Block, Inc.
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001628280-24-046294
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001628280-25-021538
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 118 previous paragraphs and 114 current paragraphs.
53 unchanged; 47 reworded; 13 added; 16 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
(i) Not meaningful ("NM")
Current report
Subscription and services-based costs for the three months ended March 31, 2025 had no significant change, compared to the three months ended March 31, 2024. While subscription and services-based revenue increased by 12% compared to the three months ended March 31, 2024, the costs of revenues increased by 2% for the same comparative period due to the growth in Cash App's financial services-related products, including Cash App Card and related processing services, which have more favorable gross margin economics.
Current report
Sales and marketing expenses increased by $60.6 million, or 14%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase in sales and marketing expenses for the three months ended March 31, 2025 was driven by an increase in marketing, other advertising, and related personnel costs of $50.8 million as we prioritize marketing investments to support the growth of Cash App and Square, as well as $12.6 million of incremental personnel costs arising from restructuring initiatives, including severance and other related expenses. These expenses for the three months ended March 31, 2025 were partially offset by a decrease in Cash App peer-to-peer processing costs and related transaction losses of $8.9 million.
Current report
General and administrative expenses for the three months ended March 31, 2025 increased by $20.5 million, or 4%, compared to the three months ended March 31, 2024. The increase was primarily due to higher professional fees of $24.2 million related to the implementation and continuation of our cost efficiency goals as well as an increase in personnel costs of $7.3 million, driven by restructuring costs, including severance and other related expenses. The increase in expenses for the three months ended March 31, 2025 was partially offset by a decrease in software, subscription costs and other administrative expenses.
Current report
Transaction, loan, and consumer receivable losses for the three months ended March 31, 2025 had no significant change compared to the three months ended March 31, 2024. While loan volumes increased, primarily related to Cash Borrow, compared to the three months ended March 31, 2024, loan losses have decreased due to better performance of the loan portfolio in the three months ended March 31, 2025.
Current report
Remeasurement Loss (Gain) on bitcoin investment (in thousands, except for percentages)
Current report
Remeasurement loss on bitcoin investment of $93.4 million and gain on bitcoin investment of $233.4 million for the three months ended March 31, 2025 and 2024, respectively, was due to the remeasurement of our bitcoin investment to its fair value at each reporting date. Refer to Note 11, Bitcoin within Notes to the Condensed Consolidated Financial Statements for further details regarding the remeasurement of our bitcoin investment.
Current report
Other income, net, of $8.3 million and $4.4 million for the three months ended March 31, 2025 and March 31, 2024, respectively, was primarily due to accretion on investments and foreign exchange rate impacts.
Current report
Revenue for the Square segment for the three months ended March 31, 2025 increased by $122.1 million, or 7%, compared to the three months ended March 31, 2024. The increase was primarily due to the Square items referenced within our overall revenue discussion.
Current report
Change in Non-GAAP Financial Measures
Current report
Beginning in fiscal 2025, we revised our definition of Adjusted Net Income Per Share ("Adjusted EPS") to include stock-based compensation. We believe this change provides a more comprehensive view of our operating performance and aligns with our non-GAAP measure of Adjusted Operating Income. Prior period amounts have been recast to reflect the updated presentation.
Current report
On March 5, 2020, we issued an aggregate principal amount of $1.0 billion of convertible senior notes ("2025 Convertible Notes"). On March 1, 2025, we paid $1.0 billion in cash to settle the outstanding principal balance and interest on the 2025 Convertible Notes upon maturity.
Current report
For the three months ended March 31, 2025, cash used in financing activities was $1.2 billion, driven by a $1.0 billion cash payment for the settlement of the outstanding 2025 Convertible Notes that matured in March 2025; net repayments under Warehouse Facilities borrowings of $868.3 million; and $445.3 million of share repurchases in the first quarter of 2025. These were partially offset by increases in customer funds of $1.1 billion, and interest-bearing deposits of $34.5 million.
Removed paragraphs (16)
Previous report
We delivered strong growth across our primary ecosystems in the third quarter of 2024, with gross profit of $2.2 billion, up 19% year over year.
Previous report
Subscription and services-based costs for the three and nine months ended September 30, 2024 increased by $12.0 million, or 5%, and $30.2 million, or 4%, compared to the three and nine months ended September 30, 2023, respectively. The increase in the three and nine months ended September 30, 2024 was driven by growth in Cash App's financial service-related products, including Cash App Card and related processing costs and fees, BNPL platform, and bitcoin withdrawal fees, which was partially offset by favorable terms on such processing costs due to a contract renewal executed during the third quarter of 2023.
Previous report
Sales and marketing expenses increased by $32.4 million, or 7%, and decreased by $49.8 million, or 3%, for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively. The increase in sales and marketing expenses for the three months ended September 30, 2024 was driven by charges related to changes to certain contractual arrangements as well as inventory write-offs. These charges were more than offset for the nine months ended September 30, 2024 by a decrease in marketing and other advertising costs as well as release of estimated chargeback losses of $27.3 million in the first quarter of 2024.
Previous report
General and administrative expenses for the three and nine months ended September 30, 2024 decreased by $5.0 million and $42.3 million compared to the three and nine months ended September 30, 2023, respectively. The decrease was primarily due to headcount related reductions in personnel costs of $69.4 million and $138.5 million for the three and nine months ended September 30, 2024, respectively, as well as a reduction of facilities expenses of $5.0 million and $17.7 million, respectively, for the same periods. The decrease in expenses for the three and nine months ended September 30, 2024 was partially offset by higher legal expenses and other professional fees. Additionally, during the first quarter of 2024, we recognized a charge of $32.2 million related to adjustments of certain TIDAL acquisition deferred purchase consideration. During the second quarter of 2024, we derecognized $15.1 million of certain indemnification assets related to the TIDAL acquisition that were deemed no longer recoverable.
Previous report
Transaction, loan, and consumer receivable losses for the three and nine months ended September 30, 2024 increased by $14.7 million, or 8%, and $64.6 million, or 13%, compared to the three and nine months ended September 30, 2023, respectively, primarily due to:
Previous report
•an increase in loan losses of $57.3 million and $158.5 million for the three and nine months ended September 30, 2024, respectively, primarily due to increased loan volumes; partially offset by
Previous report
•a decrease in transaction losses of $42.6 million and $93.9 million for the three and nine months ended September 30, 2024, respectively. The decrease in transaction losses is attributable to both an operational outage in the third quarter of 2023, which resulted in higher transaction losses incurred for the three and nine months ended September 30, 2023, as well as a release of previously established risk loss provisions in the second quarter of 2024 related to prior periods.
Previous report
Other income, net, of $14.9 million and $193.2 million for the three and nine months ended September 30, 2024, respectively, was driven by gains of $5.3 million and $168.6 million from the remeasurement of our bitcoin investment in the respective periods as well as accretion of investments in marketable debt securities. Refer to Note 11, Bitcoin within Notes to the Condensed Consolidated Financial Statements for further details regarding the remeasurement of our bitcoin investment. Other expense, net, of $23.9 million and other income, net, of $68.4 million for the three and nine months ended September 30, 2023, respectively, was primarily due to a loss of $28.2 million and a gain of $83.9 million, respectively, from the remeasurement of our bitcoin investment in the respective periods, partially offset by unrealized losses on certain marketable and non-marketable investments.
Previous report
Revenue for the Square segment for the three and nine months ended September 30, 2024 increased by $148.4 million, or 8%, and $490.8 million, or 9%, compared to the three and nine months ended September 30, 2023, respectively. The increase was primarily due to growth in Square GPV as well as growth in Square Banking products, which primarily include Square Loans, Instant Transfer, and Square Debit Card.
Previous report
Safeguarding Obligation Liability and Safeguarding Asset Related to Bitcoin Held for Other Parties
Previous report
As detailed in Note 11, Bitcoin within Notes to the Condensed Consolidated Financial Statements, we recorded a safeguarding obligation liability and a corresponding safeguarding asset related to the bitcoin held for other parties. As of September 30, 2024, the safeguarding obligation liability related to bitcoin held for other parties was $1.4 billion. We have taken steps to mitigate the potential risk of loss for the bitcoin held for other parties, including holding insurance coverage specifically for certain bitcoin incidents and using secure cold storage to store materially all of the bitcoin held for other parties. Staff Accounting Bulletin No. 121 ("SAB 121") also asks us to consider the legal ownership of the bitcoin held for other parties, including whether the bitcoin held for other parties would be available to satisfy general creditor claims in the event of Block’s bankruptcy. The legal rights of people with respect to crypto-assets held on their behalf by a custodian, such as us, upon the custodian’s bankruptcy have not yet been settled by courts and are highly fact dependent. Our contractual arrangements state that our customers and trading partners retain legal ownership of the bitcoin custodied by us on their behalf; they have the right to sell, pledge, or transfer the bitcoin; and they also benefit from the rewards and bear the risks associated with the ownership, including as a result of any bitcoin price fluctuations. We do not use any of the bitcoin held for other parties as collateral for our loans or any other financing arrangements, nor do we lend or pledge bitcoin held for others to any third parties. We have been monitoring and will continue to actively monitor legal and regulatory developments and may consider further steps, as appropriate, to support this contractual position so that in the event of Block’s bankruptcy, the bitcoin custodied by us should not be deemed to be part of Block's bankruptcy estate. We do not expect potential future cash flows associated with the bitcoin safeguarding obligation liability.
Previous report
For the nine months ended September 30, 2023, cash used in financing activities was $1.0 billion primarily as a result of the cash payment of $461.8 million to settle the 2023 Convertible Notes in May 2023, net repayments under Warehouse Facilities borrowings of $403.1 million, a change in customer funds of $266.6 million, as well as net outflows for other financing activities of $20.0 million and the repayment and forgiveness of Paycheck Protection Program loans of $16.8 million. These were partially offset by proceeds from issuances of common stock from the exercise of options and purchases under our employee share purchase plan of $70.4 million and a net increase in interest-bearing deposits of $57.2 million.
Previous report
Deferred Tax Valuation Allowance
Previous report
Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss, capital loss, and tax credit carryforwards. We evaluate the realizability of our deferred tax assets on a quarterly basis to determine whether a valuation allowance is necessary and reduce such assets to the amount that is more likely than not to be realized. This evaluation requires significant judgment and involves the consideration of all available positive and negative evidence, including our historical operating results, the existence of cumulative losses in recent years, ongoing prudent and feasible tax planning strategies, and projections of future taxable income. Given our recent results and expected future results in the United States, sufficient positive evidence may exist in a future period to support the conclusion that all or a portion of the valuation allowance will no longer be required. The release would result in the recognition of material federal and state deferred tax assets and a corresponding decrease to income tax expense and the effective tax rate in the period the release is recorded. The timing and amount of the valuation allowance release could vary based on our assessment of all available evidence.
Previous report
Accruals and Disclosures for Loss Contingencies
Previous report
We are party to various legal proceedings, claims, and regulatory or government inquiries and investigations that arise in the ordinary course of business. Certain of these matters include speculative claims for substantial or indeterminate amounts of damages. Contingent liabilities are difficult to measure, as their measurement is subject to multiple factors that are not easily predicted or projected. Further, additional complexity in measuring these liabilities arises due to the various jurisdictions in which these matters occur, which makes our ability to predict their outcomes highly uncertain. We will accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Accounting guidance also requires disclosure of a loss contingency matter when, in management’s judgment, a material loss is reasonably possible or probable. Significant judgment is required to determine both the likelihood and the estimated amount of a loss related to such matters. In reaching our conclusions with respect to accrual of a loss or loss contingency disclosure, we take a holistic view of each matter based on these factors and the information available prior to the issuance of our financial statements. Uncertainty with respect to an individual factor or combination of these factors may impact our decisions related to accrual or disclosure of a loss contingency, including a conclusion that we are unable to establish an estimate of possible loss or a meaningful range of possible loss. We update our disclosures to reflect our most current understanding of the contingencies at the time we issue our financial statements. However, events may arise that were not anticipated and the outcome of a contingency may result in a loss to us that differs materially from our previously estimated liability or range of possible loss.
Reworded paragraphs (47)
Previous wording
We launched the Square ecosystem in February 2009 to enable businesses ("sellers") to accept card payments, an important capability that was previously inaccessible to many businesses. We have expanded to provide sellers additional products and services and to give them access to a cohesive ecosystem of tools to help them manage and grow their businesses. Similarly, with Cash App, we have built an ecosystem of financial products and services to help individuals manage their money. In January 2022, we completed the acquisition of Afterpay, a buy now, pay later ("BNPL") platform that facilitates commerce between retail merchants and consumers by allowing retail merchant clients to offer their customers the ability to buy goods and services on a BNPL basis. In addition, we also operate TIDAL, a global platform for musicians and fans, and TBD, an open developer platform, to contribute to our purpose of economic empowerment.
Current wording
We launched the Square ecosystem in February 2009 to enable businesses ("sellers") to accept card payments, an important capability that was previously inaccessible to many businesses. We have expanded to provide sellers additional products and services and to give them access to a cohesive ecosystem of tools to help them manage and grow their businesses. Similarly, with Cash App, we have built an ecosystem of financial products and services to help individuals manage their money. In January 2022, we completed the acquisition of Afterpay, a buy now, pay later ("BNPL") platform that facilitates commerce between retail merchants and consumers by allowing retail merchant clients to offer their customers the ability to buy goods and services on a BNPL basis. In addition, our nascent businesses include TIDAL and two bitcoin businesses, Bitkey and Proto.
Previous wording
Cash App generated gross profit of $1.3 billion in the third quarter of 2024, up 21% year over year. Performance was driven by strength across our financial services products.
Current wording
In the first quarter of 2025, we generated gross profit of $2.3 billion, up 9% year over year, delivering strong growth across our primary ecosystems. Cash App generated gross profit of $1.4 billion in the first quarter of 2025, up 10% year over year, driven by strength across our financial services products. Square generated gross profit of $897.9 million in the first quarter of 2025, up 9% year over year, driven by strength in our banking products and software and integrated payments.
Previous wording
In the third quarter of 2024, operating income was $323.0 million and Adjusted Operating Income was $443.5 million, compared to an operating loss of $9.9 million and Adjusted Operating Income of $89.7 million in the third quarter of 2023. For the same period, net income attributable to common stockholders was $283.8 million, compared to a net loss attributable to common stockholders of $88.7 million, and Adjusted EBITDA was $807.5 million, compared to $477.5 million. Net income for the third quarter of 2024 and net loss for the third quarter of 2023 included a gain of $5.3 million and loss of $28.2 million, respectively, from the remeasurement of our bitcoin investment.
Current wording
In the first quarter of 2025, operating income was $329.3 million and Adjusted Operating Income was $466.3 million, compared to operating income of $249.7 million and Adjusted Operating Income of $364.3 million in the first quarter of 2024. Net income attributable to common stockholders was $189.9 million for the first quarter of 2025, compared to net income attributable to common stockholders of $472.0 million, and Adjusted EBITDA was $812.8 million, compared to $705.1 million for the same period in 2024. Net income for the first quarter of 2025 and first quarter of 2024 included a loss of $93.4 million and gain of $233.4 million, respectively, from the remeasurement of our bitcoin investment.
Previous wording
In 2023, we sharpened our focus on our organizational structure and expenditures with a view to identifying areas where we can be more cost efficient as we focus on disciplined growth and pursuing cost efficiencies. In the third quarter of 2024, we continued to make progress on these goals and we expect to continue these efforts through the remainder of the year, including implementing greater expense discipline and reassessing certain contractual vendor arrangements. In November 2023, we announced we would implement an absolute cap of 12,000 on the number of employees we have at our company, which we have achieved, and plan to continue to operate below this cap, through a combination of performance management, centralization of teams and functions to reduce duplication, and prioritization of our scope. We may continue to incur expenses, including restructuring costs, in the short term to implement these initiatives. We continue to realize benefits related to our focus on disciplined growth and cost efficiencies and we expect to continue to benefit from these actions in future periods.
Current wording
Starting in 2023, we sharpened our focus on our organizational structure and expenditures with a view to identifying areas where we can be more cost efficient as we focus on disciplined growth and pursuing cost efficiencies. In 2023, we also announced we would implement an absolute cap of 12,000 on the number of employees we have at our company, which we achieved in 2024, and plan to continue to operate below this cap through a combination of performance management, centralization of teams and functions to reduce duplication, and prioritization of our scope. Through 2024 and the first quarter of 2025, we continued to make progress on cost efficiency goals, and we expect to continue these efforts. During the three months ended March 31, 2025, we recorded $66.9 million of severance and other expenses related to these efforts. We may continue to incur expenses, including additional restructuring costs, in the short term to implement our initiatives. We continue to realize benefits related to our focus on disciplined growth and cost efficiencies, and we expect to continue to benefit from these actions in future periods.
Previous wording
During the second quarter of 2024, we issued an aggregate principal amount of $2.0 billion of senior unsecured notes due 2032 ("2032 Senior Notes"). We ended the third quarter of 2024 with $10.7 billion in available liquidity, with $9.9 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as an undrawn amount of $775.0 million available under our revolving credit facility. This represents an increase of $3.0 billion from the end of 2023.
Current wording
We ended the first quarter of 2025 with $9.2 billion in available liquidity, with $8.5 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as an undrawn amount of $775.0 million available under our revolving credit facility. This represents a decrease of $1.5 billion from our available liquidity as of December 31, 2024, primarily as a result of a $1.0 billion cash payment for the settlement of the outstanding 2025 Convertible Notes that matured in March 2025 and $445.3 million of share repurchases in the first quarter of 2025.
Previous wording
In October 2023, our board of directors authorized the repurchase of up to $1 billion of our Class A common stock. On July 25, 2024, our board of directors authorized an increase to this share repurchase program to repurchase up to an additional $3 billion of our Class A common stock, for a total overall authorization of $4 billion. The goal of the program is to return capital to shareholders. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. As of September 30, 2024, we have repurchased $1.1 billion of our Class A common stock under the program, of which $345.6 million was purchased in the third quarter of 2024.
Current wording
In October 2023, our board of directors authorized the repurchase of up to $1 billion of our Class A common stock. In July 2024, our board of directors authorized an increase to this share repurchase program to repurchase up to an additional $3 billion of our Class A common stock, for a total overall authorization of $4 billion. The goal of the program is to return capital to shareholders. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. As of March 31, 2025, we have repurchased $1.8 billion of our Class A common stock under the program, of which $445.3 million was purchased in the first quarter of 2025.
Previous wording
Total net revenue for the three and nine months ended September 30, 2024 increased by $358.3 million, or 6%, and $1.9 billion, or 12%, compared to the three and nine months ended September 30, 2023, respectively. Bitcoin revenue increased by $5.0 million and $793.3 million for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively. Excluding bitcoin revenue, total net revenue increased by $353.3 million, or 11%, and $1.2 billion, or 13%, in the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively.
Current wording
Total net revenue for the three months ended March 31, 2025 decreased by $185.3 million compared to the three months ended March 31, 2024. Bitcoin revenue decreased by $429.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Excluding bitcoin revenue, total net revenue increased by $244.4 million, or 8%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Previous wording
Transaction-based revenue for the three and nine months ended September 30, 2024 increased by $53.8 million, or 3%, and $217.6 million, or 5%, compared to the three and nine months ended September 30, 2023, respectively, driven primarily by growth in Gross Payment Volume ("GPV"), which grew by 4% and 5% in the same periods. The growth in Square GPV was driven by improvements in both card-present and card-not-present volumes including strength in online channels. See below in Key Operating Metrics and Non-GAAP Financial Measuresfor further discussion of GPV.
Current wording
Transaction-based revenue for the three months ended March 31, 2025 increased by $39.5 million, or 3% compared to the three months ended March 31, 2024, driven primarily by growth in Gross Payment Volume ("GPV"), which grew by 4% in the same period. The growth in Square GPV was driven by improvements in both card-present and card-not-present volumes including strength in online channels. See below in Key Operating Metrics and Non-GAAP Financial Measuresfor further discussion of GPV.
Previous wording
Subscription and services-based revenue for the three and nine months ended September 30, 2024 increased by $305.0 million, or 20%, and $947.5 million, or 22%, compared to the three and nine months ended September 30, 2023, respectively. This increase was primarily due to growth in Cash App's financial service-related products, including Cash App Card, BNPL platform, Cash App Borrow, Instant Deposit, and Cash App Pay, as well as revenue from Square banking products. Revenue generated from the BNPL platform was $317.6 million and $895.0 million for the three and nine months ended September 30, 2024, respectively. Revenue generated from the BNPL platform was $257.9 million and $717.1 million for the three and nine months ended September 30, 2023, respectively.
Current wording
Subscription and services-based revenue for the three months ended March 31, 2025 increased by $208.7 million, or 12%, compared to the three months ended March 31, 2024. This increase was primarily due to growth in Cash App's financial service-related products, including Cash App Card usage, Cash App Borrow, Cash App Instant Deposit volumes, and Cash App Pay, as well as revenue from our BNPL platform. Revenue generated from our BNPL platform was $312.9 million and $283.5 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Growth in Square's financial services-related products, primarily Square Lending, also contributed to the increase in revenue in the first quarter of 2025.
Previous wording
Bitcoin revenue for the three and nine months ended September 30, 2024 increased by $5.0 million and $793.3 million, compared to the three and nine months ended September 30, 2023, respectively. As bitcoin revenue is the total sale amount of bitcoin to customers, the amount of bitcoin revenue recognized will fluctuate depending on customer demand as well as changes in the market price of bitcoin. The increase in the three and nine months ended September 30, 2024 was driven by an increase in the average market price of bitcoin, partially offset by a decrease in the quantity of bitcoin sold to customers, compared to the three and nine months ended September 30, 2023. While bitcoin contributed 41% and 43% of the total revenue for the three and nine months ended September 30, 2024, respectively, gross profit generated from bitcoin was only 3% of the total gross profit for both the three and nine months ended September 30, 2024, compared to 2% and 3% of total gross profit in the three and nine months ended September 30, 2023, respectively.
Current wording
Bitcoin revenue for the three months ended March 31, 2025 decreased by $429.7 million, or 16%, compared to the three months ended March 31, 2024. As bitcoin revenue is the total sale amount of bitcoin to customers, the amount of bitcoin revenue recognized will fluctuate depending on customer demand as well as changes in the market price of bitcoin. The decrease in the three months ended March 31, 2025 was driven by a decrease in the quantity of bitcoin sold to customers, partially offset by an increase in the average market price of bitcoin, compared to the three months ended March 31, 2024. While bitcoin contributed 40% and 46% of the total revenue for the three months ended March 31, 2025 and March 31, 2024, respectively, gross profit generated from bitcoin was only 3% and 4% of the total gross profit for the three months ended March 31, 2025 and March 31, 2024, respectively.
Previous wording
Total cost of revenue for the three and nine months ended September 30, 2024 increased by $7.1 million and $847.4 million, compared to the three and nine months ended September 30, 2023, respectively. Bitcoin costs of revenue, which increased by $720.5 million for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, was the primary driver of the increase in total cost of revenue, with the remaining increase largely related to an increase in Square GPV. Excluding bitcoin costs of revenue, total cost of revenue increased by approximately $21.9 million, or 2%, and $126.9 million, or 3%, in the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively.
Current wording
Total cost of revenue for the three months ended March 31, 2025 decreased by $380.5 million, or 10%, compared to the three months ended March 31, 2024. Bitcoin costs of revenue, which decreased by $414.9 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was the primary driver of the decrease in total cost of revenue. Excluding bitcoin costs of revenue, total cost of revenue increased by approximately $34.4 million, or 3%, in the three months ended March 31, 2025, compared to the three months ended March 31, 2024, largely related to an increase in Square GPV.
Previous wording
Transaction-based costs for the three and nine months ended September 30, 2024 increased by $26.8 million, or 3%, and $128.7 million, or 5%, compared to the three and nine months ended September 30, 2023, respectively, largely in line with GPV growth of 4% and 5% in the same periods.
Current wording
Transaction-based costs for the three months ended March 31, 2025 increased by $30.7 million, or 4%, compared to the three months ended March 31, 2024, largely in line with GPV growth of 4% in the same period.
Previous wording
Bitcoin costs for the three and nine months ended September 30, 2024 decreased by $14.8 million, or 1%, and increased by $720.5 million, or 11%, compared to the three and nine months ended September 30, 2023, respectively. Bitcoin costs are comprised of the total amount we pay to purchase bitcoin, which fluctuates in line with bitcoin revenue.
Current wording
Bitcoin costs for the three months ended March 31, 2025 decreased by $414.9 million, or 16%, compared to the three months ended March 31, 2024. Bitcoin costs are comprised of the total amount we pay to purchase bitcoin, which fluctuates in line with bitcoin revenue.
Previous wording
Product development expenses decreased by $2.8 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a decrease in personnel costs of $52.4 million arising from cost efficiencies realized from the ongoing efforts to reduce headcount and expenditures. This decrease was partially offset by an increase of $42.7 million in software and cloud computing infrastructure fees for the three months ended September 30, 2024 as a result of increased capacity needs and expansion of our cloud-based services. Product development expenses for the nine months ended September 30, 2024 increased by $109.3 million compared to the nine months ended September 30, 2023, primarily due to an increase of $130.9 million in software and cloud computing infrastructure fees as a result of increased capacity needs and expansion of our cloud-based services. This increase was partially offset by a decrease in personnel costs of $24.0 million for the nine months ended September 30, 2024, arising from cost efficiencies realized from the ongoing efforts to reduce headcount and expenditures.
Current wording
Product development expenses increased by $40.1 million, or 6%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in product development expenses for the three months ended March 31, 2025 was driven by an increase in personnel costs of $16.4 million arising from restructuring costs, including severance and other related expenses, as well as an increase of $15.0 million in software and cloud computing infrastructure fees as a result of increased capacity needs and expansion of our cloud-based services.
Previous wording
Amortization of customer and other acquired intangible assets for three and nine months ended September 30, 2024 decreased $20.9 million, or 37%, and $10.8 million, or 8%, compared to the three and nine months ended September 30, 2023, respectively, primarily as a result of revisions of certain intangibles' useful lives in the third quarter of 2023. Refer to Note 8, Acquired Intangible Assets within Notes to the Condensed Consolidated Financial Statements for more details.
Current wording
Amortization of customer and other acquired intangible assets for the three months ended March 31, 2025 decreased $9.6 million, or 22%, compared to the three months ended March 31, 2024, primarily due to the impairment of certain assets in the fourth quarter of 2024, which resulted in no related amortization in the first quarter of 2025. Refer to Note 8, Acquired Intangible Assets within Notes to the Condensed Consolidated Financial Statements for more details.
Previous wording
Interest Expense (Income), Net, and Other Expense (Income), Net (in thousands, except for percentages)
Current wording
Interest Expense (Income), Net (in thousands, except for percentages)
Previous wording
Interest expense, net, increased by $35.2 million and interest income, net, decreased by $21.7 million for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively, primarily due to an increase in interest expense related to our 2032 Senior Notes issued in the second quarter of 2024, which more than offset an increase in interest income received as a result of higher interest rates and investment balances. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Current wording
Interest expense, net, of $17.2 million for the three months ended March 31, 2025 was primarily due to interest expense related to our 2032 Senior Notes issued in the second quarter of 2024, which more than offset interest income received on invested funds. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details. Interest income, net, of $18.7 million for the three months ended March 31, 2024 was primarily due to interest income received on invested funds, which more than offset interest expense in the period.
Previous wording
The following table provides a summary of the revenue and gross profit for our Square segment for the three and nine months ended September 30, 2024 and September 30, 2023 (in thousands, except for percentages):
Current wording
The following table provides a summary of the revenue and gross profit for our Square segment for the three months ended March 31, 2025 and March 31, 2024 (in thousands, except for percentages):
Previous wording
Cost of revenue for the Square segment for the three and nine months ended September 30, 2024 increased by $21.3 million, or 2%, and $116.5 million, or 4%, compared to the three and nine months ended September 30, 2023, respectively. The increase was primarily due to an increase in Square GPV.
Current wording
Cost of revenue for the Square segment for the three months ended March 31, 2025 increased by $44.5 million, or 5%, compared to the three months ended March 31, 2024. The increase was primarily due to the Square items referenced within our overall cost of revenue discussion.
Previous wording
The following table provides a summary of the revenue and gross profit for our Cash App segment for the three and nine months ended September 30, 2024 and September 30, 2023 (in thousands, except for percentages):
Current wording
The following table provides a summary of the revenue and gross profit for our Cash App segment for the three months ended March 31, 2025 and March 31, 2024 (in thousands, except for percentages):
Previous wording
Revenue for the Cash App segment for the three and nine months ended September 30, 2024 increased by $215.6 million, or 6%, and $1.5 billion, or 14%, compared to the three and nine months ended September 30, 2023, respectively. The increase was due to the Cash App items referenced within the Company's overall revenue discussion. While bitcoin revenue contributed 62% and 64% of Cash App revenue for three and nine months ended September 30, 2024, respectively, gross profit generated from bitcoin was only 5% of Cash App gross profit for the three and nine months ended September 30, 2024.
Current wording
Revenue for the Cash App segment for the three months ended March 31, 2025 decreased by $293.9 million, or 7%, compared to the three months ended March 31, 2024. The decrease was driven by lower bitcoin revenue, partially offset by the Cash App items referenced within our overall revenue discussion. While bitcoin revenue contributed 59% and 65% of Cash App revenue for three months ended March 31, 2025 and March 31, 2024, respectively, gross profit generated from bitcoin was only 5% and 6% of Cash App gross profit for the three months ended March 31, 2025 and March 31, 2024, respectively.
Previous wording
Excluding $2.4 billion and $7.8 billion in bitcoin revenue for the three and nine months ended September 30, 2024, respectively, Cash App revenue increased by $210.6 million, or 16%, and $666.8 million, or 18%, compared to the three and nine months ended September 30, 2023, respectively.
Current wording
Excluding $2.3 billion in bitcoin revenue for the three months ended March 31, 2025, Cash App revenue increased by $135.8 million, or 9%, compared to the three months ended March 31, 2024.
Previous wording
Cost of revenue for the Cash App segment for the three and nine months ended September 30, 2024 decreased by $12.8 million and increased by $736.4 million, compared to the three and nine months ended September 30, 2023, respectively. The decrease for the three months ended September 30, 2024 was primarily due to a decrease in the quantity of bitcoin sold to customers, partially offset by the items referenced within the Company's overall cost of revenue discussion. The increase for the nine months ended September 30, 2024 was due to the items referenced within the Company's overall cost of revenue discussion. Excluding $2.4 billion and $7.6 billion in bitcoin cost of revenue for the three and nine months ended September 30, 2024, respectively, Cash App cost of revenue increased by approximately $2.0 million, or 1%, and $15.9 million, or 2%, compared to the three and nine months ended September 30, 2023, respectively.
Current wording
Cost of revenue for the Cash App segment for the three months ended March 31, 2025 decreased by $415.3 million compared to the three months ended March 31, 2024. The decrease for the three months ended March 31, 2025 was driven by lower bitcoin costs, partially offset by the other Cash App items referenced within our overall cost of revenue discussion. Excluding $2.2 billion in bitcoin cost of revenue for the three months ended March 31, 2025, Cash App cost of revenue remained flat compared to the three months ended March 31, 2024.
Previous wording
GPV includes Square GPV and Cash App Business GPV. Square GPV is defined as the total dollar amount of all card payments processed by sellers using Square, net of refunds, and ACH transfers. Cash App Business GPV is comprised of 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 platform because GPV is related only to transaction-based revenue and not to subscription and services-based revenue.
Current wording
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 is comprised of 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 platform because GPV is related only to transaction-based revenue and not to subscription and services-based revenue.
Previous wording
Adjusted EBITDA, Adjusted Net Income Per Share ("Adjusted EPS") and Adjusted Operating Income
Current wording
Adjusted EBITDA, Adjusted EPS and Adjusted Operating Income
Previous wording
•We believe it is useful to exclude certain non-cash charges, such as amortization of intangible assets, and share-based compensation expenses, from our non-GAAP financial measures because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations.
Current wording
•We believe it is useful to exclude certain non-cash charges, such as amortization of intangible assets, from our non-GAAP financial measures because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations.
Previous wording
•We exclude the following from non-GAAP financial measures because we do not believe that these items are reflective of our ongoing business operations: gain or loss on the disposal of property and equipment; gain or loss on revaluation of equity investments; and gain or loss from the remeasurement of our bitcoin investment.
Current wording
•We exclude the following from non-GAAP financial measures because we do not believe that these items are reflective of our ongoing business operations: gain or loss on the disposal of property and equipment; gain or loss on revaluation of equity investments; gain or loss from the remeasurement of our bitcoin investment; and one-time income tax impacts from deferred taxes, as applicable.
Previous wording
•To aid in comparability of our results across periods, we also exclude certain acquisition-related and integration costs associated with business combinations, various restructuring and other costs, and goodwill impairment charges, each of which are not normal operating expenses. Acquisition-related costs include amounts paid to redeem acquirees’ unvested share-based compensation awards, charges associated with holdback liabilities, and legal, accounting, valuation, and due diligence costs. Integration costs include advisory and other professional services or consulting fees necessary to integrate acquired businesses. Contingencies, restructuring and other costs that are not reflective of our core business operating expenses may include contingent losses, severance costs, impairment charges, and certain litigation and regulatory charges. 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.
Current wording
•To aid in comparability of our results across periods, we also exclude certain acquisition-related and integration costs associated with business combinations, various restructuring and other costs, and goodwill and intangible asset impairment charges, each of which are not normal operating expenses. Acquisition-related costs include amounts paid to redeem acquirees’ unvested share-based compensation awards, charges associated with holdback liabilities, and legal, accounting, valuation, and due diligence costs. Integration costs include advisory and other professional services or consulting fees necessary to integrate acquired businesses. Contingencies, restructuring and other costs that are not reflective of our core business operating expenses may include contingent losses, severance costs, impairment charges, and certain litigation and regulatory charges. 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.
Previous wording
In addition to the limitations above, Adjusted EBITDA as a non-GAAP financial measure does not reflect the effect of depreciation and amortization expense and related cash capital requirements, income taxes that may represent a reduction in cash available to us, and the effect of foreign currency exchange gains or losses, which is included in other income and expense.
Current wording
In addition to the limitations above, Adjusted EBITDA as a non-GAAP financial measure does not reflect the effect of share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy, depreciation and amortization expense and related cash capital requirements, income taxes that may represent a reduction in cash available to us, and the effect of foreign currency exchange gains or losses, which is included in other income and expense.
Previous wording
In view of the limitations associated with Adjusted EBITDA, we also present Adjusted Operating Income (Loss), which is a non-GAAP financial measure that excludes certain expenses that we believe are not reflective of our core operating performance, including amortization of intangible assets, acquisition-related accelerated share-based compensation expenses, and acquisition-related, integration, and other costs, and goodwill impairment charges. Adjusted Operating Income (Loss) does however include the effect of share-based compensation expense, which is a significant recurring expense in our business and an important part of our compensation strategy, as well as depreciation expense.
Current wording
In view of the limitations associated with Adjusted EBITDA, we also present Adjusted Operating Income (Loss), which is a non-GAAP financial measure that excludes certain expenses that we believe are not reflective of our core operating performance, including amortization of intangible assets, acquisition-related accelerated share-based compensation expenses, and acquisition-related, integration, and other costs, and goodwill and intangible asset impairment charges. Adjusted Operating Income (Loss) and Adjusted EPS include the effect of share-based compensation expense, as well as depreciation expense.
Previous wording
The following table presents a reconciliation of the tax effect of non-GAAP net income adjustments to our provision (benefit) for income taxes (in thousands, except effective tax rate):
Current wording
The following table presents a reconciliation of the tax effect of non-GAAP net income adjustments to our provision for (benefit from) income taxes (in thousands, except effective tax rate):
Previous wording
We determined the adjusted provision for income taxes by calculating the estimated annual effective tax rate based on adjusted pre-tax income and applying it to Adjusted Net Income before income taxes.
Current wording
We determined the adjusted provision for income taxes by calculating the estimated annual effective tax rate based on our adjusted provision for income taxes, non-GAAP and applying it to Adjusted Net Income before income taxes.
Previous wording
As of September 30, 2024, we had approximately $10.7 billion in available liquidity, with $9.9 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, which includes net proceeds of approximately $2.0 billion related to the issuance of our 2032 Senior Notes in the second quarter of 2024, as well as an undrawn amount of $775.0 million available under our revolving credit facility subject to compliance with the terms of the credit facility, including our covenants. Additionally, we had $517.8 million available to be withdrawn under our warehouse funding facilities. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for more details. We intend to continue focusing on our long-term business initiatives and believe that our available funds are sufficient to meet our liquidity needs for the foreseeable future, including the additional $3 billion related to the share repurchase program. As of September 30, 2024, we were in compliance with all financial covenants associated with our revolving credit facility and senior notes. None of our warehouse funding facilities contain financial covenants.
Current wording
As of March 31, 2025, we had approximately $9.2 billion in available liquidity, with $8.5 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as an undrawn amount of $775.0 million available under our revolving credit facility. Additionally, we had $827.3 million available to be withdrawn under our warehouse funding facilities. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for more details. We intend to continue focusing on our long-term business initiatives and believe that our available funds are sufficient to meet our liquidity needs for the foreseeable future, including our share repurchase program. As of March 31, 2025, we were in compliance with all financial covenants associated with our revolving credit facility and senior notes. None of our warehouse funding facilities contain financial covenants.
Previous wording
(i) As of September 30, 2024, the Company has invested $197.1 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.
Current wording
(i) As of March 31, 2025, we have invested $89.0 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.
Previous wording
As of September 30, 2024, we held approximately 8,363 bitcoins for investment purposes ("bitcoin investment") with a fair value of $529.6 million based on observable market prices, which is included within “Other non-current assets” on the condensed consolidated balance sheets. We believe cryptocurrency is an instrument of economic empowerment that aligns with our corporate purpose. We expect to hold these investments for the long-term but will continue to reassess our bitcoin investment relative to our balance sheet. Bitcoin is considered an indefinite-lived intangible asset, and upon adoption of Accounting Standards Update No. 2023-08, Accounting for and Disclosure of Crypto Assets, effective January 1, 2023, our bitcoin investment is remeasured at fair value at each reporting date with changes recognized in net income through “Other expense (income), net” in the condensed consolidated statements of operations. We purchased approximately 152 and 325 bitcoins with a cost basis of $9.7 million and $21.1 million during the three and nine months ended September 30, 2024, respectively, for investment purposes. We did not sell any of our bitcoin investment during the three and nine months ended September 30, 2024. We recognized gains of $5.3 million and $168.6 million from the remeasurement of our bitcoin investment during the three and nine months ended September 30, 2024, respectively.
Current wording
As of March 31, 2025, we held approximately 8,584 bitcoins for long-term investment purposes ("bitcoin investment") with a fair value of $708.5 million based on observable market prices, which is included within “Other non-current assets” on the condensed consolidated balance sheets. We believe cryptocurrency is an instrument of economic empowerment that aligns with our corporate purpose. We expect to hold these investments for the long-term but will continue to reassess our bitcoin investment relative to our balance sheet. Bitcoin is considered an indefinite-lived intangible asset, and upon adoption of Accounting Standards Update No. 2023-08, Accounting for and Disclosure of Crypto Assets, effective January 1, 2023, our bitcoin investment is remeasured at fair value at each reporting date with changes recognized in net income through "Remeasurement loss (gain) on bitcoin investment" within the condensed consolidated statements of operations. We purchased approximately 99 bitcoins with a cost basis of $9.5 million during the three months ended March 31, 2025, for investment purposes. We did not purchase any bitcoins for investment purposes during the three months ended March 31, 2024. We did not sell any of our bitcoin investment during the three months ended March 31, 2025 and March 31, 2024. We recognized a loss of $93.4 million and gain of $233.4 million from the remeasurement of our bitcoin investment during the three months ended March 31, 2025 and March 31, 2024, respectively.
Previous wording
As of September 30, 2024, we held $6.2 billion in aggregate principal amount of debt, comprised of $1.0 billion in aggregate amount of convertible senior notes that mature on March 1, 2025 ("2025 Convertible Notes"), $575.0 million in aggregate amount of convertible senior notes that mature on May 1, 2026 ("2026 Convertible Notes"), and $575.0 million in aggregate amount of convertible senior notes that mature on November 1, 2027 ("2027 Convertible Notes," collectively referred to as the “Convertible Notes”), as well as an outstanding $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2026 ("2026 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2031 ("2031 Senior Notes"), and $2.0 billion in aggregate principal amount of senior unsecured notes that mature on May 15, 2032 ("2032 Senior Notes" and, together with the 2026 Senior Notes and 2031 Senior Notes, the “Senior Notes” and, together with the Convertible Notes, the “Notes”). Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Current wording
As of March 31, 2025, we held $5.2 billion in aggregate principal amount of debt, comprised of $575.0 million in aggregate amount of convertible senior notes that mature on May 1, 2026 ("2026 Convertible Notes"), and $575.0 million in aggregate amount of convertible senior notes that mature on November 1, 2027 ("2027 Convertible Notes," collectively referred to as the “Convertible Notes”), as well as an outstanding $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2026 ("2026 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2031 ("2031 Senior Notes"), and $2.0 billion in aggregate principal amount of senior unsecured notes that mature on May 15, 2032 ("2032 Senior Notes" and, together with the 2026 Senior Notes and 2031 Senior Notes, the “Senior Notes” and, together with the Convertible Notes, the “Notes”). Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Previous wording
We have warehouse funding facilities ("Warehouse Facilities") with an aggregate amount of$1.5 billion on a revolving basis, of which $965.8 million was drawn as of September 30, 2024. The Warehouse Facilities have been arranged utilizing wholly-owned and consolidated entities (collectively, the "Warehouse Special Purpose Entities (SPEs)") formed for the sole purpose of financing the origination of consumer receivables to partly fund our BNPL platform. Borrowings under the Warehouse Facilities are secured against the respective consumer receivables. While the Warehouse SPEs are included in our condensed consolidated financial statements, they are separate legal entities that maintain legal ownership of the receivables they hold. The assets of the Warehouse SPEs are not available to satisfy our claims or those of our creditors.
Current wording
We have warehouse funding facilities ("Warehouse Facilities") with an aggregate amount of$1.4 billion on a revolving basis, of which $619.0 million was drawn as of March 31, 2025. The Warehouse Facilities have been arranged utilizing wholly-owned and consolidated entities (collectively, the "Warehouse Special Purpose Entities (SPEs)") formed for the sole purpose of financing the origination of consumer receivables to partly fund our BNPL platform. Borrowings under the Warehouse Facilities are secured against the respective consumer receivables. While the Warehouse SPEs are included in our condensed consolidated financial statements, they are separate legal entities that maintain legal ownership of the receivables they hold. The assets of the Warehouse SPEs are not available to satisfy our claims or those of our creditors.
Previous wording
We believe that our existing cash and cash equivalents, investment in marketable debt securities, and availability under our line of credit will be sufficient to meet our working capital needs, including any expenditures related to strategic transactions and investment commitments that we may from time to time enter into, and planned capital expenditures for at least the next 12 months. From time to time, we have raised capital by issuing equity, equity-linked, or debt securities such as our convertible notes and senior notes; and we may do so in the future. However, such funding may not be available on terms acceptable to us or at all.
Current wording
We believe that our existing cash and cash equivalents, investment in marketable debt securities, and availability under our line of credit will be sufficient to meet our working capital needs, including any expenditures related to strategic transactions and investment commitments that we may from time to time enter into, shares repurchased through our share repurchase program, and planned capital expenditures for at least the next 12 months. From time to time, we have raised capital by issuing equity, equity-linked, or debt securities such as our convertible notes and senior notes; and we may do so in the future. However, such funding may not be available on terms acceptable to us or at all.
Previous wording
When we were last rated, in the second half of 2023, we received a non-investment grade rating by S&P Global Ratings (BB+), Fitch Ratings, Inc. (BB+), and Moody's Corporation (Ba2), and the agencies re-affirmed our rating in the second quarter of 2024. We expect that these credit rating agencies will continue to monitor our performance, including our capital structure and results of operations. Our liquidity, access to capital, and borrowing costs could be adversely impacted by declines in our credit rating.
Current wording
When we were last rated during 2024, we received a non-investment grade rating by S&P Global Ratings (BB+), Fitch Ratings, Inc. (BB+), and Moody's Corporation (Ba2). We expect that these credit rating agencies will continue to monitor our performance, including our capital structure and results of operations. Our liquidity, access to capital, and borrowing costs could be adversely impacted by declines in our credit rating.
Previous wording
Short-term restricted cash of $630.9 million as of September 30, 2024 primarily includes cash held by the Warehouse SPEs used in the Warehouse Facilities funding arrangements that will be used to pay the borrowings under the Warehouse Facilities or will be distributed to us. It also includes pledged cash deposits in accounts at the financial institutions that process our sellers' payment transactions and collateral pursuant to various agreements with banks relating to our products. We use restricted cash to secure letters of credit with the related financial institutions to provide collateral for cash flow timing differences in the processing of payments. We have recorded these amounts as current assets on our condensed consolidated balance sheet given the short-term nature of these cash flow timing differences and that there is no minimum time frame during which the cash must remain restricted.
Current wording
Short-term restricted cash of $681.8 million as of March 31, 2025 primarily includes cash held by the Warehouse SPEs used in the Warehouse Facilities funding arrangements that will be used to pay the borrowings under the Warehouse Facilities or will be distributed to us. It also includes pledged cash deposits in accounts at the financial institutions that process our sellers' payment transactions and collateral pursuant to various agreements with banks relating to our products. We use restricted cash to secure letters of credit with the related financial institutions to provide collateral for cash flow timing differences in the processing of payments. We have recorded these amounts as current assets on our condensed consolidated balance sheet given the short-term nature of these cash flow timing differences and that there is no minimum time frame during which the cash must remain restricted.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Other Expense (Income), Net (in thousands, except for percentages)
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Square generated gross profit of $932.4 million in the third quarter of 2024, up 16% year over year, driven by notable strength in our banking products and software and integrated payments.
Previous report — wording carried elsewhere
•share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy;