Block, Inc.

Previous 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.

Current wording

In the second quarter of 2026, we generated gross profit of $3.2 billion, up 25% year over year. Cash App generated gross profit of $2.0 billion in the second quarter of 2026, up 31% year over year, driven by growth in Cash App Borrow and Cash App Card. Square generated gross profit of $1.2 billion in the second quarter of 2026, up 13% year over year, driven primarily by Square processing, Square software, and Square Loans.

Previous 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.

Current wording

In the second quarter of 2026, operating income was $446.9 million and Adjusted Operating Income was $863.8 million, compared to operating income of $484.3 million and Adjusted Operating Income of $549.6 million in the second quarter of 2025. Net income attributable to common stockholders was $88.5 million for the second quarter of 2026, compared to net income attributable to common stockholders of $538.5 million for the same period in 2025, and Adjusted EBITDA was $1.2 billion for the second quarter of 2026, compared to $891.4 million for the same period in 2025. Net income for the second quarter of 2026 and 2025 included a loss of $88.5 million and gain of $212.2 million, respectively, from the remeasurement of our bitcoin investment.

Previous wording

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 wording

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 with the Workforce Plan for the six months ended June 30, 2026 were $495.0 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. Restructuring charges for the three months ended June 30, 2026 were immaterial. The Workforce Plan concluded during the second quarter of fiscal 2026, and we do not expect to incur any additional material charges related to the Workforce Plan. We have begun realizing 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.

Previous wording

The following table presents a summary of severance and other personnel costs related to the Workforce Plan (in thousands):

Current wording

The following table presents a summary of severance and other personnel costs related to the Workforce Plan for the six months ended June 30, 2026 (in thousands):

Previous wording

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 wording

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 began to realize these cost savings during the second quarter of fiscal 2026 following the conclusion of the Workforce Plan. Refer to Note 19, Restructuring, within Notes to the Condensed Consolidated Financial Statements for further details regarding charges related to the Workforce Plan.

Previous 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.

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 June 30, 2026, we have repurchased a total of $4.4 billion of our Class A common stock under the program, of which $700.9 million was purchased in fiscal 2026.

Previous 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.

Current wording

Commerce enablement revenue for the three and six months ended June 30, 2026 increased by $443.3 million, or 15%, and$814.8 million, or 15%, compared to the three and six months ended June 30, 2025, respectively. The increase in revenue was driven by growth in Square processing of $218.1 million and $379.7 million, growth in Cash App Card of $76.2 million and $147.3 million, and growth in Afterpay Post-Purchase revenue of $62.1 million and $134.4 million, in each case for the three and six months ended June 30, 2026, respectively. The growth in Square processing was in line with Square gross payment volume ("GPV") growth of 13% for both the three and six months ended June 30, 2026, 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

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.

Current wording

Financial solutions revenue for the three and six months ended June 30, 2026 increased by $397.8 million, or 40%, and $844.8 million, or 45%, compared to the three and six months ended June 30, 2025, respectively. The increase was primarily due to growth in Cash App's financial solutions-related products, specifically Cash App Borrow where revenue increased by $281.1 million and $650.5 million, respectively, as we continued to expand access to the product, resulting in higher origination volumes. Additionally, revenue from Square's financial solutions-related products increased by $54.4 million and $110.8 million for the three and six months ended June 30, 2026, respectively, primarily related to Square Loans.

Previous 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.

Current wording

Bitcoin ecosystem revenue for the three and six months ended June 30, 2026 decreased by $277.9 million, or 13%, and $811.3 million, or 18%, compared to the three and six months ended June 30, 2025, respectively. 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 and changes in the market price of bitcoin. The decreases were driven by lower bitcoin trading volume and a lower average market price of bitcoin compared to the prior year periods. While the bitcoin ecosystem contributed 29% of total revenue for the three and six months ended June 30, 2026, and 36% and 38% for the three and six months ended June 30, 2025, respectively, gross profit generated from the bitcoin ecosystem was only 2% of total gross profit for both the three and six months ended June 30, 2026, and 4% for both the three and six months ended June 30, 2025.

Previous 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.

Current wording

Total cost of revenue for the three and six months ended June 30, 2026 decreased by $66.3 million, or 2%, and $400.9 million, or 6%, compared to the three and six months ended June 30, 2025, respectively. The decrease was primarily driven by a decrease in bitcoin ecosystem cost of revenue of $245.2 million and $754.6 million, respectively. Excluding bitcoin ecosystem cost of revenue, total cost of revenue increased by $178.8 million, or 12%, and $353.7 million, or 13%, respectively, largely related to an increase in Square GPV.

Previous wording

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 wording

Commerce enablement costs for the three and six months ended June 30, 2026 increased by $169.3 million, or 12%, and $334.5 million, or 13%, compared to the three and six months ended June 30, 2025, respectively. The increase was primarily driven by higher Square processing costs, in line with the growth of Square GPV of 13%, as well as higher Square hardware costs from the continued distribution of Square products launched in the second half of fiscal 2025.

Previous 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.

Current wording

Financial solutions costs for the three and six months ended June 30, 2026 increased by $11.2 million, or 14%, and $22.6 million, or 14%, compared to the three and six months ended June 30, 2025, respectively. 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. Over the same periods, financial solutions revenue increased by 40% and 45%, outpacing growth in costs of revenue and resulting in gross margin expansion, primarily due to more favorable economics of Cash App's financial solutions-related products.

Previous 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.

Current wording

Bitcoin ecosystem costs for the three and six months ended June 30, 2026 decreased by $245.2 million, or 12%, and $754.6 million, or 18%, compared to the three and six months ended June 30, 2025, respectively. Bitcoin ecosystem costs primarily consist of the total amount we pay to purchase bitcoin, which fluctuates in line with bitcoin ecosystem revenue.

Previous 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.

Current wording

Sales and marketing expenses increased by $115.2 million, or 21%, and $261.3 million, or 25%, for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025. The increase for the three and six months ended June 30, 2026 was primarily driven by Cash App peer-to-peer processing costs and related transaction losses of $48.3 million and $131.0 million, respectively, higher marketing and advertising costs of $29.2 million and $49.3 million, respectively, as we prioritize marketing investments to support the growth of Cash App and Square, and higher partnership fees of $29.1 million and $39.5 million, respectively. Further, for the six months ended June 30, 2026, personnel costs increased by $28.5 million, which were driven by the Workforce Plan and other restructuring costs, including severance and related expenses recognized in the first quarter of 2026.

Previous 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.

Current wording

General and administrative expenses increased by $376.6 million, or 84%, and $742.4 million, or 79%, for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, respectively. The increase for the three and six months ended June 30, 2026 was primarily driven by an increase in accrued expenses for estimated and settled amounts in connection with certain litigation and regulatory matters of $294.9 million and $548.7 million, respectively, and an increase in allocated IT, human resources, and facilities expenses of $63.8 million and $106.4 million, respectively, mainly attributable to personnel costs and cloud computing infrastructure fees. Further, for the three months ended June 30, 2026, these increases included $52.5 million of impairment charges related to certain lease assets and property and equipment, which were partially offset by a decrease in personnel costs of $47.6 million driven by cost efficiencies realized following the Workforce Plan actions in the first quarter of 2026.

Previous wording

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 wording

Transaction, loan, and consumer receivable losses increased by $291.4 million, or 99%, and $621.8 million, or 134%, for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, respectively, as detailed below (in thousands, except for percentages):

Previous wording

•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 wording

•Loan losses increased by $277.1 million, or 177%, and $578.5 million, or 258%, compared to the three and six months ended June 30, 2025, respectively. The increase in loan losses was driven by significant growth in loan origination volumes of Cash App Borrow and the continued scaling of 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 and certain other loan products were retained on our balance sheet and classified as held for investment, for which we recognize expected credit losses upfront at origination. As a result, loan losses in a given period reflect the volume, mix, and timing of originations and underlying credit performance.

Previous wording

•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 wording

•Consumer receivable losses increased by $4.7 million, or 6%, and $29.3 million, or 22%, compared to the three and six months ended June 30, 2025, respectively, while loss rates remained stable. The increase was primarily due to growth of our Pay in 4 BNPL product and higher origination volumes from preceding periods that reached charge-off during the current quarter.

Previous 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.

Current wording

Interest expense, net, increased by $32.0 million, or 135%, and $68.0 million, or 166%, for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, respectively, 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 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.

Current wording

Remeasurement loss on bitcoin investment of $88.5 million and $261.3 million for the three and six months ended June 30, 2026, compared to gain on bitcoin investment of $212.2 million and $118.8 million for the three and six months ended June 30, 2025, 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.

Previous 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):

Current wording

The following table provides a summary of the revenue and gross profit for our Square segment for the three and six months ended June 30, 2026 and June 30, 2025 (in thousands, except for percentages):

Previous 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.

Current wording

Revenue for the Square segment for the three and six months ended June 30, 2026 increased by $337.3 million, or 16%, and $597.5 million, or 15%, compared to the three and six months ended June 30, 2025, respectively. 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 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.

Current wording

Cost of revenue for the Square segment for the three and six months ended June 30, 2026 increased by $203.9 million, or 18%, and $380.4 million, or 18%, compared to the three and six months ended June 30, 2025, respectively. 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 months ended March 31, 2026 and March 31, 2025 (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 and six months ended June 30, 2026 and June 30, 2025 (in thousands, except for percentages):

Previous 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.

Current wording

Revenue for the Cash App segment for the three and six months ended June 30, 2026 increased by $175.8 million, or 5%, and $167.4 million, or 2%, compared to the three and six months ended June 30, 2025, respectively. The increase 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 and six months ended June 30, 2026, respectively, gross profit generated from bitcoin ecosystem was only 3% of Cash App gross profit for the three and six months ended June 30, 2026.

Previous wording

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 wording

Excluding bitcoin ecosystem revenue, Cash App net revenue increased by $533.9 million, or 32%, and$1.1 billion, or 34%, compared to the three and six months ended June 30, 2025.

Previous 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.

Current wording

Cost of revenue for the Cash App segment for the three and six months ended June 30, 2026 decreased by $296.7 million, or 13%, and $833.2 million, or 17%, compared to the three and six months ended June 30, 2025, respectively. The decrease was due to the items referenced within our overall cost of revenue discussion. Excluding bitcoin ecosystem cost of revenue, Cash App cost of revenue increased by $6.6 million, or 2%, and $27.3 million, or 5%, compared to the three and six months ended June 30, 2025, respectively.

Previous 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.

Current wording

As of June 30, 2026, we had approximately $8.8 billion in available liquidity, with $7.9 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 $342.5 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 and debt repayment obligations. As of June 30, 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 March 31, 2026, we have invested $99.5 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.

Current wording

(i) As of June 30, 2026, we have invested $278.6 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.

Previous 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.

Current wording

As of June 30, 2026, we held approximately 9,117 bitcoins for long-term investment purposes ("bitcoin investment") with a fair value of $533.9 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 85 and 234 bitcoins with a cost basis of $5.1 million and $17.6 million during the three and six months ended June 30, 2026, respectively, for investment purposes. We purchased approximately 108 and 207 bitcoins with a cost basis of $11.0 million and $20.6 million for the three and six months ended June 30, 2025, respectively, for investment purposes. We did not sell any of our bitcoin investment during the three and six months ended June 30, 2026 and June 30, 2025. We recognized losses of $88.5 million and $261.3 million from the remeasurement of our bitcoin investment during the three and six months ended June 30, 2026, respectively. We recognized gains of $212.2 million and $118.8 million from the remeasurement of our bitcoin investment during the three and six months ended June 30, 2025, respectively.

Previous wording

As of March 31, 2026, we held $7.4 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"), $1.2 billion in aggregate principal amount of senior unsecured notes that mature on August 15, 2030 ("2030 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2031 ("2031 Senior Notes"), $2.0 billion in aggregate principal amount of senior unsecured notes that mature on May 15, 2032 ("2032 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on August 15, 2033 ("2033 Senior Notes" and, together with the 2026 Senior Notes, 2030 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 June 30, 2026, we held $5.8 billion in aggregate principal amount of debt, comprised of $575.0 million in aggregate amount of convertible senior notes that mature on November 1, 2027 (the “Convertible Notes”), as well as an outstanding $1.2 billion in aggregate principal amount of senior unsecured notes that mature on August 15, 2030 ("2030 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2031 ("2031 Senior Notes"), $2.0 billion in aggregate principal amount of senior unsecured notes that mature on May 15, 2032 ("2032 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on August 15, 2033 ("2033 Senior Notes" and, together with the 2030 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 $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.

Current wording

We have warehouse funding facilities ("Warehouse Facilities") with an aggregate amount of $1.5 billion on a revolving basis, of which $1.2 billion was drawn as of June 30, 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

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.

Current wording

Short-term restricted cash of $821.7 million as of June 30, 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 $73.7 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.

Current wording

Long-term restricted cash of $71.9 million as of June 30, 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 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.

Current wording

For the six months ended June 30, 2026, cash provided by operating activities was $2.0 billion, comprised of net loss of $221.5 million, adjusted for non-cash expenses of $2.3 billion, consisting primarily of transaction, loan, and consumer receivable losses; share-based compensation; bitcoin remeasurement loss; depreciation and amortization; non-cash lease expense and other non-cash adjustments; and changes in deferred income taxes, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and premiums, primarily related to consumer receivables, of $603.1 million. Changes in other assets and liabilities, including customers payable and settlements receivable, of $617.1 million contributed positively and was primarily due to the timing of period end.

Previous 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.

Current wording

For the six months ended June 30, 2025, cash provided by operating activities was $507.7 million, comprised of net income of $727.1 million, adjusted for non-cash expenses of $1.2 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 premiums, primarily related to consumer receivables, of $548.1 million; net outflows from loan products of $470.8 million; bitcoin remeasurement loss of $118.8 million; and net outflows related to changes in other assets and liabilities, including customers payable and settlements receivable, of $419.8 million due to the timing of period end.

Previous wording

For the three months ended March 31, 2025, cash provided by investing activities was $914.7 million, primarily due to a net inflow related to consumer receivables of $703.6 million and net proceeds from investments of marketable securities of $250.5 million. These were partially offset by the purchases of property and equipment of $31.9 million.

Current wording

For the six months ended June 30, 2026, cash used in investing activities was $6.3 million, primarily due to net outflows of $1.1 billion primarily related to Cash App Borrow and Afterpay Post-Purchase loans originated through Square Financial Services and the purchases of property and equipment of $83.8 million. These were partially offset by net inflows related to consumer receivables of $685.7 million; net proceeds from other investments primarily due to the sale of a non-marketable equity security of $329.8 million; and net proceeds from investments of marketable securities of $171.7 million.

Previous wording

For the three months ended March 31, 2026, cash provided by investing activities was $300.0 million, primarily due to net inflows related to consumer receivables of $652.6 million and net proceeds from investments of marketable securities of $90.3 million. These were partially offset by net outflows of $414.0 million primarily related to Cash App Borrow and Afterpay Post-Purchase loans originated through Square Financial Services and the purchases of property and equipment of $30.6 million.

Current wording

For the six months ended June 30, 2025, cash provided by investing activities was $428.9 million, primarily due to a net inflow related to consumer receivables of $855.7 million and net proceeds from investments of marketable securities of $370.2 million. These were partially offset by net outflows of $706.9 million primarily related to Cash App Borrow loans originated through Square Financial Services and the purchases of property and equipment of $63.2 million.

Previous wording

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.

Current wording

For the six months ended June 30, 2026, cash used in financing activities was $1.6 billion primarily due to a $1.0 billion cash payment to settle the outstanding principal balance of the 2026 Senior Notes, plus accrued and unpaid interest, that matured in June 2026 as well as a $575.0 million cash payment for the settlement of the outstanding 2026 Convertible Notes that matured in May 2026;$700.9 million of share repurchases in the first and second quarters of 2026; and net repayments under Warehouse Facilities borrowings of $216.0 million. These were partially offset by an increase in customer funds of $758.5 million and interest-bearing deposits of $90.0 million.

Previous wording

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.

Current wording

For the six months ended June 30, 2025, cash used in financing activities was $2.1 billion, driven by $1.1 billion of share repurchases in the first and second quarters of 2025; a $1.0 billion cash payment for the settlement of the outstanding 2025 Convertible Notes that matured in March 2025; and net repayments under Warehouse Facilities borrowings of $806.8 million. These were partially offset by increases in customer funds of $754.9 million and interest-bearing deposits of $54.8 million.