XYZ · Block, Inc.

¹ 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 second quarter of 2026.

² Margins are all calculated as a percent of gross profit.

³ 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 Measures” section of this letter.

⁴ 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 Measures” section of this letter.

		1

We built goose in early 2024 to work with any model because betting on a single lab means inheriting its ceiling. That led to us creating Builderbot to own orchestration across Block’s entire codebase, and in June, agentic AI helped write and review nearly all of our production code changes. Moneybot is generally available with over 1 million weekly engaged accounts and Managerbot is already automating marketing, margin analysis, and operational fixes for sellers.⁵ In July we launched Buzz, our internally developed system for agent collaboration, communication, and code repositories, built to give teams of all sizes more time back, reduce coordination drag, and increase the speed at which we can ship and learn for customers.

All of it runs on one internal platform for model access, routing, tools, and permissions, with evaluation systems that let us improve quality independently of the underlying models. When a better model ships we can switch, and everything we’ve built gets better the same day.

These capabilities matter because of what they’re combined with. Block sits on both sides of commerce: millions of sellers running their businesses on Square, tens of millions of people managing and moving their money on Cash App, and Afterpay connecting both. That network generates first-party context no one else has. Transactions, inventory, staff, cash flow, and operations all on one side. Spending, saving, sending, and borrowing on the other. And we already know what happens when we combine that data with owned capability. Risk and lending were our first intelligence layer. Square Loans are underwritten on data banks can’t see and serve sellers banks won’t. Our loan cohorts have had loss rates of less than 4% through every cycle we’ve seen. Cash App Borrow does the same for consumers. We chartered our own bank rather than always relying on someone else’s banking stack. The intelligence layer we’re building runs that same play across everything our customers do: giving them time back, helping improve their decisions, and getting stronger with every interaction. The durable differentiation is the combination of a two-sided network generating proprietary data and the AI capabilities to use it well.

Many companies have proprietary data but lack those capabilities. They will build on one vertically integrated lab that owns the model, the interface, and the economics. That may be the easy path. But generic AI creates generic outcomes, and no one differentiates with a model everyone else can rent. We took the opposite path. To us the models are interchangeable, and everything that matters, the harness, the data, and the distribution, is ours.

AI will make software creation abundant. Judgment, trust, depth of understanding, and capability will become scarce. Our advantage is that we understand which things matter for the customers we serve, we own the hard capabilities behind them, and we’ve connected them into a network that compounds with every seller and every customer who joins. That is what has sustained our growth through every shift so far, and it is what will sustain it through this one.

⁵ Moneybot weekly engaged accounts are accounts that sent at least one message to Moneybot during the trailing seven-day period, either by entering a message or tapping a suggested prompt. This product engagement metric is based solely on interactions with Moneybot.

		2

Business Highlights

Square U.S. GPV growth accelerated to 10% in the second quarter, the strongest growth rate since the second quarter of 2023.⁶

New customer acquisition, retention, and same store growth all contributed to GPV growth acceleration. New customer acquisition was strong across distribution channels and geographies, as we continued to scale field sales and sign new Independent Sales Organization (ISO) partnerships. New Volume Added (NVA) growth from self-onboarded sellers grew at the fastest pace since Q2 2021 while upmarket momentum continued as we launched new drive through capabilities for quick service restaurants and a number of order management capabilities for upmarket sellers.⁷

Recent seller wins include Ladurée, the franchise of the world-renowned Parisian patisserie, who chose Square as its exclusive commerce platform across every Canadian location due to our flexibility, versatility, and ease of use, and retailer Magnolia Soap & Bath Co. who chose Square to give its 50-plus locations across 17 states a common platform for commerce, reporting, and inventory. We’re also expanding our partnership with OpenTable globally as their preferred point of sale partner. We expect this collaboration will accelerate our customer acquisition efforts, and help Square sellers deliver more personalized guest experiences.

We have high conviction that Neighborhoods has found product-market fit. Now we’re focused on scaling it.

Since launching auto-enablement for Neighborhoods, our loyalty, discovery and rewards experience that connects Square sellers with consumers, we’ve scaled the number of sellers by more than 10x, demonstrating that our onboarding model can scale efficiently. In our most recent cohorts of auto-enabled sellers, over 90% are adopting and remaining enabled on Neighborhoods, and as of June, we’ve scaled Neighborhoods to sellers representing a total of $1 billion in annualized gross payment volume (GPV), up over 220% from March. We’ve observed stable to improving Neighborhoods engagement among consumers across a range of metrics we track, and on average, spend from followers continued to reach 10% of seller GPV after three quarters on Neighborhoods. We see strong product market fit in the geographies where Neighborhoods has been live the longest.

We’re ramping auto enrollment across the country and testing new ways to drive density, such as auto enrolling eligible sellers and pairing that activation with dedicated account management. We’re also focused on increasing awareness of Neighborhoods among Square seller employees, experimenting with incentives to drive adoption. In June we expanded Neighborhoods eligibility to new hardware devices, including Square Terminal, more than doubling the number of sellers that can join Neighborhoods. We also deepened consumer discovery capabilities through Neighborhoods, adding a location specific Neighborhoods tab for customers in launched cities and a tailored onboarding flow for consumers in those markets. We continue to focus on scaling and expect that Neighborhoods will be one of the top attributable customer acquisition channels for Cash App in the near future.

Cash App’s product velocity is driving deeper engagement.

Primary Banking Actives (PBAs) grew 17% year over year as we continued our focus on building for modern earners.⁸ These customers are twice as likely to name Cash App as their primary banking platform, reflecting our focus on serving customers who earn across multiple income sources. In the second quarter we had several significant product launches to drive deeper engagement with our customers and better serve the modern earner.

⁶ Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds.

⁷ 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 Square and Cash App are financial services platforms, not banks. Throughout this letter, any reference to Square or Cash App’s banking offerings or terms such as “primary banking actives” refer to products and services that are offered through Block’s Industrial Bank, Square Financial Services, Inc., or through our third-party bank partners. 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). 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.

		3

We built on the heritage of Cash App Card with the launch of Cash App Tags, a new line of tap-to-pay hardware that adds a physical, collectible form factor to Cash App. Tags has been a viral success: each launch sold out within hours and we have received more than 3 million requests to be notified of future Cash App Tag drops with zero paid marketing.

We launched Cash App Mobile, a $40-per-month unlimited 5G wireless plan, to save customers money and simplify their financial life. As of June, nearly 4 million monthly transacting actives pay phone bills on Cash App and Cash App Mobile is another way we can help customers save on recurring expenses while deepening engagement and long-term retention.

We also launched stablecoins on Cash App, expanding financial access for our customers through a seamless integration with USDC. Customers can transact in stablecoins across numerous blockchains without navigating unnecessary complexity, and USDC and traditional dollar balances are interchangeable in Cash App, marking another milestone in intuitive design and expanding access.

We continued to focus on expanding access to financial solutions in the second quarter.

In the second quarter, we continued to scale origination volume for Borrow, our short term consumer liquidity product, while ramping origination volume for Afterpay Post-Purchase, our retroactive consumer funded BNPL solution. We continued to observe differentiated engagement among Borrow actives, and customers utilizing both Borrow and Afterpay Post-Purchase were among the best performing risk loss cohorts. We continued to innovate for our customers, expanding BNPL functionality further by launching Afterpay Pre-Purchase to general availability. Afterpay Pre-Purchase gives customers the ability to dynamically choose between debit and BNPL before every eligible transaction. As of June, BNPL transactions were 17% of Afterpay Pre Purchase enabled card spend, showing strong product market fit among our customers, with especially strong adoption in everyday categories like groceries, gas and utilities.

The proprietary credit infrastructure that has enabled us to grow Consumer Lending Originations over 2x in the last 2 years at healthy risk loss rates also powers Cash App Score, our near real-time, individualized credit score built on Cash App activity.⁹ We continued to innovate on this infrastructure in the second quarter, expanding our Cash App Score engagement testing to more customers. We’ve also continued to expand our financial solutions innovation in Square, with Square credit card scaling meaningfully to over $1 billion in annualized spend in the quarter.

Within SFS, we recently expanded deposit-taking capabilities to offer high yield savings accounts for eligible Square sellers. Over time as deposits scale, they can help fund lending growth and reduce the amount of capital required to support that growth. SFS innovation is also expanding beyond lending: In June, SFS processed its first Square acquiring transaction and over the coming years we expect to shift more Square and Cash App acquiring volume to SFS.

⁹ Consumer lending origination volume includes originations from Cash App Borrow and our BNPL products.

		4

Financial Discussion

We outperformed our gross profit guidance, growing 25% year over year in the second quarter, with strong gross profit growth across Cash App and Square. We reached an all time high Adjusted Operating Income margin of 27% and grew Adjusted Diluted EPS by 65% year over year to a record $1.02.

Second Quarter 2026 Financial Highlights

Guidance¹¹

We are raising our full-year guidance to reflect the momentum we are seeing across Block. For 2026, we now expect $12.51 billion in gross profit, up 21% year over year, and Adjusted Operating Income of $3.47 billion, or 28% margin, growing 67% year over year. We also expect Adjusted Diluted EPS to grow 70% to $4.02.

¹⁰ Cash App Commerce Enablement volume includes GPV from Cash App Card, Cash App Pay, BNPL products, and Cash App Business.

¹¹ 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 S-K 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.

¹² 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 of” 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.

		5

Block Financial Metrics

Overall Block gross profit grew 25% year over year in the second quarter, with 31% year-over-year growth in Cash App and 13% year-over-year growth in Square. Commerce Enablement gross profit growth accelerated to 18% year over year, led by strength in Cash App. Financial Solutions gross profit grew 43% year over year, driven by Cash App Consumer Lending. Bitcoin Ecosystem gross profit declined 31% year over year, driven by a strategic decision to reduce the fee we charge on certain bitcoin transactions on Cash App and bitcoin trading dynamics.

¹³ Quarterly gross profit by category may not sum to total gross profit due to rounding.

¹⁴ Commerce Enablement gross profit reflects the impact of amortization of acquired technology assets.

		6

Our performance in the second quarter demonstrates our ability to drive strong gross profit growth while expanding Adjusted Operating Income margins, which together compounded into meaningful Adjusted Diluted EPS growth. On a GAAP basis, we generated $447 million in operating income in the second quarter of 2026, compared to $484 million in the second quarter of 2025. Adjusted Operating Income grew 57% year over year, supported by strong gross profit growth and disciplined execution. On a GAAP basis, we delivered diluted EPS of $0.15. Adjusted Diluted EPS grew 65% year over year to $1.02.

		7

Cash App

Cash App gross profit grew 31% year over year with strength in both Commerce Enablement and Financial Solutions. Commerce Enablement gross profit growth was broad based across BNPL products and Cash App Card, while Financial Solutions gross profit growth was driven primarily by Cash App Borrow. Commerce Enablement volume grew 17% year over year to $56.5 billion, reflecting strength in Cash App Card and Afterpay BNPL, while the Commerce Enablement monetization rate increased 12 basis points year over year to 1.65% driven by increased Afterpay Post-Purchase attach rates. We’ve also seen strong Cash App Pay growth, driven in part by our continued expansion with enterprise partners like Instacart and Uber. Cash App monthly transacting actives were 59 million in June, and PBAs grew 17% year over year to 9.4 million. Inflows per transacting active grew 9% year over year, driven in part by more customers bringing their paychecks into Cash App. Cash App Consumer Lending origination volume grew 59% year over year to $18.9 billion, driven largely by Cash App Borrow origination volume growth.

¹⁵ 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.

¹⁶ 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.

¹⁷ 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.

		8

Square

Square GPV grew 13% year over year in the second quarter on a reported and constant currency basis to $72.8 billion, reflecting strong GPV growth from new sellers. GPV from food and beverage sellers was up 20% year over year, driven by U.S. food and beverage GPV accelerating to its strongest growth rate since the first quarter of 2023. GPV from retail sellers and services sellers grew 13% and 7% 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 second quarter.

Square gross profit grew 13% year over year in the second quarter, both on a reported and excluding hardware basis. 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. In the second quarter we booked a one time tariff reimbursement which contributed approximately two points to Square gross profit growth, roughly offsetting the lapping of a network remediation payment in the prior year. We continue to expect Square gross profit to grow roughly in line with Square GPV in the second half of the year.

¹⁸ Square Commerce Enablement (excluding Hardware) Monetization Rate is calculated by dividing Square Commerce Enablement gross profit excluding hardware by total Square GPV. Square Commerce Enablement Gross Profit is primarily composed of Square Payments and Software.

¹⁹ Square Financial Solutions Monetization Rate is calculated by dividing Square Financial Solutions gross profit by total Square GPV. Square Financial Solutions Gross Profit is primarily composed of Square Loans, Instant Deposit, and Square Card.

		9

Operating Expenses and Non-GAAP Operating Expenses ($M)

In the second quarter, product development expenses decreased 16% year over year on a GAAP basis driven by reduced personnel-related costs associated with the organizational changes we executed in February. Sales and marketing expenses grew 21% year over year on a GAAP basis, driven by an increase in go-to-market investments, with Cash App sales and marketing expenses up 28% and other sales and marketing expenses up 11%. General and administrative expenses were up 84% year over year on a GAAP basis, primarily driven by increased accrued legal contingencies, partially offset by reduced personnel-related costs. General and administrative expenses were up 4% year over year on a non-GAAP basis.

Transaction, loan, and consumer receivable losses increased 99% year over year on a GAAP basis, driven primarily by growth in loan volumes. Cohort level Borrow risk loss rates remained healthy as we shifted more origination volume toward our six-week loan product. Based on our Consumer Lending origination volume forecast and expected mix of new and mature Borrow cohorts, we continue to expect year-over-year growth in transaction, loan, and consumer receivable losses to moderate through the remainder of 2026.

		10

Key Profitability Measures and EPS ($M, except per share figures)

		11

Non-GAAP Cash Flow ($M)

In the second quarter of 2026, we continued to prudently invest in our lending products, including growing Cash App Borrow given the strong unit economics and returns we have seen. Within our non-GAAP cash flow, we have deployed $1.8 billion in capital to grow our lending products over the last 12 months.²¹ We also remain focused on returning capital to shareholders. In November 2025, our board of directors authorized an increase to our share repurchase program of up to an additional $5 billion of our Class A common stock, and year to date we repurchased 11.6 million shares of our Class A common stock for an aggregate amount of $701 million. As of June 30, 2026, we had $4.6 billion in remaining authorization for repurchases.

We ended the quarter with $8.8 billion of total liquidity, with $7.9 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 $343 million available to be withdrawn under our warehouse funding facilities.

²⁰ Quarterly figures presented may not sum precisely due to rounding.

²¹ 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.

		12

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, August 5, 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’s 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 third quarter of 2026 on November 3, 2026, 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

[email protected]

Investor Relations Contact

[email protected]

Jack Dorsey		Amrita Ahuja

		13

Condensed Consolidated Statements of Operations

Unaudited

In thousands, except per share data

Condensed Consolidated Balance Sheets

In thousands, except per share data

Condensed Consolidated Statements of Cash Flows

Unaudited

In thousands