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Block is like a:

• Shopify for physical businesses and their financial needs: It provides an all-in-one platform for small businesses to accept payments, manage operations, get loans, and handle payroll, much like Shopify does for online stores.

• Blend of Venmo and Robinhood, acting as a digital bank for everyday consumers: Its Cash App offers peer-to-peer payments, debit cards, simple stock trading, and Bitcoin investing, providing a comprehensive financial toolkit for individuals.

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• Square Seller Ecosystem: A comprehensive suite of hardware, software, and financial services designed to help businesses manage payments, point-of-sale operations, business banking, and payroll.
• Cash App: A mobile-first financial platform offering individuals peer-to-peer payments, debit card services, stock investing, and Bitcoin trading.
• Tidal: A global music and entertainment streaming service providing subscribers with high-fidelity audio, music videos, and exclusive content.

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Block (symbol: SQ) serves a diverse customer base, primarily consisting of both businesses and individual consumers. Given the breadth and number of its business customers (primarily small and medium-sized businesses) rather than a few large corporate clients, and its significant direct-to-consumer services, describing customer categories is the most appropriate approach for Block.

Its major customer categories are:

1. Small and Medium-Sized Businesses (SMBs): These are the primary customers for Block's Square ecosystem. SMBs utilize Block's payment processing hardware and software (e.g., point-of-sale systems, online store builders), business management tools (e.g., payroll, invoicing, team management), and financial services (e.g., Square Loans). Examples include local coffee shops, retail stores, salons, food trucks, and service providers who rely on Square to operate and grow their businesses.
2. Individual Consumers/Users: This category encompasses the direct users of Block's consumer-facing products. This primarily includes users of Cash App for peer-to-peer payments, investing in stocks and Bitcoin, and debit card services. It also includes subscribers to Tidal for music streaming services. These individuals generate revenue for Block through transaction fees, subscriptions, and other service charges.
3. Merchants utilizing Afterpay: While Afterpay's service is used by individual consumers, Block's direct customers in this context are the businesses (merchants) who integrate Afterpay as a "buy now, pay later" payment option at their checkout. These merchants, ranging from small online shops to larger retail brands, pay Block (via Afterpay) a fee for each transaction processed, aiming to increase sales and customer satisfaction by offering flexible payment terms to their own customers.

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• Amazon.com, Inc. (NASDAQ: AMZN)
• Visa Inc. (NYSE: V)
• Mastercard Incorporated (NYSE: MA)

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Jack Dorsey, Chairman, Chief Executive Officer, and Co-Founder

Jack Dorsey is an American entrepreneur and co-founder of Block, Inc. (formerly Square) in 2009. He is also widely known as the co-founder of Twitter, Inc., where he served as CEO from 2007 to 2008 and again from 2015 to 2021. As a teenager, Dorsey developed taxi-dispatching software that was adopted by taxicab companies. In 2000, he founded a company in Oakland to dispatch couriers, taxis, and emergency services from the web.

Amrita Ahuja, Chief Operating Officer and Chief Financial Officer

Amrita Ahuja is the Chief Operating Officer and Chief Financial Officer at Block, Inc., having joined the company (then Square) in 2019. Prior to her role at Block, she served as the Chief Financial Officer of Blizzard Entertainment, a division of Activision Blizzard, from 2018 to 2019. Her extensive career also includes significant leadership positions in strategy and finance at The Walt Disney Company, Fox Networks Group (where she played a role in launching the streaming service Hulu), McKinsey & Company, and as an investment banker at Morgan Stanley. She currently serves as a director for Airbnb, Inc. and a privately held company.

Brian Grassadonia, Ecosystem Lead

Brian Grassadonia serves as Block's Ecosystem Lead, focusing on connecting Square, Cash App, and other parts of Block's ecosystem through product experiences. He was Square's first product lead and played a key role in launching its flagship card reader in 2010. Grassadonia also co-created Cash App and previously served as its CEO. Before joining Block, he worked at a startup that was acquired by Google and in investment banking at UBS.

Jim McKelvey, Co-Founder and Director

Jim McKelvey is a Co-Founder and Director of Block, Inc. He co-founded the company (then Square) with Jack Dorsey. McKelvey is also known for founding Invisibly and LaunchCode. His professional background includes roles at FINTOP Capital and the Federal Reserve Bank of St. Louis.

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The public company Block (symbol: XYZ) faces several key business risks:

1. Regulatory Scrutiny, Compliance Failures, and Securities Lawsuits: Block is subject to extensive regulatory oversight in financial services, data protection, and privacy. The company is currently facing class-action lawsuits and federal scrutiny over alleged widespread compliance failures, including facilitating fraudulent transactions and manipulating user figures on platforms like Cash App. These issues could lead to substantial fines, significant reputational damage, and financial instability.
2. Exposure to Cryptocurrency Market Volatility and Bitcoin Initiatives: Block has a considerable strategic focus and direct investment in Bitcoin through its various ecosystems (e.g., Spiral, TBD, Bitkey). This exposes the company to the inherent volatility and unpredictability of the cryptocurrency market, with risks stemming from price fluctuations, evolving regulations, macroeconomic factors, and potential fraud or cybercrime.
3. Low Profitability and Intense Competition: Block has consistently demonstrated low profitability and a history of net losses, raising concerns among investors about its ability to generate consistent profits. The company also operates in a highly competitive market, particularly within its Square and Cash App ecosystems, and efforts to reduce spending for profitability could lead to a loss of market share.

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1. Increased regulatory scrutiny and potential restrictions on Buy Now, Pay Later (BNPL) services. Regulators globally, including the Consumer Financial Protection Bureau (CFPB) in the US, are actively examining BNPL practices regarding consumer protections, data handling, and credit reporting. This could significantly impact Afterpay's business model, increase compliance costs, and limit its growth potential.

2. Entry of traditional financial institutions (banks, credit card networks) into the installment payment space. Major credit card companies and banks are increasingly offering their own "pay in installments" features directly on existing credit lines, providing consumers with similar flexibility without needing a separate BNPL provider. This directly competes with Afterpay's core offering and leverages existing customer relationships and trust, potentially eroding Afterpay's market share and differentiation.

3. Potential emergence of widely adopted Central Bank Digital Currencies (CBDCs). While still in exploratory phases in many Western countries, a government-backed, ubiquitous digital currency with peer-to-peer and merchant payment capabilities could offer a direct, potentially lower-cost alternative to private payment networks like Cash App. If designed to be highly interoperable and user-friendly, CBDCs could diminish the need for and usage of private payment applications for everyday transactions.

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Block, Inc. (formerly Square) operates in several large addressable markets through its key products and services, primarily the Square Seller Ecosystem, Cash App, and Afterpay.

Square Seller Ecosystem

The Square Seller Ecosystem provides payment processing, hardware, and software solutions for businesses. The total addressable market for Square's seller ecosystem in the United States was estimated at approximately $3 trillion in gross payment volume as of 2017. A more direct market opportunity for the seller ecosystem was identified as $100 billion in the U.S. in a 2021 investor presentation. For context, Block processed $241 billion in payments globally in 2024, and Square's Gross Payment Volume (GPV) reached $210 billion globally in 2025. The Square platform is available in various countries, including the United States, Canada, Japan, Australia, Ireland, France, Spain, and the United Kingdom.

Cash App

Cash App, a mobile payment service, primarily serves users in the United States. The broad addressable market for Cash App in the U.S. was estimated at $9 trillion as of a 2021 investor day presentation, broken down into $4 trillion for sending, $2 trillion for spending, and $3 trillion for investing. A more direct market opportunity for Cash App was cited as $60 billion in the U.S. Furthermore, the wider U.S. digital wallet market, encompassing services like Cash App, is projected to represent an $800 billion opportunity in the U.S. equity market by 2024. Cash App reported 57 million monthly active users in 2024, with nearly all users based in the U.S.

Afterpay (Buy Now, Pay Later - BNPL)

Afterpay offers buy now, pay later (BNPL) services globally. The addressable market size for BNPL services is considered to be in the "trillions" globally, as Afterpay aims to disrupt traditional credit card spending. Afterpay operates in Australia, Canada, New Zealand, the United States, and the United Kingdom. As of April 2025, Afterpay had 24 million customers and 348,000 merchants worldwide. The global cashless payments market, of which BNPL is a part, reached $93 billion in 2025 and is projected to grow at a CAGR of 14% towards 2030.

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Block (symbol: SQ) is expected to drive future revenue growth over the next two to three years through several key initiatives across its Square and Cash App ecosystems, as well as strategic investments in emerging technologies and markets.

1. Expansion and Monetization of Cash App: Growth in Cash App's monthly active users (MAUs) and increased engagement are significant drivers. In Q3 2025, Cash App's gross profit surged by 24% year-over-year, with MAUs reaching 58 million. Block is focused on accelerating active user growth and increasing network density, particularly by driving more customers to the Cash App Card as a gateway to broader banking offerings and increasing paycheck deposit actives. The expansion of Cash App Borrow has also shown substantial growth, with a 134% increase in originations. New features like "Cash App Pools" for group payments and the expansion of "Tap to Pay on iPhone" for business sellers using Cash App are aimed at enhancing engagement and monetization.
2. Growth and Enhanced Offerings within the Square Ecosystem: The Square segment continues to be a crucial revenue driver. Square's Gross Payment Volume (GPV) accelerated to 12% year-over-year in Q3 2025, with strong international performance. Gross profit for Square increased by 9%, primarily driven by software, integrated payments, and banking products. Block is investing in expanding Square's platforms, such as the food and beverage platform, by introducing new tools like voice ordering, ingredient-level cost control, and AI-powered insights for restaurants, aiming to attract higher-value merchant segments. Increased investments in field sales, partner programs, and targeted marketing are also expected to improve Square's GPV and gross profit through both customer retention and acquisition.
3. Scaling of Buy Now, Pay Later (Afterpay) and its Integration: The Afterpay service continues to contribute significantly to revenue. In Q3 2025, Afterpay's Gross Merchandise Volume (GMV) grew by 17%, generating $299 million in gross profit. A key strategy for future growth is the closer integration of Afterpay with Cash App, allowing users to manage their buy now, pay later installments directly within the Cash App. This integration, particularly with the Cash App Card, is anticipated to drive increased spending and deeper engagement across Block's platforms.
4. Strategic Investments in AI and Bitcoin Infrastructure: Block is making substantial investments in artificial intelligence and Bitcoin infrastructure to broaden global financial access. These investments are leading to new product innovations, including Square AI and enhanced Bitcoin payment integrations. Proto, Block's Bitcoin mining business, began generating revenue in Q3 2025 and has a robust pipeline for 2026 and beyond. Furthermore, upcoming Cash App releases are expected to highlight the company's roadmap for AI integration within the Cash App ecosystem, driving future growth.
5. International Expansion of Square and Cash App: International markets present a significant opportunity for Block. Square's international GPV grew by a notable 26% year-over-year in Q3 2025, significantly outperforming its U.S. growth. This trend indicates that expanding Block's offerings to new geographies and deepening its penetration in existing international markets for both Square and Cash App will be a crucial driver of revenue growth in the coming years.

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Share Repurchases

• Block expanded its share repurchase program by an additional $3 billion, following the completion of a previous $1 billion plan, as announced on August 1, 2024.
• Under a program initiated on November 2, 2023, Block completed the repurchase of 38,677,000 shares for $2,531.62 million by June 30, 2025.
• In the second quarter of 2025, Block repurchased 12.5 million shares of its Class A common stock for a total of $692 million, with $1.5 billion remaining available under the current authorization as of June 30, 2025.

Share Issuance

• Total shares outstanding increased by over 15% in fiscal year 2022, rising from approximately 502 million to 579 million.
• During the first quarter of 2023, shares outstanding grew by 4% to reach 602 million.
• The acquisition of Afterpay, finalized on January 31, 2022, was primarily a $29 billion stock deal.

Outbound Investments

• Block completed the acquisition of Afterpay, a "buy now, pay later" service, for $29 billion in stock on January 31, 2022.
• In March 2021, Block (then Square) acquired a majority stake in the music streaming platform Tidal for $293 million in a transaction involving both stock and cash.
• Square announced the acquisition of Credit Karma Tax for $50 million in November 2020.

Capital Expenditures

• Capital expenditures as a percentage of current assets were approximately 0.97% in 2022, 0.69% in 2023, 0.64% in 2024, and are forecast to remain at 0.64% in 2025.
• Expected capital expenditures for the second half of 2025 include the rollout of the Proto hardware, which targets an addressable market of $3 billion to $6 billion.
• Block is increasing investments in hardware to drive its go-to-market strategy for Square.