Shareholder letter
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Q3 2026 Shareholder Letter investors.block.xyz
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5 Adjusted Diluted EPS is a non-GAAP measure of profitability of our business. For more information, please refer to the “Key Operating Metrics and Non-GAAP Financial Measuresˮ section of this letter. 4 Adjusted Operating Income is a non-GAAP measure of operating performance and the profitability of our business, fully burdened by share-based compensation. For more information, please refer to the “Key Operating Metrics and Non-GAAP Financial Measuresˮ section of this letter. 3 Margins are all calculated as a percent of gross profit. 2 Reconciliations of non-GAAP financial measures used in this letter to their nearest GAAP equivalents are provided at the end of this letter. Please see these reconciliations for additional detail and a description of certain items that affected operating income (loss) and net income (loss) in the third quarter of 2026. 1 A transacting active is a Cash App account that has at least one financial transaction using any product or service within Cash App during a specified period. A transacting active for a specific Cash App product has at least one financial transaction using that product during the specified period and is referred to as an active. Examples of transactions include sending or receiving a peer-to-peer payment, transferring money into or out of Cash App, making a purchase using Cash App Card, earning a dividend on a stock investment, and paying back a loan, among others. Certain of these accounts may share an alias identifier with one or more other transacting active accounts. This could represent, among other things, one customer with multiple accounts or multiple customers sharing one alias identifier (for example, families). 1 To Our Shareholders At the beginning of this year, we established four principles to guide our work forward: ● Customers want peace of mind, not more products. ● Companies move fast or slow based on information flow. ● The best way to integrate machine intelligence is to become it. ● Intelligence depends on signal, and money is the most honest signal. We used these principles to refocus how we work, what we work on, and where we're going. And we saw this compound into another strong set of results in the third quarter. We exceeded our guidance with 22% gross profit growth, 92% Adjusted Operating Income growth, and 109% Adjusted Diluted EPS growth, and we raised our guidance across each of these metrics for the year. These principles also led us to refine the master plan we shared at Investor Day at the end of last year: ● Make our #company an intelligence, and enable others to do the same. ● Build the best intelligence to run your #business. ● Build the best intelligence to run your #money. ● Build open financial #infrastructure for all. ● Connect #neighborhoods globally. Today we're delivering intelligence to our customers, connecting our ecosystems, and building open financial infrastructure to help achieve our financial results. Square Kiosk gives every restaurant the opportunity to have intuitive physical intelligence in every location, easing the ordering and line burden so they can focus more on their food and experience. Managerbot, which we just rebranded to Squaremates, now has an entirely new architecture and is available to Square sellers in the U.S., giving them access to intelligence and automation tools to help them save time and run their businesses better. We are planning to do the same with Moneybot, to predict and present the right interface to people with all the capabilities Cash App has to offer. Weʼre connecting our ecosystems in a way we never have before and are already seeing results: Neighborhoods was a key driver of Cash App scaling to 60 million monthly transacting actives in September, and there is much more we plan to do to connect local communities in the future. Weʼre using bitcoin and stablecoins as an enabler of Cash Appʼs expansion, and have begun externalizing our lending infrastructure through Cash App Score. 1 Q3ʼ26 Highlights 2 Gross Profit $ 3.24 B 22% YoY Growth Cash App Gross Profit $ 2.07 B 27% YoY Growth Square Gross Profit $ 1.16 B 14% YoY Growth Operating Income $ 428 M 13% Margin 5% YoY Growth 3 Adjusted Operating Income $ 923 M 29% Margin 92% YoY Growth 4 Diluted Net Income Per Share (“EPSˮ) $ 0.92 24% YoY Growth Adjusted Diluted EPS $ 1.13 109% YoY Growth 5
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But what does it mean to "make our company an intelligence, and enable others to do the same"? We started down this path with goose, which helped us automate a lot of mundane engineering tasks earlier than most other companies, and which quickly evolved into a tool we could use for any role or task. It's now deeply embedded in our company's foundation, and enables us to help realize our vision to turn our company into a working intelligence, a mini AGI. We focused on separating our work into four layers: capabilities (the jobs we can do), interfaces (our distribution, from apps to hardware to payment wands), world models (the deep real-time understanding of both our customers and company), and proactive intelligence (a predictive engine to anticipate future needs, both for our customers and us). Buzz is probably the greatest manifestation of the "Block as Intelligence" vision. It's an environment for building and collaborating that brings all of our ideas together into one surface. It's really great for solo work, and when someone is ready, even better for team work. It's designed to scale from a company of our size, to one much larger, and even to our smallest sellers Squaremates is built on Buzz to offer our sellers best-in-class intelligence and team collaboration). It's model agnostic, entirely self-sovereign (meaning you can run it privately on your own network or system), and starts to reduce the dependency on tools like Slack, Discord, and GitHub. We have so much confidence in Buzz and our related tools that we recently created a new ecosystem called Builderlab. Block was Builderlabʼs first customer, but the problems weʼre solving are not unique to us. Companies that want to transform how they work at scale need more than a model. They need simple, accessible interfaces, connections between existing tools, and secure ways to manage and evaluate the work agentic intelligence does. We built Builderlab to help transform how Block works, and our goal is to bring it to other companies to help them do the same. In October we began piloting Buzz with prospective customers, and we expect to generate our first machine intelligence revenue in the fourth quarter. We have more to prove as we build a product offering and go-to-market strategy for an entirely new customer base, but weʼre excited to extend what weʼve built for ourselves to others. Weʼll approach this new ecosystem with the same principles that have guided us since the beginning: start small, give it soul, give time back, make it better. We're hosting an event in San Francisco on November 10 to properly introduce Builderlab. Finally, we believe voice is the most natural way to interact with intelligence, so we created Dessa, which we view as the most authentic full-duplex speech model ever built. Talking with it feels like talking with a person…full of emotion, nuance, pauses, and a natural cadence. Dessa truly pushes the frontier of deep learning models and is a significant contribution to the field. I encourage you to listen to the samples we've shared, and expect more from us in the future on how we plan to apply this groundbreaking work to our capabilities. We believe we've meaningfully crossed the chasm of transforming our company from one that creates traditional financial products into one that streams intelligence as people need it. Thank you for your support along the way, and thank you for investing in our future. 2
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Business Highlights Make our company an intelligence and enable others to do the same The AI tools weʼve built are giving us time back and helping accelerate product velocity. In October, we began rolling out model routing to all employees at Block, giving everyone access to a simple, efficient way to match their work to the right model capability. In recent weeks, AI has been autonomously reviewing and merging an increasing number of our production code changes related to low-risk, routine work so our teams can focus more of their time on building differentiated products for customers. Our focus on velocity is delivering more value to our customers faster: through the first three quarters of the year, we've released over 180 new Square features, already more than in 2024 and 2025 combined. Weʼre focusing more development effort on externalizing these capabilities so others can move faster too. Buzz makes AI multiplayer and serves as a communication and code repository tool accessible to everyone. We've shipped more than two dozen releases to Buzz since launching our alpha release in July. Weʼve rebuilt onboarding so a new user opens the app directly into a live team of AI agents already at work, with their existing developer tools detected automatically rather than wired up by hand. We ʼve also released the governance and identity infrastructure, including an admin console, encrypted identity backups, and centralized community moderation that enterprises need to deploy Buzz at scale. Build the best intelligence to run your business Square GPV growth accelerated to 14% in the third quarter, the strongest growth rate since the first quarter of 2023, driven by our continued distribution expansion and increased product velocity.6 Self-onboarding continued to drive strong new customer acquisition while the number of new sellers joining Square through Independent Sales Organization ISO partners grew 90% quarter over quarter. Our field sales team and expanded enterprise motion continued to drive new customer acquisition, both in the U.S. and internationally, including Tommy ʼs Tavern + Tap, a fast-scaling full-service restaurant chain that chose Square to run its 16-plus locations across four states, and Public House Group, the popular London hospitality group behind The Pelican and The Bull in Charlbury. In October, we launched Squaremates, our rebranded AI product for Square sellers that builds on the heritage of Square AI and Managerbot. Squaremates is generally available in the U.S. and brings some of Block ʼs most powerful AI capabilities directly to Square sellers. Weʼve redesigned the experience to offer what we think is a leading AI product for businesses, grounded in the unique commerce, customer, appointment, and inventory data of each seller. Squaremates accesses cloud compute to take on more complex, multi-step work, such as staff analyses, drafting customer win-back campaigns and holiday promotions, and preparing purchase orders for food and beverage sellers. We plan to keep expanding Squaremates ʼ capabilities, including an Apps platform that lets sellers build bespoke apps connected to their Square data and existing staff permissions, and procurement agents that help sellers manage inventory and order from suppliers. We also plan to bring Buzz into Squaremates, providing sellers with a team communication and task management platform built with AI agents as first-party participants. We also continue to innovate on hardware with the October launch of the new Square Kiosk, our next-generation self-ordering device built from the ground up around voice-enabled AI. Customers can now order by voice or touch, ask questions about the menu, and get personalized recommendations, the same way they would at the counter. Kiosk was built with larger sellers in mind, and early response from multi-unit operators has been strong. We ʼve seen franchise operators who started out skeptical of kiosks now wanting to place Square Kiosks throughout their national footprint. We set out to build hardware that saves sellers time and money while helping them serve more customers, and we believe we've delivered on that vision. Build the best intelligence to run your money Cash App reached 60 million monthly transacting actives in September with Neighborhoods playing a key role in actives growth this quarter. We also launched Cash App en Español to better serve Spanish-speaking customers, and we continued to expand Families product functionality to help us reach the next generation. In the third quarter, we 6 Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds. 3
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made the flow from a managed Cash App Account for Kids to a sponsored teen account smoother so customers can keep growing with Cash App as their financial needs evolve. In the third quarter, we continued to focus our building and partnership efforts on better serving modern earners, the estimated 70% of Cash App monthly transacting actives who earn income through a combination of freelancing, content creation, and hourly or gig work. We launched our pilot of Earn in P2P, a no-fee way to accept payments and track more of your earnings easily in Cash App. In September, we launched a partnership with Workday that lets eligible employees choose Cash App for direct deposit during payroll onboarding, and in October we announced a partnership with UKG to join their Frontline Worker Network. Weʼre also expanding the ways platforms can pay earners directly into Cash App, and weʼve begun testing ways for customers to access their pay as they earn it, rather than waiting for payday, whether or not their employer works with us. Cash App Tags became generally available in August, and we're seeing this new hardware deepen engagement with Cash App. Customers who ordered a Tag before September spent more in the month after their order than in the month before, with the largest increase among those who had been less active users of Cash App Card. Since general availability in August, one in five Tag orderers is a new or re-engaged Card active. We plan to continue to expand the Cash App Tags platform with new form factors and partnerships while continuing to execute on our broader commerce network strategy. In the third quarter, Fanatics chose Afterpay as its preferred buy now, pay later partner, and Afterpay Pay Monthly launched in Australia, with Apple as our flagship launch partner. Cash App Pay momentum also continued as Roblox added Cash App Pay functionality and we signed distribution partnerships with Checkout.com, Fiserv, and Finix. Build open financial infrastructure for all For the past six years, we've used our credit infrastructure and underwriting expertise to deliver liquidity solutions to Cash App customers. Now we're opening our capabilities up to others. In September, we announced that Cash App Score will be made available to lenders through Nova Credit, our first step in bringing Cash App's underwriting to more use cases. We expect to sign more partnerships in the future. Connect neighborhoods globally In August, we auto enrolled over 30,000 new seller locations onto Neighborhoods, our loyalty, discovery, and rewards experience that connects Square sellers with consumers, growing the Neighborhoods network over 10x from June. As of September, sellers on Neighborhoods represent nearly $5 billion in annualized GPV, up nearly 5x since June, and Cash App actives that have engaged with Neighborhoods grew over 5x in September compared to June. We continued to see strong per-seller engagement. Sellers that have been live on Neighborhoods for over a year averaged over 1,000 followers, with 10% of their GPV on Neighborhoods. We plan to continue expanding the Neighborhoods network further while continuing to innovate on the product to make Neighborhoods more valuable to sellers and their customers. Weʼre also focused on increasing the connectivity between Neighborhoods and Square products like Loyalty and Square Online as well as expanding Neighborhoods functionality across more Square hardware, building on early rollouts on Square Stand and Reader. 4
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2027 Preliminary Outlook We expect Block to perform meaningfully better in 2026 than the expectations we outlined at Investor Day in November 2025.7 In 2027, we expect momentum to continue, with Block gross profit expected to grow at least 15% year over year as our investments in AI and our broader focus on velocity drive sustained growth at scale. We expect Adjusted Operating Income to grow 30% year over year to $4.575 billion as we expand margins while still investing meaningfully to sustain long-term growth. In Square, our investments in distribution expansion are beginning to compound, and we expect to accelerate GPV growth for the third consecutive year, with gross profit growing roughly in line with GPV. In Cash App, we expect at least low-single-digit actives growth and strong growth in both Commerce Enablement and Financial Solutions gross profit.8 Neighborhoods has started to connect Square and Cash App, while our investments in AI are laying the foundation for what we believe will become Block ʼs next ecosystem. 2026 2027 Nov 2025 Investor Day Nov 2026 Guidance Δ Nov 2025 Investor Day Nov 2026 Prelim. Outlook Δ Gross Profit $B $11.980 $12.626 5% $13.770 $14.519 5% YoY Growth 17% 22% Mid-teens 15% Adjusted Operating Income $B $2.700 $3.519 30% $3.510 $4.575 30% YoY Growth 31% 69% 30% 30% Adjusted Operating Income Margin % of gross profit 23% 28% 25% 32% Square Gaining share in the U.S. and expanding further in international markets We estimate more than half of Squareʼs addressable market in the U.S. is still using legacy incumbent solutions. In 2026, weʼve expanded product functionality and ramped investments across every distribution channel we operate in to serve even more customers in this massive market. Year to date through August, self-onboarded new volume added has grown at the best rate in over a decade.9 Weʼve continued to scale field sales, and we now have over 400 ISO partners onboarded. Weʼ ll continue to invest in compounding these growth curves in 2027. Outside the U.S., the share of sellers on legacy solutions is even greater, and we've grown faster. We've delivered over 20% constant currency GPV growth in each quarter for the past six years, and we expect to sustain that strength in 2027. We've signed ISO partnerships in the U.K., Canada, Australia, Ireland, France, and Spain. Weʼre hiring field sales across several markets, and weʼre exploring partnerships that could transform the scale of our business in select countries. 9 New Volume Added NVA is the total gross payment volume GPV processed, or expected to be processed, by new sellers during their first 12 months on Square. While intended to represent incremental volume from new cohorts, it may also include GPV from existing sellers in cases such as new locations or event-based merchant tokens. For the purpose of this letter, figures exclude deactivated merchants. 8 For definitions of Cash App Commerce Enablement and Financial Solutions, see the Block Financial Metrics section on page 9 of this letter. 7 We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP metrics, including Adjusted Operating Income Loss and Adjusted Diluted EPS, or GAAP reconciliations of any of the aforementioned, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as contingencies, restructuring, and other charges. Accordingly, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation SK to exclude such reconciliations, as the reconciliations of these non-GAAP guidance metrics to their corresponding GAAP equivalents are not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided reconciliations of other historical GAAP to non-GAAP metrics in tables at the end of this letter, as well as relevant non-GAAP definitions. 5
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Square GPV growth translating to gross profit growth As of September, only 16% of our U.S. sellers use monetized software, and we see opportunities to innovate on pricing and packaging to drive software attach higher next year. Squaremates is now generally available in the U.S. and in 2027 we plan to scale its automation capabilities further to add more value to more sellers. Beyond AI, we believe no one can match Neighborhoods and our ability to deliver loyalty, marketing, and discovery solutions to sellers, on their terms, while enabling them to own their customer relationships. Cash App We built Cash App into one of the most successful consumer fintechs in the world by doing two things well: developing unique ways to reach customers who want to try our product, and consistently delivering more value to them through product innovation. That is the entire growth algorithm, simple to say and brutally hard to execute. It is how weʼve evolved from a P2P app into a full financial services app serving tens of millions of customers, and it is how we plan to sustain growth as Borrow growth normalizes. As of September, Cash App is now over $8 billion in annualized gross profit, with 60 million monthly transacting actives, the fourth largest debit program in the U.S., and over $75 billion in annualized consumer lending origination volume.10 We are still just getting started. We have multiple initiatives to grow Cash App actives We are expanding the audiences we can serve with Cash App, and we believe Neighborhoods, Cash App Families, and Cash App global expansion will be the driving forces behind long-term Cash App actives growth. We believe that almost every American shops at a Square seller in a given year, and we will soon be able to reach them across all Square hardware devices through Neighborhoods.11 For new actives who join through Neighborhoods, we're planning multiple engagement strategies, starting with introducing them to Cash App's commerce products. Beyond Neighborhoods, we see meaningful opportunities to expand our Teens and Families products through a focus on enhancing the experience for sponsors, making it easier for teens to graduate accounts, and introducing products that reinforce healthy financial habits. We continue to focus on helping modern earners by establishing deeper primary banking relationships.12 We plan to make it easier to set up direct deposit, expand the ways customers can access their pay as they earn it, and evolve Cash App Green so customers unlock more benefits as they bring more of their financial lives to Cash App. The needs of modern earners aren ʼt unique to people in the U.S., and in 2027 we plan to build more capabilities for a global audience. Growing Cash App Commerce Enablement through volume growth and monetization rate expansion13 As of September, 28 million monthly transacting actives used Cash App Card, which means 32 million did not. We have more ways to drive commerce attach rates than ever before, including new Cash App Tags form factors and partnerships, growing Cash App Pay and Afterpay merchant partnerships, and expanded Afterpay Pre-Purchase and Post-Purchase eligibility. We expect to serve more customers as our commerce product set expands, and we have meaningful room to expand our relationship with customers who already use our commerce products. The median American spends $1,650 a month on credit and debit cards. Our median commerce active spends $217 a month on Cash App, and we expect to continue to expand our monetization rate as we drive engagement higher: as of September, only 10% of Cash App Card and Cash App Pay actives use a BNPL product, and we see nearly 3x higher gross profit for actives who use BNPL compared with those who don't. Borrow growth driving Cash App Financial Solutions growth We believe we continue to have opportunities to expand Borrow limits and eligibility while sustaining strong variable profit margins and industry-leading returns on capital. As of September, the average Borrow limit was $300, compared to the highest limits we offer of $1,500. We expect to increase average limits over the next several years as more 13 Cash App Commerce Enablement Monetization Rate is calculated by dividing Cash App Commerce Enablement gross profit by Cash App Commerce Enablement volume. Cash App Commerce Enablement gross profit is primarily composed of Cash App Card and BNPL products. Cash App Commerce Enablement volume includes GPV from Cash App Card, Cash App Pay, BNPL products, and Cash App Business. 12 Square and Cash App are financial services platforms, not banks. Throughout this letter, any reference to Square or Cash Appʼs banking offerings or terms such as “primary banking activesˮ refer to products and services that are offered through Blockʼs Industrial Bank, Square Financial Services, Inc., or through our third-party bank partners. 11 Based on internal estimates comparing Census Vintage 2025 population estimates as of July 1, 2025 to the number of Square buyer profiles. Individuals may have more than one buyer profile. 10 Consumer lending includes Cash App Borrow and our BNPL products. 6
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customer cohorts mature and our proprietary data compounds. We also expect to generate revenue from externalizing Cash App Score to partners who value our underwriting infrastructure and want to extend credit to Cash App customers. Investing in long-term sustainable growth We view risk loss as an input to maximizing variable profit across our lending products.14 Since launching Square Loans in 2014, we've been able to hold loss rates consistent with our target while meaningfully expanding eligibility to more and more customers. Every annual Square loan cohort has performed in line with or better than our 4% loss target, and weʼve been able to grow Square Loans at a 27% CAGR over the past decade because of our disciplined underwriting approach, proprietary data, and world-class expertise. We are taking the same approach, with the same competitive differentiators, with Cash App Consumer Lending. Over the past two years, Cash App Consumer Lending originations growth compounded at 45%. Cash App Consumer Lending variable profit compounded at nearly the same rate. We see meaningful ecosystem benefits beyond the returns we generate on our lending products: deeper engagement with Cash App Commerce functionality, higher primary banking attach rates, and ultimately higher gross profit per active, excluding the economics from Borrow. In 2027, we expect to ramp investments in several long-term strategic growth initiatives beyond lending, most notably scaling Neighborhoods and AI solutions externally. Our growth guidance does not rely on these initiatives, but we believe they can become meaningful drivers of durable growth, and we will scale them with the same discipline we apply to our core growth investments. Those core growth investments have delivered strong returns in 2026 year to date through August, weʼve seen an estimated five-quarter payback for Square new volume added, with each of self-onboarding, field sales, and ISO distribution operating in line with or better than our return and payback investment thresholds.15 In Cash App, weʼve seen less than a three-quarter payback on our performance marketing and referral investments.16 Beyond go-to-market, weʼve expanded our ability to drive velocity with AI tooling in a thoughtful way, building evaluation techniques that help us understand model specific ROI on a wide range of engineering tasks. We plan to keep investing in increasing velocity in 2027, especially since many of these investments benefit our external AI products too. We believe the most valuable investments we can make are in sustaining long-term gross profit growth, which is where we are focused in 2027 as we drive toward 30% Adjusted Operating Income growth. 16 Represents paid marketing and referrals in the first nine months of 2026. Cash App Payback Period is customer acquisition cost per new or reactivated active divided by estimated quarterly variable profit per active, averaged across all Cash App customers active during the period. 15 Represents sellers onboarded through marketing-led self-onboarding (web and app), field sales, and third-party sales (resellers and ISOs). Square Payback Period measures the time it takes for the gross profit we expect sellers to generate to recover acquisition costs. It is calculated by dividing acquisition costs by the average quarterly gross profit sellers are expected to generate over their lifetime. Self-onboarding acquisition costs reflect Square Marketing Spend, which excludes personnel, travel and expenses, and learning and development costs. Field sales and third-party sales acquisition costs include personnel, overhead, hardware discounts, and partner bounties. 14 Variable profit is defined as gross profit less processing costs and risk losses, excluding financing costs. 7
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Financial Discussion We exceeded our third quarter guidance for gross profit, Adjusted Operating Income, and Adjusted Diluted EPS. Gross profit grew 22% year over year to $3.24 billion, with strong growth in both Cash App and Square. Adjusted Operating Income grew 92% year over year to $923 million, with an all time high margin of 29%, and Adjusted Diluted EPS grew 109% year over year to a record $1.13. Third Quarter 2026 Financial Highlights Cash App Cash App monthly transacting actives grew to 60 million in September, as Neighborhoods brought more Square seller customers into Cash App. Cash App gross profit grew 27%, with strength across Financial Solutions and Commerce Enablement. Consumer Lending origination volume grew 40% year over year to $19.0 billion, driven by Cash App Borrow and Afterpay Post-Purchase. Square In the third quarter, Square GPV grew 14% year over year on a reported and constant currency basis, with U.S. GPV growth accelerating to 10.4% year over year and International GPV growth sustaining strong performance, growing 26% year over year on a reported and constant currency basis. Square gross profit grew in line with GPV growth in the third quarter. Profitability We outperformed our profitability guidance in the third quarter, with record Adjusted Operating Income and Adjusted Diluted EPS. We also achieved record Adjusted EBITDA in the third quarter. Operating income was $428 million, up 5% year over year, while Adjusted Operating Income grew 92% year over year to $923 million. Net income attributable to common stockholders was $566 million and Adjusted EBITDA reached $1.2 billion. GAAP diluted EPS was $0.92, and Adjusted Diluted EPS grew 109% year over year to $1.13. Guidance Q4'26 2026 Gross Profit $3.315B Gross Profit $12.626B YoY Growth 15% YoY Growth 22% Adjusted Operating Income $1.005B Adjusted Operating Income $3.519B % Margin 30% % Margin 28% Rule of X17 46% Rule of X 50% Adjusted Diluted EPS $1.15 Adjusted Diluted EPS $4.15 YoY Growth 77% YoY Growth 75% We are raising our full-year guidance to reflect the momentum we are seeing across Block. For 2026, we now expect $12.626 billion in gross profit, up 22% year over year, and Adjusted Operating Income of $3.519 billion, or 28% margin, growing 69% year over year. We also expect Adjusted Diluted EPS to grow 75% to $4.15. 17 Rule of 40 is the sum of our gross profit growth and Adjusted Operating Income margin as a percent of gross profit. We may refer to a “Rule ofˮ number other than 40 to refer to the sum of gross profit growth and Adjusted Operating Income margin as a percent of gross profit for the period given. 8
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Block Financial Metrics18 Overall Block gross profit grew 22% year over year in the third quarter, with 27% year-over-year growth in Cash App and 14% year-over-year growth in Square. Commerce Enablement gross profit growth accelerated to 19% year over year, driven by strong payments volume in Square and strength in Cash App. Financial Solutions gross profit grew 32% year over year, driven by Cash App Consumer Lending. Bitcoin Ecosystem gross profit declined 50% year over year, driven primarily by a strategic decision to reduce the fee we charge on certain bitcoin transactions on Cash App. 22 Commerce Enablement gross profit reflects the impact of amortization of acquired technology assets. 21 Bitcoin ecosystem primarily consists of customer purchases of bitcoin within Cash App, Proto, and bitcoin withdrawal fees. 20 Financial solutions is primarily comprised of Cash App Borrow, Cash App Instant Deposit, ATM withdrawal fees, interest earned on customer funds, and Square Loans. 19 Commerce enablement is primarily comprised of transaction fees related to Square payments, software, and hardware, Cash App Card, Cash App Pay, the Companyʼs BNPL products, Cash App Business accounts, TIDAL, and various other software as a service (“SaaSˮ) products. 18 Quarterly revenue and gross profit by category may not sum to totals due to rounding. 9 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Revenue $M 6,115 6,252 6,057 6,618 6,719 Commerce Enablement19 2,999 3,050 2,938 3,342 3,476 Financial Solutions20 1,095 1,222 1,322 1,382 1,440 Bitcoin Ecosystem21 2,021 1,980 1,796 1,894 1,804 Gross Profit $M 2,662 2,872 2,909 3,166 3,235 YoY Growth 18% 24% 27% 25% 22% Commerce Enablement22 1,552 1,623 1,608 1,805 1,851 YoY Growth 11% 11% 15% 18% 19% Financial Solutions 1,006 1,132 1,233 1,289 1,332 YoY Growth 34% 51% 55% 43% 32% Bitcoin Ecosystem 104 118 68 72 52 YoY Growth 8% 10% 26% 31% 50%
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Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Gross Profit $M 2,662 2,872 2,909 3,166 3,235 YoY Growth 18% 24% 27% 25% 22% Operating Income Loss $M 409 485 172 447 428 Operating Income Loss Margin % of gross profit 15% 17% 6% 14% 13% Adjusted Operating Income $M 480 588 728 864 923 Adjusted Operating Income Margin % of gross profit 18% 20% 25% 27% 29% Diluted Net Income Loss Per Share ("EPS") $ 0.74 0.19 0.52 0.15 0.92 Adjusted Diluted EPS $ 0.54 0.65 0.85 1.02 1.13 Strong gross profit growth and Adjusted Operating Income margin expansion compounded into meaningful Adjusted Diluted EPS growth in the third quarter. On a GAAP basis, we generated $428 million in operating income in the third quarter of 2026, compared to $409 million in the third quarter of 2025. Adjusted Operating Income grew 92% year over year as margin expanded more than 10 percentage points to 29%, supported by strong gross profit growth and disciplined execution. On a GAAP basis, we delivered diluted EPS of $0.92, an increase of 24% year over year. Adjusted Diluted EPS grew 109% year over year to $1.13. 10
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Cash App Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Cash App Gross Profit $M 1,624 1,831 1,908 1,973 2,070 YoY Growth 24% 33% 38% 31% 27% Cash App Operating Metrics Cash App Monthly Transacting Actives M 58 59 59 59 60 YoY Growth 2% 3% 4% 3% 4% Cash App Primary Banking Actives M 23 8.3 9.3 9.7 9.4 9.4 YoY Growth 18% 22% 18% 17% 13% Commerce Enablement Volume $B 49.7 54.7 55.0 56.5 56.9 YoY Growth 17% 17% 18% 17% 14% Commerce Enablement Monetization Rate 1.56% 1.61% 1.61% 1.65% 1.74% Consumer Lending Origination Volume $B 13.6 18.5 17.6 18.9 19.0 YoY Growth 51% 69% 82% 59% 40% Total Cash App Inflows $B 24 79 83 88 87 86 YoY Growth 12% 15% 14% 13% 10% Inflows Per Transacting Active $ 25 1,366 1,410 1,494 1,469 1,446 YoY Growth 10% 12% 10% 9% 6% Cash App gross profit grew 27% year over year with strength in both Financial Solutions and Commerce Enablement. Cash App monthly transacting actives reached 60 million in September, and Neighborhoods was a key contributor to actives growth. We believe the ability to grow actives through the Square ecosystem is one of Cash Appʼs strongest differentiators. Commerce Enablement gross profit growth was driven by Cash App Card and BNPL products, led by Afterpay Post-Purchase. Commerce Enablement volume grew 14% year over year to $56.9 billion, driven by Cash App Card and Afterpay BNPL. Commerce Enablement monetization rate expanded 18 basis points year over year to 1.74%, driven by higher BNPL adoption on Cash App Card through Afterpay Post-Purchase and Pre-Purchase. Financial Solutions gross profit growth was driven primarily by Cash App Borrow. Consumer Lending origination volume grew 40% year over year to $19.0 billion, led by Cash App Borrow and Afterpay Post-Purchase. Afterpay Post-Purchase origination volume more than tripled year over year, and Afterpay Pre-Purchase origination volume more than tripled quarter over quarter in its first full quarter of general availability. As of the end of September, we completed the migration of Cash App Borrow to a six-week loan construct. During this 25 Inflows per transacting active refers to total inflows in the quarter divided by monthly actives for the last month of the quarter. Inflows refers to funds entering the Cash App ecosystem. Inflows does not include the movement of funds when funds remain in the Cash App ecosystem or when funds leave the Cash App ecosystem, or inflows related to the Afterpay app. 24 Historically, our Cash App ecosystem has experienced improvements in revenue, gross profit, and inflows related to the distribution of government funds as customers have deposited more funds into Cash App during these times, including during the first quarter when U.S. tax refunds are typically distributed. 23 A Primary Banking Active PBA is a Cash App account that receives inflows from ACH or certain original credit transactions relating to earned wages, excluding tax refunds and ACH transfers, or spent at least $500 per month across Cash App, including Cash App Card, Cash App Pay, Afterpay through Cash App, and ACH bill pay during a specified period. 11
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product construct shift, we held Borrow limits constant, which had the effect of lowering Borrow originations per customer by 7% quarter over quarter. With the shift to a six-week Borrow construct now complete, we expect to begin expanding Borrow limits again in the near term. More repayment flexibility was a top customer request for Borrow, and weʼre excited to deliver that functionality for customers by aligning terms with our BNPL products. Square Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Square Gross Profit $M 1,018 993 982 1,160 1,157 YoY Growth 9% 7% 9% 13% 14% Total Square GPV $M 67 ,151 64,960 61,209 72,848 76,359 YoY Growth 12% 10% 13% 13% 14% Constant Currency ("CC") GPV YoY Growth 12% 10% 11% 13% 14% Square U.S. GPV YoY Growth 8.9% 7.0% 8.2% 9.8% 10% % of Total Square GPV 79% 78% 78% 78% 77% Square International GPV YoY Growth 26% 24% 35% 28% 26% CC GPV YoY Growth 25% 25% 26% 25% 26% % of Total Square GPV 21% 22% 22% 22% 23% Square GPV grew 14% year over year in the third quarter on a reported and constant currency basis to $76.4 billion, reflecting strong GPV growth from new sellers. GPV from food and beverage sellers was up 20% year over year, driven by strength in U.S. food and beverage GPV. GPV from retail sellers and services sellers grew 13% and 8% year over year, respectively. We continued to see the fastest year-over-year growth in our mid-market seller segment $500K in annualized GPV compared to our other seller segments during the third quarter. Square gross profit grew 14% year over year in the third quarter in line with Square GPV growth. Growth was driven primarily by Commerce Enablement, reflecting stronger payments volume and increased software adoption, supported by the simplified pricing and packaging options we introduced last year. We also saw continued momentum in Financial Solutions, driven by Square Loans.26 We continue to expect Square gross profit to grow roughly in line with Square GPV for the remainder of the year. 26 For definitions of Square Commerce Enablement and Financial Solutions, see the Block Financial Metrics section on page 9 of this letter. 12
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Operating Expenses and Non-GAAP Operating Expenses $M Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Operating Expenses $M 2,252 2,387 3,081 2,719 2,807 Restructuring Share-Based Compensation 2 - 110 4 13 Amortization of Customer and Other Acquired Intangible Assets 34 34 34 34 34 Acquisition-Related and Integration Costs 0 0 0 0 0 Contingencies, Restructuring and Other Charges 21 54 743 365 435 Non-GAAP Operating Expenses $M 2,195 2,298 2,194 2,315 2,325 In the third quarter, product development expenses decreased 11% year over year on a GAAP basis and decreased 12% on a non-GAAP basis, driven by reduced personnel-related costs associated with the organizational changes we executed in February. Sales and marketing expenses grew 15% year over year on a GAAP basis and grew 14% on a non-GAAP basis, driven by an increase in go-to-market investments. General and administrative expenses were up 56% year over year on a GAAP basis, primarily driven by increased accrued legal contingencies, and down 21% year over year on a non-GAAP basis. For more information on accrued legal contingencies, please see the Commitments and Contingencies footnote in our Quarterly Report on Form 10 Q for the quarter ended September 30, 2026. Transaction, loan, and consumer receivable losses increased 66% year over year on a GAAP basis, driven by growth in loan volumes and product mix shifts. Third quarter Cash App Consumer Lending variable profit margin was in line with the third quarter of 2025 and improved modestly quarter over quarter, demonstrating strong returns and underwriting as originations continued to grow.27 Borrow risk loss rates remained healthy as we completed our migration to six-week loans in September. We expect year-over-year growth in transaction, loan, and consumer receivable losses to moderate further in the fourth quarter. 27 Consumer Lending variable profit margin is Consumer Lending variable profit divided by Consumer Lending originations. We define variable profit as gross profit less processing costs and risk losses, excluding financing costs. 13
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Key Profitability Measures and EPS $M, except per share figures) Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Operating Income Loss 409 485 172 447 428 Adjusted Operating Income 480 588 728 864 923 Net Income Loss attributable to common stockholders 462 116 309 89 566 Adjusted Net Income 337 402 513 620 697 Adjusted EBITDA 833 930 1,010 1,169 1,228 Weighted-average shares used to compute Diluted EPS 622 614 598 609 615 Weighted-average shares used to compute Adjusted Diluted EPS 622 616 604 609 615 Diluted EPS $ 0.74 0.19 0.52 0.15 0.92 Adjusted Diluted EPS $ 0.54 0.65 0.85 1.02 1.13 14
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Non-GAAP Cash Flow $M Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 TRAILING 12 MONTHS28 Net cash provided by operating activities 1,451 621 966 1,020 1,016 3,623 Less: Purchase of property and equipment 51 41 31 53 44 169 Free Cash Flow 1,400 580 935 967 972 3,453 Reversal of: Changes in settlements receivable 33 196 90 235 129 470 Changes in customers payable 3 61 122 164 268 370 Changes in settlements payable - - 2 2 - - Sales, principal payments and forgiveness of PPP loans 0 0 0 1 1 2 Consumer receivables cash flows included within investing activities in the GAAP statements of cash flows: Payments for originations of consumer receivables 7,915 9,592 7,788 8,575 8,633 34,589 Proceeds from principal repayments and sales of consumer receivables 8,227 9,213 8,441 8,608 8,932 35,194 Purchases and originations of loans originally classified as held for investment 6,480 9,986 10,646 11,231 11,396 43,259 Proceeds from repayments of loans originally classified as held for investment 5,172 8,451 10,232 10,542 10,552 39,777 Warehouse facilities cash flows included within financing activities in the GAAP statement of cash flows: Proceeds from warehouse facilities borrowings 13 857 224 715 381 2,177 Repayments of warehouse facilities borrowings 215 - 1,065 90 - 1,155 Non-GAAP Cash Flow 239 342 363 1,008 668 1,697 YoY Change 52% 189% 357% 868% 180% 386% Net cash provided by (used in) investing activities 1,101 2,130 300 306 647 2,784 Net cash provided by (used in) financing activities 1,467 40 252 1,357 712 857 In the third quarter of 2026, we continued to prudently invest in our lending products, including growing Cash App Borrow and Afterpay Post-Purchase given the strong unit economics and returns we have seen. Within our non-GAAP cash flow, we have deployed $1.4 billion in capital to grow our lending products over the last 12 months.29 We ended the quarter with $10.1 billion of total liquidity, with $9.2 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, and $900 million available to be withdrawn from our revolving credit facility. Additionally, we had $809 million available to be withdrawn under our warehouse funding facilities. 29 Capital deployed to grow lending products is calculated as the trailing twelve month change in our lending product balances (which consists of consumer receivables, net; loans held for sale; and loans held for investment, net), less the net financing provided by our warehouse facilities (i.e. proceeds net of repayments) over the same period. 28 Quarterly figures presented may not sum precisely due to rounding. 15
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Earnings Webcast Block NYSE XYZ will host a conference call and earnings webcast at 2 00 p.m. Pacific time/5 00 p.m. Eastern time, November 3, 2026, to discuss these financial results. To register to participate in the conference call, or to listen to the live audio webcast, please visit the Events & Presentations section of Block ʼs Investor Relations website at investors.block.xyz. A replay will be available on the same website following the call. We will release financial results for the fourth quarter of 2026 on February 24, 2027, after the market closes, and will also host a conference call and earnings webcast at 2 00 p.m. Pacific time/5 00 p.m. Eastern time on the same day to discuss those financial results. Media Contact press@block.xyz Investor Relations Contact ir@block.xyz Jack Dorsey Amrita Ahuja 16
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Safe Harbor Statement This letter contains “forward-looking statementsˮ within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding the future performance of Block, Inc. and its consolidated subsidiaries (the Company); the Companyʼs strategies, including expected impact of such strategies on our customers, actives, and sellers; our business and financial performance, expected financial results, guidance, and general business outlook for current and future periods, including our progress toward guidance we issued at our November 2025 investor day, trends in U.S. and global GPV and gross profit growth, and statements that the Companyʼs performance will accelerate; our ability to manage our risk losses and our expectations regarding transaction and loan losses; the Companyʼs plans with respect to its emerging initiatives and product development plans and product launches and functionalities, including expectations regarding the growth of Cash App Borrow and Afterpay Post-Purchase, Cash App Score, Neighborhoods and Builderlab; the expected benefits of AI tools, models, agents, and related technologies to our employees, to our customers, to the pace of our innovation and to our overall business, the expected benefits of our products to our customers and the impact of our products on our business; our expectations related to workforce reductions and the anticipated costs, impact, risks and benefits of such actions; and the Companyʼs ability and timing to integrate artificial intelligence and cryptocurrency features into its products; the ability of the Companyʼs products to attract and retain sellers and customers, particularly in new or different markets or demographics or through partnerships, sales organizations, or advertising campaigns; trends in the Companyʼs markets and the continuation of such trends; the Companyʼs expectations and intentions regarding future expenses and marketing investments; and managementʼs statements related to business strategy, plans, investments, opportunities, and objectives for future operations. In some cases, forward-looking statements can be identified by terms such as “may,ˮ “will,ˮ “appears,ˮ “should,ˮ “expects,ˮ “plans,ˮ “anticipates,ˮ “could,ˮ “intends,ˮ “target,ˮ “projects,ˮ “contemplates,ˮ “believes,ˮ “estimates,ˮ “predicts,ˮ “potential,ˮ or “continue,ˮ or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause the Companyʼs actual results, performance, or achievements to differ materially from results expressed or implied in this letter. Investors are cautioned not to place undue reliance on these statements, and reported results should not be considered as an indication of future performance. Risks that contribute to the uncertain nature of the forward-looking statements include, among others, a deterioration of general macroeconomic conditions; risks related to workforce reductions and related reorganizations, including the potential for increased reliance on proactive intelligence and artificial intelligence tools; the Companyʼs investments in its business and ability to achieve anticipated returns, maintain profitability and expand margins; the Companyʼs efforts to expand its product portfolio and market reach; risks related to our loan products such as credit losses; the Companyʼs ability to develop products and services to address the rapidly evolving market for commerce and financial services; the Companyʼs ability to deal with the substantial and increasingly intense competition in its industry; risks related to disruptions in or negative perceptions of the cryptocurrency market; acquisitions, strategic investments, entries into new businesses, joint ventures, divestitures, and other transactions that the Company may undertake; the Companyʼs ability to ensure the integration of its services with a variety of operating systems and the interoperability of its technology with that of third parties; the Companyʼs ability to successfully develop and integrate artificial intelligence, including generative AI, into its systems, initiatives, and products; the Companyʼs ability to retain existing customers, attract new customers, and increase sales to all customers; the Companyʼs dependence on payment card networks, acquiring processors and other partnerships; the effect of extensive regulation and oversight related to the Companyʼs business in a variety of areas; risks related to the banking ecosystem, including through our bank partnerships, and FDIC and other regulatory obligations; the liabilities and loss potential associated with new products, product features, and services; litigation, including intellectual property claims, government investigations or inquiries, and regulatory matters or disputes; the adequacy of reserves for such matters and the impact of any such matters or settlements thereof on our business; adoption of the Companyʼs products and services in international markets; changes in political, business, and economic conditions, including changes due to actual or potential tariffs; as well as other risks listed or described from time to time in the Companyʼs filings with the Securities and Exchange Commission (the SEC, including the Companyʼs Annual Report on Form 10K for the fiscal year ended December 31, 2025, and its subsequent Quarterly Reports on Form 10Q, which are on file with the SEC and available on the Investor Relations page of the Companyʼs website. Additional information will also be set forth in the Companyʼs Quarterly Report on Form 10Q for the quarter ended September 30, 2026. All forward-looking statements represent managementʼs current expectations and predictions regarding trends affecting the Companyʼs business and industry and are based on information and estimates available to the Company at the time of this letter and are not guarantees of future performance. Earnings guidance for 2026 and 2027 reflects assumptions the Company believes are reasonable as of the date of this filing, and actual results may vary based on changing macroeconomic conditions and other risks and uncertainties outlined in this safe harbor section and in the Companyʼs periodic reports filed with the SEC. Except as required by law, the Company assumes no obligation to update any of the statements in this letter. Key Operating Metrics And Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles in the United States GAAP, from period to period, we consider and present certain operating and financial measures that we consider key metrics or are not prepared in accordance with GAAP, including Gross Payment Volume GPV, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income Loss, Adjusted Net Income Loss Per Share Adjusted EPS, Adjusted Diluted Net Income Loss Per Share Adjusted Diluted EPS, Adjusted Operating Income Loss, Adjusted Operating Income Loss margin, Free Cash Flow, Non-GAAP Cash Flow, constant currency, and non-GAAP operating expenses. We believe these metrics and measures are useful to facilitate period-to-period comparisons of our business and to facilitate comparisons of our performance to that of other payments solution providers. GPV includes Square GPV and Cash App Business GPV. Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds. Cash App Business GPV comprises Cash App activity related to peer-to-peer transactions received by business accounts and peer-to-peer payments sent from a credit card. GPV does not include transactions from our BNPL products. Adjusted Net Income Loss, Adjusted Net Income Loss Per Share Adjusted EPS, and Adjusted Diluted Net Income Loss Per Share Adjusted Diluted EPS are non-GAAP financial measures that represent our net income (loss) and net income (loss) per share, adjusted to eliminate the effect of restructuring share-based compensation expense, contingencies, restructuring, and other charges; goodwill and intangible asset impairment; amortization of intangible assets; amortization of debt discount and issuance costs; gain or loss on revaluation of equity investments; remeasurement gain or loss on revaluation of bitcoin investment; the gain or loss on the disposal of property and equipment; acquired deferred revenue and cost adjustments; the discrete benefits from the release of valuation allowances on our deferred tax assets; and the tax effect of non-GAAP net income adjustments, as applicable. Additionally, for purposes of calculating Adjusted Diluted EPS, we add back cash interest expense on convertible senior notes, as if converted at the beginning of the period, if the impact is dilutive. To calculate Adjusted Diluted EPS, we adjust the weighted-average number of shares of common stock outstanding for the dilutive effect of all potential shares of common stock. In periods when we recorded an Adjusted Net Loss, the diluted Adjusted EPS is the same as basic Adjusted EPS because the effects of potentially dilutive items were anti-dilutive given the Adjusted Net Loss position. 17
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Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that represent our net income (loss), adjusted to exclude share-based compensation expense; restructuring share-based compensation expense; depreciation and amortization; contingencies, restructuring, and other charges; interest income and expense; remeasurement gain or loss on bitcoin investment; other income and expense; provision for (benefit from) income taxes; gain or loss on disposal of property and equipment; and acquired deferred revenue and cost adjustment, as applicable. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by gross profit. Adjusted Operating Income Loss is a non-GAAP financial measure that represents our operating income (loss), adjusted to eliminate the effect of amortization of acquired technology assets; contingencies, restructuring, and other charges; restructuring share-based compensation expenses; goodwill and intangible asset impairment and amortization of customer and other acquired intangible assets. Adjusted Operating Income Loss margin is calculated as Adjusted Operating Income Loss divided by gross profit. We also exclude from these measures certain acquisition-related and integration costs associated with business combinations, and various other costs that are not reflective of our core operating performance. We exclude amortization of intangible assets arising from business combinations from Adjusted Net Income Loss, Adjusted EPS, Adjusted Diluted EPS, Adjusted Operating Income Loss, and Adjusted Operating Income Loss Margin because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our ongoing business operations. Acquisition-related costs include amounts paid to redeem acquireesʼ unvested stock-based compensation awards; charges associated with holdback liabilities; and legal, accounting, and due diligence costs. Integration costs include advisory and other professional services or consulting fees necessary to integrate acquired businesses. Other costs that are not reflective of our core business operating expenses may include contingencies, restructuring, and other charges; impairment charges; restructuring share-based compensation expense; and certain litigation and regulatory charges. For Adjusted Net Income Loss, Adjusted EPS, and Adjusted Diluted EPS we also add back the impact of the acquired deferred revenue and deferred cost adjustment, which was written down to fair value in purchase accounting, and adjust for the tax effect of the non-GAAP net income adjustments. Non-GAAP Cash Flow is a non-GAAP financial measure that represents our net cash provided by operating activities adjusted for changes in settlements receivable; changes in customers payable; changes in settlements payable; the purchase of property and equipment; payments for originations of consumer receivables; proceeds from principal repayments and sales of consumer receivables; purchases and originations of loans originally classified as held for investment; proceeds from repayments of loans originally classified as held for investment; proceeds from warehouse facilities borrowings; repayments of warehouse facilities borrowings; and sales, and principal payments, and forgiveness of PPP loans. We present Non-GAAP Cash Flow because we use it to understand the cash generated by our business and make strategic decisions related to our balance sheet, and because we are focused on growing our Non-GAAP Cash Flow generation over time. It is not intended to represent amounts available for discretionary purposes. Constant currency growth is calculated by assuming international results in a given period and the comparative prior period are translated from local currencies to the U.S. dollar at rates consistent with the monthly average rates in the comparative prior period. We discuss growth on a constant currency basis because a portion of our business operates in markets outside the U.S. and is subject to changes in foreign exchange rates. Non-GAAP operating expenses is a non-GAAP financial measure that represents operating expenses adjusted to remove the impact of restructuring share-based compensation; amortization of customer and other acquired intangible assets; acquisition-related and integration costs; contingencies, restructuring, and other charges; and goodwill and intangible asset impairment. We have included Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income Loss, Adjusted Operating Income Loss margin, Adjusted Net Income Loss, Adjusted EPS, Adjusted Diluted EPS, and non-GAAP operating expenses because they are key measures used by our management to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income Loss, Adjusted Operating Income Loss margin, Adjusted Net Income, Adjusted EPS, Adjusted Diluted EPS, and non-GAAP operating expenses provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, they provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain variable charges that do not vary with our operations. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income Loss, Adjusted Operating Income Loss, Adjusted Operating Income Loss margin, Adjusted EPS, Adjusted Diluted EPS, and non-GAAP operating expenses, as well as other measures defined in the shareholder letter, have limitations as financial measures, should be considered as supplemental in nature, and are not meant as substitutes for the related financial information prepared in accordance with GAAP. We believe that the aforementioned metrics and measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects, and provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain variable amounts, or they remove amounts that were not repeated across periods and therefore make comparisons more difficult. Our management uses these measures to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP. Other companies, including companies in our industry, may calculate the non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures. 18
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Condensed Consolidated Statements of Operations Unaudited In thousands, except per share data THREE MONTHS ENDED NINE MONTHS ENDED Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Revenue: Commerce enablement revenue $ 3,475,923 $ 2,999,053 $ 9,755,964 $ 8,464,330 Financial solutions revenue 1,439,629 1,094,925 4,143,982 2,954,489 Bitcoin ecosystem revenue 1,803,807 2,020,974 5,493,947 6,522,386 Total net revenue 6,719,359 6,114,952 19,393,893 17,941,205 Cost of revenue: Commerce enablement costs 1,612,891 1,433,672 4,453,989 3,940,242 Financial solutions costs 107,165 88,578 290,359 249,149 Bitcoin ecosystem costs 1,751,964 1,917,275 5,301,264 6,221,176 Amortization of acquired technology assets 12,066 13,857 37,688 42,935 Total cost of revenue 3,484,086 3,453,382 10,083,300 10,453,502 Gross profit 3,235,273 2,661,570 9,310,593 7,487,703 Operating expenses: Product development 635,590 711,235 2,283,123 2,197,222 Sales and marketing 687,900 599,333 2,003,363 1,653,524 General and administrative 847,461 543,974 2,530,894 1,485,008 Transaction, loan, and consumer receivable losses 601,706 363,455 1,687,281 827,234 Amortization of customer and other acquired intangible assets 34,125 34,133 102,561 101,680 Total operating expenses 2,806,782 2,252,130 8,607,222 6,264,668 Operating income 428,491 409,440 703,371 1,223,035 Interest expense, net 48,128 34,652 157,044 75,582 Remeasurement loss (gain) on bitcoin investment (229,705) (59,588) 31,587 (178,402) Other income, net (2,423) (167,150) (6,650) (162,103) Income before income tax 612,491 601,526 521,390 1,487,958 Provision for income taxes 48,350 139,928 178,775 299,304 Net income 564,141 461,598 342,615 1,188,654 Less: Net income (loss) attributable to noncontrolling interests (1,410) 54 (2,772) (1,220) Net income attributable to common stockholders $ 565,551 $ 461,544 $ 345,387 $ 1,189,874 Net income per share attributable to common stockholders: Basic $ 0.94 $ 0.76 $ 0.58 $ 1.94 Diluted $ 0.92 $ 0.74 $ 0.57 $ 1.91 Weighted-average shares used to compute net income per share attributable to common stockholders: Basic 602,507 610,199 599,321 614,117 Diluted 614,778 621,658 607,353 625,256 19
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Condensed Consolidated Balance Sheets In thousands, except per share data Sep. 30, 2026 Dec. 31, 2025 UNAUDITED Assets Current assets: Cash and cash equivalents $ 7,859,314 $ 6,564,092 Settlements receivable 1,454,211 1,359,983 Customer funds 5,356,911 4,771,824 Consumer receivables, net 2,352,214 2,670,322 Loans held for investment, net 4,401,001 3,382,957 Other current assets 3,561,245 4,107,702 Total current assets 24,984,896 22,856,880 Goodwill 11,984,759 11,849,018 Acquired intangible assets, net 1,155,971 1,281,670 Deferred tax assets 1,313,316 1,302,776 Bitcoin investment 771,881 777,515 Other non-current assets 1,024,864 1,482,028 Total assets $ 41,235,687 $ 39,549,887 Liabilities and Stockholders’ Equity Current liabilities: Customers payable $ 7,700,091 $ 6,805,366 Accrued expenses and other current liabilities 3,061,320 1,538,893 Current portion of long-term debt — 1,573,259 Warehouse funding facilities, current 447,437 466,942 Total current liabilities 11,208,848 10,384,460 Warehouse funding facilities, non-current 1,096,103 897,941 Long-term debt 5,723,027 5,715,759 Other non-current liabilities 337,523 381,845 Total liabilities 18,365,501 17,380,005 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.0000001 par value: 100,000 shares authorized at September 30, 2026 and December 31, 2025. None issued and outstanding at September 30, 2026 and December 31, 2025. — — Class A common stock, $0.0000001 par value: 1,000,000 shares authorized at September 30, 2026 and December 31, 2025; 544,541 and 542,085 issued and outstanding at September 30, 2026 and December 31, 2025, respectively. — — Class B common stock, $0.0000001 par value: 500,000 shares authorized at September 30, 2026 and December 31, 2025; 59,976 and 59,993 issued and outstanding at September 30, 2026 and December 31, 2025, respectively. — — Additional paid-in capital 19,122,552 18,895,405 Accumulated other comprehensive loss (234,839) (365,381) Retained earnings 4,019,641 3,674,254 Total stockholders’ equity attributable to common stockholders 22,907,354 22,204,278 Noncontrolling interests (37,168) (34,396) Total stockholders’ equity 22,870,186 22,169,882 Total liabilities and stockholders’ equity $ 41,235,687 $ 39,549,887 20
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Condensed Consolidated Statements of Cash Flows Unaudited In thousands NINE MONTHS ENDED Sep. 30, 2026 Sep. 30, 2025 Cash flows from operating activities: Net income $ 342,615 $ 1,188,654 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 282,148 273,464 Amortization of discounts and premiums (894,970) (836,118) Non-cash lease expense and other non-cash adjustments 130,759 43,713 Share-based compensation 871,220 921,957 Loss (gain) on revaluation of equity investments 10,420 (172,582) Remeasurement loss (gain) on bitcoin investment 31,587 (178,402) Transaction, loan, and consumer receivable losses 1,687,281 827,234 Change in deferred income taxes (396) 182,756 Purchases and originations of loans originally classified as held for sale (5,777,116) (12,394,452) Proceeds from repayments of loans originally classified as held for sale 5,512,088 12,457,575 Changes in operating assets and liabilities: Settlements receivable (274,477) (291,388) Customers payable 309,299 313,061 Prepaid expenses (6,787) (29,087) Other assets and liabilities 777,910 (347,671) Net cash provided by operating activities 3,001,581 1,958,714 Cash flows from investing activities: Purchases of marketable debt securities (403,000) (481,088) Proceeds from maturities of marketable debt securities 450,839 423,312 Proceeds from sale of marketable debt securities 75,740 392,218 Payments for originations of consumer receivables (24,997,025) (22,553,302) Proceeds from principal repayments and sales of consumer receivables 25,981,087 23,721,275 Purchases and originations of loans originally classified as held for investment (33,272,894) (7,643,830) Proceeds from repayments of loans originally classified as held for investment 31,325,880 5,629,369 Purchases of property and equipment (127,996) (113,838) Other investing activities 313,767 (45,930) Net cash used in investing activities (653,602) (671,814) Cash flows from financing activities: Repayments of senior notes (1,000,000) — Proceeds from issuance of senior notes — 2,200,000 Payments of debt issuance costs from issuance of senior notes — (28,346) Payments to redeem convertible notes (575,000) (1,000,624) Proceeds from warehouse facilities borrowings 1,320,398 448,530 Repayments of warehouse facilities borrowings (1,155,192) (1,456,869) Proceeds from the exercise of stock options and purchases under the employee stock purchase plan 50,282 58,247 Net increase in interest-bearing deposits 604,593 81,176 Repurchases of common stock (700,935) (1,540,529) Other financing activities (25,602) (35,330) Change in customer funds, restricted from use in the Company's operations 585,087 620,844 Net cash used in financing activities (896,369) (652,901) Effect of foreign exchange rate on cash and cash equivalents 4,397 80,515 Net increase in cash, cash equivalents, restricted cash, and customer funds 1,456,007 714,514 Cash, cash equivalents, restricted cash, and customer funds, beginning of the period 12,481,276 13,230,512 Cash, cash equivalents, restricted cash, and customer funds, end of the period $ 13,937,283 $ 13,945,026 21
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Reportable Segment Disclosures Unaudited Information on the reportable segments revenue and segment gross profit, as well as amounts for the "Corporate and Other" category, which includes products and services not assigned to reportable segments and intersegment eliminations: THREE MONTHS ENDED NINE MONTHS ENDED Sep. 30, 2026 Sep. 30, 2026 (in millions) (i) Cash App Square Corporate and Other Total Cash App Square Corporate and Other Total Revenue: Commerce enablement revenue $ 1,198 $ 2,227 $ 51 $ 3,476 $ 3,415 $ 6,191 $ 150 $ 9,756 Financial solutions revenue 1,108 332 — 1,440 3,225 919 — 4,144 Bitcoin ecosystem revenue 1,768 35 1 1,804 5,325 99 69 5,494 Segment revenue $ 4,074 $ 2,594 $ 52 $ 6,719 $ 11,965 $ 7,210 $ 219 $ 19,394 Cost of revenue: Commerce enablement costs $ 196 $ 1,381 $ 36 $ 1,613 $ 570 $ 3,776 $ 107 $ 4,454 Financial solutions costs 85 22 — 107 257 34 — 290 Bitcoin ecosystem costs 1,711 34 7 1,752 5,152 98 51 5,301 Amortization of acquired technology 12 — — 12 35 3 — 38 Segment cost of revenue 2,004 1,437 43 3,484 6,014 3,911 158 10,083 Segment gross profit $ 2,070 $ 1,157 $ 9 $ 3,235 $ 5,951 $ 3,299 $ 61 $ 9,311 (i) Figures presented may not sum precisely due to rounding. 22
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Reportable Segment Disclosures, Continued THREE MONTHS ENDED NINE MONTHS ENDED Sep. 30, 2025 Sep. 30, 2025 (in millions) (i) Cash App Square Corporate and Other Total Cash App Square Corporate and Other Total Revenue: Commerce enablement revenue $ 976 $ 1,979 $ 45 $ 2,999 $ 2,816 $ 5,521 $ 128 $ 8,464 Financial solutions revenue 834 261 — 1,095 2,217 738 — 2,954 Bitcoin ecosystem revenue 1,990 1 30 2,021 6,491 1 31 6,522 Segment revenue $ 3,800 $ 2,241 $ 75 $ 6,115 $ 11,523 $ 6,259 $ 158 $ 17,941 Cost of revenue: Commerce enablement costs $ 185 $ 1,216 $ 33 $ 1,434 $ 551 $ 3,296 $ 93 $ 3,940 Financial solutions costs 83 6 — 89 233 16 — 249 Bitcoin ecosystem costs 1,895 1 22 1,917 6,196 1 25 6,221 Amortization of acquired technology 13 1 — 14 39 4 — 43 Segment cost of revenue 2,176 1,223 55 3,453 7,019 3,317 118 10,454 Segment gross profit $ 1,624 $ 1,018 $ 20 $ 2,662 $ 4,504 $ 2,942 $ 41 $ 7,488 (i) Figures presented may not sum precisely due to rounding. THREE MONTHS ENDED Cash App (i) (in millions) Sep. 30, 2026 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Revenue: Commerce enablement revenue $ 1,198 $ 976 $ 1,096 $ 1,086 $ 1,131 Financial solutions revenue 1,108 834 949 1,040 1,077 Bitcoin ecosystem revenue 1,768 1,990 1,856 1,744 1,813 Segment revenue $ 4,074 $ 3,800 $ 3,902 $ 3,871 $ 4,021 Cost of revenue: Commerce enablement costs $ 196 $ 185 $ 201 $ 187 $ 187 Financial solutions costs 85 83 84 83 88 Bitcoin ecosystem costs 1,711 1,895 1,773 1,681 1,760 Amortization of acquired technology 12 13 13 12 12 Segment cost of revenue 2,004 2,176 2,070 1,963 2,048 Segment gross profit $ 2,070 $ 1,624 $ 1,831 $ 1,908 $ 1,973 (i) Figures presented may not sum precisely due to rounding. 23
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Reportable Segment Disclosures, Continued THREE MONTHS ENDED Cash App (i) (in millions) Sep. 30, 2025 Sept. 30, 2024 Dec. 31, 2024 Mar. 31, 2025 Jun. 30, 2025 Revenue: Commerce enablement revenue $ 976 $ 848 $ 949 $ 900 $ 940 Financial solutions revenue 834 620 607 649 733 Bitcoin ecosystem revenue 1,990 2,462 2,461 2,329 2,171 Segment revenue $ 3,800 $ 3,930 $ 4,017 $ 3,879 $ 3,845 Cost of revenue: Commerce enablement costs $ 185 $ 169 $ 200 $ 176 $ 190 Financial solutions costs 83 75 73 73 78 Bitcoin ecosystem costs 1,895 2,366 2,354 2,237 2,064 Amortization of acquired technology 13 14 14 13 13 Segment cost of revenue 2,176 2,624 2,641 2,499 2,344 Segment gross profit $ 1,624 $ 1,306 $ 1,376 $ 1,380 $ 1,501 (i) Figures presented may not sum precisely due to rounding. THREE MONTHS ENDED Square (i) (in millions) Sep. 30, 2026 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Revenue: Commerce enablement revenue $ 2,227 $ 1,979 $ 1,905 $ 1,803 $ 2,161 Financial solutions revenue 332 261 273 282 305 Bitcoin ecosystem revenue 35 1 14 28 37 Segment revenue $ 2,594 $ 2,241 $ 2,193 $ 2,112 $ 2,504 Cost of revenue: Commerce enablement costs $ 1,381 $ 1,216 $ 1,178 $ 1,096 $ 1,300 Financial solutions costs 22 6 6 6 6 Bitcoin ecosystem costs 34 1 14 28 37 Amortization of acquired technology — 1 1 1 1 Segment cost of revenue 1,437 1,223 1,200 1,131 1,343 Segment gross profit $ 1,157 $ 1,018 $ 993 $ 982 $ 1,160 (i) Figures presented may not sum precisely due to rounding. 24
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Reportable Segment Disclosures, Continued THREE MONTHS ENDED Square (i) (in millions) Sep. 30, 2025 Sept. 30, 2024 Dec. 31, 2024 Mar. 31, 2025 Jun. 30, 2025 Revenue: Commerce enablement revenue $ 1,979 $ 1,790 $ 1,751 $ 1,627 $ 1,915 Financial solutions revenue 261 212 220 226 251 Bitcoin ecosystem revenue 1 — — — — Segment revenue $ 2,241 $ 2,002 $ 1,970 $ 1,852 $ 2,166 Cost of revenue: Commerce enablement costs $ 1,216 $ 1,063 $ 1,040 $ 947 $ 1,133 Financial solutions costs 6 5 5 5 5 Bitcoin ecosystem costs 1 — — — — Amortization of acquired technology 1 1 2 2 2 Segment cost of revenue 1,223 1,069 1,047 954 1,139 Segment gross profit $ 1,018 $ 932 $ 924 $ 898 $ 1,027 (i) Figures presented may not sum precisely due to rounding. Operating Segment Disclosures Unaudited A reconciliation of total segment gross profit to the Company’s income (loss) before applicable income taxes (in thousands): THREE MONTHS ENDED NINE MONTHS ENDED Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Total segment gross profit $ 3,226,704 $ 2,641,613 $ 9,249,627 $ 7,446,773 Add: Corporate and other gross profit 8,569 19,957 60,966 40,930 Less: Product development 635,590 711,235 2,283,123 2,197,222 Less: Sales and marketing 687,900 599,333 2,003,363 1,653,524 Less: General and administrative 847,461 543,974 2,530,894 1,485,008 Less: Transaction, loan, and consumer receivable losses 601,706 363,455 1,687,281 827,234 Less: Amortization of customer and other intangible assets 34,125 34,133 102,561 101,680 Less: Interest expense, net 48,128 34,652 157,044 75,582 Less: Remeasurement loss (gain) on bitcoin investment (229,705) (59,588) 31,587 (178,402) Less: Other income, net (2,423) (167,150) (6,650) (162,103) Income before income tax $ 612,491 $ 601,526 $ 521,390 $ 1,487,958 25
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Select Operating Metrics and Non-GAAP Financial Measures Unaudited THREE MONTHS ENDED NINE MONTHS ENDED Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Gross Payment Volume (GPV) (in millions) $ 78,153 $ 69,283 $ 215,996 $ 192,695 Adjusted Operating Income (in thousands) $ 922,737 $ 480,186 $ 2,514,254 $ 1,496,024 Adjusted EBITDA (in thousands) $ 1,227,921 $ 832,662 $ 3,406,739 $ 2,536,878 Adjusted Net Income Per Share: Basic $ 1.16 $ 0.55 $ 3.05 $ 1.75 Diluted $ 1.13 $ 0.54 $ 3.00 $ 1.72 THREE MONTHS ENDED NINE MONTHS ENDED (in millions) Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Square GPV $ 76,359 $ 67,151 $ 210,416 $ 185,501 Cash App GPV 1,793 2,132 5,580 7,194 Total GPV $ 78,153 $ 69,283 $ 215,996 $ 192,695 (i) Figures presented may not sum precisely due to rounding. THREE MONTHS ENDED (in millions) Sep. 30, 2026 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Square gross profit $ 1,157 $ 1,018 $ 993 $ 982 $ 1,160 Less: Hardware contribution to Square gross profit (50) (41) (43) (41) (37) Square gross profit excluding Hardware (i) $ 1,207 $ 1,059 $ 1,035 $ 1,023 $ 1,197 (i) Figures presented may not sum precisely due to rounding. THREE MONTHS ENDED (in millions) Sep. 30, 2026 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Square commerce enablement gross profit $ 846 $ 762 $ 726 $ 706 $ 860 Less: Hardware contribution to Square commerce enablement gross profit (50) (41) (43) (41) (37) Square commerce enablement gross profit excluding Hardware (i) (ii) $ 896 $ 803 $ 769 $ 747 $ 897 (i) Figures presented may not sum precisely due to rounding. (ii) Square commerce enablement gross profit reflects the impact of amortization of acquired technology assets. 26
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Select Operating Metrics and Non-GAAP Financial Measures, Continued THREE MONTHS ENDED NINE MONTHS ENDED (in millions) Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Cash App sales and marketing expense $ 414 $ 361 $ 1,217 $ 970 Other sales and marketing expense (i) 274 238 787 683 Total sales and marketing expense (ii) $ 688 $ 599 $ 2,003 $ 1,654 (i) Other sales and marketing expenses include sales and marketing expenses related to Square and Corporate and Other. (ii) Figures presented may not sum precisely due to rounding. THREE MONTHS ENDED NINE MONTHS ENDED (in millions) Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Product development expenses $ (636) $ (711) $ (2,283) $ (2,197) Restructuring share-based compensation 11 1 105 9 Contingencies, restructuring and other charges 1 4 283 33 Non-GAAP product development expenses (i) $ (623) $ (705) $ (1,895) $ (2,155) (i) Figures presented may not sum precisely due to rounding. THREE MONTHS ENDED NINE MONTHS ENDED (in millions) Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Sales and marketing expenses $ (688) $ (599) $ (2,003) $ (1,654) Restructuring share-based compensation 1 0 9 1 Contingencies, restructuring and other charges 3 — 47 15 Non-GAAP sales and marketing expenses (i) $ (684) $ (599) $ (1,948) $ (1,637) (i) Figures presented may not sum precisely due to rounding. THREE MONTHS ENDED NINE MONTHS ENDED (in millions) Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 General and administrative expenses $ (847) $ (544) $ (2,531) $ (1,485) Restructuring share-based compensation 1 0 13 2 Acquisition-related and integration costs 0 0 1 2 Contingencies, restructuring and other charges 430 16 1,213 67 Non-GAAP general and administrative expenses (i) $ (416) $ (527) $ (1,304) $ (1,415) (i) Figures presented may not sum precisely due to rounding. 27
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Adjusted Operating Income (Loss) and Margin Unaudited In thousands, except for percentages THREE MONTHS ENDED Sep. 30, 2026 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Operating income (loss) $ 428,491 $ 409,440 $ 485,371 $ (171,990) $ 446,870 Amortization of acquired technology assets 12,066 13,857 13,915 12,817 12,805 Acquisition-related and integration costs 365 345 352 362 367 Contingencies, restructuring and other charges 434,971 20,752 54,102 742,812 365,118 Restructuring share-based compensation expense 12,719 1,659 — 109,512 4,408 Amortization of customer and other acquired intangible assets 34,125 34,133 34,049 34,159 34,277 Adjusted Operating Income $ 922,737 $ 480,186 $ 587,789 $ 727,672 $ 863,845 Adjusted Operating Income margin (%) of gross profit 29% 18% 20% 25% 27% Adjusted EBITDA Unaudited In thousands THREE MONTHS ENDED Sep. 30, 2026 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Net income (loss) attributable to common stockholders $ 565,551 $ 461,544 $ 115,762 $ (308,681) $ 88,517 Net income (loss) attributable to noncontrolling interests (1,410) 54 (206) 86 (1,448) Net income (loss) 564,141 461,598 115,556 (308,595) 87,069 Share-based compensation expense 260,050 307,721 293,523 229,188 255,343 Restructuring share-based compensation expense 12,719 1,659 — 109,512 4,408 Depreciation and amortization 91,120 92,119 96,065 95,977 95,051 Acquisition-related and integration costs 365 345 352 362 367 Contingencies, restructuring and other charges 434,971 20,752 54,102 742,812 365,118 Interest expense, net 48,128 34,652 53,781 53,195 55,721 Remeasurement loss (gain) on bitcoin investment (229,705) (59,588) 234,302 172,818 88,474 Other expense (income), net (2,423) (167,150) (4,665) (5,426) 1,199 Provision for (benefit from) income taxes 48,350 139,928 86,397 (83,982) 214,407 Loss on disposal of property and equipment 200 617 270 4,354 1,434 Acquired deferred revenue and cost adjustment 5 9 7 6 6 Adjusted EBITDA $ 1,227,921 $ 832,662 $ 929,690 $ 1,010,221 $ 1,168,597 Adjusted EBITDA margin (%) of gross profit 38% 31% 32% 35% 37% 28
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Adjusted Net Income and Adjusted EPS Unaudited In thousands, except per share data THREE MONTHS ENDED Sep. 30, 2026 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 Net income (loss) attributable to common stockholders $ 565,551 $ 461,544 $ 115,762 $ (308,681) $ 88,517 Net income (loss) attributable to noncontrolling interests (1,410) 54 (206) 86 (1,448) Net income (loss) 564,141 461,598 115,556 (308,595) 87,069 Acquisition-related and integration costs 365 345 352 362 367 Contingencies, restructuring and other charges 434,971 20,752 54,102 742,812 365,118 Restructuring share-based compensation expense 12,719 1,659 — 109,512 4,408 Amortization of intangible assets 46,191 47,990 47,964 46,976 47,082 Amortization of debt discount and issuance costs 2,729 3,335 4,030 3,886 3,287 Loss (gain) on revaluation of equity investments 615 (171,126) 326 5,665 4,140 Remeasurement loss (gain) on bitcoin investment (229,705) (59,588) 234,302 172,818 88,474 Loss on disposal of property and equipment 200 617 270 4,354 1,434 Acquired deferred revenue and cost adjustment 5 9 7 6 6 Income tax expenses (benefits) from deferred tax assets — (8,909) 3,313 — (113,385) Tax effect of non-GAAP net income adjustments (135,197) 39,933 (58,861) (264,918) 131,553 Adjusted Net Income - basic $ 697,034 $ 336,615 $ 401,361 $ 512,878 $ 619,553 Cash interest expense on convertible notes 291 273 271 264 275 Adjusted Net Income - diluted $ 697,325 $ 336,888 $ 401,632 $ 513,142 $ 619,828 Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic 602,507 610,199 606,682 597,586 597,829 Diluted 614,778 621,658 613,737 597,586 608,847 Net income (loss) per share attributable to common stockholders: Basic $ 0.94 $ 0.76 $ 0.19 $ (0.52) $ 0.15 Diluted $ 0.92 $ 0.74 $ 0.19 $ (0.52) $ 0.15 Weighted-average shares used to compute Adjusted Net Income Per Share: Basic 602,507 610,199 606,682 597,586 597,829 Diluted 614,778 621,658 615,659 604,181 608,847 Adjusted Net Income Per Share: Basic $ 1.16 $ 0.55 $ 0.66 $ 0.86 $ 1.04 Diluted $ 1.13 $ 0.54 $ 0.65 $ 0.85 $ 1.02 29
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Non-GAAP Cash Flow Unaudited In millions THREE MONTHS ENDED TRAILING 12 MONTHS Sept. 30, 2024 Dec. 31, 2024 Mar. 31, 2025 Jun. 30, 2025 Sept. 30, 2025 Net cash provided by operating activities $ 685 $ 14 $ 133 $ 374 $ 1,973 Less: Purchase of property and equipment (57) (27) (32) (31) (141) Free Cash Flow $ 628 $ (13) $ 101 $ 343 $ 1,832 Reversal of: Changes in settlements receivable (2,407) (370) 88 170 (79) Changes in customers payable 2,192 534 (165) (151) 221 Changes in settlements payable — — — — 0 Sales, principal payments and forgiveness of PPP loans (1) (1) (1) (1) (3) Consumer receivables cash flows included within investing activities in the GAAP statements of cash flows: Payments for originations of consumer receivables (7,331) (9,121) (6,899) (7,740) (31,674) Proceeds from principal repayments and sales of consumer receivables 7,415 8,780 7,602 7,892 32,501 Purchases and originations of loans originally classified as held for investment — — — (1,164) (7,644) Proceeds from repayments of loans originally classified as held for investment — — — 457 5,629 Warehouse facilities cash flows included within financing activities in the GAAP statements of cash flows: Proceeds from warehouse facilities borrowings 87 849 223 213 1,298 Repayments of warehouse facilities borrowings (86) (276) (1,091) (151) (1,733) Non-GAAP Cash Flow (i) $ 497 $ 383 $ (141) $ (131) $ 349 Net cash provided by (used in) investing activities $ 106 $ (323) $ 915 $ (486) $ (995) Net cash provided by (used in) financing activities $ 72 $ 708 $ (1,212) $ (908) $ 55 (i) Figures presented may not sum precisely due to rounding. (in millions) Sept. 30, 2026 Sept. 30, 2025 Change Consumer receivables, net $ 2,352 $ 2,076 $ 276 Loans held for sale 734 778 (44) Loans held for investment, net 4,401 2,203 2,198 Total lending products $ 7,487 $ 5,057 $ 2,430 Less: Proceeds from warehouse facilities borrowings (i) 2,177 Less: Repayments of warehouse facilities borrowings (i) (1,155) Capital deployed to grow lending products $ 1,408 (i) Proceeds from and repayments of warehouse facilities borrowings represent trailing twelve months cash flows for the period ended September 30, 2026. 30