Block, Inc.

Previous 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.

Current wording

In the third quarter of 2026, we generated gross profit of $3.2 billion, up 22% year over year. Cash App generated gross profit of $2.1 billion in the third quarter of 2026, up 27% year over year, driven by growth in Cash App Borrow, Afterpay Post-Purchase, and Cash App Card. Square generated gross profit of $1.2 billion in the third quarter of 2026, up 14% year over year, driven primarily by Square processing, Square Loans, and Square Software.

Previous 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.

Current wording

In the third quarter of 2026, operating income was $428.5 million and Adjusted Operating Income was $922.7 million, compared to operating income of $409.4 million and Adjusted Operating Income of $480.2 million in the third quarter of 2025. Net income attributable to common stockholders was $565.6 million for the third quarter of 2026, compared to net income attributable to common stockholders of $461.5 million for the same period in 2025, and Adjusted EBITDA was $1.2 billion for the third quarter of 2026, compared to $832.7 million for the same period in 2025. Net income for the third quarter of 2026 and 2025 included a gain of $229.7 million and $59.6 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 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.

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%. The Workforce Plan concluded during the second quarter of fiscal 2026 and we did not recognize any charges related to the Workforce Plan during the three months ended September 30, 2026. Restructuring charges in connection with the Workforce Plan for the nine months ended September 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. We do not expect to incur additional material charges related to the Workforce Plan. 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. 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. During the three months ended September 30, 2026, we recognized immaterial severance and related costs in connection with these efforts, which are not part of the Workforce Plan.

Previous 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):

Current wording

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

Previous 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.

Current wording

We continue to 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 are strategically reinvesting in the Company. We began to realize these cost savings during the second quarter of fiscal 2026 following the conclusion of the Workforce Plan, and the savings realized through September 30, 2026 have been consistent with our expectations. 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

We ended the second quarter of 2026 with $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. During the second quarter of fiscal 2026, we settled $1.6 billion of debt upon the maturity of our 2026 Senior Notes and 2026 Convertible Notes and continued to invest in our lending products, while maintaining a strong liquidity position. Refer to Liquidity and Capital Resources section below for further details.

Current wording

We ended the third quarter of 2026 with $10.1 billion in available liquidity, with $9.2 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 $809.3 million available to be withdrawn under our warehouse funding facilities. During the third quarter of fiscal 2026, we continued to invest in our lending products, while maintaining a strong liquidity position. Refer to Liquidity and Capital Resources section below for further details.

Previous wording

Total net revenue for the three and six months ended June 30, 2026 increased by $563.2 million, or 9%, and $848.3 million, or 7%, compared to the three and six months ended June 30, 2025, respectively. Bitcoin ecosystem revenue decreased by $277.9 million and $811.3 million, respectively. Excluding bitcoin ecosystem revenue, total net revenue increased by $841.1 million, or 22%, and $1.7 billion, or 23%, respectively.

Current wording

Total net revenue for the three and nine months ended September 30, 2026 increased by $604.4 million, or 10%, and $1.5 billion, or 8%, compared to the three and nine months ended September 30, 2025, respectively. Bitcoin ecosystem revenue decreased by $217.2 million and $1.0 billion, respectively. Excluding bitcoin ecosystem revenue, total net revenue increased by $821.6 million, or 20%, and $2.5 billion, or 22%, respectively.

Previous 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.

Current wording

Commerce enablement revenue for the three and nine months ended September 30, 2026 increased by $476.9 million, or 16%, and $1.3 billion, or 15%, compared to the three and nine months ended September 30, 2025, respectively. The increase in revenue was driven by growth in Square processing of $230.4 million and $610.1 million, growth in Cash App Card of $69.1 million and $216.4 million, and growth in Afterpay Post-Purchase revenue of $56.6 million and $191.0 million, in each case for the three and nine months ended September 30, 2026, respectively. The growth in Square processing was approximately in line with Square gross payment volume ("GPV") growth of 14% and 13% for the three and nine months ended September 30, 2026, respectively, 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 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.

Current wording

Financial solutions revenue for the three and nine months ended September 30, 2026 increased by $344.7 million, or 31%, and $1.2 billion, or 40%, compared to the three and nine months ended September 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 $193.6 million and $844.1 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 $70.7 million and $181.5 million for the three and nine months ended September 30, 2026, respectively, primarily related to Square Loans.

Previous 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.

Current wording

Bitcoin ecosystem revenue for the three and nine months ended September 30, 2026 decreased by $217.2 million, or 11%, and $1.0 billion, or 16%, compared to the three and nine months ended September 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 a lower average market price of bitcoin, partially offset by higher bitcoin trading volume compared to the prior year periods. While the bitcoin ecosystem contributed 27% and 28% of total revenue for the three and nine months ended September 30, 2026, and 33% and 36% for the three and nine months ended September 30, 2025, respectively, gross profit generated from the bitcoin ecosystem was only 2% of total gross profit for both the three and nine months ended September 30, 2026, and 4% for both the three and nine months ended September 30, 2025.

Previous 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.

Current wording

Total cost of revenue for the three and nine months ended September 30, 2026 increased by $30.7 million, or 1%, and decreased by $370.2 million, or 4%, compared to the three and nine months ended September 30, 2025, respectively. The change for both periods reflected decreases in bitcoin ecosystem cost of revenue of $165.3 million and $919.9 million, respectively. Excluding bitcoin ecosystem cost of revenue, total cost of revenue increased by $196.0 million, or 13%, and $549.7 million, or 13%, respectively, largely related to an increase in Square GPV.

Previous 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.

Current wording

Commerce enablement costs for the three and nine months ended September 30, 2026 increased by $179.2 million, or 13%, and $513.7 million, or 13%, compared to the three and nine months ended September 30, 2025, respectively. The increase was primarily driven by higher Square processing costs, in line with the growth of Square GPV of 14% and 13% for the same periods.

Previous 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.

Current wording

Financial solutions costs for the three and nine months ended September 30, 2026 increased by $18.6 million, or 21%, and $41.2 million, or 17%, compared to the three and nine months ended September 30, 2025, respectively. The increase for the three months ended September 30, 2026 was primarily driven by growth in Square's financial solutions-related products, including Square Credit Card rewards and Square Savings, as well as growth in Cash App's financial solutions-related products on Cash App Card, primarily ATM. The increase for the nine months ended September 30, 2026 was driven by growth in Cash App's financial solutions-related products on Cash App Card, including ATM, Paper Money Deposits, and related processing costs, as well as growth in Square's financial solutions-related products, including Square Credit Card rewards and Square Savings. Over the same periods, financial solutions revenue increased by 31% and 40%, 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 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.

Current wording

Bitcoin ecosystem costs for the three and nine months ended September 30, 2026 decreased by $165.3 million, or 9%, and $919.9 million, or 15%, compared to the three and nine months ended September 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

Product development expenses decreased by $116.6 million, or 16%, and increased by $161.5 million, or 11%, for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, respectively. Personnel costs decreased by $146.4 million for the three months ended June 30, 2026, primarily from cost efficiencies realized following the implementation of the Workforce Plan actions in the first quarter of 2026, but increased by $106.3 million for the six months ended June 30, 2026, as the severance and related restructuring charges related to the Workforce Plan recognized in the first quarter of 2026 more than offset those savings. Cloud computing infrastructure fees increased by $86.8 million and $137.7 million for the three and six months ended June 30, 2026, respectively, while allocated IT, human resources, and facilities expenses, mainly attributable to personnel costs and cloud computing infrastructure fees, decreased by $66.4 million and $111.4 million, respectively.

Current wording

Product development expenses decreased by $75.6 million, or 11%, and increased by $85.9 million, or 4%, for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025, respectively. Personnel costs decreased by $149.9 million and $43.6 million for the three and nine months ended September 30, 2026, respectively, primarily from cost efficiencies realized following the implementation of the Workforce Plan actions in the first quarter of 2026. The decreases in personnel costs were partially offset by severance and related restructuring charges related to the Workforce Plan recognized in the first quarter of 2026. Software and cloud computing infrastructure fees increased by $93.8 million and $231.5 million for the three and nine months ended September 30, 2026, respectively, primarily due to higher software license costs, including AI-related tools, and higher data center fees. Allocated IT, human resources, and facilities expenses decreased by $27.4 million and $138.9 million for the three and nine months ended September 30, 2026, respectively, primarily due to higher IT shared-services costs allocated to other functions and lower product development headcount following the Workforce Plan.

Previous 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.

Current wording

Sales and marketing expenses increased by $88.6 million, or 15%, and $349.8 million, or 21%, for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025, respectively. The increase for the three and nine months ended September 30, 2026 was primarily driven by higher Cash App peer-to-peer processing costs and related transaction losses of $37.5 million and $168.5 million, respectively, higher marketing and advertising costs of $20.1 million and $69.4 million, respectively, as we prioritize marketing investments to support the growth of Cash App and Square, and higher personnel costs of $29.5 million and $58.1 million, respectively. The higher personnel costs primarily reflect higher sales commissions as we continue to scale our Square field sales team, and, for the nine months ended September 30, 2026, severance and related expenses recognized in the first quarter of 2026 in connection with the Workforce Plan.

Previous 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.

Current wording

General and administrative expenses increased by $303.5 million, or 56%, and $1.0 billion, or 70%, for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025, respectively. The increase for the three and nine months ended September 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 $421.1 million and $969.2 million, respectively, and a net increase in allocated IT, human resources, and facilities expenses of $18.3 million and $124.7 million, respectively, reflecting higher IT shared-service costs allocated to general and administrative expenses and lower human resources costs allocated to other functions following the Workforce Plan. These increases were partially offset by a decrease in personnel costs of $130.2 million and $138.3 million, respectively, driven by an in-person company event held in the third quarter of 2025 as well as cost efficiencies realized following the Workforce Plan actions in the first quarter of 2026.

Previous 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):

Current wording

Transaction, loan, and consumer receivable losses increased by $238.3 million, or 66%, and $860.0 million, or 104%, for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025, respectively, as detailed below (in thousands, except for percentages):

Previous wording

(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 wording

(i) Amounts do not include reserves for certain receivables, such as late fees. Consumer receivables losses also include provision for charge-back losses that are realized and written-off within the same period, rather than through the allowance for consumer receivable losses.

Previous 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.

Current wording

•Loan losses increased by $199.3 million, or 83%, and $777.8 million, or 168%, compared to the three and nine months ended September 30, 2025, respectively. The increase in loan losses was driven by significant growth in loan origination volumes of Cash App Borrow, the continued scaling of Afterpay Post-Purchase and Afterpay Pre-Purchase, as well as growth in Afterpay Pay Monthly and 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 $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.

Current wording

•Consumer receivable losses increased by $21.0 million, or 27%, and $50.3 million, or 24%, compared to the three and nine months ended September 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 $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.

Current wording

Interest expense, net, increased by $13.5 million, or 39%, and $81.5 million, or 108%, for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 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 $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.

Current wording

Remeasurement loss (gain) on bitcoin investment 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

Other expense, net, of $1.2 million and other income, net, of $4.2 million for the three and six months ended June 30, 2026, respectively, were primarily due to realized and unrealized gains and losses on certain investments as well as foreign exchange rate impacts. Other expense, net, of $13.4 million and $5.0 million for the three and six months ended June 30, 2025, respectively, was primarily due to losses from the currency revaluation of intercompany loans, partially offset by accretion on investments.

Current wording

Other income, net, of $2.4 million and $6.7 million for the three and nine months ended September 30, 2026, respectively, were primarily due to realized and unrealized gains and losses on certain investments as well as foreign exchange rate impacts. 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.

Previous wording

Provision for income taxes increased by $93.4 million, or 77%, and decreased by $29.0 million, or 18%, 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 month period was primarily driven by the tax impact of non-deductible accruals related to certain litigation and regulatory matters. This impact was partially offset by a larger one-time benefit from the partial release of a valuation allowance on certain California deferred tax assets compared with the prior year period. The decrease for the six month period was primarily driven by one-time tax benefits related to Workforce Plan restructuring charges and the partial release of the California valuation allowance. These benefits were partially offset by the tax impact of non-deductible litigation and regulatory accruals and lower pre-tax income in taxable jurisdictions.

Current wording

Provision for income taxes decreased by $91.6 million, or 65%, and $120.5 million, or 40%, for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025, respectively. The decrease for the three month period was primarily driven by the tax impact of accruals for certain litigation and regulatory matters and excess tax benefits from stock-based compensation, partially offset by the absence of a one-time benefit from a valuation allowance release recognized in the third quarter of 2025. The decrease for the nine month period was primarily driven by the tax impact of lower pre-tax income and the partial release of a valuation allowance on certain California deferred tax assets, partially offset by the tax impact of litigation and regulatory accruals.

Previous 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):

Current 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, 2026 and September 30, 2025 (in thousands, except for percentages):

Previous 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.

Current wording

Revenue for the Square segment for the three and nine months ended September 30, 2026 increased by $352.9 million, or 16%, and $950.4 million, or 15%, compared to the three and nine months ended September 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 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.

Current wording

Cost of revenue for the Square segment for the three and nine months ended September 30, 2026 increased by $213.7 million, or 17%, and $594.1 million, or 18%, compared to the three and nine months ended September 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 and six months ended June 30, 2026 and June 30, 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 nine months ended September 30, 2026 and September 30, 2025 (in thousands, except for percentages):

Previous 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.

Current wording

Revenue for the Cash App segment for the three and nine months ended September 30, 2026 increased by $274.3 million, or 7%, and $441.7 million, or 4%, compared to the three and nine months ended September 30, 2025, respectively. The increase was driven by the Cash App items referenced within our overall revenue discussion. While bitcoin ecosystem revenue contributed 43% and 45% of Cash App revenue for three and nine months ended September 30, 2026, respectively, gross profit generated from bitcoin ecosystem was only 3% of Cash App gross profit for the three and nine months ended September 30, 2026.

Previous 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.

Current wording

Excluding bitcoin ecosystem revenue, Cash App net revenue increased by $496.7 million, or 27%, and $1.6 billion, or 32%, compared to the three and nine months ended September 30, 2025, respectively.

Previous 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.

Current wording

Cost of revenue for the Cash App segment for the three and nine months ended September 30, 2026 decreased by $171.6 million, or 8%, and $1.0 billion, or 14%, compared to the three and nine months ended September 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 $12.3 million, or 4%, and $37.1 million, or 4%, compared to the three and nine months ended September 30, 2025, respectively.

Previous 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.

Current wording

As of September 30, 2026, we had approximately $10.1 billion in available liquidity, with $9.2 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 $809.3 million available to be withdrawn under our warehouse funding facilities. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for more details. We intend to continue focusing on our long-term business initiatives and believe that our available funds are sufficient to meet our liquidity needs for the foreseeable future, including our share repurchase program and debt repayment obligations. As of September 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 June 30, 2026, we have invested $278.6 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.

Current wording

(i) As of September 30, 2026, we have invested $107.8 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.

Previous wording

Our principal sources of liquidity are our cash and cash equivalents, and investments in marketable debt securities. Customer funds cash and cash equivalents are excluded from our liquidity as these are funds we hold on behalf of customers that are separate from our corporate funds and are not available for corporate purposes. Investments in marketable debt securities were held primarily in certificates of deposits, money market funds, reverse repurchase agreements, U.S. government and agency securities, commercial paper, and corporate bonds. We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Our investments in marketable debt securities are classified as available-for-sale.

Current wording

Our principal sources of liquidity are our cash and cash equivalents, and investments in marketable debt securities. Customer funds cash and cash equivalents are excluded from our liquidity as these are funds we hold on behalf of customers that are separate from our corporate funds and are not available for corporate purposes. Investments in marketable debt securities were held primarily in certificates of deposit, money market funds, reverse repurchase agreements, U.S. government and agency securities, commercial paper, and corporate bonds. We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Our investments in marketable debt securities are classified as available-for-sale.

Previous 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.

Current wording

As of September 30, 2026, we held approximately 9,237 bitcoins for long-term investment purposes ("bitcoin investment") with a fair value of $771.9 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 120 and 354 bitcoins with a cost basis of $8.3 million and $26.0 million during the three and nine months ended September 30, 2026, respectively, for investment purposes. We purchased approximately 88 and 295 bitcoins with a cost basis of $10.2 million and $30.7 million for the three and nine months ended September 30, 2025, respectively, for investment purposes. We did not sell any of our bitcoin investment during the three and nine months ended September 30, 2026 and September 30, 2025. We recognized a gain of $229.7 million and loss of $31.6 million from the remeasurement of our bitcoin investment during the three and nine months ended September 30, 2026, respectively. 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.

Previous 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 16, 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, customer deposits, operating leases, and purchase commitments. Refer to Note 12, Indebtednessand Note 16, Commitments and Contingencies within Notes to the Condensed Consolidated Financial Statements for more details on these commitments.

Previous 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.

Current wording

We have warehouse funding facilities ("Warehouse Facilities") with an aggregate amount of $2.4 billion on a revolving basis, of which $1.5 billion was drawn as of September 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 and financing the origination of consumer loans in connection with Cash App Borrow. Borrowings under each Warehouse Facility are secured by the respective consumer receivables or consumer loans held by the applicable Warehouse SPE. While the Warehouse SPEs are included in our condensed consolidated financial statements, they are separate legal entities that maintain legal ownership of the respective receivables or loans 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 $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.

Current wording

Short-term restricted cash of $650.4 million as of September 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 $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.

Current wording

Long-term restricted cash of $70.6 million as of September 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.