Core Insights - Block aims to become a comprehensive financial hub for consumers and merchants, integrating various financial services including P2P payments, commerce tools, banking services, and bitcoin capabilities across its platforms Cash App and Square [1][3]. Financial Performance - Block reported double-digit gross profit growth and expanding margins, raising its full-year forecast, indicating a strong financial performance [4]. - Square's gross payment volume (GPV) grew 10% to $64.2 billion in Q2, with international growth at 25%, significantly outpacing the U.S. growth of 7% [5]. Cash App Developments - Cash App processed $218 billion in P2P volume over the past year, positioning itself as a low-cost growth strategy with organic user acquisition [5]. - Cash App's banking activities reached 8 million users in June, a 16% year-over-year increase, with short-term loan product Borrow seeing a 95% growth in originations to $18 billion annualized [7]. Commerce Network Expansion - Block's commerce network handled $183 billion in spending over the last 12 months, a 16% increase, with plans to personalize offers and introduce an "auto-selection" feature for savings [6]. - The buy now, pay later (BNPL) segment saw gross merchandise value hit $9.11 billion, up 17%, driven by Pay-in-Four plans and new post-purchase options [6]. Bitcoin Integration - Cash App customers have transacted over $58 billion in bitcoin since its launch, with upcoming features allowing Square sellers to accept bitcoin payments that settle instantly in either crypto or local currency [8]. Technological Advancements - Block is enhancing the integration between Cash App and Square, allowing Cash App Business sellers to utilize Square's Tap to Pay on iPhone, leveraging shared data and marketing tools [10]. - The introduction of Square AI in the seller dashboard provides merchants with instant insights into sales patterns, enhancing operational efficiency [11]. Market Focus - Mid-market sellers, defined as those with over $500,000 in annual GPV, grew their volume by 17% year-over-year, now accounting for 44% of Square's GPV [12].

Core Insights - Block reported revenue of $6.05 billion for the quarter ended June 2025, a decrease of 1.6% year-over-year, and EPS of $0.62, down from $0.93 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $6.32 billion by 4.17%, while the EPS exceeded the consensus estimate of $0.60 by 3.33% [1] Financial Performance Metrics - Gross Payment Volume (GPV) reached $66.62 billion, surpassing the average estimate of $66.11 billion [4] - GPV for Square was $64.25 billion, exceeding the average estimate of $63.59 billion, while Cash App's GPV was $2.37 billion, below the estimate of $2.52 billion [4] - Subscription and services-based revenue was $2.05 billion, slightly above the average estimate of $2.03 billion, reflecting a year-over-year increase of 14.8% [4] - Hardware revenue was reported at $40.42 million, slightly above the average estimate of $40.26 million, but showed a year-over-year decline of 5.9% [4] - Transaction-based revenue totaled $1.82 billion, slightly above the average estimate of $1.81 billion, with a year-over-year increase of 6.1% [4] - Bitcoin revenue was $2.14 billion, below the average estimate of $2.52 billion, representing a year-over-year decline of 17.9% [4] - Cash App transaction-based revenue was $60.52 million, significantly lower than the estimated $69.47 million, marking a 38.8% decrease year-over-year [4] - Square transaction-based revenue was $1.76 billion, slightly above the average estimate of $1.74 billion, with an 8.9% year-over-year increase [4] - Square subscription and services-based revenue was $369.29 million, slightly below the average estimate of $369.92 million, reflecting a year-over-year increase of 14.5% [4] - Square hardware revenue was $40.1 million, below the average estimate of $41.15 million, showing a year-over-year decline of 6.4% [4] Stock Performance - Block's shares have returned +10.3% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Block reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.60 per share, but down from $0.93 per share a year ago, indicating a 33.33% year-over-year decline [1] - The company posted revenues of $6.05 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.17% and down from $6.16 billion year-over-year [2] - Over the last four quarters, Block has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Block shares have declined approximately 10.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current Zacks Rank for Block is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $6.38 billion, while the estimate for the current fiscal year is $2.45 on revenues of $24.94 billion [7] - The outlook for the Internet - Software industry, where Block operates, is currently in the top 28% of over 250 Zacks industries, indicating a favorable environment for potential stock performance [8]

[Music] Welcome back to fast money and earnings alert on block spiking after hours. The payments company missing top and bottom line estimates but boosting fullear guidance. It's conference calls underway.CNBC's Mackenzie Sagala is following the action. Hey Mac. Hey Mel.So Block shares popping as much as 11% in the after hours though it is pairing those gains now but it shows that investors are clearly willing to forgive that Q2 miss on earnings thanks to the company's outlook for the back half of the year. ...

Financial Data and Key Metrics Changes - Gross profit for Q2 2025 was $2,500,000,000, up 14% year over year, accelerating from 9% growth in the previous quarter [5] - Adjusted operating income was $550,000,000, up 38% year over year, with the highest quarterly adjusted operating income margin at 22% [5][14] - Full year gross profit guidance raised to $10,170,000,000, representing over 14% year over year growth [17] Business Line Data and Key Metrics Changes - Cash App gross profit growth reaccelerated to 16% year over year in Q2 [6] - Square's year over year gross payment volume (GPV) growth accelerated to 10% in Q2, with gross profit growth of 11% [10] - BNPL (Buy Now Pay Later) gross profit reaccelerated, driven by increasing attach rates for post-purchase BNPL on Cash App Card, which crossed 1,000,000 monthly actives in July [7][32] Market Data and Key Metrics Changes - Peer-to-peer volume reached $218,000,000,000 in the last twelve months [8] - Broad commerce capabilities generated $183,000,000,000 in volume in the last twelve months, growing 16% year over year [8] - International GPV growth accelerated to 25% year over year [11] Company Strategy and Development Direction - The company is focused on increasing product velocity and ramping up go-to-market investments [3] - The strategy is oriented around driving strength in four pillars: peer-to-peer platform, commerce capabilities, banking solutions, and Bitcoin transactions [8] - The company plans to continue expanding Square Financial Services originations and explore deeper engagement strategies [7][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to ship products faster, contributing to overall network growth and customer engagement [22] - The company raised guidance for the second half of the year, expecting continued acceleration in gross profit growth [25][14] - Management highlighted strong early signs of growth from new products and initiatives, particularly in Cash App and Square [68] Other Important Information - The company was added to the S&P 500 this quarter, welcoming new investors [18] - The launch of new products such as Square AI and Cash App features is expected to drive future growth [6][10] Q&A Session Summary Question: Insights on growth conviction and visibility for the second half - Management indicated that product shipping velocity is a key factor, with recent launches contributing to network growth [20][22] Question: Details on Cash Card post-purchase BNPL - Management noted strong early signs of growth, with post-purchase BNPL crossing 1,000,000 active users and significant gross profit acceleration [32][34] Question: Trends in Cash App banking actives - Management reported continued growth in banking actives, with a focus on enhancing customer engagement and banking benefits [41][44] Question: Returns on Square sales efforts - Management highlighted strong growth in new volume added and positive returns on investment from expanded sales efforts [48][50] Question: Gross profit and GPV growth spread - Management explained that near-term dynamics are impacting gross profit, but they expect alignment between gross profit and GPV growth moving forward [54][56] Question: Cash App user growth strategies - Management discussed focusing on network density and innovative marketing campaigns to drive user growth [58][68] Question: Evolution of the Borrow product - Management reported strong performance in Borrow, with significant origination volume and healthy margins [73][77] Question: Observations on new hardware rollout - Management expressed excitement about the Square Handheld and its potential to drive customer acquisition across various commerce types [82][88] Question: Philosophical thoughts on stablecoins - Management stated that they will support stablecoins if they are widely used, emphasizing Bitcoin's unique properties as a currency [92][94]

Financial Data and Key Metrics Changes - Gross profit for Q2 2025 was $2,500,000,000, up 14% year over year, accelerating from 9% growth in the previous quarter [4] - Adjusted operating income was $550,000,000, up 38% year over year, with the highest quarterly adjusted operating income margin at 22% [4] - For Q3, the company expects gross profit of $2,600,000,000, growing 16% year over year, and adjusted operating income of $460,000,000 with an 18% margin [13] Business Line Data and Key Metrics Changes - Cash App gross profit growth reaccelerated to 16% year over year in Q2 [5] - Square's year-over-year gross payment volume (GPV) growth accelerated to 10% in Q2, with gross profit growth of 11% [9] - The company reported $218,000,000,000 in peer-to-peer volume and $183,000,000,000 in commerce capabilities over the last twelve months, with the latter growing 16% year over year [7] Market Data and Key Metrics Changes - International GPV growth accelerated to 25% year over year, driven by expanded distribution [11] - The company observed strong GPV growth in food and beverage and retail, up 1510% respectively [10] - Cash App had 8,000,000 actives either depositing a paycheck or spending at least $500 across the platform [8] Company Strategy and Development Direction - The company is focused on increasing product velocity and ramping up go-to-market investments, which are showing positive results [2][3] - The strategy is centered around four pillars: peer-to-peer platform, commerce capabilities, banking solutions, and Bitcoin transactions [7] - The company plans to continue expanding Square Financial Services originations and explore higher borrow limits for paycheck deposit actives [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to ship products faster, which is expected to enhance overall network growth and customer engagement [22] - The company raised its full-year guidance, expecting gross profit of $10,170,000,000, representing over 14% year-over-year growth [16] - Management highlighted strong early signs of product adoption and engagement, particularly with new offerings like post-purchase BNPL and Cash App Card [26] Other Important Information - The company was added to the S&P 500 this quarter, welcoming new investors [17] - The launch of new products, including Square AI and Cash App features, is expected to drive future growth [5][6] Q&A Session Summary Question: Insights on second half acceleration and product shipping - Management indicated that recent product launches and increased shipping velocity contribute to confidence in growth acceleration for the second half of the year [20][25] Question: Details on Cash Card post-purchase BNPL - Management noted strong early signs of growth for post-purchase BNPL, with significant adoption and origination volume expected to continue expanding [32][35] Question: Clarification on banking actives and growth metrics - The company reported strong growth in banking actives, with over 2,800,000 users, and emphasized the importance of customer engagement in driving gross profit [41][44] Question: Returns on Square sales efforts and market share gains - Management highlighted strong growth in new volume added and positive returns on investment from expanded sales efforts, particularly in international markets [48][50] Question: Evolution of the Borrow product and gross margin profile - The Borrow product showed strong performance with $18,000,000,000 in annualized originations, and management discussed maintaining healthy margins while expanding the product [76][78] Question: Observations on new hardware rollout and seller engagement - Management expressed excitement about the Square Handheld and its potential to drive engagement across various commerce types, alongside advancements in AI capabilities [83][85] Question: Philosophical thoughts on stablecoins and future plans - Management stated that Square and Cash App will support stablecoins as they become more widely used, while emphasizing Bitcoin's unique properties as a currency [92][94]

Financial Objectives and Guidance - Block aims to enhance shareholder returns through disciplined capital return strategy and amplify the long-term value of the business[10] - Block expects $1017 billion in gross profit for 2025 and to exit 2025 with 19% year-over-year gross profit growth and 20% Adjusted Operating Income Margin[14,69] - Block expects gross profit in Q3 2025 to grow 16% year-over-year to $260 billion[71,73] - Block expects to deliver Adjusted Operating Income of $203 billion, or 20% margin for full year 2025[69] Q2 2025 Performance - Block's Q2 gross profit growth accelerated to 14% year-over-year[14,15] - Block's Adjusted Operating Income grew 38% year-over-year, delivering a 22% Adjusted Operating Income Margin[14,22,25] - Square's Gross Payment Volume (GPV) growth accelerated to 10% year-over-year[14,32] Square Performance - Square's gross profit grew 11% year-over-year, driven by strength in software, integrated payments, and banking products[30] - Square's International GPV grew 25% year-over-year in Q2 2025[32,36] - GPV from Square's mid-market sellers grew 17% year-over-year in Q2 2025, representing 44% of total GPV[37,39,40] Cash App Performance - Cash App's gross profit per monthly transacting active was $87 on an annualized basis, up 15% year-over-year[14] - Cash App's gross profit grew 16% year-over-year, driven by Cash App Borrow, Cash App Card, and BNPL[46,47] - Cash App Borrow originations grew 95% year-over-year to $18 billion annualized in Q2 2025, with stable margins[55]

Financial Performance - Block's Q2 adjusted operating income beat expectations by approximately $100 million, a 20% increase [2] - Block is raising its guidance by over 2%, specifically 2.4%, a significant achievement [2] Company Strategy & Growth Drivers - Block possesses a unique two-sided network with Cash App and its point-of-sale business [4] - The company has the potential to connect its ecosystem, creating a network effect unmatched by competitors [4] - Continued execution, coupled with crypto initiatives, positions Block for future growth [5] Industry Context - Block's raised fiscal year guidance demonstrates management's confidence, contrasting with other fintech companies [6] - Unlike some peers, Block is showing a true raise to the fiscal year guidance [6] Market Perception - The market reacted positively to Block's Q2 results, with shares trading up 10% [1] - Analysts anticipate continued upward movement in Block's stock [3]

Core Insights - Block's shares surged in extended trading after the company raised its full-year gross profit forecast to $10.17 billion, indicating a 14% growth from the previous year [2] - The company reported a gross profit of $2.54 billion for the quarter, which is a 14% increase year-over-year, surpassing analysts' expectations of $2.46 billion [1] - Block's adjusted earnings per share were 62 cents, slightly below the expected 69 cents [1] Financial Performance - Gross payment volume for Block increased by 10% to $64.25 billion [1] - The company anticipates a full-year adjusted operating income of $2.03 billion, reflecting a 20% margin [2] - For the third quarter, Block expects gross profit to grow by 16% year-over-year to $2.6 billion, with an operating margin of 18% [2] Market Position - Despite facing increased competition from companies like Toast and Fiserv's Clover, Block's Square business gained market share in sectors such as retail and food and beverage [3] - Year-to-date, Block's shares have declined by 10%, contrasting with a 10% increase in the Nasdaq [3] - Block was recently added to the S&P 500 index, indicating a significant milestone for the company [3]

PART I—Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Block, Inc. reported Q2 2025 total net revenue of **$6.05 billion**, gross profit of **$2.54 billion**, and net income of **$538.5 million**, with assets at **$36.9 billion** and equity at **$22.1 billion** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28unaudited%29) As of June 30, 2025, total assets reached **$36.9 billion**, liabilities decreased to **$14.7 billion**, and stockholders' equity grew to **$22.1 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$36,858,391** | **$36,777,595** | | Cash and cash equivalents | $6,384,224 | $8,075,247 | | Loans held for investment, net | $1,039,544 | $365,062 | | Goodwill | $11,816,794 | $11,417,422 | | **Total Liabilities** | **$14,735,499** | **$15,542,633** | | Long-term debt (including current) | $5,110,866 | $6,105,436 | | **Total Stockholders' Equity** | **$22,122,892** | **$21,234,962** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28unaudited%29) Q2 2025 total net revenue decreased **2%** to **$6.05 billion**, while gross profit increased **14%** to **$2.54 billion**, and net income surged **176%** to **$538.5 million** Q2 and H1 2025 vs 2024 Performance (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | Y/Y Change | H1 2025 | H1 2024 | Y/Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Net Revenue** | **$6,054,457** | **$6,155,563** | **(2%)** | **$11,826,253** | **$12,112,691** | **(2%)** | | Transaction-based Revenue | $1,817,398 | $1,712,967 | 6% | $3,368,129 | $3,224,176 | 4% | | Subscription & Services Revenue | $2,052,604 | $1,787,893 | 15% | $3,943,577 | $3,470,187 | 14% | | Bitcoin Revenue | $2,144,032 | $2,611,743 | (18%) | $4,445,434 | $5,342,867 | (17%) | | **Gross Profit** | **$2,536,530** | **$2,233,480** | **14%** | **$4,826,133** | **$4,327,953** | **11%** | | **Operating Income** | **$484,293** | **$306,562** | **58%** | **$813,595** | **$556,305** | **46%** | | **Net Income (to common)** | **$538,458** | **$195,268** | **176%** | **$728,330** | **$667,273** | **9%** | | **Diluted EPS** | **$0.87** | **$0.31** | **181%** | **$1.17** | **$1.05** | **11%** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28unaudited%29) Total comprehensive income for Q2 2025 significantly increased to **$1.03 billion**, driven by higher net income and a substantial foreign currency translation gain Comprehensive Income (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $538,334 | $189,872 | $727,056 | $660,692 | | Net foreign currency translation adjustments | $489,973 | $125,951 | $619,793 | $(158,223) | | **Total Comprehensive Income** | **$1,027,236** | **$317,706** | **$1,346,208** | **$506,630** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20%28unaudited%29) Total stockholders' equity increased to **$22.1 billion** as of June 30, 2025, driven by net income, partially offset by **$1.14 billion** in share repurchases - The company repurchased a total of **$1.14 billion** of its common stock in the first six months of 2025 (**$445.3 million** in Q1 and **$692.2 million** in Q2)[20](index=20&type=chunk) - Retained earnings increased by **$728.3 million** in the first half of 2025, reflecting the company's net income for the period[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28unaudited%29) H1 2025 operating cash flow was **$507.7 million**, with a **$2.12 billion** outflow from financing activities due to share repurchases and debt redemption, leading to a **$1.09 billion** net cash decrease Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $507,658 | $1,008,787 | | Net cash provided by investing activities | $428,928 | $867,414 | | Net cash provided by (used in) financing activities | $(2,119,460) | $1,173,347 | | **Net (decrease) increase in cash** | **$(1,087,942)** | **$3,009,777** | - Significant cash outflows from financing activities in H1 2025 included **$1.14 billion** for common stock repurchases and **$1.0 billion** for the redemption of convertible notes[25](index=25&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) The notes provide detailed accounting policies, revenue disaggregation, loan portfolio insights, information on the **$931.7 million** Bitcoin investment, debt, share repurchases, and segment performance, including **16%** Cash App gross profit growth [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2025 gross profit grew **14%** to **$2.5 billion**, driven by Cash App and Square, with improved profitability despite lower Bitcoin revenue, and **$8.5 billion** in available liquidity - Gross profit for Q2 2025 was **$2.5 billion**, up **14%** YoY. Cash App gross profit grew **16%** YoY to **$1.5 billion**, while Square gross profit grew **11%** YoY to **$1.0 billion**[131](index=131&type=chunk) - The company achieved its goal of capping its employee base at **12,000** in 2024 and plans to operate below this cap through performance management and centralization[134](index=134&type=chunk) - Available liquidity was **$8.5 billion** at the end of Q2 2025, down from year-end 2024 primarily due to a **$1.0 billion** convertible note settlement and **$1.1 billion** in share repurchases in H1 2025[135](index=135&type=chunk) Q2 2025 Non-GAAP Financial Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Adjusted Operating Income | $549.6 | $399.1 | | Adjusted EBITDA | $891.4 | $759.5 | [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q2 2025 total net revenue decreased **2%** to **$6.05 billion** (up **10%** excluding Bitcoin), driven by **15%** growth in subscription and services revenue, while operating expenses rose **7%** due to higher loan losses Q2 2025 Revenue Breakdown (in millions) | Revenue Stream | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Transaction-based | $1,817.4 | $1,713.0 | 6% | | Subscription and services-based | $2,052.6 | $1,787.9 | 15% | | Bitcoin | $2,144.0 | $2,611.7 | (18%) | | **Total Net Revenue** | **$6,054.5** | **$6,155.6** | **(2%)** | - Excluding bitcoin, total net revenue increased by **10%** in Q2 2025 compared to Q2 2024[138](index=138&type=chunk) - Transaction, loan, and consumer receivable losses increased by **53%** YoY in Q2 2025, primarily driven by growth in loan volumes from Cash App Borrow[154](index=154&type=chunk) [Segment Results](index=42&type=section&id=Segment%20Results) In Q2 2025, Square revenue grew **9%** to **$2.17 billion** and gross profit **11%** to **$1.03 billion**, while Cash App gross profit surged **16%** to **$1.50 billion** despite a **7%** revenue decline Q2 2025 Segment Performance (in millions) | Segment | Net Revenue | Revenue Y/Y Change | Gross Profit | Gross Profit Y/Y Change | | :--- | :--- | :--- | :--- | :--- | | Square | $2,166.3 | 9% | $1,026.8 | 11% | | Cash App | $3,844.9 | (7%) | $1,500.5 | 16% | - Excluding Bitcoin revenue, Cash App revenue increased by **12%** in Q2 2025 compared to the prior year's quarter[164](index=164&type=chunk) [Key Operating Metrics and Non-GAAP Financial Measures](index=43&type=section&id=Key%20Operating%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Q2 2025 Gross Payment Volume (GPV) grew **8%** to **$66.6 billion**, Adjusted EBITDA increased to **$891.4 million**, and Adjusted Operating Income rose to **$549.6 million**, with a revised Adjusted EPS definition Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Gross Payment Volume (GPV) (in millions) | $66,615 | $61,941 | | Adjusted Operating Income (in thousands) | $549,569 | $399,118 | | Adjusted EBITDA (in thousands) | $891,422 | $759,476 | | Diluted Adjusted Net Income Per Share | $0.62 | $0.47 | - Beginning in fiscal 2025, the definition of Adjusted EPS was revised to include stock-based compensation to provide a more comprehensive view of operating performance[168](index=168&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Block maintained **$8.5 billion** in available liquidity, reduced by **$1.0 billion** debt settlement and **$1.1 billion** share repurchases, holding a **$931.7 million** Bitcoin investment Available Liquidity (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $6,384,224 | $8,075,247 | | Restricted cash (short & long term) | $820,532 | $972,393 | | Investments in debt securities | $510,000 | $875,403 | | Revolving credit facility | $775,000 | $775,000 | | **Total Liquidity** | **$8,489,756** | **$10,698,043** | - The company holds a bitcoin investment with a fair value of **$931.7 million** as of June 30, 2025[184](index=184&type=chunk) - In H1 2025, the company used **$1.0 billion** in cash to settle its 2025 Convertible Notes and **$1.1 billion** for share repurchases[135](index=135&type=chunk)[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is the price volatility of its **$931.7 million** Bitcoin investment, which could materially impact financial results - The company's bitcoin investment, valued at **$931.7 million** as of June 30, 2025, is subject to significant market price risk[206](index=206&type=chunk) - A decline in the market price of bitcoin could result in a material adverse effect on financial results. In Q2 2025, the company recognized a gain of **$212.2 million** from the remeasurement of this investment[206](index=206&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, management concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[208](index=208&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the second quarter of 2025[209](index=209&type=chunk) PART II—Other Information [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company faces significant legal and regulatory matters, including a **$40 million** NYDFS settlement, ongoing state AG discussions, SEC/DOJ inquiries, and a **$114 million** potential San Francisco tax dispute on Bitcoin sales - In April 2025, the company paid a **$40 million** civil monetary penalty to the NYDFS to settle matters related to its Bank Secrecy Act/anti-money laundering and bitcoin programs[110](index=110&type=chunk) - The company is cooperating with inquiries from the SEC and Department of Justice (DOJ) that began after a short seller report in March 2023, primarily related to compliance and risk practices[112](index=112&type=chunk) - Block is disputing a San Francisco gross receipts tax assessment on bitcoin sales, has paid **$71.4 million** under protest, and estimates a potential aggregate loss of up to **$114 million** for fiscal years 2020-2024[113](index=113&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, operational, financial, and regulatory risks, including intense competition, data security, Bitcoin price volatility, macroeconomic conditions, and complex global legal compliance - Business risks include intense competition, reliance on customer retention, and the ability to successfully expand the product portfolio and manage acquisitions[216](index=216&type=chunk)[222](index=222&type=chunk)[235](index=235&type=chunk) - Operational risks are high, including potential for data breaches, system failures, ineffective risk management, and the challenge of safeguarding bitcoin holdings[217](index=217&type=chunk)[257](index=257&type=chunk)[265](index=265&type=chunk) - Financial risks stem from macroeconomic conditions, ability to service significant debt, counterparty risk, and the high volatility of its bitcoin investments[218](index=218&type=chunk)[292](index=292&type=chunk)[301](index=301&type=chunk) - The company is subject to extensive and evolving legal and regulatory oversight globally, including in areas of money transmission, privacy (GDPR/CCPA), broker-dealer activities, and banking (Square Financial Services)[219](index=219&type=chunk)[319](index=319&type=chunk)[325](index=325&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=93&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **12.46 million** shares for **$692.2 million** under its **$4 billion** share repurchase program, with **$1.5 billion** remaining Share Repurchase Activity (Q2 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 2,869 | $54.19 | | May 2025 | 8,373 | $54.74 | | June 2025 | 1,221 | $64.19 | | **Total Q2** | **12,463** | **N/A** | - The company's board of directors has authorized a total of **$4 billion** for its share repurchase program. As of June 30, 2025, approximately **$1.5 billion** remained available for repurchases[365](index=365&type=chunk)[366](index=366&type=chunk) [Other Information](index=94&type=section&id=Item%205.%20Other%20Information) During Q2 2025, two executive officers, Ajmere Dale and Brian Grassadonia, adopted Rule 10b5-1 trading plans for potential stock sales - Two officers, Ajmere Dale and Brian Grassadonia, adopted Rule 10b5-1 trading plans during Q2 2025[370](index=370&type=chunk)