year, we established four
To Our Shareholders At the beginning of this year, we established four principles to guide our work forward: •Customers want peace of mind, not more products. •Companies move fast or slow based on information flow. •The best way to integrate machine intelligence is to become it. •Intelligence depends on signal, and money is the most honest signal. We used these principles to refocus how we work, what we work on, and where we're going. And we saw this compound into another strong set of results in the third quarter. We exceeded our guidance with 22% gross profit growth, 92% Adjusted Operating Income growth, and 109% Adjusted Diluted EPS growth, and we raised our guidance across each of these metrics for the year. These principles also led us to refine the master plan we shared at Investor Day at the end of last year: •Make our #company an intelligence, and enable others to do the same. •Build the best intelligence to run your #business. •Build the best intelligence to run your #money. •Build open financial #infrastructure for all. •Connect #neighborhoods globally. Today we're delivering Q3’26 Highlights2 intelligence to our customers, connecting our ecosystems, and building open financial infrastructure to help achieve our financial results. Square Kiosk gives every restaurant the opportunity to have intuitive physical intelligence in every location, easing the ordering and line burden so they can focus more on their food and experience. Managerbot, which we just rebranded to Squaremates, now has an entirely new architecture and is available to Square sellers in the U.S., giving them access to intelligence and automation tools to help them save time and run their businesses better. We are planning to do the same with Moneybot, to predict and present the right interface to people with all the capabilities Cash App has to offer. We’re connecting our ecosystems in a way we never have before and are already seeing results: Neighborhoods was a key driver of Cash App scaling to 60 million monthly transacting actives in September, and there is much more we plan to do to connect local communities in the future. We’re using bitcoin and stablecoins as an enabler of Cash App’s expansion, and have begun externalizing our lending infrastructure through Cash App Score.1 Gross Profit $3.24B +22% YoY Growth Cash App Gross Profit $2.07B +27% YoY Growth Square Gross Profit $1.16B +14% YoY Growth Operating Income $428M 13% Margin +5% YoY Growth3 AdjustedOperating Income $923M 29% Margin +92% YoY Growth4 Diluted Net Income Per Share (“EPS”) $0.92 +24% YoY Growth Adjusted Diluted EPS $1.13 +109% YoY Growth5
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 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 2026. 3 Margins are all calculated as a percent of gross profit. 4 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. 5 Adjusted Diluted EPS is a non-GAAP measure of profitability of our business. For more information, please refer to the “Key Operating Metrics and Non-GAAP Financial Measures” section of this letter. 1
But what does it mean to "make our company an intelligence, and enable others to do the same"? We started down this path with goose, which helped us automate a lot of mundane engineering tasks earlier than most other companies, and which quickly evolved into a tool we could use for any role or task. It's now deeply embedded in our company's foundation, and enables us to help realize our vision to turn our company into a working intelligence, a mini AGI. We focused on separating our work into four layers: capabilities (the jobs we can do), interfaces (our distribution, from apps to hardware to payment wands), world models (the deep real-time understanding of both our customers and company), and proactive intelligence (a predictive engine to anticipate future needs, both for our customers and us).
Buzz is probably the greatest manifestation of the "Block as Intelligence" vision. It's an environment for building and collaborating that brings all of our ideas together into one surface. It's really great for solo work, and when someone is ready, even better for team work. It's designed to scale from a company of our size, to one much larger, and even to our smallest sellers (Squaremates is built on Buzz to offer our sellers best-in-class intelligence and team collaboration). It's model agnostic, entirely self-sovereign (meaning you can run it privately on your own network or system), and starts to reduce the dependency on tools like Slack, Discord, and GitHub.
We have so much confidence in Buzz and our related tools that we recently created a new ecosystem called Builderlab. Block was Builderlab’s first customer, but the problems we’re solving are not unique to us. Companies that want to transform how they work at scale need more than a model. They need simple, accessible interfaces, connections between existing tools, and secure ways to manage and evaluate the work agentic intelligence does. We built Builderlab to help transform how Block works, and our goal is to bring it to other companies to help them do the same.
In October we began piloting Buzz with prospective customers, and we expect to generate our first machine intelligence revenue in the fourth quarter. We have more to prove as we build a product offering and go-to-market strategy for an entirely new customer base, but we’re excited to extend what we’ve built for ourselves to others. We’ll approach this new ecosystem with the same principles that have guided us since the beginning: start small, give it soul, give time back, make it better. We're hosting an event in San Francisco on November 10 to properly introduce Builderlab.
Finally, we believe voice is the most natural way to interact with intelligence, so we created Dessa, which we view as the most authentic full-duplex speech model ever built. Talking with it feels like talking with a person…full of emotion, nuance, pauses, and a natural cadence. Dessa truly pushes the frontier of deep learning models and is a significant contribution to the field. I encourage you to listen to the samples we've shared, and expect more from us in the future on how we plan to apply this groundbreaking work to our capabilities.
We believe we've meaningfully crossed the chasm of transforming our company from one that creates traditional financial products into one that streams intelligence as people need it. Thank you for your support along the way, and thank you for investing in our future. 2
The AI tools we’ve built are giving us time back and helping accelerate product velocity. In October, we began rolling out model routing to all employees at Block, giving everyone access to a simple, efficient way to match their work to the right model capability. In recent weeks, AI has been autonomously reviewing and merging an increasing number of our production code changes related to low- risk, routine work so our teams can focus more of their time on building differentiated products for customers. Our focus on velocity is delivering more value to our customers faster: through the first three quarters of the year, we've released over 180 new Square features, already more than in 2024 and 2025 combined.
We’re focusing more development effort on externalizing these capabilities so others can move faster too. Buzz makes AI multiplayer and serves as a communication and code repository tool accessible to everyone. We've shipped more than two dozen releases to Buzz since launching our alpha release in July. We’ve rebuilt onboarding so a new user opens the app directly into a live team of AI agents already at work, with their existing developer tools detected automatically rather than wired up by hand. We’ve also released the governance and identity infrastructure, including an admin console, encrypted identity backups, and centralized community moderation that enterprises need to deploy Buzz at scale.
Square GPV growth accelerated to 14% in the third quarter, the strongest growth rate since the first quarter of 2023, driven by our continued distribution expansion and increased product velocity. 6 Self-onboarding continued to drive strong new customer acquisition while the number of new sellers joining Square through Independent Sales Organization (ISO) partners grew 90% quarter over quarter. Our field sales team and expanded enterprise motion continued to drive new customer acquisition, both in the U.S. and internationally, including Tommy’s Tavern + Tap, a fast-scaling full-service restaurant chain that chose Square to run its 16-plus locations across four states, and Public House Group, the popular London hospitality group behind The Pelican and The Bull in Charlbury.
In October, we launched Squaremates, our rebranded AI product for Square sellers that builds on the heritage of Square AI and Managerbot. Squaremates is generally available in the U.S. and brings some of Block’s most powerful AI capabilities directly to Square sellers. We’ve redesigned the experience to offer what we think is a leading AI product for businesses, grounded in the unique commerce, customer, appointment, and inventory data of each seller. Squaremates accesses cloud compute to take on more complex, multi-step work, such as staff analyses, drafting customer win-back campaigns and holiday promotions, and preparing purchase orders for food and beverage sellers. We plan to keep expanding Squaremates’ capabilities, including an Apps platform that lets sellers build bespoke apps connected to their Square data and existing staff permissions, and procurement agents that help sellers manage inventory and order from suppliers. We also plan to bring Buzz into Squaremates, providing sellers with a team communication and task management platform built with AI agents as first-party participants.
We also continue to innovate on hardware with the October launch of the new Square Kiosk, our next-generation self-ordering device built from the ground up around voice-enabled AI. Customers can now order by voice or touch, ask questions about the menu, and get personalized recommendations, the same way they would at the counter. Kiosk was built with larger sellers in mind, and early response from multi-unit operators has been strong. We’ve seen franchise operators who started out skeptical of kiosks now wanting to place Square Kiosks throughout their national footprint. We set out to build hardware that saves sellers time and money while helping them serve more customers, and we believe we've delivered on that vision.
Cash App reached 60 million monthly transacting actives in September with Neighborhoods playing a key role in actives growth this quarter. We also launched Cash App en Español to better serve Spanish-speaking customers, and we continued to expand Families product functionality to help us reach the next generation. In the third quarter, we
6 Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds. 3 made the flow from a managed Cash App Account for Kids to a sponsored teen account smoother so customers can keep growing with Cash App as their financial needs evolve.
In the third quarter, we continued to focus our building and partnership efforts on better serving modern earners, the estimated 70% of Cash App monthly transacting actives who earn income through a combination of freelancing, content creation, and hourly or gig work. We launched our pilot of Earn in P2P, a no-fee way to accept payments and track more of your earnings easily in Cash App. In September, we launched a partnership with Workday that lets eligible employees choose Cash App for direct deposit during payroll onboarding, and in October we announced a partnership with UKG to join their Frontline Worker Network. We’re also expanding the ways platforms can pay earners directly into Cash App, and we’ve begun testing ways for customers to access their pay as they earn it, rather than waiting for payday, whether or not their employer works with us.
Cash App Tags became generally available in August, and we're seeing this new hardware deepen engagement with Cash App. Customers who ordered a Tag before September spent more in the month after their order than in the month before, with the largest increase among those who had been less active users of Cash App Card. Since general availability in August, one in five Tag orderers is a new or re-engaged Card active. We plan to continue to expand the Cash App Tags platform with new form factors and partnerships while continuing to execute on our broader commerce network strategy. In the third quarter, Fanatics chose Afterpay as its preferred buy now, pay later partner, and Afterpay Pay Monthly launched in Australia, with Apple as our flagship launch partner. Cash App Pay momentum also continued as Roblox added Cash App Pay functionality and we signed distribution partnerships with Checkout.com, Fiserv, and Finix.
For the past six years, we've used our credit infrastructure and underwriting expertise to deliver liquidity solutions to Cash App customers. Now we're opening our capabilities up to others. In September, we announced that Cash App Score will be made available to lenders through Nova Credit, our first step in bringing Cash App's underwriting to more use cases. We expect to sign more partnerships in the future.
In August, we auto enrolled over 30,000 new seller locations onto Neighborhoods, our loyalty, discovery, and rewards experience that connects Square sellers with consumers, growing the Neighborhoods network over 10x from June. As of September, sellers on Neighborhoods represent nearly $5 billion in annualized GPV, up nearly 5x since June, and Cash App actives that have engaged with Neighborhoods grew over 5x in September compared to June. We continued to see strong per-seller engagement. Sellers that have been live on Neighborhoods for over a year averaged over 1,000 followers, with 10% of their GPV on Neighborhoods. We plan to continue expanding the Neighborhoods network further while continuing to innovate on the product to make Neighborhoods more valuable to sellers and their customers. We’re also focused on increasing the connectivity between Neighborhoods and Square products like Loyalty and Square Online as well as expanding Neighborhoods functionality across more Square hardware, building on early rollouts on Square Stand and Reader. 4 2027 Preliminary Outlook We expect Block to perform meaningfully better in 2026 than the expectations we outlined at Investor Day in November 2025. 7 In 2027, we expect momentum to continue, with Block gross profit expected to grow at least 15% year over year as our investments in AI and our broader focus on velocity drive sustained growth at scale. We expect Adjusted Operating Income to grow 30% year over year to $4.575 billion as we expand margins while still investing meaningfully to sustain long-term growth. In Square, our investments in distribution expansion are beginning to compound, and we expect to accelerate GPV growth for the third consecutive year, with gross profit growing roughly in line with GPV. In Cash App, we expect at least low-single-digit actives growth and strong growth in both Commerce Enablement and Financial Solutions gross profit. 8 Neighborhoods has started to connect Square and Cash App, while our investments in AI are laying the foundation for what we believe will become Block’s next ecosystem.
Square Gaining share in the U.S. and expanding further in international markets We estimate more than half of Square’s addressable market in the U.S. is still using legacy incumbent solutions. In 2026, we’ve expanded product functionality and ramped investments across every distribution channel we operate in to serve even more customers in this massive market. Year to date through August, self- onboarded new volume added has grown at the best rate in over a decade. 9 We’ve continued to scale field sales, and we now have over 400 ISO partners onboarded. We’ll continue to invest in compounding these growth curves in 2027. Outside the U.S., the share of sellers on legacy solutions is even greater, and we've grown faster. We've delivered over 20% constant currency GPV growth in each quarter for the past six years, and we expect to sustain that strength in 2027. We've signed ISO partnerships in the U.K., Canada, Australia, Ireland, France, and Spain. We’re hiring field sales across several markets, and we’re exploring partnerships that could transform the scale of our business in select countries. 7 We have not provided the forward-looking GAAP equivalents for certain forward- looking non-GAAP metrics, including Adjusted Operating Income (Loss) and Adjusted Diluted EPS, 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. 8 For definitions of Cash App Commerce Enablement and Financial Solutions, see the Block Financial Metrics section on page 9 of this letter. 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. For the purpose of this letter, figures exclude deactivated merchants. 5
As of September, only 16% of our U.S. sellers use monetized software, and we see opportunities to innovate on
pricing and packaging to drive software attach higher next year. Squaremates is now generally available in the U.S. and in 2027 we plan to scale its automation capabilities further to add more value to more sellers. Beyond AI, we believe no one can match Neighborhoods and our ability to deliver loyalty, marketing, and discovery solutions to sellers, on their terms, while enabling them to own their customer relationships.
We built Cash App into one of the most successful consumer fintechs in the world by doing two things well: developing unique ways to reach customers who want to try our product, and consistently delivering more value to them through product innovation. That is the entire growth algorithm, simple to say and brutally hard to execute. It is how we’ve evolved from a P2P app into a full financial services app serving tens of millions of customers, and it is how we plan to sustain growth as Borrow growth normalizes. As of September, Cash App is now over $8 billion in annualized gross profit, with 60 million monthly transacting actives, the fourth largest debit program in the U.S., and over $75 billion in annualized consumer lending origination volume. 10
We are expanding the audiences we can serve with Cash App, and we believe Neighborhoods, Cash App Families,
and Cash App global expansion will be the driving forces behind long-term Cash App actives growth. We believe that almost every American shops at a Square seller in a given year, and we will soon be able to reach them across all Square hardware devices through Neighborhoods. 11 For new actives who join through Neighborhoods, we're planning multiple engagement strategies, starting with introducing them to Cash App's commerce products. Beyond Neighborhoods, we see meaningful opportunities to expand our Teens and Families products through a focus on enhancing the experience for sponsors, making it easier for teens to graduate accounts, and introducing products that reinforce healthy financial habits. We continue to focus on helping modern earners by establishing deeper primary banking relationships. 12 We plan to make it easier to set up direct deposit, expand the ways customers can access their pay as they earn it, and evolve Cash App Green so customers unlock more benefits as they bring more of their financial lives to Cash App. The needs of modern earners aren’t unique to people in the U.S., and in 2027 we plan to build more capabilities for a global audience.
Growing Cash App Commerce Enablement through volume growth and monetization rate expansion 13
As of September, 28 million monthly transacting actives used Cash App Card, which means 32 million did not. We have more ways to drive commerce attach rates than ever before, including new Cash App Tags form factors and partnerships, growing Cash App Pay and Afterpay merchant partnerships, and expanded Afterpay Pre-Purchase and Post-Purchase eligibility. We expect to serve more customers as our commerce product set expands, and we have meaningful room to expand our relationship with customers who already use our commerce products. The median American spends $1,650 a month on credit and debit cards. Our median commerce active spends $217 a month on Cash App, and we expect to continue to expand our monetization rate as we drive engagement higher: as of September, only 10% of Cash App Card and Cash App Pay actives use a BNPL product, and we see nearly 3x higher gross profit for actives who use BNPL compared with those who don't.
We believe we continue to have opportunities to expand Borrow limits and eligibility while sustaining strong variable profit margins and industry-leading returns on capital. As of September, the average Borrow limit was $300, compared to the highest limits we offer of $1,500. We expect to increase average limits over the next several years as more
11 Based on internal estimates comparing Census Vintage 2025 population estimates as of July 1, 2025 to the number of Square buyer profiles. Individuals may have more than one buyer profile.
12 Square and Cash App are financial services platforms, not banks. Throughout this letter, any reference to Square or Cash Appʼs banking offerings or terms such as “primary banking actives” refer to products and services that are offered through Blockʼs Industrial Bank, Square Financial Services, Inc., or through our third-party bank partners.
13 Cash App Commerce Enablement Monetization Rate is calculated by dividing Cash App Commerce Enablement gross profit by Cash App Commerce Enablement volume. Cash App Commerce Enablement gross profit is primarily composed of Cash App Card and BNPL products. Cash App Commerce Enablement volume includes GPV from Cash App Card, Cash App Pay, BNPL products, and Cash App Business. 6 customer cohorts mature and our proprietary data compounds. We also expect to generate revenue from externalizing Cash App Score to partners who value our underwriting infrastructure and want to extend credit to Cash App customers.
We view risk loss as an input to maximizing variable profit across our lending products. 14 Since launching Square Loans in 2014, we've been able to hold loss rates consistent with our target while meaningfully expanding eligibility to more and more customers. Every annual Square loan cohort has performed in line with or better than our 4% loss target, and we’ve been able to grow Square Loans at a 27% CAGR over the past decade because of our disciplined underwriting approach, proprietary data, and world-class expertise. We are taking the same approach, with the same competitive differentiators, with Cash App Consumer Lending. Over the past two years, Cash App Consumer Lending originations growth compounded at 45%. Cash App Consumer Lending variable profit compounded at nearly the
same rate. We see meaningful ecosystem benefits beyond the returns we generate on our lending products: deeper engagement with Cash App Commerce functionality, higher primary banking attach rates, and ultimately higher gross profit per active, excluding the economics from Borrow.
In 2027, we expect to ramp investments in several long-term strategic growth initiatives beyond lending, most notably scaling Neighborhoods and AI solutions externally. Our growth guidance does not rely on these initiatives, but we believe they can become meaningful drivers of durable growth, and we will scale them with the same discipline we apply to our core growth investments. Those core growth investments have delivered strong returns in 2026: year to date through August, we’ve seen an estimated five-quarter payback for Square new volume added, with each of
self-onboarding, field sales, and ISO distribution operating in line with or better than our return and payback investment thresholds. 15 In Cash App, we’ve seen less than a three-quarter payback on our performance marketing and referral investments. 16 Beyond go-to-market, we’ve expanded our ability to drive velocity with AI tooling in a thoughtful way, building evaluation techniques that help us understand model specific ROI on a wide range of engineering tasks. We plan to keep investing in increasing velocity in 2027, especially since many of these investments benefit our external AI products too. We believe the most valuable investments we can make are in sustaining long-term gross profit growth, which is where we are focused in 2027 as we drive toward 30% Adjusted Operating Income growth.
14 Variable profit is defined as gross profit less processing costs and risk losses, excluding financing costs.
15 Represents sellers onboarded through marketing-led self-onboarding (web and app), field sales, and third-party sales (resellers and ISOs). Square Payback Period measures the time it takes for the gross profit we expect sellers to generate to recover acquisition costs. It is calculated by dividing acquisition costs by the average quarterly gross profit sellers are expected to generate over their lifetime. Self-onboarding acquisition costs reflect Square Marketing Spend, which excludes personnel, travel and expenses, and learning and development costs. Field sales and third-party sales acquisition costs include personnel, overhead, hardware discounts, and partner bounties.
16 Represents paid marketing and referrals in the first nine months of 2026. Cash App Payback Period is customer acquisition cost per new or reactivated active divided by estimated quarterly variable profit per active, averaged across all Cash App customers active during the period. 7 Financial Discussion We exceeded our third quarter guidance for gross profit, Adjusted Operating Income, and Adjusted Diluted EPS. Gross profit grew 22% year over year to $3.24 billion, with strong growth in both Cash App and Square. Adjusted Operating Income grew 92% year over year to $923 million, with an all time high margin of 29%, and Adjusted Diluted EPS grew 109% year over year to a record $1.13. Third Quarter 2026 Financial Highlights
Cash App monthly transacting actives grew to 60 million in September, as Neighborhoods brought more Square seller customers into Cash App. Cash App gross profit grew 27%, Cash App with strength across Financial Solutions and Commerce Enablement. Consumer Lending origination volume grew 40% year over year to $19.0 billion, driven by Cash App Borrow and Afterpay Post-Purchase. In the third quarter, Square GPV grew 14% year over year on a reported and constant currency basis, with U.S. GPV growth accelerating to 10.4% year over year and Square International GPV growth sustaining strong performance, growing 26% year over year on a reported and constant currency basis. Square gross profit grew in line with GPV growth in the third quarter. We outperformed our profitability guidance in the third quarter, with record Adjusted Operating Income and Adjusted Diluted EPS. We also achieved record Adjusted EBITDA in the third quarter. Operating income was $428 million, up 5% Profitability year over year, while Adjusted Operating Income grew 92% year over year to $923 million. Net income attributable to common stockholders was $566 million and Adjusted EBITDA reached $1.2 billion. GAAP diluted EPS was $0.92, and Adjusted Diluted EPS grew 109% year over year to $1.13.
Q4'26 2026 Gross $3.315B Gross $12.6… Profit Profit YoY 15% YoY 22% Growth Growth Adjus… Adjus… Opera… $1.005B Opera… $3.51… Income Income % 30% % 28% Margin Margin Rule 46% Rule 50% of X17 of X Adjus… Adjus… Dilut… $1.15 Dilut… $4.15 EPS EPS YoY 77% YoY 75% Growth Growth
We are raising our full-year guidance to reflect the momentum we are seeing across Block. For 2026, we now expect $12.626 billion in gross profit, up 22% year over year, and Adjusted Operating Income of $3.519 billion, or 28% margin, growing 69% year over year. We also expect Adjusted Diluted EPS to grow 75% to $4.15. 17 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. 8
Overall Block gross profit grew 22% year over year in the third quarter, with 27% year-over-year growth in Cash App and 14% year-over-year growth in Square. Commerce Enablement gross profit growth accelerated to 19% year over year, driven by strong payments volume in Square and strength in Cash App. Financial Solutions gross profit grew 32% year over year, driven by Cash App Consumer Lending. Bitcoin Ecosystem gross profit declined 50% year over year, driven primarily by a strategic decision to reduce the fee we charge on certain bitcoin transactions on Cash App. 18 Quarterly revenue and gross profit by category may not sum to totals due to rounding. 19 Commerce enablement is primarily comprised of transaction fees related to Square payments, software, and hardware, Cash App Card, Cash App Pay, the Company’s BNPL products, Cash App Business accounts, TIDAL, and various other software as a service (“SaaS”) products. 20 Financial solutions is primarily comprised of Cash App Borrow, Cash App Instant Deposit, ATM withdrawal fees, interest earned on customer funds, and Square Loans. 21 Bitcoin ecosystem primarily consists of customer purchases of bitcoin within Cash App, Proto, and bitcoin withdrawal fees. 22 Commerce Enablement gross profit reflects the impact of amortization of acquired technology assets. 9
Strong gross profit growth and Adjusted Operating Income margin expansion compounded into meaningful Adjusted Diluted EPS growth in the third quarter. On a GAAP basis, we generated $428 million in operating income in the third quarter of 2026, compared to $409 million in the third quarter of 2025. Adjusted Operating Income grew 92% year over year as margin expanded more than 10 percentage points to 29%, supported by strong gross profit growth and disciplined execution. On a GAAP basis, we delivered diluted EPS of $0.92, an increase of 24% year over year. Adjusted Diluted EPS grew 109% year over year to $1.13. 10
Cash App gross profit grew 27% year over year with strength in both Financial Solutions and Commerce Enablement. Cash App monthly transacting actives reached 60 million in September, and Neighborhoods was a key contributor to actives growth. We believe the ability to grow actives through the Square ecosystem is one of Cash App’s strongest differentiators. Commerce Enablement gross profit growth was driven by Cash App Card and BNPL products, led by Afterpay Post- Purchase. Commerce Enablement volume grew 14% year over year to $56.9 billion, driven by Cash App Card and Afterpay BNPL. Commerce Enablement monetization rate expanded 18 basis points year over year to 1.74%, driven by higher BNPL adoption on Cash App Card through Afterpay Post-Purchase and Pre-Purchase. Financial Solutions gross profit growth was driven primarily by Cash App Borrow. Consumer Lending origination volume grew 40% year over year to $19.0 billion, led by Cash App Borrow and Afterpay Post-Purchase. Afterpay Post-Purchase origination volume more than tripled year over year, and Afterpay Pre-Purchase origination volume more than tripled quarter over quarter in its first full quarter of general availability. As of the end of September, we completed the migration of Cash App Borrow to a six-week loan construct. During this 23 A Primary Banking Active (PBA) 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. 24 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. 25 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. 11
product construct shift, we held Borrow limits constant, which had the effect of lowering Borrow originations per customer by 7% quarter over quarter. With the shift to a six-week Borrow construct now complete, we expect to begin expanding Borrow limits again in the near term. More repayment flexibility was a top customer request for Borrow, and we’re excited to deliver that functionality for customers by aligning terms with our BNPL products. Square
Square GPV grew 14% year over year in the third quarter on a reported and constant currency basis to $76.4 billion, reflecting strong GPV growth from new sellers. GPV from food and beverage sellers was up 20% year over year, driven by strength in U.S. food and beverage GPV. GPV from retail sellers and services sellers grew 13% and 8% year over year, respectively. We continued to see the fastest year-over-year growth in our mid-market seller segment (>$500K in annualized GPV) compared to our other seller segments during the third quarter. Square gross profit grew 14% year over year in the third quarter in line with Square GPV growth. Growth was driven primarily by Commerce Enablement, reflecting stronger payments volume and increased software adoption, supported by the simplified pricing and packaging options we introduced last year. We also saw continued momentum in Financial Solutions, driven by Square Loans. 26 We continue to expect Square gross profit to grow roughly in line with Square GPV for the remainder of the year. 26 For definitions of Square Commerce Enablement and Financial Solutions, see the Block Financial Metrics section on page 9 of this letter. 12
In the third quarter, product development expenses decreased 11% year over year on a GAAP basis and decreased 12% on a non-GAAP basis, driven by reduced personnel-related costs associated with the organizational changes we executed in February. Sales and marketing expenses grew 15% year over year on a GAAP basis and grew 14% on a non-GAAP basis, driven by an increase in go-to-market investments. General and administrative expenses were up 56% year over year on a GAAP basis, primarily driven by increased accrued legal contingencies, and down 21% year over year on a non-GAAP basis. For more information on accrued legal contingencies, please see the Commitments and Contingencies footnote in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. Transaction, loan, and consumer receivable losses increased 66% year over year on a GAAP basis, driven by growth in loan volumes and product mix shifts. Third quarter Cash App Consumer Lending variable profit margin was in line with the third quarter of 2025 and improved modestly quarter over quarter, demonstrating strong returns and underwriting as originations continued to grow. 27 Borrow risk loss rates remained healthy as we completed our migration to six-week loans in September. We expect year-over-year growth in transaction, loan, and consumer receivable losses to moderate further in the fourth quarter. 27 Consumer Lending variable profit margin is Consumer Lending variable profit divided by Consumer Lending originations. We define variable profit as gross profit less processing costs and risk losses, excluding financing costs. 13
In the third quarter of 2026, we continued to prudently invest in our lending products, including growing Cash App Borrow and Afterpay Post-Purchase given the strong unit economics and returns we have seen. Within our non-GAAP cash flow, we have deployed $1.4 billion in capital to grow our lending products over the last 12 months. 29 We ended the quarter with $10.1 billion of total liquidity, with $9.2 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, and $900 million available to be withdrawn from our revolving credit facility . Additionally, we had $809 million available to be withdrawn under our warehouse funding facilities. 28 Quarterly figures presented may not sum precisely due to rounding. 29 Capital deployed to grow lending products is calculated as the trailing twelve month change in our lending product balances (which consists of consumer receivables, net; loans held for sale; and loans held for investment, net), less the net financing provided by our warehouse facilities (i.e. proceeds net of repayments) over the same period. 15
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 3, 2026, 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 2026 on February 24, 2027 , 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
This letter contains “forward-looking statements” within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding the future performance of Block, Inc. and its consolidated subsidiaries (the Company); the Company’s strategies, including expected impact of such strategies on our customers, actives, and sellers; our business and financial performance, expected financial results, guidance, and general business outlook for current and future periods, including our progress toward guidance we issued at our November 2025 investor day, trends in U.S. and global GPV and gross profit growth, and statements that the Company’s performance will accelerate; our ability to manage our risk losses and our expectations regarding transaction and loan losses; the Company’s plans with respect to its emerging initiatives and product development plans and product launches and functionalities, including expectations regarding the growth of Cash App Borrow and Afterpay Post-Purchase, Cash App Score, Neighborhoods and Builderlab; the expected benefits of AI tools, models, agents, and related technologies to our employees, to our customers, to the pace of our innovation and to our overall business, the expected benefits of our products to our customers and the impact of our products on our business; our expectations related to workforce reductions and the anticipated costs, impact, risks and benefits of such actions; and the Company’s ability and timing to integrate artificial intelligence and cryptocurrency features into its products; the ability of the Company’s products to attract and retain sellers and customers, particularly in new or different markets or demographics or through partnerships, sales organizations, or advertising campaigns; trends in the Company’s markets and the continuation of such trends; the Company’s expectations and intentions regarding future expenses and marketing investments; and management’s statements related to business strategy, plans, investments, opportunities, and objectives for future operations. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “appears,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause the Company’s actual results, performance, or achievements to differ materially from results expressed or implied in this letter. Investors are cautioned not to place undue reliance on these statements, and reported results should not be considered as an indication of future performance.
Risks that contribute to the uncertain nature of the forward- looking statements include, among others, a deterioration of general macroeconomic conditions; risks related to workforce reductions and related reorganizations, including the potential for increased reliance on proactive intelligence and artificial intelligence tools; the Company’s investments in its business and ability to achieve anticipated returns, maintain profitability and expand margins; the Company’s efforts to expand its product portfolio and market reach; risks related to our loan products such as credit losses; the Company’s ability to develop products and services to address the rapidly evolving market for commerce and financial services; the Company’s ability to deal with the substantial and increasingly intense competition in its industry; risks related to disruptions in or negative perceptions of the cryptocurrency market; acquisitions, strategic investments, entries into new businesses, joint ventures, divestitures, and other transactions that the Company may undertake; the Company’s ability to ensure the integration of its services with a variety of operating systems and the interoperability of its technology with that of third parties; the Company’s ability to successfully develop and integrate artificial intelligence, including generative AI, into its systems, initiatives, and products; the Company’s ability to retain existing customers, attract new customers, and increase sales to all customers; the Company’s dependence on payment card networks, acquiring processors and other partnerships; the effect of extensive regulation and oversight related to the Company’s business in a variety of areas; risks related to the banking ecosystem, including through our bank partnerships, and FDIC and other regulatory obligations; the liabilities and loss potential associated with new products, product features, and services; litigation, including intellectual property claims, government investigations or inquiries, and regulatory matters or disputes; the adequacy of reserves for such matters and the impact
of any such matters or settlements thereof on our business; adoption of the Company’s products and services in international markets; changes in political, business, and economic conditions, including changes due to actual or potential tariffs; as well as other risks listed or described from time to time in the Company’s filings with the Securities and Exchange Commission (the SEC), including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and its subsequent Quarterly Reports on Form 10-Q, which are on file with the SEC and available on the Investor Relations page of the Company’s website. Additional information will also be set forth in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. All forward-looking statements represent management’s current expectations and predictions regarding trends affecting the Company’s business and industry and are based on information and estimates available to the Company at the time of this letter and are not guarantees of future performance. Earnings guidance for 2026 and 2027 reflects assumptions the Company believes are reasonable as of the date of this filing, and actual results may vary based on changing macroeconomic conditions and other risks and uncertainties outlined in this safe harbor section and in the Company’s periodic reports filed with the SEC. Except as required by law, the Company assumes no obligation to update any of the statements in this letter.
To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (GAAP), from period to period, we consider and present certain operating and financial measures that we consider key metrics or are not prepared in accordance with GAAP, including Gross Payment Volume (GPV), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Share (Adjusted EPS), Adjusted Diluted Net Income (Loss) Per Share (Adjusted Diluted EPS), Adjusted Operating Income (Loss), Adjusted Operating Income (Loss) margin, Free Cash Flow, Non-GAAP Cash Flow, constant currency, and non-GAAP operating expenses. We believe these metrics and measures are useful to facilitate period-to-period comparisons of our business and to facilitate comparisons of our performance to that of other payments solution providers. GPV includes Square GPV and Cash App Business GPV. Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds. Cash App Business GPV comprises Cash App activity related to peer-to-peer transactions received by business accounts and peer-to-peer payments sent from a credit card. GPV does not include transactions from our BNPL products.
Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Share (Adjusted EPS), and Adjusted Diluted Net Income (Loss) Per Share (Adjusted Diluted EPS) are non-GAAP financial measures that represent our net income (loss) and net income (loss) per share, adjusted to eliminate the effect of restructuring share-based compensation expense, contingencies, restructuring, and other charges; goodwill and intangible asset impairment; amortization of intangible assets; amortization of debt discount and issuance costs; gain or loss on revaluation of equity investments; remeasurement gain or loss on revaluation of bitcoin investment; the gain or loss on the disposal of property and equipment; acquired deferred revenue and cost adjustments; the discrete benefits from the release of valuation allowances on our deferred tax assets; and the tax effect of non- GAAP net income adjustments, as applicable. Additionally, for purposes of calculating Adjusted Diluted EPS, we add back cash interest expense on convertible senior notes, as if converted at the beginning of the period, if the impact is dilutive. To calculate Adjusted Diluted EPS, we adjust the weighted-average number of shares of common stock outstanding for the dilutive effect of all potential shares of common stock. In periods when we recorded an Adjusted Net Loss, the diluted Adjusted EPS is the same as basic Adjusted EPS because the effects of potentially dilutive items were anti-dilutive given the Adjusted Net Loss position. 17 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that represent our net income (loss), adjusted to exclude share-based compensation expense; restructuring share-based compensation expense; depreciation and amortization; contingencies, restructuring, and other charges; interest income and expense; remeasurement gain or loss on bitcoin investment; other income and expense; provision for (benefit from) income taxes; gain or loss on disposal of property and equipment; and acquired deferred revenue and cost adjustment, as applicable. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by gross profit.
Adjusted Operating Income (Loss) is a non-GAAP financial measure that represents our operating income (loss), adjusted to eliminate the effect of amortization of acquired technology assets; contingencies, restructuring, and other charges; restructuring share-based compensation expenses; goodwill and intangible asset impairment and amortization of customer and other acquired intangible assets. Adjusted Operating Income (Loss) margin is calculated as Adjusted Operating Income (Loss) divided by gross profit.
We also exclude from these measures certain acquisition-related and integration costs associated with business combinations, and various other costs that are not reflective of our core operating performance. We exclude amortization of intangible assets arising from business combinations from Adjusted Net Income (Loss), Adjusted EPS, Adjusted Diluted EPS, Adjusted Operating Income (Loss), and Adjusted Operating Income (Loss) Margin because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our ongoing business operations. Acquisition-related costs include amounts paid to redeem acquirees’ unvested stock-based compensation awards; charges associated with holdback liabilities; and legal, accounting, and due diligence costs. Integration costs include advisory and other professional services or consulting fees necessary to integrate acquired businesses. Other costs that are not reflective of our core business operating expenses may include contingencies, restructuring, and other charges; impairment charges; restructuring share-based compensation expense; and certain litigation and regulatory charges. For Adjusted Net Income (Loss), Adjusted EPS, and Adjusted Diluted EPS we also add back the impact of the acquired deferred revenue and deferred cost adjustment, which was written down to fair value in purchase accounting, and adjust for the tax effect of the non-GAAP net income adjustments.
Non-GAAP Cash Flow is a non-GAAP financial measure that represents our net cash provided by operating activities adjusted for changes in settlements receivable; changes in customers payable; changes in settlements payable; the purchase of property and equipment; 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; proceeds from warehouse facilities borrowings; repayments of warehouse facilities borrowings; and sales, and principal payments, and forgiveness of PPP loans. We present Non-GAAP Cash Flow because we use it to understand the cash generated by our business and make strategic decisions related to our balance sheet, and because we are focused on growing our
Non-GAAP Cash Flow generation over time. It is not intended to represent amounts available for discretionary purposes. Constant currency growth is calculated by assuming international results in a given period and the comparative prior period are translated from local currencies to the U.S. dollar at rates consistent with the monthly average rates in the comparative prior period. We discuss growth on a constant currency basis because a portion of our business operates in markets outside the U.S. and is subject to changes in foreign exchange rates. Non-GAAP operating expenses is a non-GAAP financial measure that represents operating expenses adjusted to remove the impact of restructuring share-based compensation; amortization of customer and other acquired intangible assets;
acquisition-related and integration costs; contingencies, restructuring, and other charges; and goodwill and intangible asset impairment. We have included Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income (Loss), Adjusted Operating Income (Loss) margin, Adjusted Net Income (Loss), Adjusted EPS, Adjusted Diluted EPS, and non-GAAP operating expenses because they are key measures used by our management to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources.
Accordingly, we believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income (Loss), Adjusted Operating Income (Loss) margin, Adjusted Net Income, Adjusted EPS, Adjusted Diluted EPS, and non- GAAP operating expenses provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, they provide useful measures for period- to-period comparisons of our business, as they remove the effect of certain non-cash items and certain variable charges that do not vary with our operations. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss), Adjusted Operating Income (Loss), Adjusted Operating Income (Loss) margin, Adjusted EPS, Adjusted Diluted EPS, and non-GAAP operating expenses, as well as other measures defined in the shareholder letter, have limitations as financial measures, should be considered as supplemental in nature, and are not meant as substitutes for the related financial information prepared in accordance with GAAP. We believe that the aforementioned metrics and measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects, and provide useful measures for period- to-period comparisons of our business, as they remove the effect of certain variable amounts, or they remove amounts that were not repeated across periods and therefore make comparisons more difficult. Our management uses these measures to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non- GAAP financial measures are not based on any standardized methodology prescribed by GAAP. Other companies, including companies in our industry, may calculate the non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures. 18
Sep. 30, 2026 Dec. 31, 2025 ────────────────────────────────────────────────────────────────────────────── UNAUDITED Assets Current assets: Cash and cash $ 7,859,314 $ 6,564,092 equivalents Settlements 1,454,211 1,359,983 receivable Customer funds 5,356,911 4,771,824 Consumer 2,352,214 2,670,322 receivables, net Loans held for 4,401,001 3,382,957 investment, net Other current 3,561,245 4,107,702 assets Total current 24,984,896 22,856,880 assets Goodwill 11,984,759 11,849,018 Acquired intangible assets, 1,155,971 1,281,670 net Deferred tax 1,313,316 1,302,776 assets Bitcoin investment 771,881 777,515 Other non-current 1,024,864 1,482,028 assets Total assets $ 41,235,687 $ 39,549,887 Liabilities and Stockholders’ Equity Current liabilities: Customers payable $ 7,700,091 $ 6,805,366 Accrued expenses and other current 3,061,320 1,538,893 liabilities Current portion of — 1,573,259 long-term debt Warehouse funding facilities, 447,437 466,942 current Total current 11,208,848 10,384,460 liabilities Warehouse funding facilities, 1,096,103 897,941 non-current Long-term debt 5,723,027 5,715,759 Other non-current 337,523 381,845 liabilities Total liabilities 18,365,501 17,380,005 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.0000001 par value: 100,000 shares authorized at September 30, 2026 and — — December 31, 2025. None issued and outstanding at September 30, 2026 and December 31, 2025. Class A common stock, $0.0000001 par value: 1,000,000 shares authorized at September 30, 2026 and — — December 31, 2025; 544,541 and 542,085 issued and outstanding at September 30, 2026 and December 31, 2025, respectively. Class B common stock, $0.0000001 par value: 500,000 shares authorized at September 30, 2026 and — — December 31, 2025; 59,976 and 59,993 issued and outstanding at September 30, 2026 and December 31, 2025, respectively. Additional paid-in 19,122,552 18,895,405 capital Accumulated other -234,839 -365,381 comprehensive loss Retained earnings 4,019,641 3,674,254 Total stockholders’ equity 22,907,354 22,204,278 attributable to common stockholders Noncontrolling -37,168 -34,396 interests Total stockholders’ 22,870,186 22,169,882 equity Total liabilities and stockholders’ $ 41,235,687 $ 39,549,887 equity
NINE MONTHS ENDED Sep. 30, 2026 Sep. 30, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $ 342,615 $ 1,188,654 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and 282,148 273,464 amortization Amortization of discounts and -894,970 -836,118 premiums Non-cash lease expense and other 130,759 43,713 non-cash adjustments Share-based 871,220 921,957 compensation Loss (gain) on revaluation of 10,420 -172,582 equity investments Remeasurement loss (gain) on bitcoin 31,587 -178,402 investment Transaction, loan, and consumer 1,687,281 827,234 receivable losses Change in deferred -396 182,756 income taxes Purchases and originations of loans -5,777,116 -12,394,452 originally classified as held for sale Proceeds from repayments of loans originally 5,512,088 12,457,575 classified as held for sale Changes in operating assets and liabilities: Settlements -274,477 -291,388 receivable Customers payable 309,299 313,061 Prepaid expenses -6,787 -29,087 Other assets and 777,910 -347,671 liabilities Net cash provided by operating 3,001,581 1,958,714 activities Cash flows from investing activities: Purchases of marketable debt -403,000 -481,088 securities Proceeds from maturities of 450,839 423,312 marketable debt securities Proceeds from sale of marketable debt 75,740 392,218 securities Payments for originations of -24,997,025 -22,553,302 consumer receivables Proceeds from principal repayments and 25,981,087 23,721,275 sales of consumer receivables Purchases and originations of loans originally -33,272,894 -7,643,830 classified as held for investment Proceeds from repayments of loans originally 31,325,880 5,629,369 classified as held for investment Purchases of property and -127,996 -113,838 equipment Other investing 313,767 -45,930 activities Net cash used in -653,602 -671,814 investing activities Cash flows from financing activities: Repayments of senior -1,000,000 — notes Proceeds from issuance of senior — 2,200,000 notes Payments of debt issuance costs from — -28,346 issuance of senior notes Payments to redeem -575,000 -1,000,624 convertible notes Proceeds from warehouse facilities 1,320,398 448,530 borrowings Repayments of warehouse facilities -1,155,192 -1,456,869 borrowings Proceeds from the exercise of stock options and 50,282 58,247 purchases under the employee stock purchase plan Net increase in interest-bearing 604,593 81,176 deposits Repurchases of -700,935 -1,540,529 common stock Other financing -25,602 -35,330 activities Change in customer funds, restricted 585,087 620,844 from use in the Company's operations Net cash used in -896,369 -652,901 financing activities Effect of foreign exchange rate on 4,397 80,515 cash and cash equivalents Net increase in cash, cash equivalents, 1,456,007 714,514 restricted cash, and customer funds Cash, cash equivalents, restricted cash, 12,481,276 13,230,512 and customer funds, beginning of the period Cash, cash equivalents, restricted cash, $ 13,937,283 $ 13,945,026 and customer funds, end of the period
Information on the reportable segments revenue and segment gross profit, as well as amounts for the "Corporate and Other" category, which includes products and services not assigned to reportable segments and intersegment eliminations:
A reconciliation of total segment gross profit to the Company’s income (loss) before applicable income taxes (in thousands):
(ii) Square commerce enablement gross profit reflects the impact of amortization of acquired technology assets. 26 Select Operating Metrics and Non-GAAP Financial Measures, Continued
(i) Other sales and marketing expenses include sales and marketing expenses related to Square and Corporate and Other.
(i) Proceeds from and repayments of warehouse facilities borrowings represent trailing twelve months cash flows for the period ended September 30, 2026. 30
Full text with the tables
Q3 2026
Shareholder Letter
investors.block.xyz
To Our Shareholders
At the beginning of this
year, we established four
principles to guide our
work forward:
•Customers want peace of
mind, not more products.
•Companies move fast or
slow based on information
flow.
•The best way to
integrate machine
intelligence is to become
it.
•Intelligence depends on
signal, and money is the
most honest signal.
We used these principles
to refocus how we work,
what we work on, and
where we're going. And we
saw this compound into
another strong set of
results in the third
quarter. We exceeded our
guidance with 22% gross
profit growth, 92%
Adjusted Operating Income
growth, and 109% Adjusted
Diluted EPS growth, and
we raised our guidance
across each of these
metrics for the year.
These principles also led
us to refine the master
plan we shared at
Investor Day at the end
of last year:
•Make our #company an
intelligence, and enable
others to do the same.
•Build the best
intelligence to run your
#business.
•Build the best
intelligence to run your
#money.
•Build open financial
#infrastructure for all.
•Connect #neighborhoods
globally.
Today we're delivering Q3’26 Highlights2
intelligence to our
customers, connecting our
ecosystems, and building
open financial
infrastructure to help
achieve our financial
results. Square Kiosk
gives every restaurant
the opportunity to have
intuitive physical
intelligence in every
location, easing the
ordering and line burden
so they can focus more on
their food and
experience. Managerbot,
which we just rebranded
to Squaremates, now has
an entirely new
architecture and is
available to Square
sellers in the U.S.,
giving them access to
intelligence and
automation tools to help
them save time and run
their businesses better.
We are planning to do the
same with Moneybot, to
predict and present the
right interface to people
with all the capabilities
Cash App has to offer.
We’re connecting our
ecosystems in a way we
never have before and are
already seeing results:
Neighborhoods was a key
driver of Cash App
scaling to 60 million
monthly transacting
actives in September, and
there is much more we
plan to do to connect
local communities in the
future. We’re using
bitcoin and stablecoins
as an enabler of Cash
App’s expansion, and have
begun externalizing our
lending infrastructure
through Cash App Score.1
Gross Profit
$3.24B
+22% YoY Growth
Cash App Gross Profit
$2.07B
+27% YoY Growth
Square Gross Profit
$1.16B
+14% YoY Growth
Operating Income
$428M
13% Margin
+5% YoY Growth3
AdjustedOperating Income
$923M
29% Margin
+92% YoY Growth4
Diluted Net Income Per
Share (“EPS”)
$0.92
+24% YoY Growth
Adjusted Diluted EPS
$1.13
+109% YoY Growth5
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
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 2026. 3 Margins are all calculated as a percent of gross profit. 4 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. 5 Adjusted Diluted EPS is a non-GAAP
measure of profitability of our business. For more information, please refer to
the “Key Operating Metrics and Non-GAAP Financial Measures” section of this
letter. 1
But what does it mean to "make our company an intelligence, and enable others to
do the same"? We started down this path with goose, which helped us automate a
lot of mundane engineering tasks earlier than most other companies, and which
quickly evolved into a tool we could use for any role or task. It's now deeply
embedded in our company's foundation, and enables us to help realize our vision
to turn our company into a working intelligence, a mini AGI. We focused on
separating our work into four layers: capabilities (the jobs we can do),
interfaces (our distribution, from apps to hardware to payment wands), world
models (the deep real-time understanding of both our customers and company), and
proactive intelligence (a predictive engine to anticipate future needs, both for
our customers and us).
Buzz is probably the greatest manifestation of the "Block as Intelligence"
vision. It's an environment for building and collaborating that brings all of
our ideas together into one surface. It's really great for solo work, and when
someone is ready, even better for team work. It's designed to scale from a
company of our size, to one much larger, and even to our smallest sellers
(Squaremates is built on Buzz to offer our sellers best-in-class intelligence
and team collaboration). It's model agnostic, entirely self-sovereign (meaning
you can run it privately on your own network or system), and starts to reduce
the dependency on tools like Slack, Discord, and GitHub.
We have so much confidence in Buzz and our related tools that we recently
created a new ecosystem called Builderlab. Block was Builderlab’s first
customer, but the problems we’re solving are not unique to us. Companies that
want to transform how they work at scale need more than a model. They need
simple, accessible interfaces, connections between existing tools, and secure
ways to manage and evaluate the work agentic intelligence does. We built
Builderlab to help transform how Block works, and our goal is to bring it to
other companies to help them do the same.
In October we began piloting Buzz with prospective customers, and we expect to
generate our first machine intelligence revenue in the fourth quarter. We have
more to prove as we build a product offering and go-to-market strategy for an
entirely new customer base, but we’re excited to extend what we’ve built for
ourselves to others. We’ll approach this new ecosystem with the same principles
that have guided us since the beginning: start small, give it soul, give time
back, make it better. We're hosting an event in San Francisco on November 10 to
properly introduce Builderlab.
Finally, we believe voice is the most natural way to interact with intelligence,
so we created Dessa, which we view as the most authentic full-duplex speech
model ever built. Talking with it feels like talking with a person…full of
emotion, nuance, pauses, and a natural cadence. Dessa truly pushes the frontier
of deep learning models and is a significant contribution to the field. I
encourage you to listen to the samples we've shared, and expect more from us in
the future on how we plan to apply this groundbreaking work to our capabilities.
We believe we've meaningfully crossed the chasm of transforming our company from
one that creates traditional financial products into one that streams
intelligence as people need it. Thank you for your support along the way, and
thank you for investing in our future.
2
Business Highlights
Make our company an intelligence and enable others to do the same
The AI tools we’ve built are giving us time back and helping accelerate product
velocity. In October, we began rolling out model routing to all employees at
Block, giving everyone access to a simple, efficient way to match their work to
the right model capability. In recent weeks, AI has been autonomously reviewing
and merging an increasing number of our production code changes related to low-
risk, routine work so our teams can focus more of their time on building
differentiated products for customers. Our focus on velocity is delivering more
value to our customers faster: through the first three quarters of the year,
we've released over 180 new Square features, already more than in 2024 and 2025
combined.
We’re focusing more development effort on externalizing these capabilities so
others can move faster too. Buzz makes AI multiplayer and serves as a
communication and code repository tool accessible to everyone. We've shipped
more than two dozen releases to Buzz since launching our alpha release in July.
We’ve rebuilt onboarding so a new user opens the app directly into a live team
of AI agents already at work, with their existing developer tools detected
automatically rather than wired up by hand. We’ve also released the governance
and identity infrastructure, including an admin console, encrypted identity
backups, and centralized community moderation that enterprises need to deploy
Buzz at scale.
Build the best intelligence to run your business
Square GPV growth accelerated to 14% in the third quarter, the strongest growth
rate since the first quarter of 2023, driven by our continued distribution
expansion and increased product velocity. 6 Self-onboarding continued to drive
strong new customer acquisition while the number of new sellers joining Square
through Independent Sales Organization (ISO) partners grew 90% quarter over
quarter. Our field sales team and expanded enterprise motion continued to drive
new customer acquisition, both in the U.S. and internationally, including
Tommy’s Tavern + Tap, a fast-scaling full-service restaurant chain that chose
Square to run its 16-plus locations across four states, and Public House Group,
the popular London hospitality group behind The Pelican and The Bull in
Charlbury.
In October, we launched Squaremates, our rebranded AI product for Square sellers
that builds on the heritage of Square AI and Managerbot. Squaremates is
generally available in the U.S. and brings some of Block’s most powerful AI
capabilities directly to Square sellers. We’ve redesigned the experience to
offer what we think is a leading AI product for businesses, grounded in the
unique commerce, customer, appointment, and inventory data of each seller.
Squaremates accesses cloud compute to take on more complex, multi-step work,
such as staff analyses, drafting customer win-back campaigns and holiday
promotions, and preparing purchase orders for food and beverage sellers. We plan
to keep expanding Squaremates’ capabilities, including an Apps platform that
lets sellers build bespoke apps connected to their Square data and existing
staff permissions, and procurement agents that help sellers manage inventory and
order from suppliers. We also plan to bring Buzz into Squaremates, providing
sellers with a team communication and task management platform built with AI
agents as first-party participants.
We also continue to innovate on hardware with the October launch of the new
Square Kiosk, our next-generation self-ordering device built from the ground up
around voice-enabled AI. Customers can now order by voice or touch, ask
questions about the menu, and get personalized recommendations, the same way
they would at the counter. Kiosk was built with larger sellers in mind, and
early response from multi-unit operators has been strong. We’ve seen franchise
operators who started out skeptical of kiosks now wanting to place Square Kiosks
throughout their national footprint. We set out to build hardware that saves
sellers time and money while helping them serve more customers, and we believe
we've delivered on that vision.
Build the best intelligence to run your money
Cash App reached 60 million monthly transacting actives in September with
Neighborhoods playing a key role in actives growth this quarter. We also
launched Cash App en Español to better serve Spanish-speaking customers, and we
continued to expand Families product functionality to help us reach the next
generation. In the third quarter, we
6 Square GPV is defined as the total dollar amount of all card and bank payments
processed by sellers using Square, net of refunds.
3
made the flow from a managed Cash App Account for Kids to a sponsored teen
account smoother so customers can keep growing with Cash App as their financial
needs evolve.
In the third quarter, we continued to focus our building and partnership efforts
on better serving modern earners, the estimated 70% of Cash App monthly
transacting actives who earn income through a combination of freelancing,
content creation, and hourly or gig work. We launched our pilot of Earn in P2P,
a no-fee way to accept payments and track more of your earnings easily in Cash
App. In September, we launched a partnership with Workday that lets eligible
employees choose Cash App for direct deposit during payroll onboarding, and in
October we announced a partnership with UKG to join their Frontline Worker
Network. We’re also expanding the ways platforms can pay earners directly into
Cash App, and we’ve begun testing ways for customers to access their pay as they
earn it, rather than waiting for payday, whether or not their employer works
with us.
Cash App Tags became generally available in August, and we're seeing this new
hardware deepen engagement with Cash App. Customers who ordered a Tag before
September spent more in the month after their order than in the month before,
with the largest increase among those who had been less active users of Cash App
Card. Since general availability in August, one in five Tag orderers is a new or
re-engaged Card active. We plan to continue to expand the Cash App Tags platform
with new form factors and partnerships while continuing to execute on our
broader commerce network strategy. In the third quarter, Fanatics chose Afterpay
as its preferred buy now, pay later partner, and Afterpay Pay Monthly launched
in Australia, with Apple as our flagship launch partner. Cash App Pay momentum
also continued as Roblox added Cash App Pay functionality and we signed
distribution partnerships with Checkout.com, Fiserv, and Finix.
Build open financial infrastructure for all
For the past six years, we've used our credit infrastructure and underwriting
expertise to deliver liquidity solutions to Cash App customers. Now we're
opening our capabilities up to others. In September, we announced that Cash App
Score will be made available to lenders through Nova Credit, our first step in
bringing Cash App's underwriting to more use cases. We expect to sign more
partnerships in the future.
Connect neighborhoods globally
In August, we auto enrolled over 30,000 new seller locations onto Neighborhoods,
our loyalty, discovery, and rewards experience that connects Square sellers with
consumers, growing the Neighborhoods network over 10x from June. As of
September, sellers on Neighborhoods represent nearly $5 billion in annualized
GPV, up nearly 5x since June, and Cash App actives that have engaged with
Neighborhoods grew over 5x in September compared to June. We continued to see
strong per-seller engagement. Sellers that have been live on Neighborhoods for
over a year averaged over 1,000 followers, with 10% of their GPV on
Neighborhoods. We plan to continue expanding the Neighborhoods network further
while continuing to innovate on the product to make Neighborhoods more valuable
to sellers and their customers. We’re also focused on increasing the
connectivity between Neighborhoods and Square products like Loyalty and Square
Online as well as expanding Neighborhoods functionality across more Square
hardware, building on early rollouts on Square Stand and Reader.
4
2027 Preliminary Outlook We expect Block to perform meaningfully better in 2026
than the expectations we outlined at Investor Day in November 2025. 7 In 2027,
we expect momentum to continue, with Block gross profit expected to grow at
least 15% year over year as our investments in AI and our broader focus on
velocity drive sustained growth at scale. We expect Adjusted Operating Income to
grow 30% year over year to $4.575 billion as we expand margins while still
investing meaningfully to sustain long-term growth. In Square, our investments
in distribution expansion are beginning to compound, and we expect to accelerate
GPV growth for the third consecutive year, with gross profit growing roughly in
line with GPV. In Cash App, we expect at least low-single-digit actives growth
and strong growth in both Commerce Enablement and Financial Solutions gross
profit. 8 Neighborhoods has started to connect Square and Cash App, while our
investments in AI are laying the foundation for what we believe will become
Block’s next ecosystem.
2026 20…
Nov Nov Nov Nov
2025 2026 Δ 20… 20… Δ
Inv… Gui… In… Pr…
Day Day Ou…
G…
P… $1… $1… +5% $13… $14… +5%
(…
YoY 17% 22% Mi… 15%
Gr…
A…
O… $2… $3… +30% $3.… $4.… +3…
I…
(…
YoY 31% 69% 30% 30%
Gr…
Ad…
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(%)
of
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Square Gaining share in the U.S. and expanding further in international markets
We estimate more than half of Square’s addressable market in the U.S. is still
using legacy incumbent solutions. In 2026, we’ve expanded product functionality
and ramped investments across every distribution channel we operate in to serve
even more customers in this massive market. Year to date through August, self-
onboarded new volume added has grown at the best rate in over a decade. 9 We’ve
continued to scale field sales, and we now have over 400 ISO partners onboarded.
We’ll continue to invest in compounding these growth curves in 2027. Outside the
U.S., the share of sellers on legacy solutions is even greater, and we've grown
faster. We've delivered over 20% constant currency GPV growth in each quarter
for the past six years, and we expect to sustain that strength in 2027. We've
signed ISO partnerships in the U.K., Canada, Australia, Ireland, France, and
Spain. We’re hiring field sales across several markets, and we’re exploring
partnerships that could transform the scale of our business in select countries.
7 We have not provided the forward-looking GAAP equivalents for certain forward-
looking non-GAAP metrics, including Adjusted Operating Income (Loss) and
Adjusted Diluted EPS, 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. 8 For definitions of Cash App Commerce Enablement and Financial
Solutions, see the Block Financial Metrics section on page 9 of this letter. 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. For the purpose of this letter, figures exclude deactivated
merchants. 5
Square GPV growth translating to gross profit growth
As of September, only 16% of our U.S. sellers use monetized software, and we see
opportunities to innovate on
pricing and packaging to drive software attach higher next year. Squaremates is
now generally available in the U.S. and in 2027 we plan to scale its automation
capabilities further to add more value to more sellers. Beyond AI, we believe no
one can match Neighborhoods and our ability to deliver loyalty, marketing, and
discovery solutions to sellers, on their terms, while enabling them to own their
customer relationships.
Cash App
We built Cash App into one of the most successful consumer fintechs in the world
by doing two things well: developing unique ways to reach customers who want to
try our product, and consistently delivering more value to them through product
innovation. That is the entire growth algorithm, simple to say and brutally hard
to execute. It is how we’ve evolved from a P2P app into a full financial
services app serving tens of millions of customers, and it is how we plan to
sustain growth as Borrow growth normalizes. As of September, Cash App is now
over $8 billion in annualized gross profit, with 60 million monthly transacting
actives, the fourth largest debit program in the U.S., and over $75 billion in
annualized consumer lending origination volume. 10
We are still just getting started.
We have multiple initiatives to grow Cash App actives
We are expanding the audiences we can serve with Cash App, and we believe
Neighborhoods, Cash App Families,
and Cash App global expansion will be the driving forces behind long-term Cash
App actives growth. We believe that almost every American shops at a Square
seller in a given year, and we will soon be able to reach them across all Square
hardware devices through Neighborhoods. 11 For new actives who join through
Neighborhoods, we're planning multiple engagement strategies, starting with
introducing them to Cash App's commerce products. Beyond Neighborhoods, we see
meaningful opportunities to expand our Teens and Families products through a
focus on enhancing the experience for sponsors, making it easier for teens to
graduate accounts, and introducing products that reinforce healthy financial
habits. We continue to focus on helping modern earners by establishing deeper
primary banking relationships. 12 We plan to make it easier to set up direct
deposit, expand the ways customers can access their pay as they earn it, and
evolve Cash App Green so customers unlock more benefits as they bring more of
their financial lives to Cash App. The needs of modern earners aren’t unique to
people in the U.S., and in 2027 we plan to build more capabilities for a global
audience.
Growing Cash App Commerce Enablement through volume growth and monetization rate
expansion 13
As of September, 28 million monthly transacting actives used Cash App Card,
which means 32 million did not. We have more ways to drive commerce attach rates
than ever before, including new Cash App Tags form factors and partnerships,
growing Cash App Pay and Afterpay merchant partnerships, and expanded Afterpay
Pre-Purchase and Post-Purchase eligibility. We expect to serve more customers as
our commerce product set expands, and we have meaningful room to expand our
relationship with customers who already use our commerce products. The median
American spends $1,650 a month on credit and debit cards. Our median commerce
active spends $217 a month on Cash App, and we expect to continue to expand our
monetization rate as we drive engagement higher: as of September, only 10% of
Cash App Card and Cash App Pay actives use a BNPL product, and we see nearly 3x
higher gross profit for actives who use BNPL compared with those who don't.
Borrow growth driving Cash App Financial Solutions growth
We believe we continue to have opportunities to expand Borrow limits and
eligibility while sustaining strong variable profit margins and industry-leading
returns on capital. As of September, the average Borrow limit was $300, compared
to the highest limits we offer of $1,500. We expect to increase average limits
over the next several years as more
10 Consumer lending includes Cash App Borrow and our BNPL products.
11 Based on internal estimates comparing Census Vintage 2025 population
estimates as of July 1, 2025 to the number of Square buyer profiles. Individuals
may have more than one buyer profile.
12 Square and Cash App are financial services platforms, not banks. Throughout
this letter, any reference to Square or Cash Appʼs banking offerings or terms
such as “primary banking actives” refer to products and services that are
offered through Blockʼs Industrial Bank, Square Financial Services, Inc., or
through our third-party bank partners.
13 Cash App Commerce Enablement Monetization Rate is calculated by dividing Cash
App Commerce Enablement gross profit by Cash App Commerce Enablement volume.
Cash App Commerce Enablement gross profit is primarily composed of Cash App Card
and BNPL products. Cash App Commerce Enablement volume includes GPV from Cash
App Card, Cash App Pay, BNPL products, and Cash App Business.
6
customer cohorts mature and our proprietary data compounds. We also expect to
generate revenue from externalizing Cash App Score to partners who value our
underwriting infrastructure and want to extend credit to Cash App customers.
Investing in long-term sustainable growth
We view risk loss as an input to maximizing variable profit across our lending
products. 14 Since launching Square Loans in 2014, we've been able to hold loss
rates consistent with our target while meaningfully expanding eligibility to
more and more customers. Every annual Square loan cohort has performed in line
with or better than our 4% loss target, and we’ve been able to grow Square Loans
at a 27% CAGR over the past decade because of our disciplined underwriting
approach, proprietary data, and world-class expertise. We are taking the same
approach, with the same competitive differentiators, with Cash App Consumer
Lending. Over the past two years, Cash App Consumer Lending originations growth
compounded at 45%. Cash App Consumer Lending variable profit compounded at
nearly the
same rate. We see meaningful ecosystem benefits beyond the returns we generate
on our lending products: deeper engagement with Cash App Commerce functionality,
higher primary banking attach rates, and ultimately higher gross profit per
active, excluding the economics from Borrow.
In 2027, we expect to ramp investments in several long-term strategic growth
initiatives beyond lending, most notably scaling Neighborhoods and AI solutions
externally. Our growth guidance does not rely on these initiatives, but we
believe they can become meaningful drivers of durable growth, and we will scale
them with the same discipline we apply to our core growth investments. Those
core growth investments have delivered strong returns in 2026: year to date
through August, we’ve seen an estimated five-quarter payback for Square new
volume added, with each of
self-onboarding, field sales, and ISO distribution operating in line with or
better than our return and payback investment thresholds. 15 In Cash App, we’ve
seen less than a three-quarter payback on our performance marketing and referral
investments. 16 Beyond go-to-market, we’ve expanded our ability to drive
velocity with AI tooling in a thoughtful way, building evaluation techniques
that help us understand model specific ROI on a wide range of engineering tasks.
We plan to keep investing in increasing velocity in 2027, especially since many
of these investments benefit our external AI products too. We believe the most
valuable investments we can make are in sustaining long-term gross profit
growth, which is where we are focused in 2027 as we drive toward 30% Adjusted
Operating Income growth.
14 Variable profit is defined as gross profit less processing costs and risk
losses, excluding financing costs.
15 Represents sellers onboarded through marketing-led self-onboarding (web and
app), field sales, and third-party sales (resellers and ISOs). Square Payback
Period measures the time it takes for the gross profit we expect sellers to
generate to recover acquisition costs. It is calculated by dividing acquisition
costs by the average quarterly gross profit sellers are expected to generate
over their lifetime. Self-onboarding acquisition costs reflect Square Marketing
Spend, which excludes personnel, travel and expenses, and learning and
development costs. Field sales and third-party sales acquisition costs include
personnel, overhead, hardware discounts, and partner bounties.
16 Represents paid marketing and referrals in the first nine months of 2026.
Cash App Payback Period is customer acquisition cost per new or reactivated
active divided by estimated quarterly variable profit per active, averaged
across all Cash App customers active during the period.
7
Financial Discussion We exceeded our third quarter guidance for gross profit,
Adjusted Operating Income, and Adjusted Diluted EPS. Gross profit grew 22% year
over year to $3.24 billion, with strong growth in both Cash App and Square.
Adjusted Operating Income grew 92% year over year to $923 million, with an all
time high margin of 29%, and Adjusted Diluted EPS grew 109% year over year to a
record $1.13. Third Quarter 2026 Financial Highlights
Cash App monthly transacting actives grew to 60 million in
September, as Neighborhoods brought more Square seller
customers into Cash App. Cash App gross profit grew 27%,
Cash App with strength across Financial Solutions and Commerce
Enablement. Consumer Lending origination volume grew 40%
year over year to $19.0 billion, driven by Cash App Borrow
and Afterpay Post-Purchase.
In the third quarter, Square GPV grew 14% year over year on
a reported and constant currency basis, with U.S. GPV
growth accelerating to 10.4% year over year and
Square International GPV growth sustaining strong performance,
growing 26% year over year on a reported and constant
currency basis. Square gross profit grew in line with GPV
growth in the third quarter.
We outperformed our profitability guidance in the third
quarter, with record Adjusted Operating Income and Adjusted
Diluted EPS. We also achieved record Adjusted EBITDA in the
third quarter. Operating income was $428 million, up 5%
Profitability year over year, while Adjusted Operating Income grew 92%
year over year to $923 million. Net income attributable to
common stockholders was $566 million and Adjusted EBITDA
reached $1.2 billion. GAAP diluted EPS was $0.92, and
Adjusted Diluted EPS grew 109% year over year to $1.13.
Guidance
Q4'26 2026
Gross $3.315B Gross $12.6…
Profit Profit
YoY 15% YoY 22%
Growth Growth
Adjus… Adjus…
Opera… $1.005B Opera… $3.51…
Income Income
% 30% % 28%
Margin Margin
Rule 46% Rule 50%
of X17 of X
Adjus… Adjus…
Dilut… $1.15 Dilut… $4.15
EPS EPS
YoY 77% YoY 75%
Growth Growth
We are raising our full-year guidance to reflect the momentum we are seeing
across Block. For 2026, we now expect $12.626 billion in gross profit, up 22%
year over year, and Adjusted Operating Income of $3.519 billion, or 28% margin,
growing 69% year over year. We also expect Adjusted Diluted EPS to grow 75% to
$4.15. 17 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. 8
Block Financial Metrics 18
Q3… Q4… Q1… Q2… Q3…
R… 6,1… 6,2… 6,0… 6,6… 6,7…
(…
Co… 2,9… 3,0… 2,9… 3,3… 3,4…
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So…
Bi… 2,0… 1,9… 1,7… 1,8… 1,8…
Ec…
G…
P… 2,6… 2,8… 2,9… 3,1… 3,2…
(…
Y… 18% 24% 27% 25% 22%
G…
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YoY 11% 11% 15% 18% 19%
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Fi… 1,0… 1,1… 1,2… 1,2… 1,3…
So…
YoY 34% 51% 55% 43% 32%
Gr…
Bi… 104 118 68 72 52
Ec…
YoY 8% 10% (26… (31… (50…
Gr…
Overall Block gross profit grew 22% year over year in the third quarter, with
27% year-over-year growth in Cash App and 14% year-over-year growth in Square.
Commerce Enablement gross profit growth accelerated to 19% year over year,
driven by strong payments volume in Square and strength in Cash App. Financial
Solutions gross profit grew 32% year over year, driven by Cash App Consumer
Lending. Bitcoin Ecosystem gross profit declined 50% year over year, driven
primarily by a strategic decision to reduce the fee we charge on certain bitcoin
transactions on Cash App. 18 Quarterly revenue and gross profit by category may
not sum to totals due to rounding. 19 Commerce enablement is primarily comprised
of transaction fees related to Square payments, software, and hardware, Cash App
Card, Cash App Pay, the Company’s BNPL products, Cash App Business accounts,
TIDAL, and various other software as a service (“SaaS”) products. 20 Financial
solutions is primarily comprised of Cash App Borrow, Cash App Instant Deposit,
ATM withdrawal fees, interest earned on customer funds, and Square Loans. 21
Bitcoin ecosystem primarily consists of customer purchases of bitcoin within
Cash App, Proto, and bitcoin withdrawal fees. 22 Commerce Enablement gross
profit reflects the impact of amortization of acquired technology assets. 9
Q3… Q4… Q1… Q2… Q3…
G…
P… 2,6… 2,8… 2,9… 3,1… 3,2…
(…
YoY 18% 24% 27% 25% 22%
Gr…
O…
I… 409 485 -172 447 428
(…
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(L…
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(%)
of
gr…
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Strong gross profit growth and Adjusted Operating Income margin expansion
compounded into meaningful Adjusted Diluted EPS growth in the third quarter. On
a GAAP basis, we generated $428 million in operating income in the third quarter
of 2026, compared to $409 million in the third quarter of 2025. Adjusted
Operating Income grew 92% year over year as margin expanded more than 10
percentage points to 29%, supported by strong gross profit growth and
disciplined execution. On a GAAP basis, we delivered diluted EPS of $0.92, an
increase of 24% year over year. Adjusted Diluted EPS grew 109% year over year to
$1.13. 10
Cash App
Q3… Q4… Q1… Q2… Q3…
C…
A…
G… 1,6… 1,8… 1,9… 1,9… 2,0…
P…
(…
YoY 24% 33% 38% 31% 27%
Gr…
C…
A…
O…
M…
C…
A…
M… 58 59 59 59 60
T…
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YoY 2% 3% 4% 3% 4%
Gr…
C…
A…
P… 8.3 9.3 9.7 9.4 9.4
B…
A…
(…
YoY 18% 22% 18% 17% 13%
Gr…
C…
E… 49.7 54.7 55.0 56.5 56.9
V…
(…
YoY 17% 17% 18% 17% 14%
Gr…
C…
E… 1.5… 1.6… 1.6… 1.6… 1.7…
M…
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YoY 51% 69% 82% 59% 40%
Gr…
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A… 79 83 88 87 86
I…
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YoY 12% 15% 14% 13% 10%
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A…
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YoY 10% 12% 10% 9% 6%
Gr…
Cash App gross profit grew 27% year over year with strength in both Financial
Solutions and Commerce Enablement. Cash App monthly transacting actives reached
60 million in September, and Neighborhoods was a key contributor to actives
growth. We believe the ability to grow actives through the Square ecosystem is
one of Cash App’s strongest differentiators. Commerce Enablement gross profit
growth was driven by Cash App Card and BNPL products, led by Afterpay Post-
Purchase. Commerce Enablement volume grew 14% year over year to $56.9 billion,
driven by Cash App Card and Afterpay BNPL. Commerce Enablement monetization rate
expanded 18 basis points year over year to 1.74%, driven by higher BNPL adoption
on Cash App Card through Afterpay Post-Purchase and Pre-Purchase. Financial
Solutions gross profit growth was driven primarily by Cash App Borrow. Consumer
Lending origination volume grew 40% year over year to $19.0 billion, led by Cash
App Borrow and Afterpay Post-Purchase. Afterpay Post-Purchase origination volume
more than tripled year over year, and Afterpay Pre-Purchase origination volume
more than tripled quarter over quarter in its first full quarter of general
availability. As of the end of September, we completed the migration of Cash App
Borrow to a six-week loan construct. During this 23 A Primary Banking Active
(PBA) 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. 24 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. 25 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.
11
product construct shift, we held Borrow limits constant, which had the effect of
lowering Borrow originations per customer by 7% quarter over quarter. With the
shift to a six-week Borrow construct now complete, we expect to begin expanding
Borrow limits again in the near term. More repayment flexibility was a top
customer request for Borrow, and we’re excited to deliver that functionality for
customers by aligning terms with our BNPL products. Square
Q3… Q4… Q1… Q2… Q3…
S…
G… 1,0… 993 982 1,1… 1,1…
P…
(…
YoY 9% 7% 9% 13% 14%
Gr…
T…
S… 67,… 64,… 61,… 72,… 76,…
G…
(…
YoY 12% 10% 13% 13% 14%
Gr…
Co…
Cu…
("… 12% 10% 11% 13% 14%
GPV
YoY
Gr…
S…
U…
G…
YoY 8.9% 7.0% 8.2% 9.8% 10%
Gr…
%
of
To… 79% 78% 78% 78% 77%
Sq…
GPV
S…
I…
G…
YoY 26% 24% 35% 28% 26%
Gr…
CC
GPV 25% 25% 26% 25% 26%
YoY
Gr…
%
of
To… 21% 22% 22% 22% 23%
Sq…
GPV
Square GPV grew 14% year over year in the third quarter on a reported and
constant currency basis to $76.4 billion, reflecting strong GPV growth from new
sellers. GPV from food and beverage sellers was up 20% year over year, driven by
strength in U.S. food and beverage GPV. GPV from retail sellers and services
sellers grew 13% and 8% year over year, respectively. We continued to see the
fastest year-over-year growth in our mid-market seller segment (>$500K in
annualized GPV) compared to our other seller segments during the third quarter.
Square gross profit grew 14% year over year in the third quarter in line with
Square GPV growth. Growth was driven primarily by Commerce Enablement,
reflecting stronger payments volume and increased software adoption, supported
by the simplified pricing and packaging options we introduced last year. We also
saw continued momentum in Financial Solutions, driven by Square Loans. 26 We
continue to expect Square gross profit to grow roughly in line with Square GPV
for the remainder of the year. 26 For definitions of Square Commerce Enablement
and Financial Solutions, see the Block Financial Metrics section on page 9 of
this letter. 12
Operating Expenses and Non-GAAP Operating Expenses ($M)
Q3… Q4… Q1… Q2… Q3…
O…
E… 2,2… 2,3… 3,0… 2,7… 2,8…
(…
Re…
Sh… 2 – 110 4 13
Co…
Am…
of
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and 34 34 34 34 34
Ot…
Ac…
In…
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Ac…
and 0 0 0 0 0
In…
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Re…
and 21 54 743 365 435
Ot…
Ch…
N…
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E…
(…
In the third quarter, product development expenses decreased 11% year over year
on a GAAP basis and decreased 12% on a non-GAAP basis, driven by reduced
personnel-related costs associated with the organizational changes we executed
in February. Sales and marketing expenses grew 15% year over year on a GAAP
basis and grew 14% on a non-GAAP basis, driven by an increase in go-to-market
investments. General and administrative expenses were up 56% year over year on a
GAAP basis, primarily driven by increased accrued legal contingencies, and down
21% year over year on a non-GAAP basis. For more information on accrued legal
contingencies, please see the Commitments and Contingencies footnote in our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
Transaction, loan, and consumer receivable losses increased 66% year over year
on a GAAP basis, driven by growth in loan volumes and product mix shifts. Third
quarter Cash App Consumer Lending variable profit margin was in line with the
third quarter of 2025 and improved modestly quarter over quarter, demonstrating
strong returns and underwriting as originations continued to grow. 27 Borrow
risk loss rates remained healthy as we completed our migration to six-week loans
in September. We expect year-over-year growth in transaction, loan, and consumer
receivable losses to moderate further in the fourth quarter. 27 Consumer Lending
variable profit margin is Consumer Lending variable profit divided by Consumer
Lending originations. We define variable profit as gross profit less processing
costs and risk losses, excluding financing costs. 13
Key Profitability Measures and EPS ($M, except per share figures)
Q3'… Q4'… Q1'… Q2'… Q3'26
Op…
In… 409 485 -172 447 428
(L…
Ad…
Op… 480 588 728 864 923
In…
Net
In…
(L…
at… 462 116 -309 89 566
to
co…
st…
Ad…
Net 337 402 513 620 697
In…
Ad… 833 930 1,0… 1,1… 1,2…
EB…
We…
sh…
us…
to 622 614 598 609 615
co…
Di…
EPS
We…
sh…
us…
to 622 616 604 609 615
co…
Ad…
Di…
EPS
Di…
EPS 0.74 0.19 -0.… 0.15 0.92
($)
Ad…
Di… 0.54 0.65 0.85 1.02 1.13
EPS
($)
14
Non-GAAP Cash Flow ($M)
TR…
Q3… Q4… Q1… Q2… Q3… 12
MO…
N…
c…
p… 1… 6… 9… 1… 1… 3…
by
o…
a…
L…
P…
of -… -… -… -… -… -…
p…
a…
e…
F…
C… 1… 5… 9… 9… 9… 3…
F…
R…
o…
C…
in 33 1… -… 2… 1… 4…
s…
r…
C…
in 3 -… 1… -… -… -…
c…
p…
C…
in – – -2 2 – –
s…
p…
S…
p…
p…
a… -0 -0 -0 -1 -1 -2
f…
of
P…
l…
C…
r…
c…
f…
i…
w…
i…
a…
in
t…
G…
s…
of
c…
f…
P…
f…
o… -… -… -… -… -… -…
of
c…
r…
P…
f…
p…
r…
a… 8… 9… 8… 8… 8… 3…
s…
of
c…
r…
P…
a…
o…
of
l…
o… -… -… -… -… -… -…
c…
as
h…
f…
i…
P…
f…
r…
of
l…
o… 5… 8… 1… 1… 1… 3…
c…
as
h…
f…
i…
W…
f…
c…
f…
i…
w…
f…
a…
in
t…
G…
s…
of
c…
f…
P…
f…
w… 13 8… 2… 7… 3… 2…
f…
b…
R…
of
w… -… – -… -… – -…
f…
b…
N…
C… 2… -… 3… 1… 6… 1…
F…
Y… (… (… 3… 8… 1… 3…
C…
N…
c…
p…
by -… -… 3… -… -… -…
(…
i…
i…
a…
N…
c…
p…
by 1… 40 -… -… 7… -…
(…
i…
f…
a…
In the third quarter of 2026, we continued to prudently invest in our lending
products, including growing Cash App Borrow and Afterpay Post-Purchase given the
strong unit economics and returns we have seen. Within our non-GAAP cash flow,
we have deployed $1.4 billion in capital to grow our lending products over the
last 12 months. 29 We ended the quarter with $10.1 billion of total liquidity,
with $9.2 billion in cash, cash equivalents, restricted cash, and investments in
marketable debt securities, and $900 million available to be withdrawn from our
revolving credit facility . Additionally, we had $809 million available to be
withdrawn under our warehouse funding facilities. 28 Quarterly figures presented
may not sum precisely due to rounding. 29 Capital deployed to grow lending
products is calculated as the trailing twelve month change in our lending
product balances (which consists of consumer receivables, net; loans held for
sale; and loans held for investment, net), less the net financing provided by
our warehouse facilities (i.e. proceeds net of repayments) over the same period.
15
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 3, 2026, 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 2026 on February 24, 2027 ,
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
16
Safe Harbor Statement
This letter contains “forward-looking
statements” within the meaning of the
Safe Harbor provisions of the U.S.
Private Securities Litigation Reform
Act of 1995. All statements other
than statements of historical fact
could be deemed forward-looking,
including, but not limited to,
statements regarding the future
performance of Block, Inc. and its
consolidated subsidiaries (the
Company); the Company’s strategies,
including expected impact of such
strategies on our customers, actives,
and sellers; our business and
financial performance, expected
financial results, guidance, and
general business outlook for current
and future periods, including our
progress toward guidance we issued at
our November 2025 investor day,
trends in U.S. and global GPV and
gross profit growth, and statements
that the Company’s performance will
accelerate; our ability to manage our
risk losses and our expectations
regarding transaction and loan
losses; the Company’s plans with
respect to its emerging initiatives
and product development plans and
product launches and functionalities,
including expectations regarding the
growth of Cash App Borrow and
Afterpay Post-Purchase, Cash App
Score, Neighborhoods and Builderlab;
the expected benefits of AI tools,
models, agents, and related
technologies to our employees, to our
customers, to the pace of our
innovation and to our overall
business, the expected benefits of
our products to our customers and the
impact of our products on our
business; our expectations related to
workforce reductions and the
anticipated costs, impact, risks and
benefits of such actions; and the
Company’s ability and timing to
integrate artificial intelligence and
cryptocurrency features into its
products; the ability of the
Company’s products to attract and
retain sellers and customers,
particularly in new or different
markets or demographics or through
partnerships, sales organizations, or
advertising campaigns; trends in the
Company’s markets and the
continuation of such trends; the
Company’s expectations and intentions
regarding future expenses and
marketing investments; and
management’s statements related to
business strategy, plans,
investments, opportunities, and
objectives for future operations. In
some cases, forward-looking
statements can be identified by terms
such as “may,” “will,” “appears,”
“should,” “expects,” “plans,”
“anticipates,” “could,” “intends,”
“target,” “projects,” “contemplates,”
“believes,” “estimates,” “predicts,”
“potential,” or “continue,” or the
negative of these words or other
similar terms or expressions that
concern our expectations, strategy,
plans, or intentions. Such statements
are subject to a number of known and
unknown risks, uncertainties,
assumptions, and other factors that
may cause the Company’s actual
results, performance, or achievements
to differ materially from results
expressed or implied in this letter.
Investors are cautioned not to place
undue reliance on these statements,
and reported results should not be
considered as an indication of future
performance.
Risks that contribute to the
uncertain nature of the forward-
looking statements include, among
others, a deterioration of general
macroeconomic conditions; risks
related to workforce reductions and
related reorganizations, including
the potential for increased reliance
on proactive intelligence and
artificial intelligence tools; the
Company’s investments in its business
and ability to achieve anticipated
returns, maintain profitability and
expand margins; the Company’s efforts
to expand its product portfolio and
market reach; risks related to our
loan products such as credit losses;
the Company’s ability to develop
products and services to address the
rapidly evolving market for commerce
and financial services; the Company’s
ability to deal with the substantial
and increasingly intense competition
in its industry; risks related to
disruptions in or negative
perceptions of the cryptocurrency
market; acquisitions, strategic
investments, entries into new
businesses, joint ventures,
divestitures, and other transactions
that the Company may undertake; the
Company’s ability to ensure the
integration of its services with a
variety of operating systems and the
interoperability of its technology
with that of third parties; the
Company’s ability to successfully
develop and integrate artificial
intelligence, including generative
AI, into its systems, initiatives,
and products; the Company’s ability
to retain existing customers, attract
new customers, and increase sales to
all customers; the Company’s
dependence on payment card networks,
acquiring processors and other
partnerships; the effect of extensive
regulation and oversight related to
the Company’s business in a variety
of areas; risks related to the
banking ecosystem, including through
our bank partnerships, and FDIC and
other regulatory obligations; the
liabilities and loss potential
associated with new products, product
features, and services; litigation,
including intellectual property
claims, government investigations or
inquiries, and regulatory matters or
disputes; the adequacy of reserves
for such matters and the impact
of any such matters or settlements
thereof on our business; adoption of
the Company’s products and services
in international markets; changes in
political, business, and economic
conditions, including changes due to
actual or potential tariffs; as well
as other risks listed or described
from time to time in the Company’s
filings with the Securities and
Exchange Commission (the SEC),
including the Company’s Annual Report
on Form 10-K for the fiscal year
ended December 31, 2025, and its
subsequent Quarterly Reports on Form
10-Q, which are on file with the SEC
and available on the Investor
Relations page of the Company’s
website. Additional information will
also be set forth in the Company’s
Quarterly Report on Form 10-Q for the
quarter ended September 30, 2026. All
forward-looking statements represent
management’s current expectations and
predictions regarding trends
affecting the Company’s business and
industry and are based on information
and estimates available to the
Company at the time of this letter
and are not guarantees of future
performance. Earnings guidance for
2026 and 2027 reflects assumptions
the Company believes are reasonable
as of the date of this filing, and
actual results may vary based on
changing macroeconomic conditions and
other risks and uncertainties
outlined in this safe harbor section
and in the Company’s periodic reports
filed with the SEC. Except as
required by law, the Company assumes
no obligation to update any of the
statements in this letter.
Key Operating Metrics And Non-GAAP
Financial Measures
To supplement our financial
information presented in accordance
with generally accepted accounting
principles in the United States
(GAAP), from period to period, we
consider and present certain
operating and financial measures that
we consider key metrics or are not
prepared in accordance with GAAP,
including Gross Payment Volume (GPV),
Adjusted EBITDA, Adjusted EBITDA
margin, Adjusted Net Income (Loss),
Adjusted Net Income (Loss) Per Share
(Adjusted EPS), Adjusted Diluted Net
Income (Loss) Per Share (Adjusted
Diluted EPS), Adjusted Operating
Income (Loss), Adjusted Operating
Income (Loss) margin, Free Cash Flow,
Non-GAAP Cash Flow, constant
currency, and non-GAAP operating
expenses. We believe these metrics
and measures are useful to facilitate
period-to-period comparisons of our
business and to facilitate
comparisons of our performance to
that of other payments solution
providers. GPV includes Square GPV
and Cash App Business GPV. Square GPV
is defined as the total dollar amount
of all card and bank payments
processed by sellers using Square,
net of refunds. Cash App Business GPV
comprises Cash App activity related
to peer-to-peer transactions received
by business accounts and peer-to-peer
payments sent from a credit card. GPV
does not include transactions from
our BNPL products.
Adjusted Net Income (Loss), Adjusted
Net Income (Loss) Per Share (Adjusted
EPS), and Adjusted Diluted Net Income
(Loss) Per Share (Adjusted Diluted
EPS) are non-GAAP financial measures
that represent our net income (loss)
and net income (loss) per share,
adjusted to eliminate the effect of
restructuring share-based
compensation expense, contingencies,
restructuring, and other charges;
goodwill and intangible asset
impairment; amortization of
intangible assets; amortization of
debt discount and issuance costs;
gain or loss on revaluation of equity
investments; remeasurement gain or
loss on revaluation of bitcoin
investment; the gain or loss on the
disposal of property and equipment;
acquired deferred revenue and cost
adjustments; the discrete benefits
from the release of valuation
allowances on our deferred tax
assets; and the tax effect of non-
GAAP net income adjustments, as
applicable. Additionally, for
purposes of calculating Adjusted
Diluted EPS, we add back cash
interest expense on convertible
senior notes, as if converted at the
beginning of the period, if the
impact is dilutive. To calculate
Adjusted Diluted EPS, we adjust the
weighted-average number of shares of
common stock outstanding for the
dilutive effect of all potential
shares of common stock. In periods
when we recorded an Adjusted Net
Loss, the diluted Adjusted EPS is the
same as basic Adjusted EPS because
the effects of potentially dilutive
items were anti-dilutive given the
Adjusted Net Loss position.
17
Adjusted EBITDA and Adjusted EBITDA
margin are non-GAAP financial
measures that represent our net
income (loss), adjusted to exclude
share-based compensation expense;
restructuring share-based
compensation expense; depreciation
and amortization; contingencies,
restructuring, and other charges;
interest income and expense;
remeasurement gain or loss on bitcoin
investment; other income and expense;
provision for (benefit from) income
taxes; gain or loss on disposal of
property and equipment; and acquired
deferred revenue and cost adjustment,
as applicable. Adjusted EBITDA margin
is calculated as Adjusted EBITDA
divided by gross profit.
Adjusted Operating Income (Loss) is a
non-GAAP financial measure that
represents our operating income
(loss), adjusted to eliminate the
effect of amortization of acquired
technology assets; contingencies,
restructuring, and other charges;
restructuring share-based
compensation expenses; goodwill and
intangible asset impairment and
amortization of customer and other
acquired intangible assets. Adjusted
Operating Income (Loss) margin is
calculated as Adjusted Operating
Income (Loss) divided by gross
profit.
We also exclude from these measures
certain acquisition-related and
integration costs associated with
business combinations, and various
other costs that are not reflective
of our core operating performance. We
exclude amortization of intangible
assets arising from business
combinations from Adjusted Net Income
(Loss), Adjusted EPS, Adjusted
Diluted EPS, Adjusted Operating
Income (Loss), and Adjusted Operating
Income (Loss) Margin because the
amount of such expenses in any
specific period may not directly
correlate to the underlying
performance of our ongoing business
operations. Acquisition-related costs
include amounts paid to redeem
acquirees’ unvested stock-based
compensation awards; charges
associated with holdback liabilities;
and legal, accounting, and due
diligence costs. Integration costs
include advisory and other
professional services or consulting
fees necessary to integrate acquired
businesses. Other costs that are not
reflective of our core business
operating expenses may include
contingencies, restructuring, and
other charges; impairment charges;
restructuring share-based
compensation expense; and certain
litigation and regulatory charges.
For Adjusted Net Income (Loss),
Adjusted EPS, and Adjusted Diluted
EPS we also add back the impact of
the acquired deferred revenue and
deferred cost adjustment, which was
written down to fair value in
purchase accounting, and adjust for
the tax effect of the non-GAAP net
income adjustments.
Non-GAAP Cash Flow is a non-GAAP
financial measure that represents our
net cash provided by operating
activities adjusted for changes in
settlements receivable; changes in
customers payable; changes in
settlements payable; the purchase of
property and equipment; 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; proceeds from
warehouse facilities borrowings;
repayments of warehouse facilities
borrowings; and sales, and principal
payments, and forgiveness of PPP
loans. We present Non-GAAP Cash Flow
because we use it to understand the
cash generated by our business and
make strategic decisions related to
our balance sheet, and because we are
focused on growing our
Non-GAAP Cash Flow generation over
time. It is not intended to represent
amounts available for discretionary
purposes. Constant currency growth is
calculated by assuming international
results in a given period and the
comparative prior period are
translated from local currencies to
the U.S. dollar at rates consistent
with the monthly average rates in the
comparative prior period. We discuss
growth on a constant currency basis
because a portion of our business
operates in markets outside the U.S.
and is subject to changes in foreign
exchange rates. Non-GAAP operating
expenses is a non-GAAP financial
measure that represents operating
expenses adjusted to remove the
impact of restructuring share-based
compensation; amortization of
customer and other acquired
intangible assets;
acquisition-related and integration
costs; contingencies, restructuring,
and other charges; and goodwill and
intangible asset impairment. We have
included Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted Operating
Income (Loss), Adjusted Operating
Income (Loss) margin, Adjusted Net
Income (Loss), Adjusted EPS, Adjusted
Diluted EPS, and non-GAAP operating
expenses because they are key
measures used by our management to
evaluate our operating performance,
generate future operating plans, and
make strategic decisions, including
those relating to operating expenses
and the allocation of internal
resources.
Accordingly, we believe that Adjusted
EBITDA, Adjusted EBITDA margin,
Adjusted Operating Income (Loss),
Adjusted Operating Income (Loss)
margin, Adjusted Net Income, Adjusted
EPS, Adjusted Diluted EPS, and non-
GAAP operating expenses provide
useful information to investors and
others in understanding and
evaluating our operating results in
the same manner as our management and
board of directors. In addition, they
provide useful measures for period-
to-period comparisons of our
business, as they remove the effect
of certain non-cash items and certain
variable charges that do not vary
with our operations. Adjusted EBITDA,
Adjusted EBITDA margin, Adjusted Net
Income (Loss), Adjusted Operating
Income (Loss), Adjusted Operating
Income (Loss) margin, Adjusted EPS,
Adjusted Diluted EPS, and non-GAAP
operating expenses, as well as other
measures defined in the shareholder
letter, have limitations as financial
measures, should be considered as
supplemental in nature, and are not
meant as substitutes for the related
financial information prepared in
accordance with GAAP. We believe that
the aforementioned metrics and
measures provide useful information
about our operating results, enhance
the overall understanding of our past
performance and future prospects, and
provide useful measures for period-
to-period comparisons of our
business, as they remove the effect
of certain variable amounts, or they
remove amounts that were not repeated
across periods and therefore make
comparisons more difficult. Our
management uses these measures to
evaluate our operating performance,
generate future operating plans, and
make strategic decisions, including
those relating to operating expenses
and the allocation of internal
resources. These non-GAAP financial
measures should not be considered in
isolation from, or as a substitute
for, financial information prepared
in accordance with GAAP. These non-
GAAP financial measures are not based
on any standardized methodology
prescribed by GAAP. Other companies,
including companies in our industry,
may calculate the non-GAAP financial
measures differently or not at all,
which reduces their usefulness as
comparative measures.
18
Condensed Consolidated Statements of Operations
Unaudited
In thousands, except per share data
THREE Sep. Sep. NINE Sep.
MONTHS 30, 30, MONTHS 30, Sep. 30,
ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reven…
Comme…
enabl… $ 3,475,… $ 2,999,… $ 9,755,… $ 8,464,3…
reven…
Finan…
solut… 1,439,… 1,094,… 4,143,… 2,954,4…
reven…
Bitco…
ecosy… 1,803,… 2,020,… 5,493,… 6,522,3…
reven…
Total
net 6,719,… 6,114,… 19,393… 17,941,…
reven…
Cost
of
reven…
Comme…
enabl… 1,612,… 1,433,… 4,453,… 3,940,2…
costs
Finan…
solut… 107,165 88,578 290,359 249,149
costs
Bitco…
ecosy… 1,751,… 1,917,… 5,301,… 6,221,1…
costs
Amort…
of
acqui… 12,066 13,857 37,688 42,935
techn…
assets
Total
cost 3,484,… 3,453,… 10,083… 10,453,…
of
reven…
Gross 3,235,… 2,661,… 9,310,… 7,487,7…
profit
Opera…
expen…
Produ… 635,590 711,235 2,283,… 2,197,2…
devel…
Sales
and 687,900 599,333 2,003,… 1,653,5…
marke…
Gener…
and 847,461 543,974 2,530,… 1,485,0…
admin…
Trans…
loan,
and 601,706 363,455 1,687,… 827,234
consu…
recei…
losses
Amort…
of
custo…
and 34,125 34,133 102,561 101,680
other
acqui…
intan…
assets
Total
opera… 2,806,… 2,252,… 8,607,… 6,264,6…
expen…
Opera… 428,491 409,440 703,371 1,223,0…
income
Inter…
expen… 48,128 34,652 157,044 75,582
net
Remea…
loss
(gain) -229,7… -59,588 31,587 -178,402
on
bitco…
inves…
Other
incom… -2,423 -167,1… -6,650 -162,103
net
Income
before 612,491 601,526 521,390 1,487,9…
income
tax
Provi…
for 48,350 139,928 178,775 299,304
income
taxes
Net 564,141 461,598 342,615 1,188,6…
income
Less:
Net
income
(loss) -1,410 54 -2,772 -1,220
attri…
to
nonco…
inter…
Net
income
attri… $ 565,551 $ 461,544 $ 345,387 $ 1,189,8…
to
common
stock…
Net
income
per
share
attri…
to
common
stock…
Basic $ 0.94 $ 0.76 $ 0.58 $ 1.94
Dilut… $ 0.92 $ 0.74 $ 0.57 $ 1.91
Weigh…
shares
used
to
compu…
net
income
per
share
attri…
to
common
stock…
Basic 602,507 610,199 599,321 614,117
Dilut… 614,778 621,658 607,353 625,256
19
Condensed Consolidated Balance Sheets
In thousands, except per share data
Sep. 30, 2026 Dec. 31, 2025
──────────────────────────────────────────────────────────────────────────────
UNAUDITED
Assets
Current assets:
Cash and cash $ 7,859,314 $ 6,564,092
equivalents
Settlements 1,454,211 1,359,983
receivable
Customer funds 5,356,911 4,771,824
Consumer 2,352,214 2,670,322
receivables, net
Loans held for 4,401,001 3,382,957
investment, net
Other current 3,561,245 4,107,702
assets
Total current 24,984,896 22,856,880
assets
Goodwill 11,984,759 11,849,018
Acquired
intangible assets, 1,155,971 1,281,670
net
Deferred tax 1,313,316 1,302,776
assets
Bitcoin investment 771,881 777,515
Other non-current 1,024,864 1,482,028
assets
Total assets $ 41,235,687 $ 39,549,887
Liabilities and
Stockholders’
Equity
Current
liabilities:
Customers payable $ 7,700,091 $ 6,805,366
Accrued expenses
and other current 3,061,320 1,538,893
liabilities
Current portion of — 1,573,259
long-term debt
Warehouse funding
facilities, 447,437 466,942
current
Total current 11,208,848 10,384,460
liabilities
Warehouse funding
facilities, 1,096,103 897,941
non-current
Long-term debt 5,723,027 5,715,759
Other non-current 337,523 381,845
liabilities
Total liabilities 18,365,501 17,380,005
Commitments and
contingencies
Stockholders’
equity:
Preferred stock,
$0.0000001 par
value:
100,000 shares
authorized at
September
30, 2026 and — —
December 31, 2025.
None
issued and
outstanding at
September 30,
2026 and December
31, 2025.
Class A common
stock, $0.0000001
par
value:
1,000,000 shares
authorized at
September
30, 2026 and — —
December 31, 2025;
544,541
and 542,085 issued
and outstanding at
September 30, 2026
and December 31,
2025,
respectively.
Class B common
stock, $0.0000001
par
value:
500,000 shares
authorized at
September
30, 2026 and — —
December 31, 2025;
59,976
and 59,993 issued
and outstanding at
September 30, 2026
and December 31,
2025,
respectively.
Additional paid-in 19,122,552 18,895,405
capital
Accumulated other -234,839 -365,381
comprehensive loss
Retained earnings 4,019,641 3,674,254
Total
stockholders’
equity 22,907,354 22,204,278
attributable
to common
stockholders
Noncontrolling -37,168 -34,396
interests
Total
stockholders’ 22,870,186 22,169,882
equity
Total liabilities
and stockholders’ $ 41,235,687 $ 39,549,887
equity
20
Condensed Consolidated Statements of Cash Flows
Unaudited
In thousands
NINE MONTHS ENDED Sep. 30, 2026 Sep. 30, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating
activities:
Net income $ 342,615 $ 1,188,654
Adjustments to
reconcile net income
to
net cash provided by
operating
activities:
Depreciation and 282,148 273,464
amortization
Amortization of
discounts and -894,970 -836,118
premiums
Non-cash lease
expense and other 130,759 43,713
non-cash adjustments
Share-based 871,220 921,957
compensation
Loss (gain) on
revaluation of 10,420 -172,582
equity
investments
Remeasurement loss
(gain) on bitcoin 31,587 -178,402
investment
Transaction, loan,
and consumer 1,687,281 827,234
receivable losses
Change in deferred -396 182,756
income taxes
Purchases and
originations of
loans -5,777,116 -12,394,452
originally
classified as held
for sale
Proceeds from
repayments of loans
originally 5,512,088 12,457,575
classified as held
for sale
Changes in operating
assets and
liabilities:
Settlements -274,477 -291,388
receivable
Customers payable 309,299 313,061
Prepaid expenses -6,787 -29,087
Other assets and 777,910 -347,671
liabilities
Net cash provided by
operating 3,001,581 1,958,714
activities
Cash flows from
investing
activities:
Purchases of
marketable debt -403,000 -481,088
securities
Proceeds from
maturities of 450,839 423,312
marketable
debt securities
Proceeds from sale
of marketable debt 75,740 392,218
securities
Payments for
originations of -24,997,025 -22,553,302
consumer
receivables
Proceeds from
principal repayments
and 25,981,087 23,721,275
sales of consumer
receivables
Purchases and
originations of
loans
originally -33,272,894 -7,643,830
classified as held
for
investment
Proceeds from
repayments of loans
originally 31,325,880 5,629,369
classified as held
for
investment
Purchases of
property and -127,996 -113,838
equipment
Other investing 313,767 -45,930
activities
Net cash used in -653,602 -671,814
investing activities
Cash flows from
financing
activities:
Repayments of senior -1,000,000 —
notes
Proceeds from
issuance of senior — 2,200,000
notes
Payments of debt
issuance costs from — -28,346
issuance of senior
notes
Payments to redeem -575,000 -1,000,624
convertible notes
Proceeds from
warehouse facilities 1,320,398 448,530
borrowings
Repayments of
warehouse facilities -1,155,192 -1,456,869
borrowings
Proceeds from the
exercise of stock
options and 50,282 58,247
purchases under the
employee
stock purchase plan
Net increase in
interest-bearing 604,593 81,176
deposits
Repurchases of -700,935 -1,540,529
common stock
Other financing -25,602 -35,330
activities
Change in customer
funds, restricted 585,087 620,844
from use in the
Company's operations
Net cash used in -896,369 -652,901
financing activities
Effect of foreign
exchange rate on 4,397 80,515
cash
and cash equivalents
Net increase in
cash, cash
equivalents, 1,456,007 714,514
restricted cash, and
customer funds
Cash, cash
equivalents,
restricted cash, 12,481,276 13,230,512
and customer funds,
beginning of the
period
Cash, cash
equivalents,
restricted cash, $ 13,937,283 $ 13,945,026
and customer funds,
end of the period
21
Reportable Segment Disclosures
Unaudited
Information on the reportable segments revenue and segment gross profit, as well
as amounts for the
"Corporate and Other" category, which includes products and services not
assigned to reportable segments
and intersegment eliminations:
T… S… N… …
M… 3… M… …
E… 2… E… …
──────────────────────────────────────────────────────────────────────────────
… C… C… C… C…
… A… S… a… T… A… S… a… T…
O… O…
…
…
… $ 1… $ 2… $ 51 $ … $ … $ … $ … $ …
…
…
… 1… 3… — … … … — …
…
…
… 1… 35 1 … … … … …
…
… $ 4… $ 2… $ 52 $ … $ … $ … $ … $ …
…
…
…
…
…
… $ 1… $ 1… $ 36 $ … $ … $ … $ … $ …
…
…
… 85 22 — … … … — …
…
…
… 1… 34 7 … … … … …
…
…
… 12 — — … … 3 — …
…
…
…
… 2… 1… 43 … … … … …
…
…
…
… $ 2… $ 1… $ 9 $ … $ … $ … $ … $ …
…
(i) Figures presented may not sum precisely due to rounding.
22
Reportable Segment Disclosures, Continued
… … … S…
… … … 3…
… … … 2…
──────────────────────────────────────────────────────────────────────────────
… … … …
… … … … … … … T…
… …
$ … $ … $ … $ 2… $ 2… $ 5… $ 1… $ …
… … — 1… 2… 7… — …
… 1 30 2… 6… 1 … …
$ … $ … $ … $ 6… $ 1… $ 6… $ 1… $ …
$ … $ … $ … $ 1… $ 5… $ 3… $ 93 $ …
… 6 — 89 2… 16 — …
… 1 22 1… 6… 1 … …
… 1 — 14 39 4 — …
… … … 3… 7… 3… 1… …
$ … $ … $ … $ 2… $ 4… $ 2… $ 41 $ …
(i) Figures presented may not sum precisely due to rounding.
Cash THREE Sep. Sept. Dec. Mar. Jun.
App(… MONT… 30, 30, 31, 31, 30,
mill… ENDED 2026 2025 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Rev…
Com…
ena… $ 1,198 $ 976 $ 1,096 $ 1,086 $ 1,131
rev…
Fin…
sol… 1,108 834 949 1,040 1,077
rev…
Bit…
eco… 1,768 1,990 1,856 1,744 1,813
rev…
Seg… $ 4,074 $ 3,800 $ 3,902 $ 3,871 $ 4,021
rev…
Cost
of
rev…
Com…
ena… $ 196 $ 185 $ 201 $ 187 $ 187
cos…
Fin…
sol… 85 83 84 83 88
cos…
Bit…
eco… 1,711 1,895 1,773 1,681 1,760
cos…
Amo…
of 12 13 13 12 12
acq…
tec…
Seg…
cost 2,004 2,176 2,070 1,963 2,048
of
rev…
Seg…
gro… $ 2,070 $ 1,624 $ 1,831 $ 1,908 $ 1,973
pro…
(i) Figures presented may not sum precisely due to rounding.
23
Reportable Segment Disclosures, Continued
Cash THREE Sep. Sept. Dec. Mar. Jun.
App(… MONT… 30, 30, 31, 31, 30,
mill… ENDED 2025 2024 2024 2025 2025
──────────────────────────────────────────────────────────────────────────────
Rev…
Com…
ena… $ 976 $ 848 $ 949 $ 900 $ 940
rev…
Fin…
sol… 834 620 607 649 733
rev…
Bit…
eco… 1,990 2,462 2,461 2,329 2,171
rev…
Seg… $ 3,800 $ 3,930 $ 4,017 $ 3,879 $ 3,845
rev…
Cost
of
rev…
Com…
ena… $ 185 $ 169 $ 200 $ 176 $ 190
cos…
Fin…
sol… 83 75 73 73 78
cos…
Bit…
eco… 1,895 2,366 2,354 2,237 2,064
cos…
Amo…
of 13 14 14 13 13
acq…
tec…
Seg…
cost 2,176 2,624 2,641 2,499 2,344
of
rev…
Seg…
gro… $ 1,624 $ 1,306 $ 1,376 $ 1,380 $ 1,501
pro…
(i) Figures presented may not sum precisely due to rounding.
THREE Sep. Sept. Dec. Mar. Jun.
Squa… MONT… 30, 30, 31, 31, 30,
mill… ENDED 2026 2025 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Rev…
Com…
ena… $ 2,227 $ 1,979 $ 1,905 $ 1,803 $ 2,161
rev…
Fin…
sol… 332 261 273 282 305
rev…
Bit…
eco… 35 1 14 28 37
rev…
Seg… $ 2,594 $ 2,241 $ 2,193 $ 2,112 $ 2,504
rev…
Cost
of
rev…
Com…
ena… $ 1,381 $ 1,216 $ 1,178 $ 1,096 $ 1,300
cos…
Fin…
sol… 22 6 6 6 6
cos…
Bit…
eco… 34 1 14 28 37
cos…
Amo…
of — 1 1 1 1
acq…
tec…
Seg…
cost 1,437 1,223 1,200 1,131 1,343
of
rev…
Seg…
gro… $ 1,157 $ 1,018 $ 993 $ 982 $ 1,160
pro…
(i) Figures presented may not sum precisely due to rounding.
24
Reportable Segment Disclosures, Continued
THREE Sep. Sept. Dec. Mar. Jun.
Squa… MONT… 30, 30, 31, 31, 30,
mill… ENDED 2025 2024 2024 2025 2025
──────────────────────────────────────────────────────────────────────────────
Rev…
Com…
ena… $ 1,979 $ 1,790 $ 1,751 $ 1,627 $ 1,915
rev…
Fin…
sol… 261 212 220 226 251
rev…
Bit…
eco… 1 — — — —
rev…
Seg… $ 2,241 $ 2,002 $ 1,970 $ 1,852 $ 2,166
rev…
Cost
of
rev…
Com…
ena… $ 1,216 $ 1,063 $ 1,040 $ 947 $ 1,133
cos…
Fin…
sol… 6 5 5 5 5
cos…
Bit…
eco… 1 — — — —
cos…
Amo…
of 1 1 2 2 2
acq…
tec…
Seg…
cost 1,223 1,069 1,047 954 1,139
of
rev…
Seg…
gro… $ 1,018 $ 932 $ 924 $ 898 $ 1,027
pro…
(i) Figures presented may not sum precisely due to rounding.
Operating Segment Disclosures
Unaudited
A reconciliation of total segment gross profit to the Company’s income (loss)
before applicable income taxes
(in thousands):
THREE Sep. Sep. NINE Sep.
MONTHS 30, 30, MONTHS 30, Sep. 30,
ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Total
segme… $ 3,226,… $ 2,641,… $ 9,249,… $ 7,446,7…
gross
profit
Add:
Corpo…
and 8,569 19,957 60,966 40,930
other
gross
profit
Less:
Produ… 635,590 711,235 2,283,… 2,197,2…
devel…
Less:
Sales 687,900 599,333 2,003,… 1,653,5…
and
marke…
Less:
Gener… 847,461 543,974 2,530,… 1,485,0…
and
admin…
Less:
Trans…
loan,
and 601,706 363,455 1,687,… 827,234
consu…
recei…
losses
Less:
Amort…
of
custo… 34,125 34,133 102,561 101,680
and
other
intan…
assets
Less:
Inter… 48,128 34,652 157,044 75,582
expen…
net
Less:
Remea…
loss
(gain) -229,7… -59,588 31,587 -178,402
on
bitco…
inves…
Less:
Other -2,423 -167,1… -6,650 -162,103
incom…
net
Income
before $ 612,491 $ 601,526 $ 521,390 $ 1,487,9…
income
tax
25
Select Operating Metrics and Non-GAAP Financial Measures
Unaudited
THREE Sep. Sep. NINE Sep.
MONTHS 30, 30, MONTHS 30, Sep. 30,
ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Gross
Payme…
Volume $ 78,153 $ 69,283 $ 215,996 $ 192,695
(GPV)
(in
milli…
Adjus…
Opera…
Income $ 922,737 $ 480,186 $ 2,514,… $ 1,496,0…
(in
thous…
Adjus…
EBITDA $ 1,227,… $ 832,662 $ 3,406,… $ 2,536,8…
(in
thous…
Adjus…
Net
Income
Per
Share:
Basic $ 1.16 $ 0.55 $ 3.05 $ 1.75
Dilut… $ 1.13 $ 0.54 $ 3.00 $ 1.72
THREE Sep. Sep. NINE Sep. Sep.
(in MONTHS 30, 30, MONTHS 30, 30,
milli… ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Squa… $ 76,359 $ 67,151 $ 210,416 $ 185,5…
GPV
Cash
App 1,793 2,132 5,580 7,194
GPV
Total $ 78,153 $ 69,283 $ 215,996 $ 192,6…
GPV
(i) Figures presented may not sum precisely due to rounding.
THREE Sep. Sept. Dec. Mar. Jun.
(in MONT… 30, 30, 31, 31, 30,
mill… ENDED 2026 2025 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Squ…
gro… $ 1,157 $ 1,018 $ 993 $ 982 $ 1,160
pro…
Les…
Har…
con…
to -50 -41 -43 -41 -37
Squ…
gro…
pro…
Squ…
gro…
pro… $ 1,207 $ 1,059 $ 1,035 $ 1,023 $ 1,197
exc…
Har…
(i) Figures presented may not sum precisely due to rounding.
THREE Sep. Sept. Dec. Mar. Jun.
(in MONT… 30, 30, 31, 31, 30,
mill… ENDED 2026 2025 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Squ…
com…
ena… $ 846 $ 762 $ 726 $ 706 $ 860
gro…
pro…
Les…
Har…
con…
to
Squ… -50 -41 -43 -41 -37
com…
ena…
gro…
pro…
Squ…
com…
ena…
gro… $ 896 $ 803 $ 769 $ 747 $ 897
pro…
exc…
Har…
(ii)
(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.
26
Select Operating Metrics and Non-GAAP Financial Measures, Continued
THREE Sep. Sep. NINE Sep. Sep.
(in MONTHS 30, 30, MONTHS 30, 30,
milli… ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash
App
sales $ 414 $ 361 $ 1,217 $ 970
and
mark…
expe…
Other
sales
and 274 238 787 683
mark…
expe…
Total
sales
and $ 688 $ 599 $ 2,003 $ 1,654
mark…
expe…
(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 Sep. Sep. NINE Sep. Sep.
(in MONTHS 30, 30, MONTHS 30, 30,
milli… ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Prod…
deve… $ -636 $ -711 $ -2,283 $ -2,197
expe…
Rest…
shar… 11 1 105 9
comp…
Cont…
rest…
and 1 4 283 33
other
char…
Non-…
prod… $ -623 $ -705 $ -1,895 $ -2,155
deve…
expe…
(i) Figures presented may not sum precisely due to rounding.
THREE Sep. Sep. NINE Sep. Sep.
(in MONTHS 30, 30, MONTHS 30, 30,
milli… ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Sales
and $ -688 $ -599 $ -2,003 $ -1,654
mark…
expe…
Rest…
shar… 1 0 9 1
comp…
Cont…
rest…
and 3 — 47 15
other
char…
Non-…
sales
and $ -684 $ -599 $ -1,948 $ -1,637
mark…
expe…
(i) Figures presented may not sum precisely due to rounding.
THREE Sep. Sep. NINE Sep. Sep.
(in MONT… 30, 30, MONTHS 30, 30,
mill… ENDED 2026 2025 ENDED 2026 2025
──────────────────────────────────────────────────────────────────────────────
Gen…
and $ -847 $ -544 $ -2,5… $ -1,485
adm…
exp…
Res…
sha… 1 0 13 2
com…
Acq…
and 0 0 1 2
int…
cos…
Con…
res…
and 430 16 1,213 67
oth…
cha…
Non…
gen…
and $ -416 $ -527 $ -1,3… $ -1,415
adm…
exp…
(i) Figures presented may not sum precisely due to rounding.
27
Adjusted Operating Income (Loss) and Margin
Unaudited
In thousands, except for percentages
THR… Sep. Sep… Dec. Mar. Jun.
MON… 30, 30, 31, 31, 30,
END… 2026 2025 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Op…
in… $ 428… $ 409… $ 485… $ -17… $ 446…
(l…
Am…
of
ac… 12,… 13,… 13,… 12,… 12,…
te…
as…
Ac…
and 365 345 352 362 367
in…
co…
Co…
re…
and 434… 20,… 54,… 742… 365…
ot…
ch…
Re…
sh… 12,… 1,6… — 109… 4,4…
co…
ex…
Am…
of
cu…
and 34,… 34,… 34,… 34,… 34,…
ot…
ac…
in…
as…
Ad…
Op… $ 922… $ 480… $ 587… $ 727… $ 863…
In…
Ad…
Op…
In…
ma… 29 % 18 % 20 % 25 % 27 %
(%)
of
gr…
pr…
Adjusted EBITDA
Unaudited
In thousands
THR… Sep. Sep… Dec. Mar. Jun.
MON… 30, 30, 31, 31, 30,
END… 2026 2025 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Net
in…
(l…
at… $ 565… $ 461… $ 115… $ -30… $ 88,…
to
co…
st…
Ad…
Net
in…
(l… -1,… 54 -206 86 -1,…
at…
to
no…
in…
Net
in… 564… 461… 115… -30… 87,…
(l…
Sh…
co… 260… 307… 293… 229… 255…
ex…
Re…
sh… 12,… 1,6… — 109… 4,4…
co…
ex…
De…
and 91,… 92,… 96,… 95,… 95,…
am…
Ac…
and 365 345 352 362 367
in…
co…
Co…
re…
and 434… 20,… 54,… 742… 365…
ot…
ch…
In…
ex… 48,… 34,… 53,… 53,… 55,…
net
Re…
lo…
(g… -22… -59… 234… 172… 88,…
on
bi…
in…
Ot…
ex… -2,… -16… -4,… -5,… 1,1…
(i…
net
Pr…
for
(b… 48,… 139… 86,… -83… 214…
fr…
in…
ta…
Lo…
on
di…
of 200 617 270 4,3… 1,4…
pr…
and
eq…
Ac…
de…
re… 5 9 7 6 6
and
co…
ad…
Ad… $ 1,2… $ 832… $ 929… $ 1,0… $ 1,1…
EB…
Ad…
EB…
ma…
(%) 38 % 31 % 32 % 35 % 37 %
of
gr…
pr…
28
Adjusted Net Income and Adjusted EPS
Unaudited
In thousands, except per share data
THREE Sep. Sept. Dec. Mar. Jun.
MONTHS 30, 30, 31, 31, 30,
ENDED 2026 2025 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Net
inco…
(los…
attr… $ 565,5… $ 461,5… $ 115,7… $ -308,6… $ 88,517
to
comm…
stoc…
Add:
Net
inco…
(los… -1,410 54 -206 86 -1,448
attr…
to
nonc…
inte…
Net
inco… 564,1… 461,5… 115,5… -308,5… 87,069
(los…
Acqu…
and 365 345 352 362 367
inte…
costs
Cont…
rest…
and 434,9… 20,752 54,102 742,812 365,1…
other
char…
Rest…
shar… 12,719 1,659 — 109,512 4,408
comp…
expe…
Amor…
of 46,191 47,990 47,964 46,976 47,082
inta…
asse…
Amor…
of
debt
disc… 2,729 3,335 4,030 3,886 3,287
and
issu…
costs
Loss
(gai…
on
reva… 615 -171,… 326 5,665 4,140
of
equi…
inve…
Reme…
loss
(gai… -229,… -59,5… 234,3… 172,818 88,474
on
bitc…
inve…
Loss
on
disp…
of 200 617 270 4,354 1,434
prop…
and
equi…
Acqu…
defe…
reve… 5 9 7 6 6
and
cost
adju…
Inco…
tax
expe…
(ben… — -8,909 3,313 — -113,…
from
defe…
tax
asse…
Tax
effe…
of
non-… -135,… 39,933 -58,8… -264,9… 131,5…
net
inco…
adju…
Adju…
Net
Inco… $ 697,0… $ 336,6… $ 401,3… $ 512,878 $ 619,5…
-
basic
Cash
inte…
expe… 291 273 271 264 275
on
conv…
notes
Adju…
Net
Inco… $ 697,3… $ 336,8… $ 401,6… $ 513,142 $ 619,8…
-
dilu…
Weig…
shar…
used
to
comp…
net
inco…
(los…
per
share
attr…
to
comm…
stoc…
Basic 602,5… 610,1… 606,6… 597,586 597,8…
Dilu… 614,7… 621,6… 613,7… 597,586 608,8…
Net
inco…
(los…
per
share
attr…
to
comm…
stoc…
Basic $ 0.94 $ 0.76 $ 0.19 $ -0.52 $ 0.15
Dilu… $ 0.92 $ 0.74 $ 0.19 $ -0.52 $ 0.15
Weig…
shar…
used
to
comp…
Adju…
Net
Inco…
Per
Shar…
Basic 602,5… 610,1… 606,6… 597,586 597,8…
Dilu… 614,7… 621,6… 615,6… 604,181 608,8…
Adju…
Net
Inco…
Per
Shar…
Basic $ 1.16 $ 0.55 $ 0.66 $ 0.86 $ 1.04
Dilu… $ 1.13 $ 0.54 $ 0.65 $ 0.85 $ 1.02
29
Non-GAAP Cash Flow
Unaudited
In millions
THREE Sept. Dec. Mar. Jun. TRAI… Sept.
MONTHS 30, 31, 31, 30, 12 30,
ENDED 2024 2024 2025 2025 MONT… 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
pro… $ 685 $ 14 $ 133 $ 374 $ 1,973
by
ope…
act…
Les…
Pur…
of -57 -27 -32 -31 -141
pro…
and
equ…
Free
Cash $ 628 $ -13 $ 101 $ 343 $ 1,832
Flow
Rev…
of:
Cha…
in -2,4… -370 88 170 -79
set…
rec…
Cha…
in 2,192 534 -165 -151 221
cus…
pay…
Cha…
in — — — — 0
set…
pay…
Sal…
pri…
pay…
and -1 -1 -1 -1 -3
for…
of
PPP
loa…
Con…
rec…
cash
flo…
inc…
wit…
inv…
act…
in
the
GAAP
sta…
of
cash
flo…
Pay…
for
ori… -7,3… -9,121 -6,8… -7,740 -31,6…
of
con…
rec…
Pro…
from
pri…
rep…
and 7,415 8,780 7,602 7,892 32,501
sal…
of
con…
rec…
Pur…
and
ori…
of
loa…
ori… — — — -1,164 -7,644
cla…
as
held
for
inv…
Pro…
from
rep…
of
loa…
ori… — — — 457 5,629
cla…
as
held
for
inv…
War…
fac…
cash
flo…
inc…
wit…
fin…
act…
in
the
GAAP
sta…
of
cash
flo…
Pro…
from
war… 87 849 223 213 1,298
fac…
bor…
Rep…
of
war… -86 -276 -1,0… -151 -1,733
fac…
bor…
Non…
Cash $ 497 $ 383 $ -141 $ -131 $ 349
Flo…
Net
cash
pro…
by $ 106 $ -323 $ 915 $ -486 $ -995
(us…
in)
inv…
act…
Net
cash
pro…
by $ 72 $ 708 $ -1,2… $ -908 $ 55
(us…
in)
fin…
act…
(i) Figures presented may not sum precisely due to rounding.
(in Sept. 30, Sept. 30,
millions) 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Consumer
receivables, $ 2,352 $ 2,076 $ 276
net
Loans held 734 778 -44
for sale
Loans held
for 4,401 2,203 2,198
investment,
net
Total
lending $ 7,487 $ 5,057 $ 2,430
products
Less:
Proceeds
from 2,177
warehouse
facilities
borrowings(…
Less:
Repayments
of warehouse -1,155
facilities
borrowings(…
Capital
deployed to $ 1,408
grow lending
products
(i) Proceeds from and repayments of warehouse facilities borrowings represent
trailing twelve months cash flows for the period ended September 30, 2026.
30