Financial Performance - In Q3 2025, the company generated gross profit of $2.7 billion, an 18% increase year over year, with Cash App contributing $1.6 billion (up 24%) and Square contributing $1.0 billion (up 9%) to this growth[139]. - Total net revenue for Q3 2025 was $6.1 billion, a 2% increase from Q3 2024, while revenue for the nine months ended September 30, 2025, decreased by 1% to $17.9 billion compared to the same period in 2024[145][146]. - The company recorded operating income of $409.4 million in Q3 2025, compared to $323.0 million in Q3 2024, and Adjusted Operating Income increased to $480.2 million from $443.5 million[140]. - Net income attributable to common stockholders for Q3 2025 was $461.5 million, a 62.7% increase from $283.8 million in Q3 2024[180]. - Adjusted Net Income for Q3 2025 was $336.6 million, compared to $337.0 million in Q3 2024, reflecting a slight decrease of 0.1%[180]. Revenue Breakdown - Bitcoin revenue decreased by $462.2 million (19%) in Q3 2025 and $1.4 billion (17%) for the nine months ended September 30, 2025, primarily due to a decrease in trading volume[149]. - Subscription and services-based revenue increased by $407.0 million (23%) in Q3 2025 and $880.3 million (17%) for the nine months ended September 30, 2025, driven by growth in Cash App's financial services[148]. - Transaction-based revenue increased by $161.1 million (9%) in Q3 2025, with Gross Payment Volume (GPV) growing by 11%[147]. - Square segment net revenue increased by $239.1 million, or 12%, to $2.24 billion for the three months ended September 30, 2025, and by $548.0 million, or 10%, to $6.26 billion for the nine months[162]. - Cash App segment net revenue decreased by $130.1 million, or 3%, for the three months ended September 30, 2025, compared to the same period in 2024[166]. Expenses and Costs - Total cost of revenue for Q3 2025 decreased by $272.7 million (7%) compared to Q3 2024, primarily due to a $469.3 million (20%) decrease in bitcoin costs[150][146]. - Sales and marketing expenses rose by $87.6 million, or 17%, for the three months ended September 30, 2025, and by $190.3 million, or 13%, for the nine months, driven by higher marketing costs of $91.4 million and $205.7 million, respectively[155]. - General and administrative expenses increased by $68.1 million, or 14%, for the three months ended September 30, 2025, and by $64.3 million, or 5%, for the nine months, primarily due to higher personnel costs of $92.9 million and $79.5 million, respectively[156]. - Product development expenses for the three months ended September 30, 2025, were $711.2 million, relatively flat compared to $711.0 million for the same period in 2024, while for the nine months, expenses increased by $52.5 million, or 2%, to $2.2 billion from $2.1 billion[154]. Cash and Liquidity - The company ended Q3 2025 with $10.5 billion in available liquidity, including $9.7 billion in cash and cash equivalents, a decrease of $234.2 million from December 31, 2024[143]. - Cash and cash equivalents increased to $8.3 billion as of September 30, 2025, up from $8.1 billion at the end of 2024[183]. - The company reported a net increase in cash, cash equivalents, restricted cash, and customer funds of $714.5 million for the nine months ended September 30, 2025[196]. - The company has $775.0 million available under its revolving credit facility, maturing in June 2028[189]. Investments and Debt - The company held $7.4 billion in aggregate principal amount of debt as of September 30, 2025, including $1.0 billion in senior unsecured notes maturing in June 2026[187]. - Cash used in investing activities for the nine months ended September 30, 2025, was $671.8 million, primarily due to net outflows of $2.0 billion related to Cash App Borrow loans[200]. - Cash used in financing activities for the nine months ended September 30, 2025, was $652.9 million, primarily due to $1.5 billion in share repurchases and a $1.0 billion cash payment for the settlement of convertible notes[202]. Asset Valuation - The fair value of the company's bitcoin investment was $1.0 billion as of September 30, 2025, with gains of $59.6 million recognized in Q3 2025 from remeasurement[185]. - As of September 30, 2025, the fair value of the company's bitcoin investment was $1.0 billion, with recognized gains of $178.4 million for the nine months ended September 30, 2025[207]. Employee and Operational Efficiency - The company implemented a cap of 12,000 employees in 2023 and continued to focus on cost efficiency, recording $10.0 million in severance expenses in Q3 2025[142]. - Transaction, loan, and consumer receivable losses surged by $171.4 million, or 89%, for the three months ended September 30, 2025, and by $277.6 million, or 51%, for the nine months, attributed to increased loan losses of $158.8 million and $238.1 million, respectively[157].

Exhibit 99.1 Q3 2025 Shareholder Letter investors.block.xyz To Our Shareholders Continued momentum We had another strong quarter delivering for our customers with high quality and high velocity. Square GPV growth accelerated to 12% and we gained profitable market share through product innovation and expanded distribution. Cash App gross profit growth accelerated to 24%, and in September we hit 58 million Cash App monthly actives.1 Proto generated its first revenue, seeding what we believe will become our ne ...

Core Insights - Block reported a rise in third-quarter profit, attributed to strong consumer spending trends [1] Company Performance - The company experienced an increase in profit during the third quarter, indicating positive financial health [1] Consumer Trends - Strong consumer spending trends have positively impacted the company's performance, suggesting a favorable market environment [1]

Core Insights - The article discusses the emergence of "crypto blockchain stocks" as a significant market segment driven by the blockchain revolution and its application to real-world assets and financial infrastructure [1][2]. Group 1: Definition and Scope - "Crypto blockchain stocks" refer to companies whose business models are linked to both the digital-asset ecosystem and blockchain technology, extending beyond just cryptocurrency mining or exchanges [2][4]. - Companies involved in building blockchain infrastructure, providing services, tokenizing assets, or integrating crypto payments qualify as crypto blockchain stocks [4]. Group 2: Market Dynamics - Analysts have begun to compile curated lists of publicly traded firms that provide exposure to the crypto blockchain theme, which includes a diverse range of companies from payment firms to mining operations [5]. - Notable examples of companies in this space include Block, Inc., which has invested in Bitcoin and created a crypto-friendly payment ecosystem, and Amazon.com, Inc., which offers blockchain-as-a-service through its AWS unit [5].

Core Insights - Analysts project Block (XYZ) will report quarterly earnings of $0.63 per share, a decline of 28.4% year over year, with revenues expected to reach $6.34 billion, an increase of 6.1% from the same quarter last year [1] Revenue Estimates - Revenue from Bitcoin is forecasted to be $2.32 billion, indicating a year-over-year decline of 4.3% [3] - Subscription and services-based revenue is expected to reach $2.17 billion, reflecting a year-over-year increase of 20.8% [4] - Hardware revenue is projected at $37.02 million, showing a slight increase of 0.5% year over year [4] - Transaction-based revenue is estimated to be $1.87 billion, representing a year-over-year increase of 9.2% [4] - Total revenue from Square is anticipated to be $2.22 billion, indicating a year-over-year increase of 10.8% [5] - Total revenue from Cash App is expected to be $4.06 billion, reflecting a year-over-year increase of 3.4% [5] - Square Hardware revenue is projected at $37.30 million, showing a year-over-year increase of 1.6% [5] - Square Subscription and services-based revenue is expected to reach $369.25 million, indicating a year-over-year increase of 14.5% [6] - Square Transaction-based revenue is projected at $1.81 billion, reflecting a year-over-year increase of 10.1% [6] - Cash App Bitcoin revenue is expected to be $2.24 billion, indicating a year-over-year decline of 7.9% [7] - Cash App Transaction-based revenue is projected at $57.95 million, reflecting a year-over-year decline of 17.2% [7] Gross Payment Volume - Gross Payment Volume (GPV) is expected to reach $68.62 billion, compared to $62.49 billion from the previous year [8] Stock Performance - Over the past month, shares of Block have returned -4.5%, while the Zacks S&P 500 composite has increased by 2.1% [8]

Core Insights - There is a growing trend among corporate treasuries to add bitcoin to their balance sheets as institutional acceptance and regulatory clarity increase [1] Company Overview: Block - Block has held bitcoin as part of its corporate assets since 2020, with a recent announcement of Square Bitcoin, a fully integrated bitcoin payments and wallet solution launching on Nov. 10 [2] - The company's bitcoin journey began with customer demand, launching the ability for Cash App users to buy, hold, and sell bitcoin in 2018, resulting in over 20 million active users trading more than $58 billion worth of bitcoin [4] - Block made its first corporate bitcoin purchase of $50 million in 2020, representing less than 1% of total assets, primarily as a learning exercise, and expanded its holdings with an additional $170 million investment in 2021 [5] - As of Q2 2023, Block held 8,692 bitcoin on its balance sheet [6] Investment Strategy - Block positions bitcoin as a long-term investment, guided by clear risk parameters, despite some finance leaders viewing it as too volatile compared to traditional assets [7] - The company has adopted a dollar-cost averaging strategy, reinvesting 10% of monthly gross profit from bitcoin products starting in 2024 [5] - Leaders at Block emphasize the importance of tracking regulation and treating bitcoin like any other strategic asset [10] Market Sentiment and Future Outlook - The perception of bitcoin has shifted dramatically since 2020, when it was seen as purely speculative, to being viewed as a principled, calculated risk representing a small slice of Block's portfolio [9] - Institutional infrastructure for bitcoin has matured significantly, creating greater stability, which supports a long-term view on investment [8] - Block's leaders see bitcoin as part of the future, alongside advancements in AI, and advise peers to treat it as a strategic investment [11]

Core Insights - There is a growing trend among corporate treasuries to add bitcoin to their balance sheets due to increasing institutional acceptance and regulatory clarity [1] Company Overview - Fintech company Block has held bitcoin as part of its corporate assets since 2020, and is launching Square Bitcoin, a fully integrated bitcoin payments and wallet solution for businesses on November 10 [2] - Block's bitcoin journey began with customer demand, launching the ability for users to buy, hold, and sell bitcoin through Cash App in 2018, resulting in over 20 million active users trading more than $58 billion worth of bitcoin [4] Investment Strategy - Block made its first corporate bitcoin purchase of $50 million in 2020, which was less than 1% of total assets, primarily as a learning exercise [5] - In 2021, Block expanded its bitcoin holdings with an additional $170 million investment and adopted a dollar-cost averaging strategy in 2024, reinvesting 10% of monthly gross profit from bitcoin products [5] - As of Q2 2023, Block held 8,692 bitcoin on its balance sheet [6] Risk Management - Many finance leaders remain cautious about bitcoin's volatility compared to traditional assets, but Block positions bitcoin as a long-term investment guided by clear risk parameters [7] - Block emphasizes starting small with bitcoin investments to build understanding, and maintains a long-term view to instill confidence [8]

Core Insights - Square is assisting UK retailers and hospitality businesses in preparing for the upcoming shopping and dining weekend by providing insights from last year's record-breaking Black Friday and Cyber Monday [1] - In 2024, UK sellers utilizing Square's technology experienced a 31% year-over-year increase in in-store retail transactions during the Black Friday to Cyber Monday period [1] - Square is offering an exclusive promotion of up to 50% off its hardware for a five-week duration to support sellers [1]

Core Viewpoint - The market anticipates a year-over-year decline in Block's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Block is expected to report quarterly earnings of $0.63 per share, reflecting a year-over-year decrease of 28.4%, while revenues are projected to be $6.34 billion, up 6.1% from the previous year [3]. - The consensus EPS estimate has been revised down by 1.37% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that Block has a negative Earnings ESP of -0.18%, suggesting analysts have become more pessimistic about the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, making it challenging to predict a beat on the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Block had an expected EPS of $0.60 but delivered $0.62, resulting in a surprise of +3.33% [13]. - Over the past four quarters, Block has only beaten consensus EPS estimates once [14]. Conclusion - Block does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Core Insights - Buy now, pay later (BNPL) providers such as Klarna Group, Affirm Holdings, and Afterpay are increasingly offering services traditionally associated with banks, including debit cards and deposit accounts [1][2] - These companies are positioning themselves as one-stop shops for payments and financial services, expanding their consumer reach and intensifying competition with traditional banks [2][5] Company Developments - Klarna has announced the extension of its debit card and customer deposit accounts into the U.K., following similar rollouts in Europe and the U.S., as part of its mission to disrupt retail banking [4] - Block is leveraging its Cash App debit card to promote its BNPL service, Afterpay, with the CFO noting the integration of Afterpay into the Cash App earlier this year [4] - Affirm Holdings has also introduced a debit card, which has reached 2.3 million active users, indicating a successful strategy in competing with traditional banks [5] User Engagement - Afterpay on Cash App has surpassed one million active monthly users as of July, contributing to the card's total of 26 million monthly active users [6] - The growing user base of BNPL services highlights the increasing acceptance and integration of these financial products among consumers [6] Industry Trends - The trend of BNPL companies blurring the lines between banks and fintechs is becoming more pronounced, with industry experts noting their success in competing with traditional banking services [5] - In response to the rise of BNPL providers, many banks and credit card issuers have begun to introduce their own BNPL products, indicating a shift in the competitive landscape [6]