Block, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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, 2026 · Filed May 7, 2026
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001628280-25-050234
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001628280-26-032200
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 115 previous paragraphs and 118 current paragraphs.
58 unchanged; 43 reworded; 15 added; 14 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 15 previous and 18 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 (15)
Current report
In February 2026, we announced a workforce reduction restructuring plan (the “Workforce Plan”) designed to better align our organizational structure with our operating model and strategic priorities. As part of the Workforce Plan, we reduced our workforce by more than 40%. Restructuring charges in connection to the Workforce Plan during the three months ended March 31, 2026 were $495.3 million, which primarily consisted of cash expenditures for notice period and severance payments, employee benefits and related costs, as well as share-based compensation expense. We expect to incur additional immaterial related charges related to the Workforce Plan and expect that these remaining charges will be substantially complete by the end of the second quarter of fiscal 2026. We expect 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. We plan to continue to operate at this smaller size and are continuing to look at ways to improve our efficiency through a combination of AI automation, prioritization of our scope, performance management, and centralization of teams and functions to reduce duplication.
Current report
The following table presents a summary of severance and other personnel costs related to the Workforce Plan (in thousands):
Current report
While timing and savings are subject to change, we expect annualized net cost savings associated with the Workforce Plan of approximately $800 million to $900 million, related to employee compensation, a portion of which we expect to strategically reinvest in the Company. We expect that we will begin to realize these cost savings upon the completion of the Workforce Plan. Refer to Note 20, Restructuring, within Notes to the Condensed Consolidated Financial Statements for further details regarding charges related to the Workforce Plan.
Current report
We ended the first quarter of 2026 with $9.1 billion in available liquidity, with $8.2 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as an undrawn amount of $900.0 million available under our revolving credit facility. This represents a decrease of $120.5 million from our available liquidity as of December 31, 2025, primarily due to $636.0 million of share repurchases in the first quarter of 2026 and net purchases and originations of loans originally classified as held for investment of $414.0 million, partially offset by net proceeds from principal repayments of consumer receivables of $652.6 million and an increase of $125.0 million to our revolving credit facility.
Current report
Commerce enablement costs for the three months ended March 31, 2026 increased by $165.3 million, or 14%, compared to the three months ended March 31, 2025. Commerce enablement costs for the three months ended March 31, 2026 were primarily driven by growth in Square processing costs, which were in line with the growth of Square GPV of 13%, as well as an increase in Square hardware costs.
Current report
Transaction, loan, and consumer receivable losses increased by $330.4 million, or 195%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, as detailed below (in thousands, except for percentages):
Current report
(i) Amounts do not include reserves for certain receivables, such as late fees. Consumer receivables losses also includes provision for charge-back losses that are realized and written-off within the same period, rather than through the allowance for consumer receivable losses.
Current report
•Loan losses increased by $301.4 million, or 450%, compared to the three months ended March 31, 2025. The increase in loan losses was driven by significant growth in loan origination volumes of Cash App Borrow, which grew 175% in the same period, scaling Afterpay Post-Purchase, as well as growth in Square Loans. Underlying loan loss rates and portfolio credit performance remained stable. Additionally, beginning in the second quarter of 2025, Cash App Borrow, along with certain other loan products, were retained on our balance sheet and classified as held for investment, resulting in upfront recognition of expected credit losses upon origination.
Current report
•Consumer receivable losses increased by $24.6 million, or 50%, compared to the three months ended March 31, 2025, while loss rates remained stable. The increase was primarily due to growth of our BNPL products and higher origination volumes from preceding periods that reached charge-off during the current quarter.
Current report
Other income, net, of $5.4 million and $8.3 million for the three months ended March 31, 2026 and March 31, 2025, respectively, was primarily due to unrealized gains on certain investments and foreign exchange rate impacts.
Current report
Benefit from income taxes of $84.0 million for the three months ended March 31, 2026, compared to a provision for income taxes of $38.3 million for the three months ended March 31, 2025, was driven by lower pretax income and benefits from the release of income tax reserves due to the lapse of statutes of limitations. These were partially offset by tax shortfalls from share-based compensation.
Current report
Square
Current report
Cash App
Current report
Excluding bitcoin ecosystem revenue, Cash App net revenue increased by $576.9 million, or 37%, compared to the three months ended March 31, 2025.
Current report
As of March 31, 2026, we expect approximately $325 million to $340 million in future cash payments related to our Workforce Plan, primarily related to severance payments. Of this amount, $327 million has been accrued as of March 31, 2026 and is included within accrued expenses and other current liabilities on the condensed consolidated balance sheets. We generally expect to satisfy these obligations with cash on hand and cash provided by operating activities.
Removed paragraphs (14)
Previous report
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. 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. From 2024 through the third quarter of 2025, we continued to make progress on cost efficiency goals, and we expect to continue these efforts. During the three and nine months ended September 30, 2025, we recorded $10.0 million and $79.5 million of severance and other expenses related to these efforts, respectively. 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 report
During the third quarter of 2025, we issued $2.2 billion in aggregate principal amount of senior unsecured notes comprised of$1.2 billion in aggregate principal amount of senior notes due 2030 ("2030 Senior Notes") and$1.0 billion in aggregate principal amount due 2033 ("2033 Senior Notes"). We ended the third quarter of 2025 with $10.5 billion in available liquidity, with $9.7 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 $234.2 million from our available liquidity as of December 31, 2024, primarily due to a $1.0 billion cash payment for the settlement of the outstanding 2025 Convertible Notes that matured in March 2025 and $1.5 billion of share repurchases in 2025, partially offset by $2.2 billion cash received related to the 2030 Senior Notes and 2033 Senior Notes issued in the third quarter of 2025.
Previous report
Transaction-based costs for the three and nine months ended September 30, 2025 increased by $130.4 million, or 13%, and $227.1 million, or 8%, compared to the three and nine months ended September 30, 2024, respectively. While the increase in transaction-based costs was largely in line with GPV growth of 11% and 8% in the same periods, these costs exceeded GPV growth during the three months ended September 30, 2025 due to an increase in credit card transactions that have a higher cost per transaction as compared to debit card transactions. For the nine months ended September 30, 2025, the increase in transaction-based costs was partially offset by a processing vendor settlement of $20.4 million in the second quarter of 2025.
Previous report
Transaction, loan, and consumer receivable losses increased by $171.4 million, or 89%, and $277.6 million, or 51%, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily due to an increase in loan losses of $158.8 million and $238.1 million, respectively, for the same periods. The increase in loan losses for the three and nine months ended September 30, 2025 was attributed to significant growth in loan volumes, particularly from Cash App Borrow, which increased 134% and 110%, respectively, compared to the three and nine months ended September 30, 2024, while loss rates remained stable. Additionally, beginning in the second quarter of 2025, Cash App Borrow, along with certain other loan products, are retained on our balance sheet and classified as held for investment, resulting in recognition of an allowance for potential uncollectible amounts.
Previous report
Amortization of customer and other acquired intangible assets for the three and nine months ended September 30, 2025 decreased $1.9 million, or 5%, and $18.4 million, or 15%, compared to the three and nine months ended September 30, 2024, respectively, primarily due to the impairment of certain assets in the fourth quarter of 2024, which resulted in no related amortization in 2025. Refer to Note 8, Acquired Intangible Assets within Notes to the Condensed Consolidated Financial Statements for more details.
Previous report
Other income, net, of $167.2 million and $162.1 million for the three and nine months ended September 30, 2025, respectively, was primarily due to the revaluation of certain equity investments, partially offset by losses from the currency revaluation of intercompany loans. During the quarter ended September 30, 2025, one of the Company's investments closed on an additional financing round, which the Company assessed as an observable price change in an orderly transaction. The Company recorded a $171.6 million upward adjustment to the carrying value of this investment. Other income, net, of $9.7 million and $24.7 million for the three and nine months ended September 30, 2024, respectively, was primarily due to accretion on investments and foreign exchange rate impacts.
Previous report
Square Results
Previous report
Cash App Results
Previous report
Excluding $2.0 billion and $6.4 billion in bitcoin revenue for the three and nine months ended September 30, 2025, respectively, Cash App revenue increased by $332.8 million, or 22%, and $652.4 million, or 15%, compared to the three and nine months ended September 30, 2024, respectively.
Previous report
Change in Non-GAAP Financial Measures
Previous report
Beginning in fiscal 2025, we revised our definition of Adjusted Net Income Per Share ("Adjusted EPS") to include share-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.
Previous 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.
Previous report
Beginning in the second quarter of 2025, we began originating Cash App Borrow loans through Square Financial Services, which are classified as loans held for investment. Additionally, beginning July 1, 2025, Cash App Borrow loans and certain other customer loan products purchased from the industrial bank, along with customer loan products originated through Square Financial Services, are retained on the Company's balance sheet and classified as held for investment. Cash flows associated with these loans, including originations and principal repayments, are included within cash flows from investing activities.
Previous report
For the nine months ended September 30, 2024, cash provided by financing activities was $1.2 billion primarily due to approximately $2.0 billion of net proceeds related to the issuance of the 2032 Senior Notes in the second quarter of 2024, a change in customer funds of $763.4 million, and proceeds from issuances of common stock from the exercise of options and purchases under our employee share purchase plan of $88.1 million. These were partially offset by repurchases of common stock of $987.2 million as well as net repayments under Warehouse Facilities borrowings of $647.7 million.
Reworded paragraphs (43)
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, our nascent businesses include TIDAL and two bitcoin businesses, Bitkey and Proto.
Current wording
We launched the Square ecosystem in February 2009 to enable businesses ("sellers") to accept card payments, a critical capability that had previously been inaccessible to many businesses. We have since expanded to provide sellers additional products and services and to give them access to a cohesive ecosystem of tools to help them start, run, and grow their businesses. Similarly, with Cash App, we have built an ecosystem of financial products and services to help consumers manage their money. Cash App now provides an ecosystem of commerce solutions, financial solutions, and bitcoin capabilities focused on helping consumers make their money go further by enabling customers to store, send, receive, spend, invest, BNPL, borrow, or save their money. In addition, our nascent ecosystems include TIDAL as well as Bitcoin, which includes businesses such as Proto and Bitkey.
Previous wording
In the third quarter of 2025, we generated gross profit of $2.7 billion, up 18% year over year. Cash App generated gross profit of $1.6 billion in the third quarter of 2025, up 24% year over year, driven by growth in Cash App Borrow. Square generated gross profit of $1.0 billion in the third quarter of 2025, up 9% year over year, driven by strength in our software and integrated payments and banking products.
Current wording
In the first quarter of 2026, we generated gross profit of $2.9 billion, up 27% year over year. Cash App generated gross profit of $1.9 billion in the first quarter of 2026, up 38% year over year, driven by growth in Cash App Borrow. Square generated gross profit of $981.5 million in the first quarter of 2026, up 9% year over year, driven by financial solutions, most notably Square Loans.
Previous wording
In the third quarter of 2025, operating income was $409.4 million and Adjusted Operating Income was $480.2 million, compared to operating income of $323.0 million and Adjusted Operating Income of $443.5 million in the third quarter of 2024. Net income attributable to common stockholders was $461.5 million for the third quarter of 2025, compared to net income attributable to common stockholders of $283.8 million for the same period in 2024, and Adjusted EBITDA was $832.7 million for the third quarter of 2025, compared to $807.5 million for the same period in 2024. Net income for the third quarter of 2025 and 2024 included a gain of $59.6 million and $5.3 million, respectively, from the remeasurement of our bitcoin investment.
Current wording
In the first quarter of 2026, operating loss was $172.0 million and Adjusted Operating Income was $727.7 million, compared to operating income of $329.3 million and Adjusted Operating Income of $466.3 million in the first quarter of 2025. Net loss attributable to common stockholders was $308.7 million for the first quarter of 2026, compared to net income attributable to common stockholders of $189.9 million for the same period in 2025, and Adjusted EBITDA was $1.0 billion for the first quarter of 2026, compared to $812.8 million for the same period in 2025. Net loss for the first quarter of 2026 and net income for the first quarter of 2025 included losses of $172.8 million and $93.4 million, respectively, from the remeasurement of our bitcoin investment.
Previous 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 September 30, 2025, we have repurchased $2.9 billion of our Class A common stock under the program, of which $403.0 million was purchased in the third quarter of 2025.
Current wording
In November 2025, the board of directors of the Company authorized an increase to the Company's share repurchase program to repurchase up to an additional $5 billion of the Company's Class A common stock, for a total authorization of $9 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, 2026, we have repurchased a total of $4.3 billion of our Class A common stock under the program, of which $636.0 million was purchased in the first quarter of 2026.
Previous wording
Total net revenue for the three months ended September 30, 2025 increased by $139.2 million, or 2%, compared to the three months ended September 30, 2024 and decreased by $147.3 million, or 1%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Bitcoin revenue decreased by $462.2 million and $1.4 billion for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively. Excluding bitcoin revenue, total net revenue increased by $601.4 million, or 17%, and $1.2 billion, or 12%, in the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively.
Current wording
Total net revenue for the three months ended March 31, 2026 increased by $285.1 million, or 5%, compared to the three months ended March 31, 2025. Bitcoin ecosystem revenue decreased by $533.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Excluding bitcoin ecosystem revenue, total net revenue increased by $818.5 million, or 24%, in the three months ended March 31, 2026, compared to the three months ended March 31, 2025.
Previous wording
Transaction-based revenue for the three and nine months ended September 30, 2025 increased by $161.1 million, or 9%, and $305.0 million, or 6%, compared to the three and nine months ended September 30, 2024, respectively. Gross Payment Volume ("GPV") increased by 11% and 8% in the same periods, primarily due to growth in Square GPV, which was partially offset by a decrease in Cash App GPV. The growth in Square GPV of 12% and 10% for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively, was driven by strength in food and beverage and retail sellers. See below in Key Operating Metrics and Non-GAAP Financial Measures for further discussion of GPV.
Current wording
Commerce enablement revenue for the three months ended March 31, 2026 increased by $371.5 million, or 14%, compared to the three months ended March 31, 2025. This increase in revenue was driven by growth in Square processing, which increased by $161.6 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, as well as growth in Cash App Card and Afterpay Post-Purchase revenue of $72.3 million and $71.1 million, respectively. The growth in Square processing was in line with Square gross payment volume ("GPV") growth of 13%, driven primarily by strength in Food and Beverage sellers. 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, 2025 increased by $407.0 million, or 23%, and $880.3 million, or 17%, compared to the three and nine months ended September 30, 2024, respectively. This increase was primarily due to growth in Cash App's financial service-related products, including Cash App Borrow, Cash App Card usage, and Cash App Pay, as well as revenue from our BNPL platform. For the three and nine months ended September 30, 2025, Cash App Borrow revenue increased by $198.8 million and $369.1 million, respectively, as we continue to expand access to the product. Growth in Square's financial services-related products, primarily Square Loans, also contributed to the increase in revenue in the three and nine months ended September 30, 2025.
Current wording
Financial solutions revenue for the three months ended March 31, 2026 increased by $447.0 million, or 51%, compared to the three months ended March 31, 2025. The increase was primarily due to growth in Cash App's financial solutions-related products, specifically Cash App Borrow origination volumes. For the three months ended March 31, 2026 compared to the three months ended March 31, 2025, Cash App Borrow revenue increased by $369.4 million as we continued to expand access to the product. Additionally, revenue from Square's financial solutions-related products increased by $45.7 million compared to the three months ended March 31, 2025, primarily related to Square Lending.
Previous wording
Bitcoin revenue for the three and nine months ended September 30, 2025 decreased by $462.2 million, or 19%, and $1.4 billion, or 17%, compared to the three and nine months ended September 30, 2024, 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 decrease in the three and nine months ended September 30, 2025 was driven by a decrease in trading volume, partially offset by an increase in the average market price of bitcoin, compared to the three and nine months ended September 30, 2024. While bitcoin contributed 32% and 36% of the total revenue for the three and nine months ended September 30, 2025, respectively, gross profit generated from bitcoin was only 3% of the total gross profit for both the three and nine months ended September 30, 2025 as well as for both the three and nine months ended September 30, 2024.
Current wording
Bitcoin ecosystem revenue for the three months ended March 31, 2026 decreased by $533.4 million, or 23%, compared to the three months ended March 31, 2025. As bitcoin ecosystem revenue is primarily the total sale amount of bitcoin to customers, the amount of bitcoin ecosystem 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, 2026 was driven by a decrease in trading volume as well as the average market price of bitcoin, compared to the three months ended March 31, 2025. While the bitcoin ecosystem contributed 30% and 40% of total revenue for the three months ended March 31, 2026 and March 31, 2025, respectively, gross profit generated from the bitcoin ecosystem was only 2% and 4% of the total gross profit for both the three months ended March 31, 2026 and March 31, 2025.
Previous wording
Total cost of revenue for the three and nine months ended September 30, 2025 decreased by $272.7 million, or 7%, and $1.1 billion, or 9%, compared to the three and nine months ended September 30, 2024, respectively. Bitcoin costs of revenue, which decreased by $469.3 million and $1.4 billion for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively, was the primary driver of the decrease in total cost of revenue. Excluding bitcoin costs of revenue, total cost of revenue increased by approximately $196.6 million, or 14%, and $308.3 million, or 8%, in the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively, largely related to an increase in Square GPV.
Current wording
Total cost of revenue for the three months ended March 31, 2026 decreased by $334.6 million, or 10%, compared to the three months ended March 31, 2025. Bitcoin ecosystem costs of revenue, which decreased by $509.4 million, was the primary driver of the decrease in total cost of revenue. Excluding bitcoin ecosystem costs of revenue, total cost of revenue increased by approximately $174.9 million, or 14%, in the three months ended March 31, 2026, compared to the three months ended March 31, 2025, largely related to an increase in Square GPV.
Previous wording
Subscription and services-based costs for the three and nine months ended September 30, 2025 increased by $28.3 million and $39.9 million, compared to the three and nine months ended September 30, 2024, respectively, primarily due to the growth in Cash App's financial services-related products, including Cash App Borrow and Cash App Card and related processing services. While subscription and services-based revenue increased by 23% and 17% for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, the costs of revenues increased by 10% and 5% for the same comparative periods. This gross margin expansion is due to more favorable gross margin economics in Cash App's financial services-related products.
Current wording
Financial solutions costs for the three months ended March 31, 2026 increased by $11.5 million, compared to the three months ended March 31, 2025. The increase was primarily driven by growth in Cash App's financial solutions-related products on Cash App Card, including ATM, Paper Money Deposits, and related processing costs. While financial solutions revenue increased by 51% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, the costs of revenues increased by 15% for the same comparative period. This gross margin expansion is primarily due to more favorable economics in Cash App's financial solutions-related products.
Previous wording
Bitcoin costs for the three and nine months ended September 30, 2025 decreased by $469.3 million, or 20%, and $1.4 billion, or 18%, compared to the three and nine months ended September 30, 2024, respectively. Bitcoin costs are comprised of the total amount we pay to purchase bitcoin, which fluctuates in line with bitcoin revenue.
Current wording
Bitcoin ecosystem costs for the three months ended March 31, 2026 decreased by $509.4 million, or 23%, compared to the three months ended March 31, 2025. Bitcoin ecosystem costs are primarily comprised of the total amounts we pay to purchase bitcoin, which fluctuates in line with bitcoin ecosystem revenue.
Previous wording
Product development expenses were relatively flat for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. For the nine months ended September 30, 2025, these expenses increased by $52.5 million, or 2%, compared to the nine months ended September 30, 2024. For the nine months ended September 30, 2025, the increase in expenses was driven by an increase in allocated facilities, human resources, and IT expenses of $30.1 million, personnel costs of $15.4 million arising from restructuring costs, including severance and other related expenses, as well as an increase of $13.3 million related to amortization of internally developed software, partially offset by reductions in cloud computing infrastructure fees.
Current wording
Product development expenses increased by $278.2 million, or 37%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase in expenses was driven by an increase in personnel costs of $252.7 million arising from the Workforce Plan and other restructuring costs, including severance and related expenses, partially offset by cost efficiencies from headcount reductions in the first quarter of 2025. Additionally, cloud computing infrastructure fees increased by $50.9 million for the three months ended March 31, 2026. These increases were partially offset by a $45.1 million reduction in allocated facilities, human resources, and IT expenses.
Previous wording
Sales and marketing expenses increased by $87.6 million, or 17%, and $190.3 million, or 13%, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively. The increase for the three and nine months ended September 30, 2025 was primarily driven by higher marketing and advertising costs of $91.4 million and $205.7 million, respectively, as we prioritize marketing investments to support the growth of Cash App and Square. Further, for the nine months ended September 30, 2025, personnel costs increased by $26.5 million, which were impacted by restructuring costs, including severance and other related expenses. These expenses were partially offset by higher expenses recognized in the three and nine months ended September 30, 2024, related to changes to certain contractual arrangements and inventory write-offs, that did not recur during the three and nine months ended September 30, 2025.
Current wording
Sales and marketing expenses increased by $146.0 million, or 29%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by Cash App peer-to-peer processing costs and related transaction losses of $82.6 million, as well as higher marketing and advertising costs of $20.1 million, as we prioritized marketing investments to support the growth of Cash App and Square. Additionally, personnel costs increased by $26.4 million, driven by the Workforce Plan and other restructuring costs, including severance and related expenses, partially offset by cost efficiencies from headcount reductions in the first quarter of 2025.
Previous wording
General and administrative expenses increased by $68.1 million, or 14%, and $64.3 million, or 5%, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively. The increase was primarily driven by higher personnel costs of $92.9 million and $79.5 million, respectively, and an increase in facilities and other expenses of $21.5 million and $27.8 million for the comparable periods. These expense increases resulted from an in-person company event held in the third quarter of 2025, as well as restructuring costs, including severance and other related expenses, recognized during the three and nine months ended September 30, 2025. In addition, the three and nine months ended September 30, 2024 included higher accrued expenses for estimated amounts in connection with certain litigation and regulatory matters that did not recur during the three and nine months ended September 30, 2025.
Current wording
General and administrative expenses increased by $365.8 million, or 74%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily due to an increase in accrued expenses for estimated and settled amounts in connection with certain litigation and regulatory matters of $253.8 million. The increase in expenses was also due to higher personnel costs of $48.5 million driven by the Workforce Plan and other restructuring costs, including severance and related expenses, partially offset by cost efficiencies from headcount reductions in the first quarter of 2025, as well as an increase in facilities and other expenses of $42.6 million.
Previous wording
Interest expense, net, of $34.7 million and $75.6 million for the three and nine months ended September 30, 2025, respectively, was primarily due to interest expense related to our 2032 Senior Notes issued in the second quarter of 2024 as well as our 2030 and 2033 Senior Notes issued in the third quarter of 2025, 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 expense, net, of $13.8 million and interest income, net, of $6.8 million for the three and nine months ended September 30, 2024, respectively, was primarily due to interest expense related to our 2032 Senior Notes issued in the second quarter of 2024, offset by interest income received on invested funds.
Current wording
Interest expense, net, increased by $36.0 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to the issuance of our 2030 and 2033 Senior Notes in the third quarter of 2025, 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.
Previous wording
Remeasurement gain on bitcoin investment of $59.6 million and $178.4 million for the three and nine months ended September 30, 2025, respectively, compared to gain on bitcoin investment of $5.3 million and $168.6 million for the three and nine months ended September 30, 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 wording
Remeasurement loss on bitcoin investment of $172.8 million for the three months ended March 31, 2026, compared to loss on bitcoin investment of $93.4 million for the three months ended March 31, 2025, 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.
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, 2025 and September 30, 2024 (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, 2026 and March 31, 2025 (in thousands, except for percentages):
Previous wording
Revenue for the Square segment for the three and nine months ended September 30, 2025 increased by $239.1 million, or 12%, and $548.0 million, or 10%, compared to the three and nine months ended September 30, 2024, respectively. The increase was primarily due to the Square items referenced within our overall revenue discussion.
Current wording
Revenue for the Square segment for the three months ended March 31, 2026 increased by $260.2 million, or 14%, compared to the three months ended March 31, 2025. The increase was primarily due to the Square items referenced within our overall revenue discussion.
Previous wording
Cost of revenue for the Square segment for the three and nine months ended September 30, 2025 increased by $153.8 million, or 14%, and $280.9 million, or 9%, compared to the three and nine months ended September 30, 2024, respectively. The increase was primarily due to the Square items referenced within our overall cost of revenue discussion.
Current wording
Cost of revenue for the Square segment for the three months ended March 31, 2026 increased by $176.5 million, or 18%, compared to the three months ended March 31, 2025. 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, 2025 and September 30, 2024 (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, 2026 and March 31, 2025 (in thousands, except for percentages):
Previous wording
Revenue for the Cash App segment for the three and nine months ended September 30, 2025 decreased by $130.1 million, or 3%, and $707.9 million, or 6%, compared to the three and nine months ended September 30, 2024, respectively. 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 52% and 56% of Cash App revenue for three and nine months ended September 30, 2025, respectively, gross profit generated from bitcoin was only 4% and 5% of Cash App gross profit for the three and nine months ended September 30, 2025, respectively.
Current wording
Revenue for the Cash App segment for the three months ended March 31, 2026 decreased by $8.3 million, compared to the three months ended March 31, 2025. The decrease was driven by the Cash App items referenced within our overall revenue discussion. While bitcoin ecosystem revenue contributed 45% of Cash App revenue for three months ended March 31, 2026, gross profit generated from bitcoin ecosystem was only 3% of Cash App gross profit for the three months ended March 31, 2026.
Previous wording
Cost of revenue for the Cash App segment for the three and nine months ended September 30, 2025 decreased by $448.1 million, or 17%, and $1.3 billion, or 16%, compared to the three and nine months ended September 30, 2024, respectively. The decrease for the three and nine months ended September 30, 2025 was driven by lower bitcoin costs, partially offset by the other Cash App items referenced within our overall cost of revenue discussion. Excluding $1.9 billion and $6.2 billion in bitcoin cost of revenue for the three and nine months ended September 30, 2025, respectively, Cash App cost of revenue increased by $21.8 million, or 8%, and $17.4 million, or 2%, compared to the three and nine months ended September 30, 2024, respectively.
Current wording
Cost of revenue for the Cash App segment for the three months ended March 31, 2026 decreased by $536.5 million, or 21%, compared to the three months ended March 31, 2025. The decrease was due to the items referenced within our overall revenue and cost of revenue discussion. Excluding bitcoin ecosystem cost of revenue, Cash App cost of revenue increased by $20.1 million, or 8%, compared to the three months ended March 31, 2025.
Previous 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.
Current wording
GPV includes Square GPV and Cash App 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 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 related to our BNPL products.
Previous wording
•We believe that excluding the expense related to amortization of debt discount and issuance costs from our non-GAAP measures is useful to investors because such incremental non-cash interest expense does not represent a current or future cash outflow for the Company and is therefore not indicative of our continuing operations or meaningful when comparing current results to past results. Additionally, for purposes of calculating diluted Adjusted EPS, we add back cash interest expense on convertible notes, as if converted at the beginning of the period, if the impact is dilutive.
Current wording
•We believe that excluding the expense related to amortization of debt discount and issuance costs from our non-GAAP measures is useful to investors because such incremental non-cash interest expense does not represent a current or future cash outflow for the Company and is therefore not indicative of our continuing operations or meaningful when comparing current results to past results. Additionally, for purposes of calculating diluted Adjusted EPS, we add back cash interest expense on convertible notes, as if converted at the beginning of the period, if the impact of the note conversion is dilutive.
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; gain or loss from the remeasurement of our bitcoin investment; and tax effects of income tax benefits from deferred taxes, as applicable.
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 discrete benefits from the release of valuation allowances on our deferred tax assets, 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 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.
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 contingencies, 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 severance costs, contingent losses, 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 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.
Current wording
In addition to the limitations above, Adjusted EBITDA 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 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.
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 and integration costs, various contingencies, restructuring 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
As of September 30, 2025, we had approximately $10.5 billion in available liquidity, with $9.7 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 $983.1 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 September 30, 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.
Current wording
As of March 31, 2026, we had approximately $9.1 billion in available liquidity, with $8.2 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as an undrawn amount of $900.0 million available under our revolving credit facility. Additionally, we had $960.9 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, debt repayment obligations, and future cash payments related to the Workforce Plan. As of March 31, 2026, 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, 2025, we have invested $96.6 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.
Current wording
(i) As of March 31, 2026, we have invested $99.5 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.
Previous wording
As of September 30, 2025, we held approximately 8,780 bitcoins for long-term investment purposes ("bitcoin investment") with a fair value of $1.0 billion 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 88 and 295 bitcoins with a cost basis of $10.2 million and $30.7 million during the three and nine months ended September 30, 2025, respectively, for investment purposes. 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, 2025 and September 30, 2024. We recognized gains of $59.6 million and $178.4 million from the remeasurement of our bitcoin investment during the three and nine months ended September 30, 2025, respectively. 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, 2026, we held approximately 9,032 bitcoins for long-term investment purposes ("bitcoin investment") with a fair value of $617.3 million based on observable market prices. 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 149 and 99 bitcoins with a cost basis of $12.6 million and $9.5 million during the three months ended March 31, 2026 and March 31, 2025, respectively, for investment purposes. We did not sell any of our bitcoin investment during the three months ended March 31, 2026 and March 31, 2025. We recognized losses of $172.8 million and $93.4 million from the remeasurement of our bitcoin investment during the three months ended March 31, 2026 and March 31, 2025, respectively.
Previous wording
Our principal commitments consist of convertible notes, senior notes, revolving credit facility, warehouse funding facilities, operating leases, capital leases, and purchase commitments. Refer to Note 12, Indebtednessand Note 17, Commitments and Contingencies within Notes to the Condensed Consolidated Financial Statements for more details on these commitments.
Current wording
Our principal commitments consist of convertible notes, senior notes, revolving credit facility, warehouse funding facilities, operating leases, and purchase commitments. Refer to Note 12, Indebtednessand Note 17, Commitments and Contingencies within Notes to the Condensed Consolidated Financial Statements for more details on these commitments.
Previous wording
We have entered into a revolving credit agreement with certain lenders, as subsequently amended, which provides a $775.0 million senior unsecured revolving credit facility maturing in June 2028. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Current wording
We have entered into a revolving credit agreement with certain lenders, as subsequently amended and restated, which provides a $900.0 million senior unsecured revolving credit facility maturing in January 2031. 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 $501.0 million was drawn as of September 30, 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.
Current wording
We have warehouse funding facilities ("Warehouse Facilities") with an aggregate amount of $1.5 billion on a revolving basis, of which $542.5 million was drawn as of March 31, 2026. The Warehouse Facilities have been arranged utilizing wholly-owned and consolidated entities (collectively, the Warehouse Special Purpose Entities ("Warehouse SPEs")) formed for the sole purpose of financing the origination of consumer receivables to partly fund certain BNPL products. 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, short-term debt repayments, 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.
Current wording
We believe that our existing cash and cash equivalents, investment in marketable debt securities, and availability under our line of credit and warehouse funding facilities 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, short-term debt repayments, 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
In the second quarter of 2025, we received an investment grade rating by Fitch Ratings, Inc. (BBB-). During 2024, we received non-investment grade ratings by S&P Global Ratings (BB+) and Moody's Corporation (Ba2). The ratings from Fitch Ratings, Inc., S&P Global Ratings, and Moody's Corporation were affirmed in the third quarter of 2025. 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
During 2025, we received an investment grade rating by Fitch Ratings, Inc. (BBB-) and a non-investment grade rating from Moody's Corporation (Ba1), and our non-investment grade rating from S&P Global Ratings (BB+) was affirmed. 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 $731.6 million as of September 30, 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.
Current wording
Short-term restricted cash of $621.3 million as of March 31, 2026 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.
Previous wording
Long-term restricted cash of $73.8 million as of September 30, 2025 is primarily related to cash held as collateral as required by the Federal Deposit Insurance Corporation ("FDIC") for Square Financial Services. We have recorded these amounts as non-current assets on our condensed consolidated balance sheet as the requirement by the FDIC specifies a time frame of 12 months or longer during which the cash must remain restricted.
Current wording
Long-term restricted cash of $73.7 million as of March 31, 2026 is primarily related to cash held as collateral as required by the Federal Deposit Insurance Corporation ("FDIC") for Square Financial Services. We have recorded these amounts as non-current assets on our condensed consolidated balance sheet as the requirement by the FDIC specifies a time frame of 12 months or longer during which the cash must remain restricted.
Previous wording
For the nine months ended September 30, 2024, cash provided by operating activities was $1.7 billion, comprised of net income of $941.8 million, adjusted for non-cash expenses of $1.9 billion, consisting primarily of share-based compensation; transaction, loan, and consumer receivable losses; and depreciation and amortization, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and other non-cash adjustments on consumer receivables of $824.2 million; net outflows from loan products of $467.8 million; and bitcoin remeasurement of $168.6 million. Changes in other assets and liabilities, including settlements receivable and customers payable of $358.3 million contributed positively and was primarily due to the timing of period end.
Current wording
For the three months ended March 31, 2026, cash provided by operating activities was $1.0 billion, comprised of net loss of $308.6 million, adjusted for non-cash expenses of $1.1 billion, consisting primarily of transaction, loan, and consumer receivable losses; share-based compensation; bitcoin remeasurement loss; and depreciation and amortization, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and other non-cash adjustments on consumer receivables of $279.9 million and changes in deferred income taxes of $79.0 million. Changes in other assets and liabilities, including customers payable and settlements receivable, of $557.5 million contributed positively and was primarily due to the timing of period end.
Previous wording
For the nine months ended September 30, 2025, cash provided by operating activities was $2.0 billion, comprised of net income of $1.2 billion, adjusted for non-cash expenses of $1.9 billion, consisting primarily of share-based compensation; transaction, loan, and consumer receivable losses; depreciation and amortization; and changes in deferred income taxes, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and other non-cash adjustments on consumer receivables of $835.0 million; bitcoin remeasurement of $178.4 million; revaluation of equity investments of $172.6 million; and net outflows related to changes in other assets and liabilities, including customers payable and settlements receivable, of $355.1 million due to the timing of period end.
Current wording
For the three months ended March 31, 2025, cash provided by operating activities was $133.3 million, comprised of net income of $188.7 million, adjusted for non-cash expenses of $689.3 million, consisting primarily of share-based compensation; transaction, loan, and consumer receivable losses; bitcoin remeasurement; and depreciation and amortization, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and other non-cash adjustments on consumer receivables of $265.2 million; net outflows from loan products of $311.0 million; and net outflows related to changes in other assets and liabilities, including customers payable and settlements receivable, of $168.5 million due to the timing of period end.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Provision for (Benefit from) Income Taxes (in thousands, except for percentages)
Current report — wording carried from elsewhere
For the three months ended March 31, 2026, cash used in financing activities was $251.9 million primarily due to $640.0 million of share repurchases in the first quarter of 2026 and net repayments under Warehouse Facilities borrowings of $841.2 million. These were partially offset by an increase in customer funds of $1.2 billion and interest-bearing deposits of $55.3 million.