UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 3, 2022

Block, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)

001-37622 80-0429876 (Commission (IRS Employer File Number) Identification No.)

Not Applicable[1] (Address of principal executive offices, including zip code)

(415) 375-3176 (Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Trading Name of each exchange Title of each class Symbol(s) on which registered Class A Common Stock, $0.0000001 par SQ New York Stock Exchange value per share

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1 We do not designate a headquarters location as we have adopted a distributed work model.

Item 2.02 Results of Operations and Financial Condition.

On November 3, 2022, Block, Inc. (the “Company”) issued a Shareholder Letter (the “Letter”) announcing its financial results for the third quarter ended September 30, 2022. In the Letter, the Company also announced that it would be holding a conference call and earnings webcast on November 3, 2022 at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter ended September 30, 2022. The Letter is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

The Company is making reference to non-GAAP financial information in both the Letter and the conference call. A reconciliation of these non-GAAP financial measures to their nearest GAAP equivalents is provided in the Letter.

The information furnished pursuant to Item 2.02 on this Report, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit

No. Description

99.1 Shareholder Letter, dated November 3, 2022.

104 Cover Page Interactive Data File, formatted in inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BLOCK, INC.

Date: November 3, 2022

[By:][/s/ Sivan Whitele][y] Sivan Whiteley Chief Legal Officer and Corporate Secretary

Exhibit 99.1

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Q3’22 Highlights

3yr CAGR YoY Growth

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Our software point-of-sale solutions are purpose-built for specific verticals and have experienced strong growth: In the third quarter, Square for Restaurants, Square for Retail, and Square Appointments cumulatively grew gross profit more than 45% year over year.

Cash App Card has significant momentum and has scaled to more than 35% of our monthly actives: In September, there were nearly 18 million Cash App Card actives, up more than 40% year over year with weekly and daily actives increasing at an even more rapid rate during the same period.

In the third quarter of 2022, we generated gross profit of $1.57 billion, up 38% year over year. Cash App generated gross profit of $774 million, up 51% year over year, and Square generated gross profit of $783 million, up 29% year over year.

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In the third quarter of 2022, total net revenue was $4.52 billion, up 17% year over year, and, excluding bitcoin revenue, total net revenue was $2.75 billion, up 36% year over year. Excluding bitcoin revenue and revenue from the buy-now-pay-later (BNPL) platform, total net revenue was $2.54 billion, up 25% year over year. The BNPL platform was acquired through the acquisition of Afterpay.

The following items affected net income (loss) during the respective periods. In the third quarter of 2022, we recognized $56 million of amortization of acquired intangible assets and a $2 million bitcoin impairment loss. In the second quarter of 2022, we recognized $57 million of amortization of acquired intangible assets, a $36 million bitcoin impairment loss, and $17 million in deal and integration-related expenses. In the first quarter of 2022, we recognized an unrealized gain of $50 million driven by the revaluation of equity investments, as well as Afterpay-related charges of $42 million of deal and integration-related expenses, $31 million of amortization of acquired intangible assets, and $66 million of one-time accelerated stockbased compensation. In the fourth quarter of 2021, we recognized a loss of $6 million driven by the adjustment to the revaluation of equity investments. In the third quarter of 2021, we recognized a loss of $7 million driven by the adjustment to the revaluation of equity investments as well as a $6 million bitcoin impairment loss.

Reconciliations of non-GAAP financial measures used in this letter to their nearest GAAP equivalents are provided at the end of this letter.

The compound annual growth rate (CAGR) is the mean annual growth rate over a specified time period. Given the impacts of the COVID-19 pandemic have lasted for more than two years, ranging from March 2020 through today, we believe using three-year CAGRs from 2019 to 2022 better reflects underlying growth trends through the third quarter of 2022.

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BLOCK Q3 2022 2

SQUARE HIGHLIGHT Live By The Sword is a beauty salon & tattoo and piercing shop with three locations across New York City. They have over 80 employees and use 11 Square products including Square Stand, Square Terminal, Square Reader, Square Appointments, Square Payroll, Square Team Management, Square Invoices, Square Loyalty, Square Marketing, Square Messages, and Afterpay.

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[To Our Shareholders]

November 3, 2022

In the third quarter, gross profit was affected by $19 million of amortization of acquired technology assets, the majority of which was due to the acquisition of the BNPL platform.

We delivered strong growth at scale during the third quarter of 2022. Gross profit grew 38% year over year to $1.57 billion, up 46% on a three-year compound annual growth rate (CAGR) basis. Excluding our BNPL platform, gross profit was $1.42 billion, up 25% year over year and 42% on a three-year CAGR basis. Our Cash App ecosystem delivered gross profit of $774 million, an increase of 51% year over year and, excluding our BNPL platform, 37% year over year. Our Square ecosystem delivered gross profit of $783 million, an increase of 29% year over year and, excluding our BNPL platform, 17% year over year.

Q3 2022 GROSS PROFIT

As reported Gross Profit Block $1,567M Square $783M Cash App $774M	YoY Growth 38% 29% 51%	3-year CAGR
		46% 29% 84%
Excluding BNPL Platform Gross Profit Block $1,417M Square $708M Cash App $700M	YoY Growth 25% 17% 37%	3-year CAGR
		42% 25% 78%

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BLOCK Q3 2022 3

Cash App Ecosystem

A transacting active is a Cash App account that has at least one financial transaction using any product or service within Cash App during the 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 . 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).

We use our inflows framework to assess the performance of Cash App’s gross profit as a result of three primary variables: (1) Actives, (2) Inflows per Active, and (3) Monetization Rate on Inflows. We are investing in the following development pillars: Community, Financial Services, Crypto, Operating System, Trust, Commerce, and Global. This quarter we made notable progress on the Community, Financial Services, and Commerce fronts, which meaningfully contributed to gross profit growth.

Community

Cash App’s peer-to-peer network has been an important asset and the most critical driver of overall actives growth. To accelerate the virality of our network, we have used targeted marketing programs to expand our reach into new, high-value audiences, and we remain disciplined with marketing spend. We meaningfully grew our network to more than 49 million transacting actives in September, up approximately 20% year over year.

Financial Services

Banking product adoption remains a primary focus as Cash App continues to serve customers beyond peer-to-peer payments, thereby deepening our relationship with customers. Our suite of banking products, such as Cash App Card and direct deposit, have had some of the fastestgrowing attach rates across our ecosystem. In September, Cash App Card had nearly 18 million monthly actives, or more than 35% of monthly actives. We believe we can continue to grow attach rates as we build out world-class products such as personalized Boosts and investing round-ups, while also enhancing trust and security features.

Driving inflows per active starts with our customers’ ability to easily fund their Cash App accounts through ways such as direct deposit, paper money and check deposits, and bank transfers. In September, customers received more than $2 billion in direct deposits into their Cash App accounts, and we reached nearly $3.5 billion in all-time paper money deposits since launching the functionality one year ago. Paper money deposits have increased inflows and can also drive customer trust and share of wallet as we expand use cases.

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We believe our ability to drive inflows per active starts with our customers’ ability to easily fund their Cash App accounts through various ways — such as direct deposit, paper money and check deposits, and bank transfers.

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BLOCK Q3 2022 4

During the third quarter, we streamlined our customers’ ability to bank with Cash App, including allowing customers to receive an account and routing number instantly when ordering a Cash App Card. This has reduced friction for those in need of banking services and we have seen a meaningful uplift in direct deposit conversion. These initiatives have been a key driver in growing inflows per transacting active, reaching $1,046 in the third quarter. This was relatively stable on a quarter-over-quarter and yearover-year basis, and up 17% on a three-year CAGR basis, remaining healthy even as we moved past periods of economic stimulus and tax seasons.

Commerce

We are investing in Commerce to drive growth for our consumer and seller ecosystems. Afterpay is a connector between our Square and Cash App ecosystems, and we have made meaningful progress on our integration efforts. We recently rolled out our first iteration of Discover, a tab that allows consumers to search for people and businesses and find BNPL offers from marquee Afterpay merchants. In the third quarter, we launched Cash App Pay with merchants outside the Square ecosystem, so customers can now browse Discover to find discount offers at merchants who accept Cash App Pay. We are early in our evolution of Cash App as a shopping destination that connects consumers with merchants — this iteration is a small step in a multiyear journey.

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BLOCK Q3 2022 5

Square Ecosystem

We continue to focus on our three strategic priorities to drive Square’s business: omnichannel, growing upmarket, and expanding globally.

Enhancing our ecosystem of products

Our focus is on building a cohesive experience for sellers and their customers as a core part of our omnichannel strategy: Our solution offers sellers a robust set of integrated tools, focusing on four distinct capabilities that are critical to the businesses we serve: commerce, customers, staff, and banking.

Our software solutions, purpose-built for specific verticals, have experienced strong growth: In the third quarter, gross profit from our vertical point-of-sale solutions, including Square for Restaurants, Square for Retail, and Square Appointments, cumulatively grew over 45% year over year, outpacing Square’s overall gross profit growth. We built these solutions to address our three largest target verticals of food and drink, retail, and services. Our freemium model delivers a graduated offering for sellers to begin the experience at a free tier and then upgrade to a higher-tier subscription offering as needed over time. This more accessible offering to sellers has improved our top of funnel and provided a strong path to monetization.

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In September, we launched Tap to Pay on iPhone, Apple’s contactless payment acceptance capability, for our Square sellers in the U.S. We believe this allows our sellers more flexibility in getting started with Square without needing hardware to accept payments and offers our sellers’ customers a more convenient and contactless way to pay.

Growing upmarket

We continued to experience strong momentum upmarket with gross profit from mid-market sellers up 22% year over year and 39% on a three-year CAGR basis. Our developer platform plays a significant role in allowing us to scale our ecosystem by reaching new and often larger sellers who want to connect to Square. By strategically leveraging these tools, sellers can more deeply enrich our platform and grow their businesses with customized omnichannel solutions that meet their bespoke needs.

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We determine seller size based on annualized GPV during the applicable quarter. A mid-market seller generates more than $500,000 in annualized GPV. GPV does not include transactions from the BNPL platform because GPV is related only to transaction-based revenue and not to subscription and services-based revenue.

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BLOCK Q3 2022 6

Schomp Automotive, a family-owned and -operated car dealership headquartered in Colorado with more than $50 million in annualized GPV, has utilized Square’s developer platform to scale their business across 12 locations. As their operations became more complex, they built an integration with Terminal API to accept Square payments and streamline processes with automatic reconciliation. With their previous provider, enabling payment processing at a new Schomp location would take up to six weeks; with Square, the process takes about two hours on average. By supporting customized commerce experiences for in-person, online, and mobile payments, we believe our developer platform can help strategically expand the sizes and types of businesses we serve — particularly upmarket sellers as they adopt increasingly diverse businesses and verticals. During the third quarter, nearly 50% of GPV from mid-market sellers was generated by sellers connected to our open developer platform.

PayPay internal data, September 2022; Z Holdings Corporation, August 2022.

Expanding globally

We remain focused on strengthening our international presence by expanding product capabilities and improving product parity in both new and existing markets. In Japan, QR code payments are growing rapidly. PayPay is the dominant QR code wallet in Japan, with over 51 million customers and more than two-thirds of the country’s QR code GPV.¹ To meet this demand, during the third quarter we began allowing sellers to accept PayPay QR code payments in person via Square POS, Square for Retail, and Square Appointments. As we continue to improve product parity in our existing international markets, global expansion for Square Banking has been a top priority: Most recently, we introduced Instant Transfers in Australia and Square Loans in the UK. Additionally, we have expanded the payment methods we support by launching our BNPL offering in Canada and the UK, helping Square sellers attract new shoppers and drive incremental revenue.

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Square gross profit in markets outside the U.S. includes contributions from the BNPL platform during the third quarter of 2022. Excluding the BNPL platform, Square gross profit in markets outside the U.S. was $75 million, representing 11% of Square gross profit.

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BLOCK Q3 2022 7

Financial Discussion

REVENUE AND GROSS PROFIT

Reconciliations of non-GAAP metrics used in this letter to their nearest GAAP equivalents are provided at the end of this letter.

The BNPL platform was acquired through the acquisition of Afterpay. We recognize revenue from the BNPL platform as subscription and services-based revenue, and have allocated 50% of revenue and gross profit from the BNPL platform to each of Square and Cash App. Revenue from the BNPL platform includes fees generated from consumer receivables, late fees, and certain affiliate and advertising fees from the platform.

Total net revenue was $4.52 billion in the third quarter of 2022, up 17% year over year. Excluding bitcoin revenue, total net revenue in the third quarter was $2.75 billion, up 36% year over year. Gross profit was $1.57 billion, up 38% year over year and up 46% on a three-year CAGR basis. Gross profit included $19 million in amortization of acquired technology assets, the majority of which was due to the acquisition of the BNPL platform.

In the third quarter of 2022, our BNPL platform contributed $210 million of revenue and $150 million of gross profit. Excluding bitcoin and our BNPL platform, net revenue was $2.54 billion, up 25% year over year and up 32% on a three-year CAGR basis. Excluding our BNPL platform, gross profit was $1.42 billion, up 25% on a year-over-year basis and 42% on a three-year CAGR basis.

Transaction-based revenue was $1.52 billion in the third quarter of 2022, up 17% year over year, and transactionbased gross profit was $616 million, up 13% year over year. We processed $54.4 billion in GPV in the third quarter of 2022, up 20% year over year. Transaction-based gross profit as a percentage of GPV was 1.13% in the third quarter of 2022, down 7 basis points year over year and down 1 basis point quarter over quarter.

Subscription and services-based revenue was $1.19 billion in the third quarter of 2022, up 71% year over year, and subscription and services-based gross profit was $966 million, up 70% year over year. Excluding our BNPL platform, subscription and services-based revenue was $982 million and subscription and services-based gross profit was $816 million, up 41% and 44% year over year, respectively.

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Bitcoin gross profit was $37 million in the third quarter of 2022. The total sale amount of bitcoin to customers, which we recognize as bitcoin revenue, was $1.76 billion. Bitcoin gross profit was 2% of bitcoin revenue.

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Note: Square GPV and Cash App Business GPV are represented as a percent of total GPV. Cash App Business GPV consists of peer-to-peer transactions received by business accounts, Cash App Pay transactions, and peer-to-peer payments sent from a credit card. GPV does not include transactions from the BNPL platform because GPV is related only to transaction-based revenue and not to subscription and services-based revenue.

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BLOCK Q3 2022 8

CASH APP ECOSYSTEM REVENUE AND GROSS PROFIT

In the third quarter of 2022, Cash App generated $2.68 billion of revenue and $774 million of gross profit. On a year-over-year basis, Cash App revenue and gross profit grew 12% and 51%, respectively, and on a three-year CAGR basis, Cash App revenue and gross profit grew 106% and 84%, respectively. Excluding bitcoin and our BNPL platform, Cash App revenue was $817 million, up 41% year over year and 73% on a three-year CAGR basis.

Our BNPL platform contributed $105 million of revenue and $75 million of gross profit to Cash App in the third quarter of 2022. Excluding our BNPL platform, Cash App generated $700 million of gross profit, up 37% on a year-over-year basis and 78% on a three-year CAGR basis.

We drove growth in net new transacting actives and strong engagement across products in our Cash App ecosystem. Inflows per transacting active were $1,046 in the third quarter of 2022, relatively stable quarter over quarter and year over year and up 17% on a three-year CAGR basis. Overall inflows increased quarter over quarter and year over year.

Cash App Business GPV was $4.3 billion, up 16% year over year and 85% on a three-year CAGR basis. Cash App Business GPV consists of peer-to-peer transactions received by business accounts, Cash App Pay transactions, and peer-to-peer payments sent from a credit card. Cash App generated $118 million of transaction-based revenue during the third quarter of 2022, up 15% year over year and 83% on a three-year CAGR basis. Growth was driven by an increase in the number of business accounts and in the number of transactions.

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BLOCK Q3 2022 9

Cash App generated $804 million of subscription and services-based revenue during the third quarter of 2022, up 69% year over year and 79% on a three-year CAGR basis. Growth in the quarter was driven by contributions from our BNPL platform, as well as transaction fees from both Cash App Card and Instant Deposit. Excluding our BNPL platform, subscription and services-based revenue was $698 million, up 47% year over year and 71% on a threeyear CAGR basis.

Bitcoin revenue is the total sale amount of bitcoin to customers. Bitcoin costs are the total amount we pay to purchase bitcoin in order to facilitate customers’ access to bitcoin. In future quarters, bitcoin revenue and gross profit may fluctuate as a result of changes in customer demand or the market price of bitcoin.

Cash App generated $37 million of bitcoin gross profit in the third quarter of 2022, down 12% year over year and up 159% on a three-year CAGR basis. The total sale amount of bitcoin to customers, which we recognize as bitcoin revenue, was $1.76 billion, down 3% year over year and up 128% on a three-year CAGR basis. Bitcoin revenue and gross profit were relatively consistent compared to the second quarter of 2022. The year-over-year decrease in bitcoin revenue and gross profit was driven primarily by declines in consumer demand and the price of bitcoin.

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BLOCK Q3 2022 10

SQUARE ECOSYSTEM REVENUE AND GROSS PROFIT

In the third quarter of 2022, Square generated $1.77 billion of revenue and $783 million of gross profit. On a year-overyear basis, Square revenue and gross profit grew 27% and 29%, respectively, and on a three-year CAGR basis, Square revenue and gross profit grew 25% and 29%, respectively.

Our BNPL platform contributed $105 million of revenue and $75 million of gross profit to Square in the third quarter of 2022. Excluding our BNPL platform, Square generated $1.67 billion of revenue and $708 million of gross profit, up 20% and 17% on a year-over-year basis, respectively. On a three-year CAGR basis, Square revenue and gross profit excluding our BNPL platform grew 22% and 25%, respectively.

In the third quarter of 2022, Square generated $1.40 billion of transaction-based revenue, up 17% year over year and 21% on a three-year CAGR basis, with growth from both in-person and online channels. During the quarter, Square saw a lower percentage of debit card transactions on a year-over-year basis, as the proportion of debit transactions reached levels comparable to pre-pandemic.

In the third quarter of 2022, Square GPV was up 20% year over year and 22% on a three-year CAGR basis. On a constant currency basis, Square GPV was up 22% year over year and 22% on a three-year CAGR basis. We observed the following trends in Square GPV during the third quarter of 2022.

Products: Card-present GPV was up 23% year over year and 22% on a three-year CAGR basis. Card-not-present GPV was up 14% year over year and 22% on a three-year CAGR basis.
Geographies: In the third quarter, Square GPV in our U.S. market grew 17% year over year, and growth in our international markets was 40% year over year. On a constant currency basis, Square GPV in our international markets was up 55% year over year.

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BLOCK Q3 2022 11

Square generated $332 million of subscription and services-based revenue during the third quarter of 2022, up 104% year over year and 49% on a three-year CAGR basis. Excluding our BNPL platform, subscription and services-based revenue was $227 million, up 40% year over year and 32% on a three-year CAGR basis.

Banking: Revenue and gross profit from seller banking products achieved strong growth on a year-over-year and three-year CAGR basis. This includes Instant Transfer, Square Card, and Square Loans, which represent most of our financial services products for sellers.
Square Loans: Square Loans achieved strong revenue and gross profit growth during the third quarter of 2022, facilitating approximately 126,000 loans totaling $1.14 billion in originations, up 92% year over year. Square Loans benefited from $5 million of Paycheck Protection Program (PPP) loan forgiveness revenue and gross profit during the third quarter. PPP loan forgiveness revenue is primarily a near-term benefit as revenue is recognized in the period PPP loans are forgiven, and we do not expect a material benefit from PPP loan forgiveness in future quarters.

SQUARE SUBSCRIPTION AND SERVICES-BASED REVENUE EX-PPP AND EX-BNPL PLATFORM

Q319	Q320	Q321	Q322
Square subscription and services-based revenue $99M PPP loan forgiveness revenue $0M Square subscription and services-based revenue excluding PPP forgiveness $99M BNPL platform subscription and services-based revenue allocated to Square $0M	$93M $0M $93M $0M	$162M $13M $149M $0M	$332M $5M $327M $105M
Square subscription and services-based revenue excluding PPP forgiveness and excluding contributions from BNPL platform $99M	$93M	$149M	$222M

Software: Revenue and gross profit from software subscriptions delivered strong growth during the quarter, and gross profit growth continued to outpace overall Square gross profit growth.

Hardware revenue in the third quarter of 2022 was $43 million, up 16% year over year and 26% on a threeyear CAGR basis, and generated a gross loss of $33 million as we use hardware as an acquisition tool. Revenue growth was driven primarily by strong unit sales of Square Terminal and Square Reader for contactless and chip.

CORPORATE AND OTHER REVENUE AND GROSS PROFIT

Corporate and Other generated $56 million in revenue and $10 million in gross profit during the third quarter of 2022, and comprised areas outside Square and Cash App, which was primarily TIDAL during the quarter.

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BLOCK Q3 2022 12

OPERATING EXPENSES

Operating expenses were $1.62 billion in the third quarter of 2022, up 46% year over year, and included $37 million of amortization of customer and other acquired intangible assets, primarily related to the acquisition of Afterpay. Non-GAAP operating expenses were $1.26 billion, up 39% year over year.

Product development expenses were $548 million on a GAAP basis and $331 million on a non-GAAP basis in the third quarter of 2022, up 52% and 54% year over year, respectively. The increase was driven primarily by headcount and personnel costs related to our engineering, data science, and design teams, as well as product development expenses related to our BNPL platform.

Sales and marketing expenses were $486 million on a GAAP basis and $456 million on a non-GAAP basis in the third quarter of 2022, up 19% and 16% year over year, respectively.

We discuss Cash App marketing • Cash App marketing expenses were up 5% year over expenses because a largeportion is generated by our year, driven primarily by peer-to-peer transactions and peer-to-peer service, which we related transaction losses, and card issuance costs. offer free to our Cash App customers, and we consider it to • Other sales and marketing expenses were up 38% year be a marketing tool to encourage the use of Cash App. over year. The increase was driven primarily by sales and marketing expenses related to our BNPL platform. Other sales and marketing expenses also include expenses related to TIDAL.

General and administrative expenses were $395 million on a GAAP basis and $312 million on a non-GAAP basis in the third quarter of 2022, up 48% and 35% year over year, respectively. The increase was due primarily to additions to customer support, human resources, finance, and legal personnel, as well as expenses related to our BNPL platform.

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BLOCK Q3 2022 13

Transaction, loan, and consumer receivables losses were $148 million in the third quarter of 2022, up 137% year over year. The increase was driven primarily from consumer receivables losses related to our BNPL platform, as well as growth in Square Loans volumes and Square GPV. In the third quarter, loss rates for Square GPV, Square Loans, and BNPL consumer receivables remained consistent with historical ranges, and we will continue to monitor trends closely given the dynamic macro environment.

The accounting rules for bitcoin currently require us to recognize any decreases in market price below carrying value as an impairment charge, with no upward revisions recognized when the market price increases until the sale of that bitcoin. The bitcoin impairment loss is a GAAP expense. Non-GAAP operating expenses exclude bitcoin impairment losses. In order to determine fair value, Block revalues its bitcoin holdings on a daily basis using the closing price at midnight Coordinated Universal Time (UTC).

In the fourth quarter of 2020 and first quarter of 2021, we invested $50 million and $170 million, respectively, in bitcoin. As an indefinite-lived intangible asset, bitcoin is subject to impairment losses if the fair value of bitcoin decreases below the carrying value during the assessed period. In the third quarter of 2022, we recognized a bitcoin impairment loss of $2 million on our bitcoin investment. As of September 30, 2022, the fair value of our investment in bitcoin was $156 million based on observable market prices, which was $45 million greater than the carrying value of the investment after impairment charges.

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BLOCK Q3 2022 14

EARNINGS

Beginning in the first quarter of 2022, we have included the tax impact of the non-GAAP adjustments in determining the Adjusted EPS. We determined the adjusted provision (benefit) for income taxes by calculating the estimated annual effective tax rate based on adjusted pre-tax income and applying it to Adjusted Net Income before income taxes.

In the third quarter of 2022, net loss attributable to common stockholders was $15 million, which was affected by $56 million of amortization of acquired intangible assets and a $2 million bitcoin impairment loss, which were not a part of our core operating performance; excluding these items, net income was $43 million. Net loss per share attributable to common stockholders was $0.02 on a basic and diluted basis in the third quarter of 2022, based on 593 million weighted-average basic and diluted shares outstanding.

Adjusted EBITDA was $327 million in the third quarter of 2022, compared to $233 million in the third quarter of 2021. The increase in Adjusted EBITDA compared to the prioryear period was driven by gross profit growth across our Cash App and Square ecosystems.

Adjusted Net Income Per Share (Adjusted EPS) was $0.42 on a diluted basis based on 623 million weighted-average diluted shares for the third quarter of 2022, representing a $0.18 increase year over year.

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The following items affected net income (loss) during the respective periods. In the third quarter of 2022, we recognized $56 million of amortization of acquired intangible assets and a $2 million bitcoin impairment loss. In the second quarter of 2022, we recognized $57 million of amortization of acquired intangible assets, a $36 million bitcoin impairment loss, and $17 million in deal and integration-related expenses. In the first quarter of 2022, we recognized an unrealized gain of $50 million driven by the revaluation of equity investments, as well as Afterpay-related charges of $42 million of deal and integration-related expenses, $31 million of amortization of acquired intangible assets, and $66 million of one-time accelerated stock-based compensation. In the fourth quarter of 2021, we recognized a loss of $6 million driven by the adjustment to the revaluation of equity investments. In the third quarter of 2021, we recognized a loss of $7 million driven by the adjustment to the revaluation of equity investments as well as a $6 million bitcoin impairment loss.

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BLOCK Q3 2022 15

BALANCE SHEET/CASH FLOW

We ended the third quarter of 2022 with $7.1 billion in available liquidity, with $6.5 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as $600 million available to be withdrawn from our revolving credit facility. Additionally, we had $1.2 billion available to be withdrawn under our warehouse funding facilities, to support funding of growth in our consumer receivables related to our BNPL platform.

In the third quarter of 2022, Adjusted EBITDA contributed positively to our cash balance. Our cash balance was affected by cash outflows due to repayments of PPP Liquidity Facility advances.

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BLOCK Q3 2022 16

Trends and Forward-Looking Commentary

Commentary
BUSINESS TRENDS Block Gross Profit Block Gross Profit (excluding BNPL)	Q3 2022 YoY Growth% 38% 25%	Oct 2022 YoY Growth% 37% 24%	Q3 2022 3-year CAGR 46% 42%	Oct 2022 3-year CAGR
				46% 42%

Note: The table above presents preliminary gross profit growth estimates for the month of October 2022. These represent our current estimates as we have not yet finalized our financial statements for the month of October, and our monthly results are not subject to interim review by our auditors. As a result, actual October results may differ from these preliminary estimates.

OPERATING EXPENSES Block Non-GAAP Operating Expenses Block Non-GAAP Operating Expenses (excluding BNPL)	Q4 2022 $1,465M $1,250M	QoQ increase($)
		$206M $162M

On a GAAP basis, we currently expect to recognize approximately $57 million in quarterly expenses related to amortization of intangible assets through the remainder of 2022 and over the next few years, based on the intangible assets as of September 30, 2022. This quarterly expense includes approximately $19 million recognized in cost of sales and approximately $38 million in operating expenses. These amounts may be affected by fluctuations in foreign exchange rates in future periods.

In the fourth quarter of 2022, we expect our share-based compensation expense to increase quarter over quarter on a dollar basis. Share-based compensation expenses are not included in non-GAAP operating expenses.

We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP operating expenses or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is 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 nonGAAP metrics in tables at the end of this letter.

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BLOCK Q3 2022 17

Earnings Webcast

MEDIA CONTACT [email protected]

INVESTOR RELATIONS CONTACT [email protected]

Block (NYSE:SQ) will host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time, November 3, 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 fourth quarter of 2022 on February 23, 2023, 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.

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Jack Dorsey Amrita Ahuja
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BLOCK Q3 2022 18

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“We love Square’s fully-integrated ecosystem — it has definitely helped us to spend more time doing the things we’d rather be doing. When we opened the salon, and we were looking for a booking solution, Square Appointments just made perfect sense. Then, we added Square Marketing … and Square Loyalty. Payroll was another huge one; as our employee count grew, we didn't really want to handle the manual and complex process of paying 85 people every week within our accounting software. These are major milestones for us; Square offers powerful solutions that really helped us grow our business.” –Rudy Temiz and Greg Ferreira, co-founders of Live By The Sword
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That pgLang commerical was sick – invest in yourself, let that slow money steady grow instead of putting all your chips in 1 basket. 25 seconds to give game to the masses. Love it. @pgLang @CashApp @kendricklamar @dwmaw541 Via Twitter This round up by @CashApp is LEGIT. I forget about it, then look, and money building nicely into these investments @YungLoc_EVA Via Twitter Just switched to @CashApp for my direct deposit and now my paychecks come in on #Wednesday @alan_birbal Via Twitter I love using my cash app card to pay! And the digital wallet one too! $MrsCereces @onlyonenessaa Via Instagram @cashapp thanks for adding this it is going to be so awesome to be able to choose Cash App Pay!!!! @fatbotssl13 Via Instagram
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SAFE HARBOR STATEMENT

This letter contains “forward-looking statements” within the meaning of the Risks that contribute to the uncertain nature of the forward-looking Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of statements include, among others, a continued or prolonged economic 1995. All statements other than statements of historical fact could be downturn in the United States and in other countries around the world; the deemed forward-looking, including, but not limited to, statements regarding Company’s investments in its business and ability to maintain profitability; the future performance of Block, Inc. and its consolidated subsidiaries (the the Company’s efforts to expand its product portfolio and market reach; the Company); the Company’s strategies, including expected impact of such Company’s ability to develop products and services to address the rapidly strategies on our customers, actives, and sellers as well as our business and evolving market for payments and financial services; the Company’s ability financial performance, expected financial results, guidance, and general to deal with the substantial and increasingly intense competition in its business outlook for current and future periods; the Company’s integration of industry; acquisitions, strategic investments, entries into new businesses, Afterpay into its Square and Cash App businesses, and its impacts on the joint ventures, divestitures, and other transactions that the Company may Company’s business and financial results; future profitability and growth in undertake; the integration of Afterpay; uncertainty around the impacts of the Company’s businesses and products and the Company’s ability to drive the COVID-19 pandemic and the related effects of government and other such profitability and growth; the Company’s expectations regarding scale, measures; the Company’s ability to ensure the integration of its services economics, and the demand for or benefits from its products, product with a variety of operating systems and the interoperability of its features, and services; the Company’s product development plans; the ability technology with that of third parties; the Company’s ability to retain existing of the Company’s products to attract and retain customers, particularly in customers, attract new customers, and increase sales to all customers; the new or different markets or demographics; trends in the Company’s markets Company’s dependence on payment card networks and acquiring and the continuation of such trends; the Company’s expectations and processors; the effect of extensive regulation and oversight related to the intentions regarding future expenses, including future transaction and loan Company’s business in a variety of areas; the effect of management losses and the Company’s estimated reserves for such losses; and the changes and business initiatives; the liabilities and loss potential Company’s bitcoin investments and strategy as well as the potential financial associated with new products, product features, and services; litigation, impact and volatility; and management’s statements related to business including intellectual property claims, government investigations or strategy, plans, investments, opportunities, and objectives for future inquiries, and regulatory matters or disputes; adoption of the Company’s operations. In some cases, forward-looking statements can be identified by products and services in international markets; changes in political, terms such as “may,” “will,” “appears,” “should,” “expects,” “plans,” business, and economic conditions; as well as other risks listed or “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” described from time to time in the Company’s filings with the Securities and “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of Exchange Commission (the SEC), including the Company’s Annual Report these words or other similar terms or expressions that concern our on Form 10-K for the fiscal year ended December 31, 2021, and expectations, strategy, plans, or intentions. subsequent Quarterly Reports on Form 10-Q, which are on file with the SEC and available on the Investor Relations page of the Company’s Such statements are subject to a number of known and unknown risks, website. Additional information will also be set forth in the Company’s uncertainties, assumptions, and other factors that may cause the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, actual results, performance, or achievements to differ materially from results 2022. All forward-looking statements represent management’s current expressed or implied in this letter. Investors are cautioned not to place undue expectations and predictions regarding trends affecting the Company’s reliance on these statements, and reported results should not be considered business and industry and are based on information and estimates as an indication of future performance. available to the Company at the time of this letter and are not guarantees of future performance. Except as required by law, the Company assumes no obligation to update any of the statements in this letter.

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BLOCK Q3 2022 21

KEY OPERATING METRICS AND NON-GAAP FINANCIAL MEASURES

To supplement our financial information presented in accordance with Non-GAAP operating expenses is a non-GAAP financial measure that generally accepted accounting principles in the United States (GAAP), from represents operating expenses adjusted to remove the impact of shareperiod to period, we consider and present certain operating and financial based compensation, depreciation and amortization, bitcoin impairment measures that we consider key metrics or are not prepared in accordance loss, loss on disposal of property and equipment, and acquisition-related with GAAP, including Gross Payment Volume (GPV), Adjusted EBITDA, integration and other costs. Adjusted EBITDA margin, Adjusted Net Income (Loss), Diluted Adjusted Net Income (Loss) Per Share (Adjusted EPS), constant currency, and non-GAAP We have included Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, operating expenses as well as other measures defined in this letter such as and non-GAAP operating expenses because they are key measures used measures excluding bitcoin revenue or gross profit, bitcoin impairment loss, by our management to evaluate our operating performance, generate measures excluding gains or losses on equity investments, measures future operating plans, and make strategic decisions, including those excluding amortization of intangibles, measures excluding our BNPL relating to operating expenses and the allocation of internal resources. platform, and measures excluding both our BNPL platform and bitcoin Accordingly, we believe that Adjusted EBITDA, Adjusted Net Income, revenue or gross profit. We believe these metrics and measures are useful to Adjusted EPS, and non-GAAP operating expenses provide useful facilitate period-to-period comparisons of our business and to facilitate information to investors and others in understanding and evaluating our comparisons of our performance to that of other payments solution operating results in the same manner as our management and board of providers. directors. In addition, they provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain We define GPV as the total dollar amount of all card payments processed by non-cash items and certain variable charges. We have included measures sellers using Square, net of refunds, and ACH transfers. Additionally, GPV excluding the BNPL platform because we believe these measures are includes Cash App Business GPV, which comprises Cash App activity useful in understanding the ongoing results of our operations. We have related to peer-to-peer transactions received by business accounts, Cash included measures excluding bitcoin revenue because our role is to App Pay transactions, and peer-to-peer payments sent from a credit card. facilitate customers’ access to bitcoin. When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss), which tends to be volatile and outside our control. Therefore, we believe and Diluted Adjusted Net Income (Loss) Per Share (Adjusted EPS) are deducting bitcoin revenue or gross profit better reflects the economic non-GAAP financial measures that represent our net income (loss) and net benefits as well as our performance from these transactions. We also income (loss) per share, adjusted to eliminate the effect of share-based include measures that exclude both the BNPL platform and bitcoin revenue compensation expenses; amortization of intangible assets; gain or loss on or gross profit in order to further facilitate comparison of our business revaluation of equity investments; bitcoin impairment loss; and the gain or without bitcoin revenue or gross profit to periods prior to the acquisition of loss on the disposal of property and equipment, as applicable. We also BNPL. We have included measures excluding gains or losses on equity exclude certain transaction and integration costs associated with business investments as well as bitcoin impairment losses because we believe combinations, and various other costs that are not part of our core operating these measures are useful in understanding our operating results without performance. Transaction costs include amounts paid to redeem acquirees’ regard to gains and losses due to non-operating market fluctuations of our unvested stock-based compensation awards, and legal, accounting, and due investments. diligence costs. Integration costs include advisory and other professional services or consulting fees necessary to integrate acquired businesses. Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and non-GAAP Other costs that are non-recurring operating expenses may include operating expenses, as well as other measures defined in the shareholder contingent losses, litigation, and regulatory charges. We also add back the letter, such as measures excluding our BNPL platform, bitcoin revenue, impact of the acquired deferred revenue and deferred cost adjustment, which bitcoin impairment loss, and measures excluding gains or losses on equity was written down to fair value in purchase accounting. Additionally, for investments, have limitations as financial measures, should be considered purposes of calculating diluted Adjusted EPS, we add back cash interest as supplemental in nature, and are not meant as substitutes for the related expense on convertible senior notes, as if converted at the beginning of the financial information prepared in accordance with GAAP. period, if the impact is dilutive. In addition to the items above, Adjusted EBITDA is a non-GAAP financial measure that also excludes depreciation We believe that the aforementioned metrics and measures provide useful and amortization, interest income and expense, other income and expense, information about our operating results, enhance the overall understanding and provision or benefit from income taxes, as applicable. Adjusted EBITDA of our past performance and future prospects, and provide useful margin is calculated as Adjusted EBITDA divided by gross profit. To calculate measures for period-to-period comparisons of our business, as they the diluted Adjusted EPS, we adjust the weighted-average number of shares remove the effect of certain variable amounts, or they remove amounts of common stock outstanding for the dilutive effect of all potential shares of that were not repeated across periods and therefore make comparisons common stock. In periods when we recorded an Adjusted Net Loss, the more difficult. Our management uses these measures to evaluate our diluted Adjusted EPS is the same as basic Adjusted EPS because the effects operating performance, generate future operating plans, and make of potentially dilutive items were anti-dilutive given the Adjusted Net Loss strategic decisions, including those relating to operating expenses and the position. allocation of internal resources. Constant currency growth is a non-GAAP financial measure that is These non-GAAP financial measures should not be considered in isolation calculated by assuming international results in a given period and the from, or as a substitute for, financial information prepared in accordance comparative prior period are translated from local currencies to the U.S. with GAAP. These non-GAAP financial measures are not based on any dollar at rates consistent with an average of daily rates in the comparative standardized methodology prescribed by GAAP. Other companies, prior period. We discuss growth on a constant currency basis because a including companies in our industry, may calculate the non-GAAP financial portion of our business operates in markets outside the U.S. and is subject to measures differently or not at all, which reduces their usefulness as changes in foreign exchange rates. comparative measures.

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BLOCK Q3 2022 22

Condensed Consolidated Statements of Operations

UNAUDITED

In thousands, except per share data

Revenue: Transaction-based revenue Subscription and services-based revenue Hardware revenue Bitcoin revenue	THREE MON Sept 30,2022 $ 1,517,890 1,191,511 43,388 1,762,752 4,515,541 901,990 225,903 76,002 1,726,051 18,506 2,948,452 1,567,089 548,037 485,838 395,437 147,586 1,619 37,361 1,615,878 (48,789) 6,042 (18,798) (36,033) (17,289) (18,744) (4,033) $ (14,711) $ (0.02) $ (0.02) 592,672 592,672	THS ENDED Sept 30 2021 $ 1,297,040 694,770 37,255 1,815,662 3,844,727 751,794 128,177 51,150 1,774,040 6,351 2,711,512 1,133,215 360,729 409,073 267,348 62,306 6,000 4,763 1,110,219 22,996 13,409 12,011 (2,424) 452 (2,876) (2,960) $ 84 $ — $ — 460,654 504,120	NINE MONT Sept 30,2022 $ 4,226,566 3,245,924 128,765 5,279,430 12,880,685 2,493,988 622,031 223,160 5,157,935 51,874 8,548,988 4,331,697 1,531,088 1,518,227 1,235,306 395,433 37,580 103,414 4,821,048 (489,351) 34,756 (71,036) (453,071) (17,687) (435,384) (8,460) $ (426,924) $ (0.75) $ (0.75) 572,234 572,234	HS ENDED Sept 30,2021
				$ 3,484,245 1,937,629 109,769 8,051,026
Total net revenue				13,582,669
Cost of revenue: Transaction-based costs Subscription and services-based costs Hardware costs Bitcoin costs Amortization of acquired technologyassets				1,958,423 337,559 153,035 7,879,816 16,056
Total cost of revenue				10,344,889
Grossprofit				3,237,780
Operating expenses: Product development Sales and marketing General and administrative Transaction, loan, and consumer receivable losses Bitcoin impairment losses Amortization of customer and other acquired intangible assets				992,498 1,132,411 683,969 130,874 71,126 11,176
Total operatingexpenses				3,022,054
Operatingincome(loss)				215,726
Interest expense, net Other expense(income),net				20,126 (36,249)
Income(loss)before income tax				231,849
Provision(benefit)for income taxes				(7,961)
Net income (loss) Less: Net loss attributable to noncontrollinginterests				239,810 (3,303)
Net income(loss)attributable to common stockholders				$ 243,113
Net income (loss) per share attributable to common stockholders: Basic				$ 0.53
Diluted				$ 0.48
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic				455,203
Diluted				519,713

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BLOCK Q3 2022 23

Condensed Consolidated Balance Sheets

In thousands, except share and per share data

Assets Current assets: Cash and cash equivalents Investments in short-term debt securities Settlements receivable Customer funds Consumer receivables, net Loans held for sale Safeguarding asset related to bitcoin held for other parties Other current assets	Sept 30,2022 (UNAUDITED) $ 4,331,787 1,052,973 1,761,694 2,983,658 1,252,127 462,980 527,669 1,175,873 13,548,761 316,378 11,557,984 2,030,876 802,880 425,519 438,534 $ 29,120,932 $ 4,891,015 329,796 968,495 460,170 527,669 70,304 31,116 7,278,565 159,498 479,422 4,107,245 369,798 196,466 12,590,994 — — — 17,999,192 (1,046,639) (454,889) 16,497,664 32,274 16,529,938 $ 29,120,932	Dec 31,2021
		$ 4,443,669 869,283 1,171,612 2,830,995 — 517,940 1,100,596 687,429
Total current assets		11,621,524
Property and equipment, net Goodwill Acquired intangible assets, net Investments in long-term debt securities Operating lease right-of-use assets Other non-current assets		282,140 519,276 257,049 1,526,430 449,406 370,535
Total assets		$ 15,026,360
Liabilities and Stockholders’ Equity Current liabilities: Customers payable Settlements payable Accrued expenses and other current liabilities Current portion of long-term debt Safeguarding obligation liability related to bitcoin held for other parties Operating lease liabilities, current PPP LiquidityFacilityadvances		$ 3,979,624 254,611 638,854 455 1,100,596 64,027 497,533
Total current liabilities		6,535,700
Deferred tax liabilities Warehouse funding facilities Long-term debt Operating lease liabilities, non-current Other non-current liabilities		15,236 — 4,559,208 395,017 207,610
Total liabilities		11,712,771
Commitments and contingencies (Note 20) Stockholders’ equity: Preferred stock, $0.0000001 par value: 100,000,000 shares authorized at September 30, 2022 and December 31, 2021. None issued and outstanding at September 30, 2022 and December 31, 2021. Class A common stock, $0.0000001 par value: 1,000,000,000 shares authorized at September 30, 2022 and December 31, 2021; 535,879,345 and 403,237,209 issued and outstanding at September 30, 2022 and December 31, 2021, respectively. Class B common stock, $0.0000001 par value: 500,000,000 shares authorized at September 30, 2022 and December 31, 2021; 60,657,578 and 61,706,578 issued and outstanding at September 30, 2022 and December 31, 2021, respectively. Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit		— — — 3,317,255 (16,435) (27,965)
Total stockholders’ equity attributable to common stockholders Noncontrollinginterests		3,272,855 40,734
Total stockholders’ equity		3,313,589
Total liabilities and stockholders’ equity		$ 15,026,360

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BLOCK Q3 2022 24

Condensed Consolidated Statements of Cash Flows

UNAUDITED

In thousands

Cash Flows from Operating Activities Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization Non-cash interest and other Non-cash lease expense Share-based compensation Loss (gain) on revaluation of equity investments Transaction, loan, and consumer receivable losses Bitcoin impairment losses Change in deferred income taxes Changes in operating assets and liabilities: Settlements receivable Customer funds Purchases and originations of loans Proceeds from payments and forgiveness of loans Customers payable Settlements payable Other assets and liabilities	NINE MON Sept 30,2022 $ (435,384) 249,616 (371,298) 70,958 794,794 (43,914) 395,433 37,580 (47,503) (793,460) — (4,684,598) 4,643,899 599,886 75,185 (360,660) 130,534 (521,692) 769,276 236,524 — 73,000 316,576 (12,286,091) 12,538,992 (121,709) — (39,079) — 539,453 1,505,250 — — (466,417) (1,071,788) 711,455 (310,729) 49,233 (4,734) — 58,909 152,663 (881,408) (94,972) 659,404 6,975,090 $ 7,634,494	THS ENDED Sept 30,2021
		$ 239,810 95,707 20,368 61,978 429,999 (41,007) 130,874 71,126 (5,224) (337,893) — (2,285,306) 1,952,142 235,624 10,440 74,838
Net cashprovided byoperatingactivities		653,476
Cash Flows from Investing Activities Purchase of marketable debt securities Proceeds from maturities of marketable debt securities Proceeds from sale of marketable debt securities Purchase of marketable debt securities from customer funds Proceeds from maturities of marketable debt securities from customer funds Proceeds from sale of marketable debt securities from customer funds Originations of consumer receivables Principal repayments of consumer receivables Purchase of property and equipment Purchase of bitcoin investments Purchase of other investments Proceeds from sale of equity investments Business combinations,net of cash acquired		(2,343,446) 609,377 558,724 (488,851) 456,481 10,000 — — (98,028) (170,000) (47,550) 420,644 (163,970)
Net cashprovided by (used in)investingactivities		(1,256,619)
Cash Flows from Financing Activities Proceeds from issuance of senior notes, net Proceeds of PPP Liquidity Facility advances Repayments of PPP Liquidity Facility advances Payments to redeem convertible notes Proceeds from warehouse facilities borrowings Repayments of warehouse facilities borrowings Proceeds from the exercise of stock options and purchases under the employee stock purchase plan Payments for tax withholding related to vesting of restricted stock units Other financing activities Net increase in non-interest bearing deposits Change in customer funds,restricted from use in the Company’s operations		1,971,828 681,542 (419,978) — — — 84,866 (312,406) (7,112) — 611,282
Net cashprovided by (used in)financingactivities		2,610,022
Effect of foreign exchange rate on cash and cash equivalents		(14,311)
Net increase in cash, cash equivalents, restricted cash, and customer funds Cash,cash equivalents,restricted cash,and customer funds,beginningof theperiod		1,992,568 4,793,171
Cash,cash equivalents,restricted cash,and customer funds,end of theperiod		$ 6,785,739

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BLOCK Q3 2022 25

Reportable Segment Disclosures

UNAUDITED

Information on the reportable segments revenue and segment operating profit are as follows (in thousands):

Revenue Transaction-based revenue Subscription and services-based revenue Hardware revenue Bitcoin revenue	Cash App	THREE MON SEPT 3 (UNAU Square	THS ENDED 0, 2022 DITED) Corporate and Other(i)	Total	Cash App	NINE MONT SEPT 3 (UNAU Square	HS ENDED 0, 2022 DITED) Corporate and Other(i)	Total
	$ 118,459 803,673 — 1,762,752	$1,399,431 331,703 43,388 —	$ — 56,135 — —	$1,517,890 1,191,511 43,388 1,762,752	$ 343,768 2,146,163 — 5,279,430	$3,882,798 932,188 128,765 —	$ — 167,573 — —	$ 4,226,566 3,245,924 128,765 5,279,430
Segment revenue(ii)	2,684,884	1,774,522	56,135	4,515,541	7,769,361	4,943,751	167,573	12,880,685
Segmentgrossprofit(iii)	$ 774,470	$ 782,968	$ 9,651	$1,567,089	$2,103,023	$2,199,628	$ 29,046	$ 4,331,697
Revenue Transaction-based revenue Subscription and services-based revenue Hardware revenue Bitcoin revenue	Cash App	THREE MON SEPT 3 (UNAU Square	THS ENDED 0, 2021 DITED) Corporate and Other(i)	Total	Cash App	NINE MONT SEPT 3 (UNAU Square	HS ENDED 0, 2021 DITED) Corporate and Other(i)	Total
	$ 103,192 474,779 — 1,815,662	$1,193,848 162,341 37,255 —	$ — 57,650 — —	$1,297,040 694,770 37,255 1,815,662	$ 306,101 1,406,313 — 8,051,026	$3,178,144 434,673 109,769 —	$ — 96,643 — —	$ 3,484,245 1,937,629 109,769 8,051,026
Segment revenue	2,393,633	1,393,444	57,650	3,844,727	9,763,440	3,722,586	96,643	13,582,669
Segmentgrossprofit	$ 511,717	$ 606,225	$ 15,273	$1,133,215	$1,553,255	$1,659,378	$ 25,147	$ 3,237,780
Revenue Transaction-based revenue Subscription and services-based revenue Hardware revenue Bitcoin revenue	Cash App	THREE MON SEPT 3 (UNAU Square	THS ENDED 0, 2020 DITED) Corporate and Other(i)	Total	Cash App	NINE MONT SEPT 3 (UNAU Square	HS ENDED 0, 2020 DITED) Corporate and Other(i)	Total
	$ 80,721 354,110 — 1,633,764	$ 844,573 93,412 27,294 —	$ — — — —	$ 925,294 447,522 27,294 1,633,764	$ 162,197 818,991 — 2,815,318	$2,203,770 271,041 67,291 —	$ — — — —	$ 2,365,967 1,090,032 67,291 2,815,318
Segment revenue	2,068,595	965,279	—	3,033,874	3,796,506	2,542,102	—	6,338,608
Segmentgrossprofit	$ 385,124	$ 409,331	$ —	$ 794,455	$ 848,919	$1,080,800	$ —	$ 1,929,719

(i) Corporate and other represents results related to products and services that are not assigned to a specific reportable segment. Comparable prior period amounts have not been disclosed as they were not material.

(ii) The revenue for both Cash App and Square for the three and nine months ended September 30, 2022 includes $105.0 million and $273.9 million respectively, from Afterpay post-acquisition results following the closing of the acquisition.

(iii) The gross profit for both Cash App and Square for the three and nine months ended September 30, 2022 includes $74.9 million and $195.8 million respectively, from Afterpay post-acquisition results following the closing of the acquisition.

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BLOCK Q3 2022 26

Operating Segment Disclosures

UNAUDITED

Information on the reportable segments revenue and segment operating profit are as follows (in thousands):

Revenue Transaction-based revenue Subscription and services-based revenue Hardware revenue Bitcoin revenue	HS ENDED , 2019 ITED) Corporate and Other(i)	Total
	$ — — — —	$2,248,894 619,174 62,238 338,898
Segment revenue	—	3,269,204
Segmentgrossprofit	$ —	$1,325,237

A reconciliation of total segment gross profit to the Company’s income (loss) before applicable income taxes is as follows (in thousands):

Total segment gross profit Less: Product development Less: Sales and marketing Less: General and administrative Less: Transaction, loan, and consumer receivable losses Less: Bitcoin impairment losses Less: Amortization of customer and other intangible assets Less: Interest expense, net Less: Other income,net	THRE ( Sept 30, 2022 $1,567,089 548,037 485,838 395,437 147,586 1,619 37,361 6,042 (18,798) $ (36,033)	E MONTHS ENDE UNAUDITED) Sept 30, 2021 $1,133,215 360,729 409,073 267,348 62,306 6,000 4,763 13,409 12,011 $ (2,424)	D Sept 30, 2020 $794,455 226,567 348,463 153,902 15,198 — 983 14,980 (784) $ 35,146	NIN Sept 30, 2022 $4,331,697 1,531,088 1,518,227 1,235,306 395,433 37,580 103,414 34,756 (71,036) $ (453,071)	E MONTHS ENDE (UNAUDITED) Sept 30, 2021 $ 3,237,780 992,498 1,132,411 683,969 130,874 71,126 11,176 20,126 (36,249) $ 231,849	D Sept 30, 2020 $1,929,719 628,378 781,094 419,783 161,684 — 2,778 38,955 (20,513) $ (82,440)
Income(loss)before applicable income taxes

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BLOCK Q3 2022 27

Key Operating Metrics and Non-GAAP Financial Measures

UNAUDITED

In thousands, except GPV and per share data

Gross Payment Volume (“GPV”) (in millions) Adjusted EBITDA (in thousands) Adjusted Net Income Per Share: Basic Diluted GPV Square GPV Cash App	Sept 30, 2022 $ 54,373 $327,360 $ 0.44 $ 0.42	THREE MON Sept 30, 2021 $ 45,426 $233,406 $ 0.28 $ 0.25	THS ENDED Sept 30, 2020 $ 31,729 $181,320 $ 0.39$ $ 0.34 $	Sept 30, 2019 $ 28,228 $131,323 $ 0.28 $ 0.25	Sept 30, 2022 $150,376 $710,063 $ 0.83 $ 0.78 Sept 30, 2022 $ 50,037 $ 4,336 $ 54,373	NINE MONT Sept 30, 2021 $121,392 $829,475 $ 1.21 $ 1.06 THREE MON Sept 30, 2021 $ 41,686 $ 3,740 $ 45,426	HS ENDED Sept 30, 2020 $ 80,272 $288,582 $ 0.57 $ 0.51 THS ENDED Sept 30, 2020 $ 28,772 $ 2,957 $ 31,729	Sept 30, 2019
								$ 77,599 $298,324 $ 0.65 $ 0.57 Sept 30, 2019
								$ 27,543 $ 685
Total GPV								$ 28,228

Adjusted EBITDA

UNAUDITED

In thousands

THRE Sept 30, 2022 Net income (loss) attributable to common stockholders $ (14,711) Net loss attributable to noncontrollinginterests (4,033) Net income (loss) (18,744) Share-based compensation expense 262,733 Depreciation and amortization 88,721 Acquisition-related, integration and other costs 23,470 Interest expense, net 6,042 Other expense (income), net (18,798) Bitcoin impairment losses 1,619 Provision (benefit) for income taxes (17,289) Loss (gain) on disposal of property and equipment (447) Acquired deferred revenue adjustment 88 Acquired deferred cost adjustment (35) Adjusted EBITDA $327,360	E MONTHS EN Sept 30, 2021 $ 84 (2,960) (2,876) 165,011 38,110 308 13,409 12,011 6,000 452 877 159 (55) $233,406	DED Sept 30, 2020 $ 36,515 — 36,515 110,389 20,624 359 14,980 (784) — (1,369) 396 281 (71) $181,320	NINE Sept 30, 2022 $(426,924) (8,460) (435,384) 794,794 249,616 116,602 34,756 (71,036) 37,580 (17,687) 635 309 (122) $ 710,063	MONTHS END Sept 30, 2021 $ 243,113 (3,303) 239,810 429,999 95,705 14,626 20,126 (36,249) 71,126 (7,961) 1,866 606 (179) $829,475	ED Sept 30, 2020
					$(80,854) —
					(80,854) 283,872 61,741 3,939 38,955 (20,513) — (1,586) 2,095 1,240 (307)
					$288,312

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BLOCK Q3 2022 28

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform

UNAUDITED

In thousands

Total net revenue (GAAP) Less: Bitcoin contribution to total net revenue Less: BNPL Platform contribution to total net revenue	Sept 30, 2022	THREE MON Sept 30, 2021	THS ENDED Sept 30, 2020	Sept 30, 2019	Sept 30, 2022	NINE MONTH Sept.30, 2021	S ENDED Sept 30, 2020	Sept 30, 2019
	$4,515,541 1,762,752 209,933	$3,844,727 1,815,662 —	$3,033,874 1,633,764 —	$1,266,474 148,285 —	$12,880,685 5,279,430 547,822	$13,582,669 8,051,026 —	$6,338,608 2,815,318 —	$3,400,071 338,898 —
Total net revenue, excluding Bitcoin and BNPL Platform	$2,542,856	$2,029,065	$ 1,400,110	$ 1,118,189	$ 7,053,433	$ 5,531,643	$3,523,290	$3,061,173
Gross Profit (GAAP) Less: BNPL Platform contribution togrossprofit	Sept 30, 2022	THREE MON Sept 30, 2021	THS ENDED Sept 30, 2020	Sept 30, 2019	Sept 30, 2022	NINE MONTH Sept.30, 2021	S ENDED Sept 30, 2020	Sept 30, 2019
	$1,567,089 149,730	$1,133,215 —	$ 794,455 —	$ 500,037 —	$ 4,331,697 391,659	$ 3,237,780 —	$1,929,719 —	$1,362,636 —
Totalgrossprofit,excludingBNPL Platform	$1,417,359	$1,133,215	$ 794,455	$ 500,037	$ 3,940,038	$ 3,237,780	$1,929,719	$1,362,636
Bitcoin Revenue Bitcoin costs	Sept 30, 2022	THREE MON Sept 30, 2021	THS ENDED Sept 30, 2020	Sept 30, 2019	Sept 30, 2022	NINE MONTH Sept.30, 2021	S ENDED Sept 30, 2020	Sept 30, 2019
	$1,762,752 1,726,051	$1,815,662 1,774,040	$1,633,764 1,601,615	$ 148,285 146,167	$ 5,279,430 5,157,935	$ 8,051,026 7,879,816	$2,815,318 2,759,082	$ 338,898 333,801
Bitcoingrossprofit	$ 36,701	$ 41,622	$ 32,149	$ 2,118	$ 121,495	$ 171,210	$ 56,236	$ 5,097
Cash App revenue (GAAP) Less: Bitcoin contribution to Cash App revenue Less: BNPL Platform contribution to Cash App revenue	Sept 30, 2022	THREE MON Sept 30, 2021	THS ENDED Sept 30, 2020	Sept 30, 2019	Sept 30, 2022	NINE MONTH Sept.30, 2021	S ENDED Sept 30, 2020	Sept 30, 2019
	$2,684,884 1,762,752 104,967	$2,393,633 1,815,662 —	$2,068,595 1,633,764 —	$ 307,040 148,285 —	$ 7,769,361 5,279,430 273,911	$ 9,763,440 8,051,026 —	$3,796,506 2,815,318 —	$ 744,935 338,898 —
Total Cash App revenue,excluding Bitcoin and BNPL Platform	$ 817,165	$ 577,971	$ 434,831	$ 158,755	$ 2,216,020	$ 1,712,414	$ 981,188	$ 406,037
Square gross profit (GAAP) Less: Squaregrossprofit – U.S.			THR Sept 30, 2022	EE MONTHS EN Sept 30, 2021	DED Sept 30, 2020	NINE Sept 30, 2022	MONTHS END Sept 30, 2021	ED Sept 30, 2020
			$ 782,968 662,050	$ 606,225 552,867	$ 409,331 378,166	$ 2,199,628 1,875,958	$1,659,378 1,518,960	$1,080,800 1,010,403
Total Square Gross profit – International Less: BNPL Platform contribution to Square gross profit – International			120,918 45,828	53,358 —	31,165 —	323,670 123,449	140,418 —	70,397 —
Total Square gross profit – International, excluding Bitcoi Platform		n and BNPL	$ 75,090	$ 53,358	$ 31,165	$ 200,221	$ 140,418	$ 70,397

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BLOCK Q3 2022 29

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform, Continued

UNAUDITED

In thousands

					THREE MONTHS ENDED NINE MONTHS ENDED	THREE MONTHS ENDED NINE MONTHS ENDED	THREE MONTHS ENDED NINE MONTHS ENDED	THREE MONTHS ENDED NINE MONTHS ENDED	THREE MONTHS ENDED NINE MONTHS ENDED	THREE MONTHS ENDED NINE MONTHS ENDED	THREE MONTHS ENDED NINE MONTHS ENDED
					Sept 30,	Sept 30,			Sept 30, Sept 30,	Sept 30,	Sept 30,
					2022	2021			2020 2022	2021	2020
Subscription and services-based revenue (GAAP)				$1,191,511		$694,770			$447,522$3,245,924$1,937,629 $1,090,032
Less: BNPL Platform contribution to subscription	and services-based revenue				209,933		—		— 547,822	—	—
Total subscription and services-based revenue,excludingBNPL Platform				$	981,578	$694,770			$447,522 $2,698,102$1,937,629 $1,090,032
Subscription and services-based costs (GAAP)				$	225,903	$128,177			$ 66,786$ 622,031$	337,559 $	157,666
Less: BNPL Platform contribution to subscription	and services-based costs				60,203		—		— 156,163	—	—
Total subscription and services-based costs,		excludingBNPL Platform		$	165,700	$128,177			$ 66,786 $ 465,868$	337,559 $	157,666
Subscription and services-based gross profit (GAAP)				$	965,608	$566,593			$380,736$2,623,893$1,600,070 $		932,366
Less: BNPL Platform contribution to subscription	and services-basedgrossprofit				149,730		—		— 391,659	—	—
Total subscription and services-based gross Platform		profit, excluding BNPL		$	815,878	$566,593			$380,736$2,232,234$1,600,070 $		932,366
		THREE MONTHS ENDED		THREE MONTHS		ENDED			THREE MONTHS ENDED	THREE MONTHS ENDED
		SEPT 30, 2022			SEPT 30, 2021				SEPT 30, 2020	SEPT 30, 2019
		Cash App Square	Cash		App Square			Cash App Square Cash App			Square
Segment revenue (GAAP)	$2,684,884 $1,774,522 $2,393,633 $1,393,444						$2,068,595 $965,279 $			307,040 $	918,487
Less: BNPL Platform contribution to segment revenue		104,967 104,967			—	—			— —	—	—
Total segment revenue, excluding BNPL Platform		2,579,917 1,669,555		2,393,633 1,393,444					2,068,595 965,279	307,040	918,487
Segment cost of revenue (GAAP)		1,910,414 991,554		1,881,916		787,219			1,683,471 555,948	183,550	554,603
Less: BNPL Platform contribution to segment cost of revenue		30,102 30,102			—	—			— —	—	—
Total segment cost of revenue, excluding BNPL Platform		1,880,312 961,452		1,881,916		787,219			1,683,471 555,948	183,550	554,603
Segment gross profit (GAAP)		774,470 782,968		511,717		606,225			385,124 409,331	123,490	363,884
Less: BNPL Platform contribution to segment grossprofit		74,865 74,865			—	—			— —	—	—
Total segment gross profit, excluding BNPL Platform	$ 699,605 $ 708,103$			511,717 $		606,225	$		385,124 $409,331 $	123,490 $	363,884

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BLOCK Q3 2022 30

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform, Continued

UNAUDITED

In thousands

UNAUDITED In thousands
Segment revenue (GAAP) Less: BNPL Platform contribution to segment revenue	NINE MONT SEPT 3 Cash App $ 7,769,361 273,911 7,495,450 5,666,338 78,081 5,588,257 2,103,023 195,830 $ 1,907,193	HS ENDED 0, 2022 Square $ 4,943,751 273,911 4,669,840 2,744,123 78,081 2,666,042 2,199,628 195,830 $ 2,003,798	NINE MONT SEPT 3 Cash App $ 9,763,440 — 9,763,440 8,210,185 — 8,210,185 1,553,255 — $ 1,553,255	HS ENDED 0, 2021 Square $ 3,722,586 — 3,722,586 2,063,208 — 2,063,208 1,659,378 — $ 1,659,378	NINE MONT SEPT 3 Cash App $ 3,796,506 — 3,796,506 2,947,587 — 2,947,587 848,919 — $ 848,919	HS ENDED 0, 2020 Square $ 2,542,102 — 2,542,102 1,461,302 — 1,461,302 1,080,800 — $ 1,080,800	NINE MONT SEPT 3 Cash App $ 744,935 — 744,935 431,293 — 431,293 313,642 — $ 313,642	HS ENDED 0, 2019 Square
								$ 2,524,269 —
Total segment revenue, excluding BNPL Platform								2,524,269
Segment cost of revenue (GAAP) Less: BNPL Platform contribution to segment cost of revenue								1,512,674 —
Total segment cost of revenue, excluding BNPL Platform								1,512,674
Segment gross profit (GAAP) Less: BNPL Platform contribution to segment gross profit								1,011,595 —
Total segment gross profit, excluding BNPL Platform								$ 1,011,595

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BLOCK Q3 2022 31

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform, Continued

UNAUDITED In thousands Segment revenue, subscription and services-based (GAAP) Less: BNPL Platform contribution to segment revenue, subscription and services-based (GAAP)	THREE MON SEPT 3 Cash App $ 803,673 104,967 $ 698,706 NINE MONT SEPT 3 Cash App $ 2,146,163 273,911 $ 1,872,252	THS ENDED 0, 2022 Square $ 331,703 104,967 $ 226,736 HS ENDED 0, 2022 Square $ 932,188 273,911 $ 658,277	THREE MON SEPT 3 Cash App $ 474,779 — $ 474,779 NINE MONT SEPT 3 Cash App $ 1,406,313 — $ 1,406,313	THS ENDED 0, 2021 Square $ 162,341 — $ 162,341 HS ENDED 0, 2021 Square $ 434,673 — $ 434,673	THREE MON SEPT 3 Cash App $ 354,110 — $ 354,110 NINE MONT SEPT 3 Cash App $ 818,991 — $ 818,991	THS ENDED 0, 2020 Square $ 93,412 — $ 93,412 HS ENDED 0, 2020 Square $ 271,041 — $ 271,041	THREE MON SEPT 3 Cash App $ 139,539 — $ 139,539 NINE MONT SEPT 3 Cash App $ 354,575 — $ 354,575	THS ENDED 0, 2019 Square
								$ 99,315 —
Total segment revenue, subscription and services- based excluding BNPL Platform								$ 99,315
Segment revenue, subscription and services-based (GAAP) Less: BNPL Platform contribution to segment revenue, subscription and services-based (GAAP)								HS ENDED 0, 2019 Square
								$ 264,599 —
Total segment revenue, subscription and services- based excluding BNPL Platform								$ 264,599

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BLOCK Q3 2022 32

Adjusted Net Income and Adjusted EPS

UNAUDITED

In thousands, except per share data

Net income (loss) attributable to common stockholders Net loss attributable to noncontrollinginterests	THR Sept 30, 2022 $ (14,711) (4,033) (18,744) 262,733 23,470 55,867 3,851 712 1,619 — (447) 88 (35) (65,940) $ 263,174 $ 1,263 $ 264,437 592,672 592,672 $ (0.02) $ (0.02) 592,672 622,974 $ 0.44 $ 0.42	EE MONTHS END Sept 30, 2021 $ 84 (2,960) (2,876) 165,011 308 11,140 2,868 6,836 6,000 — 877 159 (55) (60,912) $ 129,356 $ 1,494 $ 130,850 460,654 504,120 $ — $ — 460,654 525,003 $ 0.28 $ 0.25	ED Sept 30, 2020 $ 36,515 — 36,515 110,389 359 5,236 17,516 — — 1,403 396 281 (71) — $ 172,024 $ 1,544 $ 173,568 444,458 488,069 $ 0.08 $ 0.07 444,458 514,806 $ 0.39 $ 0.34	NIN Sept 30, 2022 $ (426,924) (8,460) (435,384) 794,794 116,602 155,288 11,307 (43,914) 37,580 — 635 309 (122) (162,000) $ 475,095 $ 3,751 $ 478,846 572,234 572,234 $ (0.75) $ (0.75) 572,234 611,227 $ 0.83 $ 0.78	E MONTHS ENDE Sept 30, 2021 $ 243,113 (3,303) 239,810 429,999 14,626 27,258 7,005 (41,008) 71,126 — 1,866 606 (179) (198,896) $ 552,213 $ 4,833 $ 557,046 457,039 520,204 $ 0.53 $ 0.48 457,039 524,048 $ 1.21 $ 1.06	D Sept 30, 2020
						$ (80,854) —
Net income (loss) Share-based compensation expense Acquisition-related, integration and other costs Amortization of intangible assets Amortization of debt discount and issuance costs Loss (gain) on revaluation of equity investments Bitcoin impairment losses Loss on extinguishment of long-term debt Loss (gain) on disposal of property and equipment Acquired deferred revenue adjustment Acquired deferred cost adjustment Tax effect of non-GAAP net income adjustments						(80,854) 283,872 3,939 13,522 47,624 (20,998) — 2,393 2,095 1,240 (307) —
Adjusted Net Income(Loss)- basic						$ 252,526
Cash interest expense on convertible notes						$ 4,482
Adjusted Net Income(Loss)- diluted						$ 257,008
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic						439,855
Diluted						439,855
Net Income (loss) per share attributable to common stockholders: Basic						$ (0.18)
Diluted						$ (0.18)
Weighted-average shares used to compute Adjusted Net Income (Loss) Per Share: Basic						439,855
Diluted						501,757
Adjusted Net Income (Loss) Per Share: Basic						$ 0.57
Diluted						$ 0.51

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BLOCK Q3 2022 33

Non-GAAP Operating Expenses

UNAUDITED

In thousands

Operating expenses Share-based compensation Depreciation and amortization Bitcoin impairment losses Loss (gain) on disposal of property and equipment Acquisition related,integration and other costs	THR Sept 30, 2022 $(1,615,878) 262,629 69,500 1,619 (447) 23,470 $(1,259,107) $ (548,037) 184,569 31,767 451 $ (331,250) $ (485,838) 28,744 1,591 (448) $ (455,951) $ (395,437) 49,316 11,129 (450) 23,470 $ (311,972)	EE MONTHS END Sept 30, 2021 $ (1,110,219) 164,912 31,760 6,000 877 308 $ (906,362) $ (360,729) 121,209 22,987 840 $ (215,693) $ (409,073) 16,023 (7) — $ (393,057) $ (267,348) 27,680 8,780 37 308 $ (230,543)	ED Sept 30, 2020 $ (745,113) 110,289 17,507 — 396 359 $ (616,562) $ (226,567) 78,682 11,546 381 $ (135,958) $ (348,463) 12,063 1,060 — $ (335,340) $ (153,902) 19,544 3,918 15 359 $ (130,066)	NIN Sept 30, 2022 $(4,821,048) 794,442 196,802 37,580 635 116,602 $(3,674,987) $(1,531,088) 508,781 111,216 461 $ (910,630) $(1,518,227) 75,133 4,520 52 $(1,438,522) $(1,235,306) 210,528 31,517 122 116,602 $ (876,537)	E MONTHS ENDE Sept 30, 2021 $(3,022,054) 429,689 79,650 71,126 1,866 14,626 $(2,425,097) $ (992,498) 314,265 57,245 1,185 $ (619,803) $ (1,132,411) 40,680 3,716 — $(1,088,015) $ (683,969) 74,744 18,689 681 14,626 $ (575,229)	D Sept 30, 2020
						$(1,993,717) 283,601 53,930 — 2,095 3,939
Non-GAAP operatingexpenses						$(1,650,152)
Product development Share-based compensation Depreciation and amortization Loss on disposal ofpropertyand equipment						$ (628,378) 205,647 36,578 686
Non-GAAPproduct development						$ (385,467)
Sales and marketing Share-based compensation Depreciation and amortization Loss(gain)on disposal ofpropertyand equipment						$ (781,094) 27,354 3,057 1
Non-GAAP sales and marketing						$ (750,682)
General and administrative Share-based compensation Depreciation and amortization Loss (gain) on disposal of property and equipment Acquisition related,integration and other costs						$ (419,783) 50,600 11,517 1,408 3,939
Non-GAAPgeneral and administrative						$ (352,319)

Depreciation and Amortization by Function

UNAUDITED

In thousands

Depreciation and Amortization by Function UNAUDITED In thousands
Cost of revenue Product development Sales and marketing General and administrative Amortization of acquired customer assets	THR Sept 30, 2022 $ 19,221 31,767 1,591 11,129 25,013 $ 88,721	EE MONTHS EN Sept 30, 2021	DED Sept 30, 2020 $ 3,117 11,546 1,060 3,918 983 $20,624	NI Sept 30, 2022 $ 52,814 111,216 4,520 31,517 49,549 $ 249,616	NE MONTHS ENDE Sept 30, 2021 $ 16,055 57,245 3,716 18,689 — $ 95,705	D Sept 30, 2020
		$ 6,350 22,987 (7) 8,780 —				$ 7,811 36,578 3,057 11,517 2,778
Total depreciation and amortization		$38,110				$ 61,741

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BLOCK Q3 2022 34

AI assistant

Block, Inc. — Earnings Release 2022

30034_rns_2022-11-03_1f2eea47-bb88-4728-9fa8-e3ceb88f411d.pdf

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

FORM 8-K

Block, Inc.

Emerging growth company ☐

Item 2.02 Results of Operations and Financial Condition.

Item 9.01 Financial Statements and Exhibits.

Exhibit

SIGNATURES

BLOCK, INC.

Q3’22 Highlights

[To Our Shareholders]

November 3, 2022

Q3 2022 GROSS PROFIT

Cash App Ecosystem

Community

Financial Services

Commerce

Square Ecosystem

Enhancing our ecosystem of products

Growing upmarket

Expanding globally

Financial Discussion

REVENUE AND GROSS PROFIT

CASH APP ECOSYSTEM REVENUE AND GROSS PROFIT

SQUARE ECOSYSTEM REVENUE AND GROSS PROFIT

SQUARE SUBSCRIPTION AND SERVICES-BASED REVENUE EX-PPP AND EX-BNPL PLATFORM

CORPORATE AND OTHER REVENUE AND GROSS PROFIT

OPERATING EXPENSES

EARNINGS

BALANCE SHEET/CASH FLOW

Trends and Forward-Looking Commentary

Earnings Webcast

SAFE HARBOR STATEMENT

KEY OPERATING METRICS AND NON-GAAP FINANCIAL MEASURES

Condensed Consolidated Statements of Operations

UNAUDITED

Condensed Consolidated Balance Sheets

Condensed Consolidated Statements of Cash Flows

UNAUDITED

Reportable Segment Disclosures

UNAUDITED

Operating Segment Disclosures

UNAUDITED

Key Operating Metrics and Non-GAAP Financial Measures

UNAUDITED

Adjusted EBITDA

UNAUDITED

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform

UNAUDITED

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform, Continued

UNAUDITED

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform, Continued

UNAUDITED

Select Financial Results Excluding Bitcoin and Buy Now Pay Later (“BNPL”) Platform, Continued

Adjusted Net Income and Adjusted EPS

UNAUDITED

Non-GAAP Operating Expenses

UNAUDITED

Depreciation and Amortization by Function

UNAUDITED

More from Block, Inc.

Block, Inc. Earnings Release 2022