Revenue and Growth - The company has experienced fluctuations in revenue and gross profit growth, with the Cash App segment showing varying growth rates compared to the Square segment [121]. - The growth of transacting actives on Cash App has slowed in recent quarters, impacting overall customer engagement and revenue growth [121]. - The company intends to broaden its product portfolio and market reach, but may face challenges in achieving revenue growth from new products and services [128]. - The company’s expansion into new markets may require significant investment and may not yield expected returns [128]. - The company’s ability to maintain profitability may be challenged by rising costs associated with acquiring and supporting new sellers and customers [123]. - Economic downturns may disproportionately affect small businesses, which are the primary sellers using the company's services, potentially harming growth and transaction rates [192]. Investment and Financial Risks - The company has generated significant net losses in the past and plans to continue investing in business expansion, which may affect profitability [123]. - The company is actively pursuing acquisitions and strategic investments to expand its business, but these efforts may involve significant risks and challenges [138]. - The company has financing arrangements with financial institutions that may be impacted by certain events, potentially limiting access to additional funding [197]. - Changes in credit ratings could adversely affect the company's ability to secure financing on favorable terms [200]. - The company holds a significant amount of bitcoin, and any loss or theft of private keys could materially affect its business and financial condition [168]. - The company has made investments in bitcoin, which are subject to volatile market prices, potentially impacting its financial condition [208]. Regulatory and Compliance Risks - The company must navigate complex and changing governmental laws and regulations, which may pose compliance risks and operational challenges [148]. - The company is currently facing inquiries from the SEC and DOJ following a short seller report published in March 2023, which may lead to further regulatory scrutiny [224]. - The company entered into a Consent Order with the CFPB in January 2025 related to customer service and dispute resolution matters, with noncompliance potentially resulting in further exposure to regulatory action [229]. - The company is subject to evolving regulations and oversight related to privacy, data protection, and information security, with potential penalties for noncompliance reaching up to 4% of worldwide annual revenue or €20 million or £17.5 million under GDPR [226]. - The California Consumer Privacy Act (CCPA) imposes penalties for noncompliance of up to 7,500perviolation,withongoinglegislativeactivitypotentiallyincreasingcompliancecosts[227].−Legalandregulatorycompliancerisksareextensiveandsubjecttochange,affectingvariousoperationalareasincludingcryptocurrencyandconsumerprotection[220].OperationalRisks−Thecompanyfacesoperationalrisksrelatedtoretainingsellersandcustomers,aswellascompetitioninthepaymentsandfinancialservicesindustry[115].−Thecompanyisexperiencingincreasedrisksfromsystemfailures,cyber−attacks,andserviceinterruptions,whichcouldleadtosignificantrevenuelossandincreasedexpensesforrepairsanddatarecovery[165].−Thecompanyfacesrisksrelatedtorelianceonalimitednumberofsuppliers,whichcouldleadtoshortagesorpriceincreasesaffectingbusinessoperations[188].−Thecompanymayincurlossesrelatedtounusedofficespaceduetoeconomicdownturnsandwork−from−homepractices[195].−Thecompanymayexperiencechallengesinrecruitingandretainingqualifiedemployees,whichcouldimpactitsoperationaleffectivenessandcompanyculture[148].CybersecurityandDataProtection−Thecompanyfacesoperationalrisksrelatedtothehandlingofsensitivedata,whichcouldharmitsreputationandbusinessifcompromised[155].−Cybersecuritymeasuresarecritical,asbreachescouldleadtosignificantfinanciallossesanddamagetothecompany′sreputation[157].−Thecompanymaintainscybersecurityinsurance,butthereisuncertaintyregardingitsadequacyforpotentialliabilities[159].−Thecompany’sproductsandservicesarevulnerabletocyber−attacks,whichcouldresultinsignificantliabilityandharmtoreputation[163].−Errorsinsoftwareandsystemscouldmateriallyaffectbusinessoperationsandcustomerexperience,leadingtonegativepublicity[160].MarketandCompetitiveRisks−Intensecompetitioninthepaymentsindustryisexpectedtoincrease,withcompetitorsintroducingnewservicesandenhancingexistingones,potentiallyimpactingthecompany′smarketshare[133].−Thecompanyfacespricingpressuresfromcompetitors,whichmayrequireadjustmentstopricingstrategiesandcouldreducegrossprofitmargins[135].−Thecryptocurrencymarketposesadditionalrisks,includingpotentialadverseimpactsfromregulatoryactionsandmarketfluctuationsaffectingcustomerbehavior[136].IntellectualPropertyRisks−Thecompanyfacesrisksrelatedtotheprotectionofitsintellectualpropertyrights,whicharecriticaltoitssuccessandcompetitiveadvantage[244].−Thecompanyregularlyappliesforpatentsandtrademarks,butmaynotalwayssucceed,impactingitsabilitytoprotectinnovations[246].−Third−partyassertionsofintellectualpropertyinfringementcouldleadtosignificantlegalcostsandoperationaldisruptions[249].−Adverseoutcomesinintellectualpropertylitigationmayrequirethecompanytopaysubstantialdamagesorceasecertainoperations[250].EnvironmentalandSocialResponsibility−Thecompanyiscommittedtoachievingnetzerocarbonforoperationsby2030,whichmayrequireadditionalinvestmentsandthird−partyverification[252].−Thecompanyexpectstoexpendsignificantresourcestocomplywithnewclimate−relateddisclosurerequirements,includingthosefromtheSECandCalifornialaws[252].FinancialReportingandAccounting−TheaccountingtreatmentforbitcoinchangedwiththeadoptionofASU2023−08,allowingthecompanytoremeasureitsbitcoininvestmentatfairvalue,whichmayleadtofluctuationsinfinancialresults[209].−Thefairvalueofthecompany′sbitcoininvestmentwas792.3 million as of December 31, 2024, with recognized gains of 420.9millionand207.1 million for the years ended December 31, 2024 and 2023, respectively [404]. - The consolidated financial statements are presented in U.S. dollars, with most revenue earned in U.S. dollars and a portion in Australian dollars following the acquisition of Afterpay [406].