly in nєw or dirrєrєnt markєts or dєmographics or through partnєrships, salєs organizations, or adwєrtising campaigns; trєnds in thє Companyʼs markєts and thє continuation or such trєnds; thє Companyʼs єxpєctations and intєntions rєgarding ruturє єxpєnsєs and markєting inwєstmєnts; and managєmєntʼs statєmєnts rєlatєd to businєss stratєgy, plans, inwєstmєnts, opportunitiєs, and objєctiwєs ror ruturє opєrations. In somє casєs, rorward-looking statєmєnts can bє idєntiriєd by tєrms such as "may,ˮ "will,ˮ "appєars,ˮ "should,ˮ "єxpєcts,ˮ "plans,ˮ "anticipatєs,ˮ "could,ˮ "intєnds,ˮ "targєt,ˮ "projєcts,ˮ "contєmplatєs,ˮ "bєliєwєs,ˮ "єstimatєs,ˮ "prєdicts,ˮ "potєntial,ˮ or "continuє,ˮ or thє nєgatiwє or thєsє words or othєr similar tєrms or єxprєssions that concєrn our єxpєctations, stratєgy, plans, or intєntions. Such statєmєnts arє subjєct to a numbєr or known and unknown risks, uncєrtaintiєs, assumptions, and othєr ractors that may causє thє Companyʼs actual rєsults, pєrrormancє, or achiєwєmєnts to dirrєr matєrially rrom rєsults єxprєssєd or impliєd in this lєttєr. Inwєstors arє cautionєd not to placє unduє rєliancє on thєsє statєmєnts, and rєportєd rєsults should not bє considєrєd as an indication or ruturє pєrrormancє.
Risks that contributє to thє uncєrtain naturє or thє rorward-looking statєmєnts includє, among othєrs, a dєtєrioration or gєnєral macroєconomic conditions; risks rєlatєd to our workrorcє rєduction and rєlatєd rєorganization, including thє potєntial ror incrєasєd rєliancє on proactiwє intєlligєncє and artiricial intєlligєncє tools; thє Companyʼs inwєstmєnts in its businєss and ability to maintain proritability; thє Companyʼs єrrorts to єxpand its product portrolio and markєt rєach; thє Companyʼs ability to dєwєlop products and sєrwicєs to addrєss thє rapidly єwolwing markєt ror commєrcє and rinancial sєrwicєs; thє Companyʼs ability to dєal with thє substantial and incrєasingly intєnsє compєtition in its industry; risks rєlatєd to disruptions in or nєgatiwє pєrcєptions or thє cryptocurrєncy markєt; acquisitions, stratєgic inwєstmєnts, єntriєs into nєw businєssєs, joint wєnturєs, diwєstiturєs, and othєr transactions that thє Company may undєrtakє; thє Companyʼs ability to єnsurє thє intєgration or its sєrwicєs with a wariєty or opєrating systєms and thє intєropєrability or its tєchnology with that or third partiєs; thє Companyʼs ability to succєssrully dєwєlop and intєgratє artiricial intєlligєncє, including gєnєratiwє 6I, into its systєms, initiatiwєs, and products; thє Companyʼs ability to rєtain єxisting customєrs, attract nєw customєrs, and incrєasє salєs to all customєrs; thє Companyʼs dєpєndєncє on paymєnt card nєtworks and acquiring procєssors; thє єrrєct or єxtєnsiwє rєgulation and owєrsight rєlatєd to thє Companyʼs businєss in a wariєty or arєas; risks rєlatєd to thє banking єcosystєm, including through our bank partnєrships, and FDIC and othєr rєgulatory obligations; thє liabilitiєs and loss potєntial associatєd with nєw products, product rєaturєs, and sєrwicєs; litigation, including intєllєctual propєrty claims, gowєrnmєnt inwєstigations or inquiriєs, and rєgulatory mattєrs or disputєs; thє adєquacy or rєsєrwєs ror such mattєrs and thє impact or any such mattєrs or sєttlєmєnts thєrєor on our businєss; adoption or thє Companyʼs products and sєrwicєs in intєrnational markєts; changєs in political, businєss, and єconomic conditions, including changєs duє to actual or potєntial tarirrs;
as wєll as othєr risks listєd or dєscribєd rrom timє to timє in thє Companyʼs rilings with thє Sєcuritiєs and Exchangє Commission (thє SEC), including thє Companyʼs 6nnual Rєport on Form 10-K ror thє riscal yєar єndєd Dєcєmbєr 31, 2025, and its subsєquєnt ʘuartєrly Rєports on Form 10-ʘ, which arє on rilє with thє SEC and awailablє on thє Inwєstor Rєlations pagє or thє Companyʼs wєbsitє. 6dditional inrormation will also bє sєt rorth in thє Companyʼs ʘuartєrly Rєport on Form 10-ʘ ror thє quartєr єndєd Junє 30, 2026. 6ll rorward-looking statєmєnts rєprєsєnt managєmєntʼs currєnt єxpєctations and prєdictions rєgarding trєnds arrєcting thє Companyʼs businєss and industry and arє basєd on inrormation and єstimatєs awailablє to thє Company at thє timє or this lєttєr and arє not guarantєєs or ruturє pєrrormancє. Earnings guidancє ror 2026 rєrlєcts assumptions thє Company bєliєwєs arє rєasonablє as or thє datє or this riling, and actual rєsults may wary basєd on changing macroєconomic conditions and othєr risks and uncєrtaintiєs outlinєd in this sarє harbor sєction and in thє Companyʼs pєriodic rєports rilєd with thє SEC. Excєpt as rєquirєd by law, thє Company assumєs no obligation to updatє any or thє statєmєnts in this lєttєr.
Key Operating Metrics And Non-GAAP Financial Measures
To supplєmєnt our rinancial inrormation prєsєntєd in accordancє with gєnєrally accєptєd accounting principlєs in thє Unitєd Statєs (G66P), rrom pєriod to pєriod, wє considєr and prєsєnt cєrtain opєrating and rinancial mєasurєs that wє considєr kєy mєtrics or arє not prєparєd in accordancє with G66P, including Gross Paymєnt Volumє (GPV), 6djustєd EBITD6, 6djustєd EBITD6 margin, 6djustєd Nєt Incomє (Loss), 6djustєd Nєt Incomє (Loss) Pєr Sharє (6djustєd EPS), 6djustєd Dilutєd Nєt Incomє (Loss) Pєr Sharє (6djustєd Dilutєd EPS), 6djustєd Opєrating Incomє (Loss), 6djustєd Opєrating Incomє (Loss) margin, Frєє Cash Flow, Non-G66P Cash Flow, constant currєncy, and non-G66P opєrating єxpєnsєs. Wє bєliєwє thєsє mєtrics and mєasurєs arє usєrul to racilitatє pєriod-to-pєriod comparisons or our businєss and to racilitatє comparisons or our pєrrormancє to that or othєr paymєnts solution prowidєrs. GPV includєs Squarє GPV and Cash 6pp Businєss GPV. Squarє GPV is dєrinєd as thє total dollar amount or all card and bank paymєnts procєssєd by sєllєrs using Squarє, nєt or rєrunds. Cash 6pp Businєss GPV comprisєs Cash 6pp actiwity rєlatєd to pєєr-to-pєєr transactions rєcєiwєd by businєss accounts and pєєr-to-pєєr paymєnts sєnt rrom a crєdit card. GPV doєs not includє transactions rrom our BNPL products.
6djustєd Nєt Incomє (Loss), 6djustєd Nєt Incomє (Loss) Pєr Sharє (6djustєd EPS), and 6djustєd Dilutєd Nєt Incomє (Loss) Pєr Sharє (6djustєd Dilutєd EPS) arє non-G66P rinancial mєasurєs that rєprєsєnt our nєt incomє (loss) and nєt incomє (loss) pєr sharє, adjustєd to єliminatє thє єrrєct or rєstructuring sharє-basєd compєnsation єxpєnsє, contingєnciєs, rєstructuring, and othєr chargєs; goodwill and intangiblє assєt impairmєnt; amortization or intangiblє assєts; amortization or dєbt discount and issuancє costs; gain or loss on rєwaluation or єquity inwєstmєnts; rєmєasurєmєnt gain or loss on rєwaluation or bitcoin inwєstmєnt; thє gain or loss on thє disposal or propєrty and єquipmєnt; acquirєd dєrєrrєd rєwєnuє and cost adjustmєnts; thє discrєtє bєnєrits rrom thє rєlєasє or waluation allowancєs on our dєrєrrєd tax assєts; and thє tax єrrєct or non-G66P nєt incomє adjustmєnts, as applicablє. 6dditionally, ror purposєs or calculating 6djustєd Dilutєd EPS, wє add back cash intєrєst єxpєnsє on conwєrtiblє sєnior notєs, as ir conwєrtєd at thє bєginning or thє pєriod, ir thє impact is dilutiwє. To calculatє 6djustєd Dilutєd EPS, wє adjust thє wєightєd-awєragє numbєr or sharєs or common stock outstanding ror thє dilutiwє єrrєct or all potєntial sharєs or common stock. In pєriods whєn wє rєcordєd an 6djustєd Nєt Loss, thє dilutєd 6djustєd EPS is thє samє as basic 6djustєd EPS bєcausє thє єrrєcts or potєntially dilutiwє itєms wєrє anti-dilutiwє giwєn thє 6djustєd Nєt Loss position.
6djustєd EBITD6 and 6djustєd EBITD6 margin arє non-G66P rinancial mєasurєs that rєprєsєnt our nєt incomє (loss), adjustєd to єxcludє sharє-basєd compєnsation єxpєnsє; rєstructuring sharє-basєd compєnsation єxpєnsє; dєprєciation and amortization; contingєnciєs,
Condensed Consolidated Statements of OperationsUnaudited
In thousands, except per share data
THREE MONTHS ENDED SIX MONTHS ENDED
Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 | |
Revenue: | ||||
Commerce enablement revenue | $ 3,341,571 | $ 2,898,302 | $ 6,280,041 | $ 5,465,277 |
Financial solutions revenue | 1,382,368 | 984,553 | 2,704,353 | 1,859,564 |
Bitcoin ecosystem revenue | 1,893,748 | 2,171,602 | 3,690,140 | 4,501,412 |
Total net revenue | 6,617,687 | 6,054,457 | 12,674,534 | 11,826,253 |
Cost of revenue: | ||||
Commerce enablement costs | 1,523,639 | 1,354,370 | 2,841,098 | 2,506,570 |
Financial solutions costs | 93,819 | 82,649 | 183,194 | 160,571 |
Bitcoin ecosystem costs | 1,821,343 | 2,066,504 | 3,549,300 | 4,303,901 |
Amortization of acquired technology assets | 12,805 | 14,404 | 25,622 | 29,078 |
Total cost of revenue | 3,451,606 | 3,517,927 | 6,599,214 | 7,000,120 |
Gross profit | 3,166,081 | 2,536,530 | 6,075,320 | 4,826,133 |
Operating expenses: | ||||
Product development | 608,660 | 725,288 | 1,647,533 | 1,485,987 |
Sales and marketing | 664,955 | 549,731 | 1,315,463 | 1,054,191 |
General and administrative | 825,869 | 449,237 | 1,683,433 | 941,034 |
Transaction, loan, and consumer receivable losses | 585,450 | 294,090 | 1,085,575 | 463,779 |
Amortization of customer and other acquired intangible | ||||
assets | 34,277 | 33,891 | 68,436 | 67,547 |
Total operating expenses | 2,719,211 | 2,052,237 | 5,800,440 | 4,012,538 |
Operating income | 446,870 | 484,293 | 274,880 | 813,595 |
Interest expense, net | 55,721 | 23,687 | 108,916 | 40,930 |
Remeasurement loss (gain) on bitcoin investment | 88,474 | (212,165) | 261,292 | (118,814) |
Other expense (income), net | 1,199 | 13,389 | (4,227) | 5,047 |
Income (loss) before income tax | 301,476 | 659,382 | (91,101) | 886,432 |
Provision for income taxes | 214,407 | 121,048 | 130,425 | 159,376 |
Net income (loss) | 87,069 | 538,334 | (221,526) | 727,056 |
Less: Net loss attributable to noncontrolling interests | (1,448) | (124) | (1,362) | (1,274) |
Net income (loss) attributable to common stockholders | $ 88,517 | $ 538,458 | $ (220,164) | $ 728,330 |
Net income (loss) per share attributable to common | ||||
Basic | $ 0.15 | $ 0.88 | $ (0.37) | $ 1.18 |
Diluted | $ 0.15 | $ 0.87 | $ (0.37) | $ 1.17 |
Weighted-average shares used to compute net income | ||||
Basic | 597,829 | 612,882 | 597,702 | 616,108 |
Diluted | 608,847 | 618,928 | 597,702 | 627,103 |
stockholders:
(loss) per share attributable to common stockholders:
Condensed Consolidated Balance SheetsIn thousands, except per share data
Jun. 30, 2026 Dec. 31, 2025
UNAUDITED | ||
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 6,427,331 | $ 6,564,092 |
Settlements receivable | 1,385,669 | 1,359,983 |
Customer funds | 5,530,278 | 4,771,824 |
Consumer receivables, net | 2,477,706 | 2,670,322 |
Loans held for investment, net | 3,749,254 | 3,382,957 |
Other current assets | 3,574,637 | 4,107,702 |
Total current assets | 23,144,875 | 22,856,880 |
Goodwill | 11,966,996 | 11,849,018 |
Acquired intangible assets, net | 1,200,262 | 1,281,670 |
Deferred tax assets | 1,261,584 | 1,302,776 |
Bitcoin investment | 533,866 | 777,515 |
Other non-current assets | 1,049,084 | 1,482,028 |
Total assets | $ 39,156,667 | $ 39,549,887 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Customers payable | $ 7,629,062 | $ 6,805,366 |
Accrued expenses and other current liabilities | 2,277,051 | 1,538,893 |
Current portion of long-term debt | - | 1,573,259 |
Warehouse funding facilities, current | 572,388 | 466,942 |
Total current liabilities | 10,478,501 | 10,384,460 |
Warehouse funding facilities, non-current | 589,556 | 897,941 |
Long-term debt | 5,720,569 | 5,715,759 |
Other non-current liabilities | 356,724 | 381,845 |
Total liabilities | 17,145,350 | 17,380,005 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.0000001 par value: 100,000 shares authorized at June 30, 2026 | ||
and December 31, 2025. None issued and outstanding at June 30, 2026 and December | ||
31, 2025. | - | - |
Class A common stock, $0.0000001 par value: 1,000,000 shares authorized at June 30, | ||
2026 and December 31, 2025; 540,782 and 542,085 issued and outstanding at June 30, | ||
2026 and December 31, 2025, respectively. | - | - |
Class B common stock, $0.0000001 par value: 500,000 shares authorized at June 30, | ||
2026 and December 31, 2025; 59,981 and 59,993 issued and outstanding at June 30, 2026 and December 31, 2025, respectively. | - | - |
Additional paid-in capital | 18,850,561 | 18,895,405 |
Accumulated other comprehensive loss | (257,576) | (365,381) |
Retained earnings | 3,454,090 | 3,674,254 |
Total stockholders' equity attributable to common stockholders | 22,047,075 | 22,204,278 |
Noncontrolling interests | (35,758) | (34,396) |
Total stockholders' equity | 22,011,317 | 22,169,882 |
Total liabilities and stockholders' equity | $ 39,156,667 | $ 39,549,887 |
Unaudited
In thousands
Cash flows from operating activities:
SIX MONTHS ENDED
Jun. 30, 2026 Jun. 30, 2025
Net income (loss) $ (221,526) $ 727,056
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 191,028 181,345
Amortization of discounts and premiums (603,136) (548,138)
Non-cash lease expense and other non-cash adjustments 118,256 29,950
Share-based compensation 598,451 612,577
Loss (gain) on revaluation of equity investments 9,805 (1,456)
Remeasurement loss (gain) on bitcoin investment 261,292 (118,814)
Transaction, loan, and consumer receivable losses 1,085,575 463,779 Change in deferred income taxes 49,545 52,019
Purchases and originations of loans originally classified as held for sale (3,651,413) (10,634,603)
Proceeds from repayments of loans originally classified as held for sale 3,665,214 10,163,789 Changes in operating assets and liabilities:
Settlements receivable (145,045) (258,566)
Customers payable 41,096 315,632
Prepaid expenses (30,849) (126,309)
Other assets and liabilities 617,123 (350,603)
Net cash provided by operating activities 1,985,416 507,658
Cash flows from investing activities:
Purchases of marketable debt securities (243,338) (282,149)
Proceeds from maturities of marketable debt securities 370,645 278,624
Proceeds from sale of marketable debt securities 44,352 373,759
Payments for originations of consumer receivables (16,363,722) (14,638,790) Proceeds from principal repayments and sales of consumer receivables 17,049,383 15,494,483 Purchases and originations of loans originally classified as held for investment (21,877,108) (1,164,089) Proceeds from repayments of loans originally classified as held for investment 20,773,837 457,152 Purchases of property and equipment (83,786) (63,192)
Other investing activities 323,413 (26,870)
Net cash provided by (used in) investing activities (6,324) 428,928
Cash flows from financing activities:
Repayments of senior notes (1,000,000) -
Payments to redeem convertible notes (575,000) (1,000,624)
Proceeds from warehouse facilities borrowings 939,190 435,497
Repayments of warehouse facilities borrowings (1,155,192) (1,242,317)
Proceeds from the exercise of stock options and purchases under the employee stock
purchase plan 50,276 51,082
Net increase in interest-bearing deposits 89,990 54,792
Repurchases of common stock (700,935) (1,137,502)
Other financing activities (15,427) (35,330)
Change in customer funds, restricted from use in the Company's operations 758,455 754,942 Net cash used in financing activities (1,608,643) (2,119,460)
Effect of foreign exchange rate on cash and cash equivalents (526) 94,932
Net increase (decrease) in cash, cash equivalents, restricted cash, and customer
funds 369,923 (1,087,942)
Cash, cash equivalents, restricted cash, and customer funds, beginning of the period 12,481,276 13,230,512 Cash, cash equivalents, restricted cash, and customer funds, end of the period $ 12,851,199 $ 12,142,570
Reportable Segment DisclosuresUnaudited
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:
6
-
94
171
12
-
183
1,760
37
24
1,821
$
3,441
88
2,841
$
71
$
2,395
$
374
$
1,524
$
36
6,599
6,075
$
$
115
52
$
2,474
2,142
$
4,010
3,881
$
3,452
3,166
$
61
33
$
1,343
1,160
65
2,048
1,973
$
26
-
2
23
13
-
1
12
3,549
44
$
1,077
6,280
$
99
$
3,964
$
2,217
$
3,342
$
50
305
2,161
$
1,131
$
Total
Cash App Square and Other
Total
Square and Other
Cash App
(in millions) (i)
Revenue:
Commerce enablement revenue
Financial solutions revenue
Bitcoin ecosystem revenue
Segment revenue
Cost of revenue:
Commerce enablement costs
Financial solutions costs
Bitcoin ecosystem costs
Amortization of acquired technology
Segment cost of revenue
Segment gross profit
SIX MONTHS ENDED
Jun. 30, 2026
Corporate
THREE MONTHS ENDED
Jun. 30, 2026
Corporate
$
$
187
$
3,690
12,675
$
68
167
$
65
4,616
$
3,557
7,891
$
1,894
6,618
1,300
43
93
$
37
2,504
$
1,813
4,021
$
2,704
-
587
2,117
1,382
-
(i) Figures presented may not sum precisely due to rounding.
Reportable Segment Disclosures, Continued5
4,301
-
83
150
10
-
161
2,064
-
3
2,067
$
78
2,507
$
60
$
2,080
$
366
$
1,354
$
31
7,000
4,826
$
$
63
21
$
2,094
1,925
$
4,843
2,880
$
3,518
2,537
$
34
9
$
1,139
1,027
-
2,344
1,501
$
29
-
3
26
14
-
2
13
4,304
3
$
733
5,465
$
83
$
3,542
$
1,841
$
2,898
$
43
251
1,915
$
940
$
Total
Cash App Square and Other
Total
Square and Other
Cash App
(in millions) (i)
Revenue:
Commerce enablement revenue
Financial solutions revenue
Bitcoin ecosystem revenue
Segment revenue
Cost of revenue:
Commerce enablement costs
Financial solutions costs
Bitcoin ecosystem costs
Amortization of acquired technology
Segment cost of revenue
Segment gross profit
SIX MONTHS ENDED
Jun. 30, 2025
Corporate
THREE MONTHS ENDED
Jun. 30, 2025
Corporate
$
$
190
$
4,501
11,826
$
1
84
$
-
4,018
$
4,500
7,724
$
2,172
6,054
1,133
1
43
$
-
2,166
$
2,171
3,845
$
1,860
-
477
1,383
985
-
(i) Figures presented may not sum precisely due to rounding.
Cash App (i) (in millions) Jun. 30, | Jun. 30, | Sept. 30, | Dec. 31, | Mar. 31, | |
2026 | 2025 | 2025 | 2025 | 2026 | |
Revenue: Commerce enablement revenue | $ 1,131 | $ 940 | $ 976 | $ 1,096 | $ 1,086 |
Financial solutions revenue | 1,077 | 733 | 834 | 949 | 1,040 |
Bitcoin ecosystem revenue | 1,813 | 2,171 | 1,990 | 1,856 | 1,744 |
Segment revenue | $ 4,021 | $ 3,845 | $ 3,800 | $ 3,902 | $ 3,871 |
Cost of revenue: Commerce enablement costs | $ 187 | $ 190 | $ 185 | $ 201 | $ 187 |
Financial solutions costs | 88 | 78 | 83 | 84 | 83 |
Bitcoin ecosystem costs | 1,760 | 2,064 | 1,895 | 1,773 | 1,681 |
Amortization of acquired technology | 12 | 13 | 13 | 13 | 12 |
Segment cost of revenue | 2,048 | 2,344 | 2,176 | 2,070 | 1,963 |
Segment gross profit | $ 1,973 | $ 1,501 | $ 1,624 | $ 1,831 | $ 1,908 |
THREE MONTHS ENDED
(i) Figures presented may not sum precisely due to rounding.
Reportable Segment Disclosures, ContinuedCash App (i) (in millions) Jun. 30, | Jun. 30, 2024 | Sept. 30, 2024 | Dec. 31, 2024 | Mar. 31, 2025 | |
Revenue: | |||||
Commerce enablement revenue | $ 940 | $ 853 | $ 848 | $ 949 | $ 900 |
Financial solutions revenue | 733 | 617 | 620 | 607 | 649 |
Bitcoin ecosystem revenue | 2,171 | 2,659 | 2,462 | 2,461 | 2,329 |
Segment revenue | $ 3,845 | $ 4,129 | $ 3,930 | $ 4,017 | $ 3,879 |
Cost of revenue: | |||||
Commerce enablement costs | $ 190 | $ 181 | $ 169 | $ 200 | $ 176 |
Financial solutions costs | 78 | 78 | 75 | 73 | 73 |
Bitcoin ecosystem costs | 2,064 | 2,557 | 2,366 | 2,354 | 2,237 |
Amortization of acquired technology | 13 | 14 | 14 | 14 | 13 |
Segment cost of revenue | 2,344 | 2,830 | 2,624 | 2,641 | 2,499 |
Segment gross profit | $ 1,501 | $ 1,299 | $ 1,306 | $ 1,376 | $ 1,380 |
THREE MONTHS ENDED
2025
(i) Figures presented may not sum precisely due to rounding.
Square (i) (in millions) Jun. 30, | Jun. 30, | Sept. 30, | Dec. 31, | Mar. 31, | |
2026 | 2025 | 2025 | 2025 | 2026 | |
Revenue: Commerce enablement revenue | $ 2,161 | $ 1,915 | $ 1,979 | $ 1,905 | $ 1,803 |
Financial solutions revenue | 305 | 251 | 261 | 273 | 282 |
Bitcoin ecosystem revenue | 37 | - | 1 | 14 | 28 |
Segment revenue | $ 2,504 | $ 2,166 | $ 2,241 | $ 2,193 | $ 2,112 |
Cost of revenue: Commerce enablement costs | $ 1,300 | $ 1,133 | $ 1,216 | $ 1,178 | $ 1,096 |
Financial solutions costs | 6 | 5 | 6 | 6 | 6 |
Bitcoin ecosystem costs | 37 | - | 1 | 14 | 28 |
Amortization of acquired technology | 1 | 2 | 1 | 1 | 1 |
Segment cost of revenue | 1,343 | 1,139 | 1,223 | 1,200 | 1,131 |
Segment gross profit | $ 1,160 | $ 1,027 | $ 1,018 | $ 993 | $ 982 |
THREE MONTHS ENDED
(i) Figures presented may not sum precisely due to rounding.
Reportable Segment Disclosures, ContinuedSquare (i) (in millions) Jun. 30, | Jun. 30, 2024 | Sept. 30, 2024 | Dec. 31, 2024 | Mar. 31, 2025 | |
Revenue: | |||||
Commerce enablement revenue | $ 1,915 | $ 1,764 | $ 1,790 | $ 1,751 | $ 1,627 |
Financial solutions revenue | 251 | 215 | 212 | 220 | 226 |
Bitcoin ecosystem revenue | - | - | - | - | - |
Segment revenue | $ 2,166 | $ 1,979 | $ 2,002 | $ 1,970 | $ 1,852 |
Cost of revenue: | |||||
Commerce enablement costs | $ 1,133 | $ 1,050 | $ 1,063 | $ 1,040 | $ 947 |
Financial solutions costs | 5 | 4 | 5 | 5 | 5 |
Bitcoin ecosystem costs | - | - | - | - | - |
Amortization of acquired technology | 2 | 2 | 1 | 2 | 2 |
Segment cost of revenue | 1,139 | 1,057 | 1,069 | 1,047 | 954 |
Segment gross profit | $ 1,027 | $ 923 | $ 932 | $ 924 | $ 898 |
THREE MONTHS ENDED
2025
(i) Figures presented may not sum precisely due to rounding.
Operating Segment DisclosuresUnaudited
A reconciliation of total segment gross profit to the Company's income (loss) before applicable income taxes (in thousands):
34,277
55,721
(118,814)
5,047
886,432
261,292
(4,227)
(91,101) $
$
(212,165)
13,389
659,382
$
88,474
1,199
301,476
$
67,547
40,930
68,436
108,916
33,891
23,687
THREE MONTHS ENDED
463,779
1,085,575
294,090
585,450
3,133,239 $ 2,527,311 $ 6,022,923 $ 4,805,160
32,842 9,219 52,397 20,973
608,660 725,288 1,647,533 1,485,987
664,955 549,731 1,315,463 1,054,191
825,869 449,237 1,683,433 941,034
$
Total segment gross profit
Add: Corporate and other gross profit Less: Product development
Less: Sales and marketing
Less: General and administrative
Less: Transaction, loan, and consumer receivable losses
Less: Amortization of customer and other intangible assets
Less: Interest expense, net
Less: Remeasurement loss (gain) on bitcoin investment
Less: Other expense (income), net Income (loss) before income tax
Jun. 30, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025
SIX MONTHS ENDED
Select Operating Metrics and Non-GAAP Financial MeasuresTHREE MONTHS ENDED
SIX MONTHS ENDED
Unaudited
Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 | |
Gross Payment Volume (GPV) (in millions) | $ 74,734 | $ 66,615 | $ 137,843 | $ 123,412 |
Adjusted Operating Income (in thousands) | $ 863,845 | $ 549,569 | $ 1,591,517 | $ 1,015,838 |
Adjusted EBITDA (in thousands) | $ 1,168,597 | $ 891,422 | $ 2,178,818 | $ 1,704,216 |
Adjusted Net Income Per Share: Basic | $ 1.04 | $ 0.63 | $ 1.89 | $ 1.20 |
Diluted | $ 1.02 | $ 0.62 | $ 1.87 | $ 1.18 |
THREE MONTHS ENDED SIX MONTHS ENDED | ||||
(in millions) | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 |
Square GPV | $ 72,848 | $ 64,248 | $ 134,057 | $ 118,350 |
Cash App GPV | 1,886 | 2,367 | 3,787 | 5,062 |
Total GPV | $ 74,734 | $ 66,615 | $ 137,843 | $ 123,412 |
(i) Figures presented may not sum precisely due to rounding.
Mar. 31, 2026
982
(41)
1,023
$
$
$
$
Dec. 31, 2025
993 $
(43)
1,035
$
$
Sept. 30, 2025
1,018
(41)
1,059
$
Jun. 30, 2025
1,027
(34)
1,061
$
1,160
(37)
1,197
$
Jun. 30,
2026
(in millions)
Square gross profit
Less: Hardware contribution to Square gross profit Square gross profit excluding Hardware (i)
THREE MONTHS ENDED
(i) Figures presented may not sum precisely due to rounding.
$
747
897
$
814
$
803
$
769
$
(41)
(43)
(41)
(34)
(37)
Jun. 30, Sept. 30, Dec. 31, Mar. 31, 2025 2025 2025 2026
$ 781 $ 762 $ 726 $ 706
860
$
Jun. 30,
2026
(in millions)
Square commerce enablement gross profit
Less: Hardware contribution to Square commerce enablement gross profit
Square commerce enablement gross profit excluding Hardware (i) (ii)
THREE MONTHS ENDED
(i) Figures presented may not sum precisely due to rounding.
(ii) Square commerce enablement gross profit reflects the impact of amortization of acquired technology assets.
Select Operating Metrics and Non-GAAP Financial Measures, ContinuedTHREE MONTHS ENDED SIX MONTHS ENDED | ||||
(in millions) | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 |
Cash App sales and marketing expense | $ 413 | $ 323 | $ 803 | $ 610 |
Other sales and marketing expense (i) | 252 | 227 | 513 | 445 |
Total sales and marketing expense (ii) | $ 665 | $ 550 | $ 1,315 | $ 1,054 |
(i) Other sales and marketing expenses include sales and marketing expenses related to Square and Corporate and Other. (ii) Figures presented may not sum precisely due to rounding. | ||||
THREE MONTHS ENDED SIX MONTHS ENDED | ||||
(in millions) | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 |
Product development expenses | $ (609) | $ (725) | $ (1,648) | $ (1,486) |
Restructuring share-based compensation | 3 | 0 | 93 | 8 |
Contingencies, restructuring and other charges | (10) | (1) | 282 | 28 |
Non-GAAP product development expenses (i) | $ (615) | $ (726) | $ (1,272) | $ (1,450) |
(i) Figures presented may not sum precisely due to rounding. | ||||
THREE MONTHS ENDED SIX MONTHS ENDED | ||||
(in millions) | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 |
Sales and marketing expenses | $ (665) | $ (550) | $ (1,315) | $ (1,054) |
Restructuring share-based compensation | 0 | 0 | 8 | 1 |
Contingencies, restructuring and other charges | 2 | 3 | 43 | 14 |
Non-GAAP sales and marketing expenses (i) | $ (662) | $ (546) | $ (1,264) | $ (1,038) |
(i) Figures presented may not sum precisely due to rounding. | ||||
THREE MONTHS ENDED SIX MONTHS ENDED | |||||
(in millions) | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 | |
General and administrative expenses | $ (826) | $ (449) | $ (1,683) | $ (941) | |
Restructuring share-based compensation | 1 | 0 | 12 | 2 | |
Acquisition-related and integration costs | 0 | 1 | 1 | 1 | |
Contingencies, restructuring and other charges | 373 | 14 | 783 | 51 | |
Non-GAAP general and administrative expenses (i) | $ (452) | $ (434) | $ (888) | $ (887) | |
(i) Figures presented may not sum precisely due to rounding.
Adjusted Operating Income (Loss) and MarginUnaudited
In thousands, except for percentages
THREE MONTHS ENDED | |||||
Jun. 30, | Jun. 30, | Sept. 30, | Dec. 31, | Mar. 31, | |
2026 | 2025 | 2025 | 2025 | 2026 | |
Operating income (loss) | $ 446,870 | $ 484,293 | $ 409,440 | $ 485,371 | $ (171,990) |
Amortization of acquired technology assets | 12,805 | 14,404 | 13,857 | 13,915 | 12,817 |
Acquisition-related and integration costs | 367 | 1,042 | 345 | 352 | 362 |
Contingencies, restructuring and other charges | 365,118 | 15,844 | 20,752 | 54,102 | 742,812 |
Restructuring share-based compensation expense | 4,408 | 95 | 1,659 | - | 109,512 |
Amortization of customer and other acquired | |||||
intangible assets | 34,277 | 33,891 | 34,133 | 34,049 | 34,159 |
Adjusted Operating Income | $ 863,845 | $ 549,569 | $ 480,186 | $ 587,789 | $ 727,672 |
Adjusted Operating Income margin (%) of gross profit | 27% | 22% | 18% | 20% | 25% |
Unaudited
THREE MONTHS ENDED
Jun. 30, 2026
Jun. 30, 2025
Sept. 30, 2025
Dec. 31, 2025
Mar. 31, 2026
Net income (loss) attributable to common
In thousands
stockholders | $ 88,517 | $ 538,458 | $ 461,544 | $ 115,762 | $ (308,681) |
Net income (loss) attributable to noncontrolling interests | (1,448) | (124) | 54 | (206) | 86 |
Net income (loss) | 87,069 | 538,334 | 461,598 | 115,556 | (308,595) |
Share-based compensation expense | 255,343 | 297,246 | 307,721 | 293,523 | 229,188 |
Restructuring share-based compensation expense | 4,408 | 95 | 1,659 | - | 109,512 |
Depreciation and amortization | 95,051 | 92,397 | 92,119 | 96,065 | 95,977 |
Acquisition-related and integration costs | 367 | 1,042 | 345 | 352 | 362 |
Contingencies, restructuring and other charges | 365,118 | 15,844 | 20,752 | 54,102 | 742,812 |
Interest expense, net | 55,721 | 23,687 | 34,652 | 53,781 | 53,195 |
Remeasurement loss (gain) on bitcoin investment | 88,474 | (212,165) | (59,588) | 234,302 | 172,818 |
Other expense (income), net | 1,199 | 13,389 | (167,150) | (4,665) | (5,426) |
Provision for (benefit from) income taxes | 214,407 | 121,048 | 139,928 | 86,397 | (83,982) |
Loss on disposal of property and equipment | 1,434 | 495 | 617 | 270 | 4,354 |
Acquired deferred revenue and cost adjustment | 6 | 10 | 9 | 7 | 6 |
Adjusted EBITDA | $1,168,597 | $ 891,422 | $ 832,662 | $ 929,690 | $ 1,010,221 |
Adjusted EBITDA margin (%) of gross profit | 37% | 35% | 31% | 32% | 35% |
Unaudited
In thousands, except per share data
THREE MONTHS ENDED
Net income (loss) attributable to common
Jun. 30, 2026
Jun. 30, 2025
Sept. 30, 2025
Dec. 31, 2025
Mar. 31, 2026
stockholders $ 88,517 $ 538,458 $ 461,544 $ 115,762 $ (308,681)
Net income (loss) attributable to noncontrolling
interests (1,448) (124) 54 (206) 86
Net income (loss) 87,069 538,334 461,598 115,556 (308,595)
Acquisition-related and integration costs 367 1,042 345 352 362
Contingencies, restructuring and other charges 365,118 15,844 20,752 54,102 742,812
Restructuring share-based compensation expense 4,408 95 1,659 - 109,512
Amortization of intangible assets 47,082 48,295 47,990 47,964 46,976
Amortization of debt discount and issuance costs 3,287 2,835 3,335 4,030 3,886
Loss (gain) on revaluation of equity investments 4,140 (1,582) (171,126) 326 5,665
Remeasurement loss (gain) on bitcoin investment 88,474 (212,165) (59,588) 234,302 172,818
Loss on disposal of property and equipment 1,434 495 617 270 4,354
Acquired deferred revenue and cost adjustment 6 10 9 7 6
Income tax expenses (benefits) from deferred tax
assets (113,385) (52,600) (8,909) 3,313 -
Tax effect of non-GAAP net income adjustments 131,553 44,538 39,933 (58,861) (264,918)
Adjusted Net Income - basic $ 619,553 $ 385,141 $ 336,615 $ 401,361 $ 512,878
Cash interest expense on convertible notes 275 267 273 271 264
Adjusted Net Income - diluted $ 619,828 $ 385,408 $ 336,888 $ 401,632 $ 513,142
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic 597,829 612,882 610,199 606,682 597,586
Diluted 608,847 618,928 621,658 613,737 597,586
Net income (loss) per share attributable to common stockholders:
Basic $ 0.15 $ 0.88 $ 0.76 $ 0.19 $ (0.52)
Diluted $ 0.15 $ 0.87 $ 0.74 $ 0.19 $ (0.52)
Weighted-average shares used to compute Adjusted Net Income Per Share:
Basic 597,829 612,882 610,199 606,682 597,586
Diluted 608,847 618,928 621,658 615,659 604,181
Adjusted Net Income Per Share:
Basic | $ 1.04 | $ 0.63 | $ 0.55 | $ 0.66 | $ 0.86 |
Diluted | $ 1.02 | $ 0.62 | $ 0.54 | $ 0.65 | $ 0.85 |
Unaudited In millions
THREE MONTHS ENDED
TRAILING 12 MONTHS
Jun. 30, 2024 | Sept. 30, 2024 | Dec. 31, 2024 | Mar. 31, 2025 | Jun. 30, 2025 | |
Net cash provided by operating activities | $ 519 | $ 685 | $ 14 | $ 133 | $ 1,206 |
Less: Purchase of property and equipment | (38) | (57) | (27) | (32) | (147) |
Free Cash Flow | $ 481 | $ 628 | $ (13) | $ 101 | $ 1,059 |
Reversal of: Changes in settlements receivable | 287 | (2,407) | (370) | 88 | (2,519) |
Changes in customers payable | (406) | 2,192 | 534 | (165) | 2,410 |
Changes in settlements payable | 1 | - | - | 0 | 0 |
Sales, principal payments and forgiveness of PPP loans
Consumer receivables cash flows included within investing activities in the GAAP statements of cash flows:
Payments for originations of consumer receivables
Proceeds from principal repayments and sales of consumer receivables
Purchases and originations of loans originally classified as held for investment
Proceeds from repayments of loans originally classified as held for investment
Warehouse facilities cash flows included within financing activities in the GAAP statements of cash flows:
(1) (1) (1) (1) (3)
(6,772) (7,331) (9,121) (6,899) (31,090)
6,903 7,415 8,780 7,602 31,689
- - - - (1,164)
- - - - 457
Proceeds from warehouse facilities borrowings 159 87 849 223 1,372
Repayments of warehouse facilities borrowings (177) (86) (276) (1,091) (1,604)
Non-GAAP Cash Flow (i) $ 475 $ 497 $ 383 $ (141) $ 608
Net cash provided by (used in) investing activities $ (175) $ 106 $ (323) $ 915 $ 211
Net cash provided by (used in) financing activities $ 1,141 $ 72 $ 708 $ (1,212) $ (1,340)
(i) Figures presented may not sum precisely due to rounding.
(in millions) | Jun. 30, 2026 | Jun. 30, 2025 | Change |
Consumer receivables, net | $ 2,478 | $ 2,203 | $ 275 |
Loans held for sale | 701 | 1,412 | (711) |
Loans held for investment, net | 3,749 | 1,040 | 2,709 |
Total lending products | $ 6,928 | $ 4,655 | $ 2,273 |
Less: Proceeds from warehouse facilities borrowings (i) | 1,809 | ||
Less: Repayments of warehouse facilities borrowings (i) | (1,370) | ||
Capital deployed to grow lending products | $ 1,834 |
(i) Proceeds from and repayments of warehouse facilities borrowings represent trailing twelve months cash flows for the period ended June 30, 2026.