Financial Performance - In Q1 2025, the company generated gross profit of $2.3 billion, a 9% increase year over year, with Cash App contributing $1.4 billion (up 10%) and Square contributing $897.9 million (up 9%) to this growth [124]. - Total net revenue for Q1 2025 was $5.77 billion, a decrease of $185.3 million (3%) compared to Q1 2024, primarily due to a $429.7 million (16%) decline in bitcoin revenue [130]. - Excluding bitcoin revenue, total net revenue increased by $244.4 million (8%) in Q1 2025 compared to Q1 2024 [130]. - Operating income for Q1 2025 was $329.3 million, up from $249.7 million in Q1 2024, while net income attributable to common stockholders was $189.9 million, down from $472.0 million in the prior year [125]. - Adjusted Operating Income for Q1 2025 was $466.3 million, compared to $364.3 million in Q1 2024, reflecting a 28% growth [164]. - Adjusted EBITDA for Q1 2025 was $812.8 million, an increase of 15% from $705.1 million in Q1 2024 [164]. - Basic Adjusted Net Income Per Share increased to $0.57 in Q1 2025 from $0.49 in Q1 2024 [165]. - Net income for the three months ended March 31, 2025, was $188.7 million, influenced by non-cash expenses totaling $689.3 million [181]. Revenue Breakdown - Subscription and services-based revenue increased by $208.7 million (12%) in Q1 2025, primarily due to growth in Cash App's financial services products [132]. - Transaction-based revenue rose by $39.5 million (3%) in Q1 2025, supported by a 4% increase in Gross Payment Volume (GPV) [131]. - Square segment net revenue increased by $122.1 million, or 7%, to $1.85 billion for the three months ended March 31, 2025, compared to $1.73 billion in 2024 [146][147]. - Cash App segment net revenue decreased by $293.9 million, or 7%, to $3.88 billion for the three months ended March 31, 2025, compared to $4.17 billion in 2024 [149][150]. - Excluding bitcoin revenue, Cash App revenue increased by $135.8 million, or 9%, for the three months ended March 31, 2025 [151]. Expenses and Costs - Total operating expenses for Q1 2025 increased by $115.6 million (6%) to $1.96 billion, driven by higher product development and sales and marketing expenses [138]. - The company recorded $66.9 million in severance and other expenses related to cost efficiency initiatives during Q1 2025 [127]. - Interest expense for the three months ended March 31, 2025, was $17.2 million, a $35.988 million increase, or 192%, compared to a net interest income of $18.7 million in 2024 [143]. - Amortization of customer and other acquired intangible assets decreased by $9.6 million, or 22%, for the three months ended March 31, 2025, compared to the same period in 2024 [142]. Cash and Liquidity - The company ended Q1 2025 with $9.2 billion in available liquidity, a decrease of $1.5 billion from December 31, 2024, mainly due to a $1.0 billion cash payment for convertible notes and $445.3 million in share repurchases [128]. - Total liquidity as of March 31, 2025, was approximately $9.2 billion, down from $10.7 billion as of December 31, 2024 [168]. - Cash and cash equivalents decreased to $7.1 billion as of March 31, 2025, from $8.1 billion as of December 31, 2024 [168]. - The company experienced significant fluctuations in cash and cash equivalents due to timing of period end and daily GPV variations [179]. Investments and Debt - The company has $5.2 billion in total debt, including $1.0 billion in senior unsecured notes maturing in 2026 and 2031 [171]. - The company held approximately 8,584 bitcoins valued at $708.5 million as of March 31, 2025, with a remeasurement loss of $93.4 million in Q1 2025 [169]. - The fair value of the company's bitcoin investment as of March 31, 2025, was $708.5 million, with a remeasurement loss of $93.4 million recognized during the period [190]. Share Repurchase and Capital Management - The board authorized a total share repurchase program of up to $4 billion, with $1.8 billion repurchased as of March 31, 2025, including $445.3 million in Q1 2025 [129]. Cash Flow Activities - For the three months ended March 31, 2025, net cash provided by operating activities was $133.3 million, a decrease from $489.4 million in the same period of 2024 [180][182]. - Cash provided by investing activities for the three months ended March 31, 2025, was $914.7 million, compared to $1.0 billion in the same period of 2024 [183][184]. - Cash used in financing activities for the three months ended March 31, 2025, was $1.2 billion, significantly higher than the $32.4 million provided in the same period of 2024 [185][186]. - Customer funds obligations increased by $1.1 billion during the three months ended March 31, 2025 [185].

Exhibit 99.1 Q1 2025 Shareholder Letter investors.block.xyz To Our Shareholders Our growth in the first half of this year does not meet our bar, and we remain confident in our ability to accelerate Block's gross profit growth in the second half of 2025 and beyond. Cash App gross profit growth came in below our expectations, largely driven by softer inflows and Cash App Card spend than we had forecasted. We saw changes to consumer spending as the quarter progressed that we believe drove the majority of our f ...

Core Insights - Square has launched new banking tools aimed at providing sellers with instant access to their funds, allowing business owners to sign up for both a Square payments account and a free Square Checking account through a single application [1] - The updated savings account now offers personalized savings recommendations based on cash flow data and industry insights, helping merchants manage their funds more effectively [2] - Traditional banking services often introduce high costs and complexities for small businesses, making it challenging for them to maintain healthy cash flow and access capital [3] Industry Context - Small and medium-sized businesses (SMBs) are under increasing pressure, with nearly 20% expressing pessimism about their survival over the next five years, particularly in light of tariffs [4] - The need for high-growth businesses to adapt and thrive in an uncertain economy has been emphasized, with embedded options in payments being identified as a significant opportunity [4] - Many SMBs are shifting away from international sourcing to domestic suppliers, despite the higher costs, although this strategy may not be feasible for all businesses [5]

Core Insights - JR Research is recognized as a top analyst in technology, software, and internet sectors, focusing on growth and GARP strategies [1] - The investment approach emphasizes identifying attractive risk/reward opportunities with robust price action to generate alpha above the S&P 500 [1][2] - The investment group Ultimate Growth Investing specializes in high-potential opportunities across various sectors with a focus on strong growth potential and contrarian plays [3] Investment Strategy - The strategy combines sharp price action analysis with fundamentals investing, avoiding overhyped stocks while targeting battered stocks with recovery potential [2] - The investment outlook is typically 18 to 24 months for the thesis to materialize, aiming for robust fundamentals and attractive valuations [3] Target Audience - The group is designed for investors looking to capitalize on growth stocks with strong fundamentals, buying momentum, and turnaround plays [3]

Core Viewpoint - Block is expected to report first-quarter 2025 results on April 30, with revenue estimates of $6.18 billion, reflecting a year-over-year growth of 3.81% and earnings per share (EPS) of 88 cents, indicating a 3.53% increase from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate indicates that Block's earnings have beaten expectations in two of the last four quarters, with an average earnings surprise of 11.25% [2]. - Gross Payment Volume (GPV) for Block reached $61.95 billion in Q4 2024, marking a 7.8% year-over-year increase, driven by strong performance in the Square ecosystem [3]. - Gross profit is anticipated to grow 11% year-over-year to $2.32 billion, with adjusted operating income expected at $430 million and an adjusted operating margin of 19% [4]. Market Conditions - Block shares have declined 31% year-to-date, underperforming the Zacks Computer & Technology sector's decline of 11.1% and the Zacks Internet Software industry's fall of 6.2% [6]. - The company faces challenges from a difficult macroeconomic environment, including the risk of recession due to higher tariffs [6]. Competitive Position - Block's stock is currently trading at a Price/Cash Flow ratio of 21.84X, which is higher than the sector average of 18.75X and competitors like PayPal at 8.84X [10]. - The company is expanding its product offerings, including a new Square POS app that integrates various functionalities for different industries [14][15]. Strategic Initiatives - Cash App's partnership with Google Play enhances its payment options, and the Afterpay division has seen significant consumer engagement, with over $72 billion spent since its acquisition [16]. - Block's comprehensive commerce ecosystem supports sellers by combining software, hardware, and payment services, which is expected to sustain momentum [13]. Investment Outlook - Despite strong product offerings and a growing partner base, challenging macroeconomic conditions and sluggish consumer spending trends raise concerns [18]. - Block's shares are currently trading below their 50-day and 200-day moving averages, indicating a bearish trend [18].

Core Viewpoint - Block (XYZ) is expected to report quarterly earnings of $0.88 per share, a 3.5% increase year-over-year, with revenues projected at $6.18 billion, reflecting a 3.8% year-over-year growth [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised upward by 0.4%, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Revenue- Hardware' at $32.20 million, a decrease of 0.9% from the previous year [5]. - 'Revenue- Subscription and services-based' is expected to reach $1.89 billion, an increase of 12.4% year-over-year [5]. - 'Revenue- Transaction-based' is forecasted at $1.59 billion, reflecting a 4.9% year-over-year increase [5]. - 'Revenue- Bitcoin' is estimated at $2.70 billion, a decline of 1.2% from the prior year [6]. - 'Revenue- Square- Total' is projected at $1.86 billion, indicating a 7.8% increase year-over-year [6]. - 'Revenue- Square- Subscription and services-based' is expected to reach $338.32 million, a 14.2% increase from the previous year [7]. - 'Revenue- Cash App- Bitcoin' is projected at $2.63 billion, a decrease of 3.8% year-over-year [8]. - 'Revenue- Cash App- Transaction-based' is estimated at $94.50 million, reflecting a decline of 13.5% from the prior year [8]. Gross Payment Volume - The estimated 'Gross Payment Volume (GPV)' is $58.01 billion, up from $50.50 billion reported in the same quarter last year [9]. Stock Performance - Over the past month, Block shares have returned +7.3%, contrasting with the Zacks S&P 500 composite's -0.8% change [9].

Group 1 - Block & Leviton is investigating Landstar System, Inc. for potential securities law violations following a significant drop in share price [1][2] - Shares of Landstar System, Inc. fell over 3% on April 25 after the company announced a delay in filing its 10-Q and postponement of its earnings release to May 13 due to ongoing evaluation of internal accounting controls and financial reporting related to previous supply chain fraud issues [2] - Investors who have lost money in their Landstar System, Inc. investment are encouraged to contact Block & Leviton for potential recovery options [3][5] Group 2 - Block & Leviton is considering filing an action to recover losses on behalf of investors who have been affected by the company's issues [4] - The firm is recognized as a leading securities class action firm, having recovered billions of dollars for defrauded investors [7] - Whistleblowers with non-public information about Landstar System, Inc. may assist in the investigation and could receive rewards of up to 30% of any successful recovery [6]

Core Insights - Block Advisors by H&R Block has relaunched its Fund Her Future grant program, accepting applications from April 28 to May 30, 2025, to support women-owned small businesses with high growth potential [1][5] - The program will award a total of $100,000 in grants, with one recipient receiving $50,000 and up to five others receiving $10,000 each, along with a year of small business services valued at nearly $30,000 [1][4] Group 1: Program Details - The 2025 Fund Her Future program aims to recognize six women-owned small businesses that demonstrate community impact [1][5] - Eligibility requires applicants to be over 18 and owners of a U.S.-based business, with a focus on those showing community impact [5] - The program received over 6,000 applications in 2024, highlighting the significant interest and need for support among female entrepreneurs [6] Group 2: Challenges for Female Entrepreneurs - Female entrepreneurs face significant barriers in accessing capital, with 42% of women business owners denied bank loans and nearly 90% relying on personal finances and credit cards for funding [2] - The 2024 State of Women's Small Business Report indicates that women entrepreneurs encounter more hurdles compared to their male counterparts [2] Group 3: Impact of Previous Grant Recipients - Grant recipient Heather Jiang reported a 50% increase in online traffic to her business after receiving the grant, which allowed her to expand product lines and hire staff [7] - Erica Cole leveraged the funding to launch a sensory-friendly collection in Walmart and acquire another brand, demonstrating the scaling potential enabled by the grant [7] - Ameka Coleman anticipates a 400% revenue increase from onboarding additional hospital networks due to the support received from the grant [7] Group 4: Company Overview - H&R Block, through its Block Advisors division, provides year-round services for small businesses, including bookkeeping, payroll, and advisory services [10] - The company combines digital innovation with human expertise to assist clients in achieving better financial outcomes [10]

Core Insights - Albert Anthony is a Croatian-American media personality active on investor platforms, focusing on markets and stocks, with a growing follower base of over 1,000 since 2023 [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, coinciding with an ongoing series of articles on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in a top-10 financial firm's IT department, and has participated in various business and innovation conferences [1] Company Overview - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, and is wholly owned by Albert Anthony [1] - The company does not provide personalized financial advisory services but offers general market commentary based on publicly available data [1] - Albert Anthony has launched the Future Investor Fund, focusing on building a dividend portfolio [1] Educational Background - Albert Anthony holds degrees and certificates from several institutions, including Drew University, Corporate Finance Institute, UVA Darden School of Business, CompTIA, and Microsoft [1]

Core Insights - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] - The Focus List has demonstrated strong past performance, gaining 13.85% in 2020 compared to the S&P 500's 9.38%, and a cumulative return of 2,519.23% since February 1, 1996 [5] - The selection methodology relies on earnings estimate revisions, which are crucial for predicting future company performance [6][7] Focus List Methodology - Stocks are selected based on the power of earnings estimate revisions, with brokerage analysts evaluating factors affecting future earnings [6] - The Zacks Rank, a proprietary stock-rating model, classifies stocks into five groups based on four main factors: Agreement, Magnitude, Upside, and Surprise [9] - The Focus List primarily includes stocks ranked 1 (Strong Buy) or 2 (Buy), indicating a bullish consensus among analysts [9] Stock Spotlight: Block - Block, formerly known as Square, was added to the Focus List on March 28, 2017, at a price of $17.25 per share, and has since increased by 233.33% to $57.50 [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.08 to $4.12, with an average earnings surprise of 11.3% [13] - Analysts project Block's earnings to grow by 22.3% for the current fiscal year [13]