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)

[Shareholder Letter](index=2&type=section&id=Shareholder%20Letter) [Q2 2025 Performance Overview](index=2&type=section&id=Q2%202025%20Performance%20Overview) Block reported strong Q2 2025 performance with 14% gross profit growth, driven by accelerated Square and Cash App results Q2 2025 Key Financial Highlights | Metric | Value | YoY Growth | | :--- | :--- | :--- | | **Gross Profit** | $2.54B | +14% | | **Cash App Gross Profit** | $1.50B | +16% | | **Square Gross Profit** | $1.03B | +11% | | **Operating Income** | $484M | - | | **Adjusted Operating Income** | $550M | - | | **Net Income** | $538M | - | | **Adjusted EBITDA** | $891M | - | - The company reports strong Q2 performance with Square GPV growing **10% YoY** and Cash App gross profit growing **16% YoY**[3](index=3&type=chunk) - Shipping velocity has accelerated, exemplified by the rollout of 'Pools' on Cash App just four months after development began[3](index=3&type=chunk) [Cash App Strategy & Unique Assets](index=2&type=section&id=Cash%20App%20Strategy%20%26%20Unique%20Assets) Cash App aims to be a next-gen financial operating system, integrating P2P, commerce, banking, and bitcoin capabilities - Cash App's strategy is to build a comprehensive financial operating system by expanding its ecosystem across P2P, commerce, banking, and bitcoin capabilities[4](index=4&type=chunk)[5](index=5&type=chunk) - Younger customers are a key demographic, with users under 25 showing a **40% higher Cash App Card attach rate** compared to the rest of the customer base[4](index=4&type=chunk) [Peer-to-Peer (P2P) Network](index=3&type=section&id=Peer-to-Peer%20(P2P)%20Network) The P2P network, processing **$218 billion** annually, remains Cash App's efficient core for customer acquisition - The P2P network processed **$218 billion** in volume over the last 12 months and serves as a highly efficient customer acquisition channel[12](index=12&type=chunk)[13](index=13&type=chunk) - A new product, 'Pools', was introduced in July to facilitate group expense sharing and is expected to expand access to new customers[12](index=12&type=chunk) [Commerce Solutions](index=3&type=section&id=Commerce%20Solutions) Cash App's commerce network generated **$183 billion** in spending volume, with ongoing enhancements like 'Cash Local' - The commerce network, including Cash App Card and Afterpay, generated **$183 billion** in spending volume over the past 12 months, growing **16% YoY**[14](index=14&type=chunk) - Upcoming initiatives include personalized offers on Cash App Card, auto-selection of rewards, and the expansion of 'Cash Local' to help small businesses build deeper customer relationships[15](index=15&type=chunk)[16](index=16&type=chunk) [Banking Functionality](index=3&type=section&id=Banking%20Functionality) Cash App is deepening banking engagement, with Borrow origination volume growing **95% YoY** to an annualized **$18 billion** - Borrow origination volume grew **95% YoY**, reaching an annualized **$18 billion** in Q2[17](index=17&type=chunk) - As of June, Cash App had **2.7 million paycheck deposit actives**. However, broader definitions of banking activity (e.g., spending **$500+/month**) would increase the number of banking actives to **8 million**, growing **16% YoY**[19](index=19&type=chunk) [Bitcoin Integration](index=4&type=section&id=Bitcoin%20Integration) Block continues investing in bitcoin accessibility, with Cash App users transacting over **$58 billion** - Cash App users have bought and sold over **$58 billion** in bitcoin, demonstrating significant adoption[21](index=21&type=chunk) - The company is enabling Square sellers to accept bitcoin payments, aiming to provide more financial management options for both sellers and consumers[21](index=21&type=chunk)[22](index=22&type=chunk) [Business Highlights](index=5&type=section&id=Business%20Highlights) [Square Segment Highlights](index=5&type=section&id=Square%20Segment%20Highlights) Square focuses on seller growth through new products like Handheld and AI, expanded go-to-market strategies, and upmarket penetration - Launched new products including Square Handheld for operational efficiency and Square AI to provide sellers with data-driven answers to business questions[25](index=25&type=chunk)[26](index=26&type=chunk) - Expanding go-to-market efforts by increasing hiring for its field sales team, scaling telesales, and signing new independent sales organization (ISO) partners[28](index=28&type=chunk)[31](index=31&type=chunk) - Gaining traction with upmarket sellers, signing multi-location clients like Colectivo Coffee, Shane's Rib Shack, Live Nation Canada, and Midwest Vision Partners[29](index=29&type=chunk)[30](index=30&type=chunk) [Cash App Segment Highlights](index=6&type=section&id=Cash%20App%20Segment%20Highlights) Cash App drives network growth and engagement through product innovation, capturing the teen demographic, and scaling commerce - Started rolling out 'Pools', a group P2P product, to simplify shared expenses and attract new users to the platform[32](index=32&type=chunk) - Focusing on the next generation, Cash App has **5 million monthly active sponsored teen accounts**, with nearly **80%** being Cash App Card actives[35](index=35&type=chunk) - Commerce capabilities are scaling, with Cash App Pay volume growing **2x YoY** in Q2. Afterpay also launched the Afterpay Media Network (AMN) in Australia to provide targeted marketing for merchants[38](index=38&type=chunk)[39](index=39&type=chunk) [Financial Discussion](index=7&type=section&id=Financial%20Discussion) [Overall Financial Performance (Q2 2025)](index=7&type=section&id=Overall%20Financial%20Performance%20(Q2%202025)) The company delivered strong Q2 results with **14% YoY gross profit growth** and expanded Adjusted Operating Income margins, raising full-year guidance - Gross profit growth accelerated to **14% year over year**, outperforming guidance[42](index=42&type=chunk)[43](index=43&type=chunk) - Profitability improved across all key measures, with operating income at **$484 million** and Adjusted Operating Income at **$550 million**[43](index=43&type=chunk) - Full-year 2025 guidance was raised to **$10.17 billion** in gross profit (**+14% YoY**) and **$2.03 billion** in Adjusted Operating Income (**20% margin**)[43](index=43&type=chunk) [Block Financial Metrics](index=8&type=section&id=Block%20Financial%20Metrics) Block's gross profit grew **14% YoY** to **$2.54 billion** in Q2 2025, with significant improvements in operating income and EPS Block Financial Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Gross Profit | $2,537M | $2,233M | 14% | | Operating Income | $484M | $307M | 58% | | Adjusted Operating Income | $550M | $399M | 38% | | Diluted EPS | $0.87 | $0.31 | 181% | | Adjusted Diluted EPS | $0.62 | $0.47 | 32% | [Square Segment Financials](index=9&type=section&id=Square%20Segment%20Financials) Square's gross profit grew **11% YoY** to **$1.03 billion** in Q2, driven by **10% GPV growth**, strong international and vertical performance Square Financials (Q2 2025) | Metric | Q2 2025 Value | YoY Growth | | :--- | :--- | :--- | | Gross Profit | $1,027M | 11% | | Total GPV | $64,248M | 10% | | International Gross Profit | $144M | 19% | | International GPV | - | 25% | - GPV from food and beverage sellers grew **15% YoY**, while retail seller GPV grew **10% YoY**, its strongest growth since Q1 2023[48](index=48&type=chunk) [Cash App Segment Financials](index=10&type=section&id=Cash%20App%20Segment%20Financials) Cash App's gross profit increased **16% YoY** to **$1.50 billion**, driven by Borrow, Card, and BNPL, with deepening monetization Cash App Operating Metrics (Q2 2025) | Metric | Q2 2025 Value | YoY Growth | | :--- | :--- | :--- | | Gross Profit | $1,501M | 16% | | Monthly Transacting Actives | 57M | 0% | | Gross Profit Per Active | $87 | 15% | | Inflows Per Active | $1,338 | 8% | | BNPL GMV | $9.11B | 17% | - The number of paycheck deposit monthly actives grew both year-over-year and quarter-over-quarter to **2.7 million**[51](index=51&type=chunk) [Operating Expenses](index=11&type=section&id=Operating%20Expenses) The company demonstrated operating leverage in Q2, with product development expenses growing **2% YoY**, and loan losses rising **53% YoY** YoY Growth in GAAP Operating Expenses (Q2 2025) | Expense Category | YoY Growth | | :--- | :--- | | Product Development | +2% | | Sales and Marketing | +8% | | General and Administrative | -5% | | Transaction, loan, and consumer receivable losses | +53% | - Cash App marketing expenses were flat YoY, as a **50% increase** in advertising and acquisition spend was offset by improvements in P2P risk loss performance[55](index=55&type=chunk) [Profitability and EPS](index=12&type=section&id=Profitability%20and%20EPS) Block reported strong growth across key profitability metrics in Q2 2025, with operating income at **$484 million** and Adjusted Operating Income at **$550 million** Key Profitability Measures (Q2 2025) | Metric | Q2 2025 Value | | :--- | :--- | | Operating Income | $484M | | Adjusted Operating Income | $550M | | Net Income | $538M | | Adjusted Net Income | $385M | | Adjusted EBITDA | $891M | | Diluted EPS | $0.87 | | Adjusted Diluted EPS | $0.62 | [Cash Flow and Capital Allocation](index=13&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) The company actively returned capital, repurchasing **12.5 million shares** for **$692 million** in Q2, ending with strong liquidity - Repurchased **12.5 million shares** for **$692 million** in Q2 2025, with **$1.5 billion** remaining in the share repurchase authorization[59](index=59&type=chunk) - Ended the quarter with **$8.5 billion** of total liquidity, including **$7.7 billion** in cash and investments and **$775 million** available from a revolving credit facility[61](index=61&type=chunk) - A change in classification for certain Borrow loans to 'held-for-investment' has shifted their cash flows from the operating section to the investing section of the cash flow statement[60](index=60&type=chunk) [Guidance](index=14&type=section&id=Guidance) [Full Year 2025 Outlook](index=14&type=section&id=Full%20Year%202025%20Outlook) Block raised its full-year 2025 guidance, expecting gross profit of **$10.17 billion** (**+14% YoY**) and Adjusted Operating Income of **$2.03 billion** Full Year 2025 Guidance | Metric | 2025 Guidance | Implied YoY Growth / Margin | | :--- | :--- | :--- | | Gross Profit | $10.17B | 14.4% | | Adjusted Operating Income | $2.03B | 20% Margin | - The company expects to exit 2025 with a gross profit growth rate of **19% YoY** in the fourth quarter[63](index=63&type=chunk) [Q3 2025 Outlook](index=15&type=section&id=Q3%202025%20Outlook) For Q3 2025, Block projects gross profit of **$2.60 billion** (**+16% YoY**) and Adjusted Operating Income of **$460 million** Q3 2025 Guidance | Metric | Q3 2025 Guidance | Implied YoY Growth / Margin | | :--- | :--- | :--- | | Gross Profit | $2.60B | 16% | | Adjusted Operating Income | $460M | 18% Margin | [Appendix](index=17&type=section&id=Appendix) [Key Operating Metrics and Non-GAAP Financial Measures](index=17&type=section&id=Key%20Operating%20Metrics%20and%20Non-GAAP%20Financial%20Measures) This section defines key operating and non-GAAP financial measures like GPV, Adjusted EBITDA, and Adjusted EPS for performance comparison - Provides definitions for non-GAAP measures including Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted EPS, and Adjusted Operating Income (Loss)[76](index=76&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - 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[58](index=58&type=chunk) [Consolidated Financial Statements](index=19&type=section&id=Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including Statements of Operations, Balance Sheets, and Cash Flows - Presents the Condensed Consolidated Statements of Operations, showing detailed revenue, cost of revenue, operating expenses, and net income[84](index=84&type=chunk) - Includes the Condensed Consolidated Balance Sheets as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity[85](index=85&type=chunk) - Provides the Condensed Consolidated Statements of Cash Flows, outlining cash movements from operating, investing, and financing activities[86](index=86&type=chunk) [Segment Disclosures](index=22&type=section&id=Segment%20Disclosures) This section provides a breakdown of financial performance by Cash App and Square segments, detailing revenue, gross profit, and reconciliation Segment Gross Profit (Three Months Ended June 30, 2025) | Segment | Gross Profit | | :--- | :--- | | Cash App | $1,500.5M | | Square | $1,026.8M | | Corporate and Other | $9.2M | | **Total** | **$2,536.5M** | - Includes a reconciliation of total segment gross profit to the company's income before applicable income taxes[88](index=88&type=chunk) [Non-GAAP Reconciliations](index=24&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including Operating Income, Net Income, and Adjusted Free Cash Flow - Provides a reconciliation of GAAP Operating Income to non-GAAP Adjusted Operating Income[92](index=92&type=chunk) - Reconciles GAAP Net Income to non-GAAP Adjusted EBITDA[93](index=93&type=chunk) - Details the calculation of Adjusted Net Income and Adjusted EPS from GAAP Net Income[95](index=95&type=chunk)

Core Insights - Block (XYZ) is scheduled to report its second-quarter 2025 results on August 7, with expected revenues of $6.32 billion, reflecting a 2.64% increase year-over-year, while earnings per share (EPS) is projected at 60 cents, indicating a 35.5% decline from the previous year [1][6] Financial Estimates - The Zacks Consensus Estimate for Block's revenues in 2025 is $24.94 billion, representing a year-over-year increase of 3.4%, while the full-year EPS is estimated at $2.45, suggesting a 27.3% decline year-over-year [2] - For the second quarter, Block anticipates a gross profit of $2.45 billion, a 9.5% increase year-over-year, and an adjusted operating income of $450 million with an operating margin of 18% [5][6] Revenue Breakdown - Transaction revenues are expected to reach $1.81 billion, up from $1.55 billion in the prior quarter and $1.71 billion year-over-year, with Square contributing $1.74 billion and Cash App $69.47 million [8] - Subscription and Services revenues are estimated at $2.03 billion for the second quarter, an increase from $1.89 billion in the prior quarter and $1.79 billion year-over-year [9] Market Position and Innovations - Block is enhancing its fintech ecosystem through its platforms, Square and Cash App, focusing on integrated solutions across payments, commerce, lending, and banking, with Square regaining market share [6][7] - Recent positive developments include the launch of Square Handheld in the UK and partnerships aimed at expanding commerce capabilities [7] Challenges and Outlook - Despite macroeconomic challenges such as trade tariffs and reduced discretionary spending affecting Cash App Card activity, gross profit is expected to accelerate in the latter half of the year as user engagement deepens [10]

Core Viewpoint - BellRing Brands, Inc. experienced a significant decline in share price, dropping over 30% on August 5, 2025, due to narrowed full-year guidance and weaker-than-expected earnings, attributed to increased promotional spending, input cost inflation, and a legal provision [2]. Group 1: Company Performance - The company's full-year guidance was narrowed, indicating potential challenges ahead [2]. - Earnings reported were weaker than anticipated, leading to investor concerns [2]. - The decline in share price follows a previous selloff in May, where the company reaffirmed its guidance but revealed that key retailers were reducing inventory levels, which could negatively impact Q3 shipments [2]. Group 2: Investor Actions - Block & Leviton is investigating BellRing Brands for potential securities law violations, encouraging investors who have lost money to contact them for recovery options [1][4]. - Investors who purchased BellRing Brands common stock and experienced a decline in share value may be eligible for recovery, regardless of whether they sold their investment [3]. Group 3: Legal and Whistleblower Information - Block & Leviton is considering filing an action to recover losses for investors, emphasizing their reputation as a leading securities class action firm [4][7]. - Whistleblowers with non-public information about BellRing Brands are encouraged to assist in the investigation, with potential rewards of up to 30% of any successful recovery from the SEC [6].

Group 1 - Marex Group PLC shares fell over 8% on August 5, 2025, following allegations from a NINGI Research report that the company concealed nearly $1 billion in off-balance-sheet derivatives exposure through a Luxembourg fund [2] - The report claims that Marex Group used the fund to generate non-cash trading profits and inflated operating cash flow by misclassifying structured note issuance as income [2] - Block & Leviton is investigating potential securities law violations by Marex Group and may file an action to recover losses for affected investors [4][6] Group 2 - Investors who purchased Marex Group common stock and experienced a decline in share value may be eligible to recover losses, regardless of whether they sold their investment [3] - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7]