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): August 4, 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:

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

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 August 4, 2022, Block, Inc. (the “Company”) issued a Shareholder Letter (the “Letter”) announcing its financial results for the second quarter ended June 30, 2022. In the Letter, the Company also announced that it would be holding a conference call and earnings webcast on August 4, 2022 at 2:00 p.m. Pacific Time to discuss its financial results for the second quarter ended June 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-U.S. Generally Accepted Accounting Principles (“non-GAAP”) based 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 made 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 August 4, 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: August 4, 2022

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

Exhibit 99.1

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Q2’22 Highlights

3yr CAGR YoY Growth

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We have reached significant scale and profitable unit economics with Cash App Borrow: In June, there were more than 1 million Cash App Borrow actives.

Food and drink has achieved the fastest gross profit growth of any Square vertical on a five-year CAGR basis, and we’ve continued to see strong success driving acquisition of new sellers: Through the first six months of 2022, GPV from Square for Restaurants more than doubled year over year.

In the second quarter of 2022, we generated gross profit of $1.47 billion, up 29% year over year. Both Square and Cash App grew 29% year over year, as Square generated gross profit of $755 million and Cash App generated gross profit of $705 million.

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In the second quarter of 2022, total net revenue was $4.40 billion, down 6% year over year, and, excluding bitcoin revenue, total net revenue was $2.62 billion, up 34% year over year. Excluding bitcoin revenue and revenue from the buy-now-pay-later (BNPL) platform, total net revenue was $2.41 billion, up 23% 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 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. In the second quarter of 2021, we recognized a $77 million gain on our equity investments and a $45 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 second quarter of 2022.

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BLOCK Q2 2022 2

ON THE COVER

Barrowby Green, a plant and gardening retailer in Yarra Valley, Australia, uses Square Stand, Square for Retail Plus, Square Loyalty, Square Online, and Afterpay.

CASH APP HIGHLIGHT Cash App Borrow offers customers a short-term loan to send, spend, or invest across our ecosystem.

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[To Our Shareholders]

August 4, 2022

August 4, 2022 We delivered strong growth at scale during the

In the second quarter, gross profit second quarter of 2022. Gross profit grew 29% year

was impacted by $18 million ofamortization of acquired over year to $1.47 billion, up 47% on a three-year

technology assets, a portion of compound annual growth rate (CAGR) basis. which was due to the acquisition of

the BNPL platform. Excluding our BNPL platform, gross profit was The BNPL platform was acquired $1.32 billion, up 16% year over year and 42% on a

through the acquisition of Afterpay. three-year CAGR basis. Our Square ecosystem delivered gross profit of $755 million, an increase of 29% year over year and, excluding our BNPL platform, 16% year over year. Our Cash App ecosystem delivered gross profit of $705 million, an increase of 29% year over year and, excluding our BNPL platform, 15% year over year.

Q2 2022 GROSS PROFIT

As reported Gross Profit Block $1,470M Square $755M Cash App $705M	YoY Growth 29% 29% 29%	3-year CAGR
		47% 30% 88%
Excluding BNPL Platform Gross Profit Block $1,320M Square $681M Cash App $630M	YoY Growth 16% 16% 15%	3-year CAGR
		42% 25% 82%

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BLOCK Q2 2022 3

Square Ecosystem

We continue to focus on our three strategic priorities: omnichannel, growing upmarket, and expanding globally.

Enhancing our ecosystem of products

During the second quarter, we continued to build upon our cohesive suite of products across channels, enabling sellers to meet their customers wherever they choose to do business — which is an integral part of our omnichannel strategy. In May, we enabled in-person buy-now-pay-later (BNPL) with Afterpay for sellers in the U.S. and Australia. These in-person capabilities build upon our online integration, creating a truly omnichannel BNPL experience for buyers. We believe this will be impactful for our sellers as historically, Afterpay omnichannel consumers have transacted more frequently and spent 3x more than singlechannel consumers in 2021.

Afterpay Gross Merchandise Value or GMV is a measure of the total order value processed on the Afterpay platform.

Afterpay also recently announced a new omnichannel BNPL partnership with prestige beauty retailer Sephora. The health and beauty vertical accounted for 11% of total Afterpay GMV over the last twelve months and has seen some of the strongest engagement, with customers completing an order with Afterpay every two seconds on average.

Growing upmarket

During the second quarter, we experienced strong growth from mid-market sellers, with gross profit from these sellers up 24% year over year. Mid-market sellers often have vertical-specific needs, and we have continued to innovate on tailored solutions. We’ve seen strong success driving acquisition in the food and drink vertical, which has been our fastest-growing vertical on a gross profit basis for the last five years. Square for Restaurants has experienced significant growth as our software resonates with these more complex sellers: Through the first six months of 2022, GPV from Square for Restaurants sellers more than doubled compared to the same period a year ago.

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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 contributions 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 Q2 2022 4

Our Square for Restaurants solution is differentiated by having both first- and third-party integrations for sellers, letting restaurants power all aspects of their operations from point of sale to delivery orders to team management. In the second quarter, we expanded our product suite with a new mobile point-of-sale software solution that enables restaurants to seamlessly take orders and payments from tableside or queues, and launched a third-party marketplace to allow menu import and automated menu creation. Across our ecosystem we continued to see strong product adoption by Square for Restaurants sellers who used an average of four products during the second quarter, twice as much as the average Square seller.

Expanding globally

During the second quarter, we improved product parity in several of our newest markets by launching Square Register in Ireland and France, as well as Square for Retail in France and Spain. As we look to grow upmarket around the world, we introduced Square Appointments in Japan to help more complex sellers accept online bookings, take payments, attract new customers, and manage their teams. We also continued to expand our seller banking products during the second quarter by bringing Instant Transfers to Australia. We launched 44 products across our international markets in the first half of 2022, making significant progress on closing product parity gaps while also launching in new markets.

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Square gross profit in markets outside the U.S. includes contributions from the BNPL platform during the second quarter of 2022. Excluding the BNPL platform, Square gross profit in markets outside the U.S. was $67 million, representing 10% of Square gross profit.

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BLOCK Q2 2022 5

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 are building the following development pillars to drive Cash App’s business: Community, Financial Services, Crypto, Operating System, Trust, Commerce, and Global.

Network strength

The basis of our Community pillar is peer-to-peer payments, and we have been focused on strengthening our network by reaching new demographics and further engaging our existing audience. In June, there were 47 million accounts that transacted on Cash App — with increasing weekly and daily actives. Historically, we have seen a strong correlation between retention of our actives and the size of their network: Last quarter, retention was 31 percentage points stronger for actives with a network size of four or more accounts compared to an active who only transacted with one other account. We believe we can influence the number of connections that a given customer has by developing more opportunities for our customers to connect with one another within Cash App.

Driving engagement

Growing inflows per active is a key component of overall gross profit growth for Cash App. Historically, the amount of money customers bring in has generally grown with the number of products they adopt, their engagement with those products, and customers’ overall spending power.

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We’re focused on driving Cash App’s business forward by investing in Community, Financial Services, Crypto, Trust, our Operating System, Commerce, and Global expansion. Each of these strategic pillars correlates to driving one or more of the key variables in the inflows framework.

Financial services: In June, we launched Round Ups, allowing customers to invest their spare change into stock of their choice or bitcoin every time they use their Cash App Card. This is important as, for many people, investing can feel overwhelming. Round Ups provides a low-cost, easy, and approachable way to start investing and engages customers on other products within the Cash App ecosystem.

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With Round Ups, Cash App customers can automatically round up to the nearest dollar and invest spare change from their Cash App balance each time they make a purchase with their Cash App Card.

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BLOCK Q2 2022 6

A Cash App Borrow active is an account which had an outstanding loan in a given time period, excluding customers who are over 30 days past due.

Compares inflows across all products used by Cash App Borrow actives in the second quarter versus inflows from peerto-peer actives.

We believe credit is an area within our financial services offerings where we can provide simple, fair, and accessible products that promote financial health. Cash App Borrow, our first credit product, allows customers to access short-term loans for a small fee. The product offers customers up to $600 that can be paid back in scheduled installments or as a percentage of what they receive into Cash App. This product has reached meaningful scale while also achieving strong economics: In June, there were more than 1 million monthly actives using Cash App Borrow. We have been focused on driving profitable unit economics, enabled by our discipline around risk management. We can offer these loans to select customers based on their inflows, product usage, and other real-time customer insights, and as a result, we are uniquely able to provide access to credit to people who may be left out of the economy. In the second quarter, more than half of these loans were used for Cash App Card transactions or peer-to-peer payments, benefiting our broader ecosystem. Cash App Borrow actives are some of our most engaged customers, bringing in 4x the inflows as peer-to-peer actives.[1]

Commerce: In the second quarter, we made significant progress on the introduction of our new operating system for Cash App, bringing discovery to the main navigation. We believe this new design will allow our existing products to scale while also providing space for new products, including Commerce. The Discover Tab will make our commerce offerings — including Cash App Pay, Afterpay, and Boost — more prominent, and provide a more cohesive customer experience to help customers find things they care about, including friends and businesses. We have seen encouraging early results as the Discover Tab has enabled greater adoption of commerce among existing Cash App customers. We believe this will be a meaningful unlock for customers to adopt our suite of commerce products and is the first step in driving Cash App customers to Afterpay merchants.

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No association with any real persons is intended or should be inferred. Screens may be approximations as they are also provided for demonstration purposes.

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BLOCK Q2 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.

Total net revenue was $4.40 billion in the second quarter of 2022, down 6% year over year, driven by a decrease in bitcoin revenue. Excluding bitcoin, total net revenue in the second quarter was $2.62 billion, up 34% year over year. Gross profit was $1.47 billion, up 29% year over year and up 47% on a three-year CAGR basis, and included $18 million in amortization of acquired technology assets.

In the second quarter of 2022, our BNPL platform contributed $208 million of revenue and $150 million of gross profit. Excluding bitcoin and our BNPL platform, net revenue was $2.41 billion, up 23% year over year and up 32% on a three-year CAGR basis. Excluding our BNPL platform, gross profit was $1.32 billion, up 16% on a yearover-year basis and 42% on a three-year CAGR basis.

Transaction-based revenue was $1.48 billion in the second quarter of 2022, up 20% year over year, and transactionbased gross profit was $600 million, up 10% year over year. We processed $52.5 billion in GPV in the second quarter of 2022, up 23% year over year. Transaction-based gross profit as a percentage of GPV was 1.14% in the second quarter of 2022, down 13 basis points year over year and down 4 basis points quarter over quarter.

Subscription and services-based revenue was $1.09 billion in the second quarter of 2022, up 60% year over year, and subscription and services-based gross profit was $882 million, up 56% year over year. Excluding our BNPL platform, subscription and services-based revenue was $887 million and subscription and services-based gross profit was $732 million, up 29% and 30% year over year, respectively.

Bitcoin revenue was $1.79 billion in the second quarter of 2022, down 34% year over year. Bitcoin gross profit was $41 million, or 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 and peer-to-peer payments sent from a credit card. GPV does not include contributions 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 Q2 2022 8

SQUARE ECOSYSTEM REVENUE AND GROSS PROFIT

In the second quarter of 2022, Square generated $1.73 billion of revenue and $755 million of gross profit. On a year-over-year basis, Square revenue and gross profit grew 32% and 29%, respectively, and on a three-year CAGR basis, Square revenue and gross profit grew 26% and 30%, respectively.

Our BNPL platform contributed $104 million of revenue and $75 million of gross profit to Square in the second quarter of 2022. Excluding our BNPL platform, Square generated $1.62 billion of revenue and $681 million of gross profit, up 24% and 16% on a year-over-year basis, respectively. On a three-year CAGR basis, Square revenue and gross profit excluding our BNPL platform grew 23% and 25%, respectively.

In the second quarter of 2022, Square generated $1.36 billion of transaction-based revenue, up 22% year over year and 21% on a three-year CAGR basis. We saw strong growth on a year-over-year and three-year CAGR basis driven by 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 continued to normalize towards pre-pandemic levels.

In the second quarter of 2022, Square GPV was up 25% year over year and 23% on a three-year CAGR basis. We observed the following trends in Square GPV during the second quarter of 2022.

Products: Card-present GPV achieved strong growth in the second quarter, up 29% year over year and 22% on a three-year CAGR basis. Card-not-present GPV was up 16% year over year and 24% on a three-year CAGR basis.
Geographies: In the second quarter, Square GPV in our U.S. market grew 22% year over year, and growth in our international markets was 45% year over year, outpacing overall Square GPV growth.

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BLOCK Q2 2022 9

Square generated $318 million of subscription and services-based revenue during the second quarter of 2022, up 110% year over year and 53% on a three-year CAGR basis. Excluding our BNPL platform, subscription and services-based revenue was $214 million, up 41% year over year and 34% 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 second quarter of 2022, facilitating approximately 122,000 loans totaling $1.01 billion in originations, up 30% year over year. Square Loans benefited from $9 million of Paycheck Protection Program (PPP) loan forgiveness revenue and gross profit during the second quarter, compared to $51 million of revenue and gross profit in the first quarter. PPP loan forgiveness revenue is primarily a near-term benefit as revenue is recognized in the period PPP loans are forgiven.

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

2Q19	2Q20	2Q21	2Q22
Square subscription and services-based revenue $90M PPP loan forgiveness revenue $0M Square subscription and services-based revenue excluding PPP forgiveness $90M BNPL platform subscription and services-based revenue allocated to Square $0M	$75M $0M $75M $0M	$151M $15M $136M $0M	$318M $9M $309M $104M
Square subscription and services-based revenue excluding PPP forgiveness and excluding contributions from BNPL platform $90M	$75M	$136M	$205M

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 second quarter of 2022 was $48 million, up 10% year over year and 29% on a threeyear CAGR basis, and generated a gross loss of $35 million as we use hardware as an acquisition tool. Revenue growth was driven primarily by strong unit sales of Square Register and Square Terminal.

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BLOCK Q2 2022 10

CASH APP ECOSYSTEM REVENUE AND GROSS PROFIT

In the second quarter of 2022, Cash App generated $2.62 billion of revenue and $705 million of gross profit. On a year-over-year basis, Cash App revenue was down 21% and gross profit was up 29%, and on a three-year CAGR basis, Cash App revenue and gross profit grew 116% and 88%, respectively. Excluding bitcoin and our BNPL platform, Cash App revenue was $732 million, up 21% year over year and 76% on a three-year CAGR basis.

Our BNPL platform contributed $104 million of revenue and $75 million of gross profit to Cash App in the second quarter of 2022. Excluding our BNPL platform, Cash App generated $630 million of gross profit, up 15% on a year-over-year basis and 82% on a three-year CAGR basis.

We drove growth in net new transacting actives and strong engagement across products in our Cash App ecosystem, such that overall inflows grew quarter over quarter and year over year. Inflows per transacting active were $1,048 in the second quarter of 2022, relatively stable on a quarter-overquarter basis despite a greater impact from tax refunds in the first quarter of 2022. On a year-over-year basis, inflows per active were down 11%, primarily as a result of government disbursements in the prior-year period that did not recur in 2022.

Cash App Business GPV was $4.2 billion, up 4% year over year and 86% on a three-year CAGR basis. Cash App Business GPV consists of peer-to-peer transactions received by business accounts and peer-to-peer payments sent from a credit card. Cash App generated $116 million of transaction-based revenue during the second quarter of 2022, up 5% year over year and 90% on a three-year CAGR basis. Growth was driven by an increase in the number of business accounts and in the number of transactions.

Cash App generated $720 million of subscription and services-based revenue during the second quarter, up 46% year over year and 83% 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 $616 million, up 24% year over year and 73% on a threeyear CAGR basis.

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BLOCK Q2 2022 11

Bitcoin revenue is the total sale amount of bitcoin to customers. Bitcoin costs are the total amount of bitcoin that we purchase. We purchase bitcoin to facilitate customers’ access to bitcoin.	Cash App generated $1.79 billion of bitcoin revenue and $41 million of bitcoin gross profit during the second quarter of 2022, down 34% and 24% year over year, respectively. On a three-year CAGR basis, bitcoin revenue and gross profit grew 143% and 168%, respectively. The year-over- year decrease in bitcoin revenue and gross profit was driven primarily by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of bitcoin during the quarter. Bitcoin revenue and gross profit were relatively consistent compared to the first quarter of 2022. In future quarters, bitcoin revenue and gross profit may fluctuate as a result of changes in customer demand or the market price of bitcoin. CORPORATE AND OTHER REVENUE AND GROSS PROFIT
	Corporate and Other generated $57 million in revenue and $9 million in gross profit during the second quarter of 2022, and comprised areas outside Square and Cash App, which was primarily TIDAL during the quarter.

Bitcoin revenue is the total sale
amount of bitcoin to customers.
Bitcoin costs are the total amount
of bitcoin that we purchase. We
purchase bitcoin to facilitate
customers’ access to bitcoin.

Cash App generated $1.79 billion of bitcoin revenue and
$41 million of bitcoin gross profit during the second quarter
of 2022, down 34% and 24% year over year, respectively.
On a three-year CAGR basis, bitcoin revenue and gross
profit grew 143% and 168%, respectively. The year-over-
year decrease in bitcoin revenue and gross profit was
driven primarily by a decline in consumer demand and the
price of bitcoin, related in part to broader uncertainty around
crypto assets, which more than offset the benefit of volatility
in the price of bitcoin during the quarter. Bitcoin revenue
and gross profit were relatively consistent compared to the
first quarter of 2022. In future quarters, bitcoin revenue and
gross profit may fluctuate as a result of changes in
customer demand or the market price of bitcoin.
CORPORATE AND OTHER REVENUE AND GROSS
PROFIT

Corporate and Other generated $57 million in revenue and
$9 million in gross profit during the second quarter of 2022,
and comprised areas outside Square and Cash App, which
was primarily TIDAL during the quarter.

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BLOCK Q2 2022 12

OPERATING EXPENSES

Operating expenses were $1.68 billion in the second quarter of 2022, up 66% year over year, and included $39 million of amortization of customer and other acquired intangible assets, primarily related to the acquisition of Afterpay. Non-GAAP operating expenses were $1.30 billion, up 65% year over year.

Product development expenses were $525 million on a GAAP basis and $312 million on a non-GAAP basis in the second quarter of 2022, up 62% 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.

We discuss Cash App marketing expenses because a large portion is generated by our peerto-peer service, which we offer free to our Cash App customers, and we consider it to be a marketing tool to encourage the use of Cash App.

Sales and marketing expenses were $531 million on a GAAP basis and $504 million on a non-GAAP basis in the second quarter of 2022, up 42% and 41% year over year, respectively.

Cash App marketing expenses were up 28% year over year, driven primarily by increases in advertising and referrals, as well as peer-to-peer transactions and related transaction losses.
Other sales and marketing expenses were up 63% year over year. The increase was driven primarily by headcount and personnel costs, marketing expenses for Square, and 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 $396 million on a GAAP basis and $313 million on a non-GAAP basis in the second quarter of 2022, both up 79% year over year. The increase was due primarily to additions to customer support, finance, and legal personnel, as well as expenses related to our BNPL platform.

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BLOCK Q2 2022 13

Transaction, loan, and consumer receivables losses were $157 million in the second quarter of 2022, up 225% year over year. The increase was driven primarily from consumer receivables losses related to our BNPL platform, as well as growth in Square GPV. In the second 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 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 second quarter of 2022, we recognized a bitcoin impairment loss of $36 million on our bitcoin investment. As of June 30, 2022, the fair value of our investment in bitcoin was $160 million based on observable market prices, which is $47 million greater than the carrying value of the investment after impairment charges.

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BLOCK Q2 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 pretax income and applying it to Adjusted Net Income before income taxes.

In the second quarter of 2022, net loss attributable to common stockholders was $208 million, which was impacted by $57 million of amortization of acquired intangible assets, a $36 million bitcoin impairment loss, and $17 million in deal and integration-related expenses; excluding these items, net loss was $98 million. Net loss per share attributable to common stockholders was $0.36 on a basic and diluted basis in the second quarter of 2022, based on 581 million weighted-average basic and diluted shares outstanding.

Adjusted EBITDA was $187 million in the second quarter of 2022, compared to $360 million in the second quarter of 2021. The decrease in Adjusted EBITDA compared to the prior-year period was driven by an increase in operating expenses, including expenses related to our BNPL platform.

Adjusted Net Income Per Share (Adjusted EPS) was $0.18 on a diluted basis based on 619 million weighted-average diluted shares for the second quarter of 2022, representing a $0.31 decrease year over year.

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BLOCK Q2 2022 15

BALANCE SHEET/CASH FLOW

We ended the second quarter of 2022 with $6.8 billion in available liquidity, with $6.2 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 $1.5 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 second quarter of 2022, Adjusted EBITDA contributed positively to our cash balance. Our cash balance was impacted by cash outflows due to net investments in marketable debt securities, repayments of PPP Liquidity Facility advances, and purchases of property and equipment.

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BLOCK Q2 2022 16

July Trends and Forward-Looking Commentary

BUSINESS TRENDS

We wanted to provide an update on the trends in our business during the month of July. For the third quarter of 2022, we believe three-year compound annual growth rates from 2019 through 2022 will help reflect underlying trends in each ecosystem, given the variability in year-over-year and two-year CAGR comparisons due to COVID-19.

Square ecosystem

For the month of July, Square GPV is expected to be up 18% year over year. On a three-year CAGR basis, GPV growth is expected to be 23% in July, consistent with 23% growth in the second quarter.

Cash App ecosystem

In July, we expect Cash App gross profit, excluding our BNPL platform, to grow on a year-over-year and three-year CAGR basis, driven by growth in monthly transacting actives, engagement across our ecosystem, and inflows into Cash App.

OPERATING EXPENSES

We believe our Cash App and Square ecosystems are well positioned to help our customers adapt and grow based on trends we have observed during recent quarters. We intend on being disciplined with our investments, particularly as we enter a potentially dynamic macro environment.

For the third quarter of 2022, we expect non-GAAP operating expenses across product development, sales and marketing, general and administrative expenses, and transaction, loan and consumer receivables losses, in aggregate, to increase by approximately $75 million compared to the second quarter of 2022. Excluding contributions from our BNPL platform, we expect to increase overall non-GAAP operating expenses by approximately $65 million compared to the second quarter.

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

Share-based compensation: In the third quarter of 2022, we expect our share-based compensation expense to increase modestly quarter over quarter on a dollar basis. These 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 a reconciliation of other GAAP to non-GAAP metrics in tables at the end of this letter.

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BLOCK Q2 2022 17

MEDIA CONTACT [email protected] INVESTOR RELATIONS CONTACT Earnings [email protected] Webcast

Block (NYSE:SQ) will host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time, August 4, 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 2022 on November 3, 2022, 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 Q2 2022 18

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BLOCK Q2 2022 19

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BLOCK Q2 2022 20

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

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BLOCK Q2 2022 21

KEY OPERATING METRICS AND NON-GAAP FINANCIAL MEASURES

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

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BLOCK Q2 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 June 30,2022 $ 1,475,707 1,094,856 48,051 1,785,885 4,404,499 875,762 213,271 83,494 1,744,425 17,899 2,934,851 1,469,648 524,827 530,827 395,720 156,697 35,961 39,389 1,683,421 (213,773) 12,966 (18,766) (207,973) 1,304 (209,277) (1,263) $ (208,014) $ (0.36) $ (0.36) 581,350 581,350	THS ENDED June 30 2021 $ 1,227,472 685,178 43,726 2,724,296 4,680,672 682,349 120,810 61,403 2,669,641 5,405 3,539,608 1,141,064 324,059 373,878 220,865 48,173 45,266 3,829 1,016,070 124,994 6,464 (75,788) 194,318 (9,360) 203,678 (343) $ 204,021 $ 0.45 $ 0.40 455,431 522,578	SIX MONT June 30,2022 $ 2,708,676 2,054,413 85,377 3,516,678 8,365,144 1,591,998 396,128 147,158 3,431,884 33,368 5,600,536 2,764,608 983,051 1,032,389 839,869 247,847 35,961 66,053 3,205,170 (440,562) 28,714 (52,238) (417,038) (398) (416,640) (4,427) $ (412,213) $ (0.73) $ (0.73) 561,501 561,501	HS ENDED June 30,2021
				$ 2,187,205 1,242,859 72,514 6,235,364
Total net revenue				9,737,942
Cost of revenue: Transaction-based costs Subscription and services-based costs Hardware costs Bitcoin costs Amortization of acquired technologyassets				1,206,629 209,382 101,885 6,105,776 9,705
Total cost of revenue				7,633,377
Grossprofit				2,104,565
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				631,769 723,338 416,621 68,568 65,126 6,413
Total operatingexpenses				1,911,835
Operatingincome(loss)				192,730
Interest expense, net Other income,net				6,717 (48,260)
Income(loss)before income tax				234,273
Provision(benefit)for income taxes				(8,413)
Net income (loss) Less: Net loss attributable to noncontrollinginterests				242,686 (343)
Net income(loss)attributable to common stockholders				$ 243,029
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 Q2 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	June 30,2022 (UNAUDITED) $ 4,020,466 938,998 1,472,908 2,905,377 1,264,198 465,693 507,533 951,162 12,526,335 308,222 11,982,135 2,148,078 1,019,340 446,237 454,813 $ 28,885,160 $ 4,545,675 264,936 989,335 459,984 507,533 125,107 68,416 6,960,986 189,198 192,618 4,104,664 332,768 213,515 11,993,749 — — — 17,725,198 (429,916) (440,178) 16,855,104 36,307 16,891,411 $ 28,885,160	December 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 June 30, 2022 and December 31, 2021. None issued and outstanding at June 30, 2022 and December 31, 2021. Class A common stock, $0.0000001 par value: 1,000,000,000 shares authorized at June 30, 2022 and December 31, 2021; 524,712,126 and 403,237,209 issued and outstanding at June 30, 2022 and December 31, 2021, respectively. Class B common stock, $0.0000001 par value: 500,000,000 shares authorized at June 30, 2022 and December 31, 2021; 60,657,578 and 61,706,578 issued and outstanding at June 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 Q2 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 (used in) operating activities: Depreciation and amortization Non-cash interest and other Non-cash lease expense Share-based compensation 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 Purchases and originations of loans Proceeds from payments and forgiveness of loans Customers payable Settlements payable Other assets and liabilities	SIX MONT June 30,2022 $ (416,640) 160,895 (218,185) 47,871 532,061 (44,626) 247,847 35,961 (21,374) (428,991) (2,382,295) 2,411,683 332,827 10,325 (152,562) 114,797 (383,372) 540,914 234,142 — 73,000 316,576 (7,543,996) 7,688,413 (85,420) — (39,448) — 539,474 1,340,283 — — (429,117) (1,071,788) 376,219 (282,550) 43,117 (4,253) 53,791 74,382 (1,240,199) (35,442) 179,439 6,975,090 $ 7,154,529	HS ENDED June 30,2021
		$ 242,686 57,595 11,324 41,047 264,988 (47,843) 68,568 65,126 (473) (220,975) (1,664,016) 1,284,077 175,677 17,646 (49,273)
Net cashprovided byoperatingactivities		246,154
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		(1,482,486) 296,082 374,760 (387,463) 334,200 — — — (66,628) (170,000) (45,425) 378,225 (164,304)
Net cashprovided by (used in)investingactivities		(933,039)
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 Net increase in non-interest bearing deposits Change in customer funds,restricted from use in the Company’s operations		1,971,828 681,542 (321,953) — — — 72,155 (292,225) — 809,645
Net cashprovided by (used in)financingactivities		2,920,992
Effect of foreign exchange rate on cash and cash equivalents		(7,092)
Net increase in cash, cash equivalents, restricted cash, and customer funds Cash,cash equivalents,restricted cash,and customer funds,beginningof theperiod		2,227,015 4,793,171
Cash,cash equivalents,restricted cash,and customer funds,end of theperiod		$ 7,020,186

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BLOCK Q2 2022 25

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	Cash App	THREE MONT JUNE 30 (UNAUD Square	HS ENDED , 2022 ITED) Corporate and Other(i)	Total	Cash App	SIX MONTH JUNE 30 (UNAUD Square	S ENDED , 2022 ITED) Corporate and Other(i)	Total
	$ 116,068 720,180 — 1,785,885	$ 1,359,639 317,835 48,051 —	$ — 56,841 — —	$ 1,475,707 1,094,856 48,051 1,785,885	$ 225,309 1,342,489 — 3,516,678	$ 2,483,367 600,485 85,377 —	$ — 111,439 — —	$ 2,708,676 2,054,413 85,377 3,516,678
Segment revenue(ii)	2,622,133	1,725,525	56,841	4,404,499	5,084,476	3,169,229	111,439	8,365,144
Segmentgrossprofit(iii)	$ 704,893	$755,439$	9,316	$ 1,469,648	$ 1,328,552	$ 1,416,660	$ 19,396	$ 2,764,608
Revenue Transaction-based revenue Subscription and services-based revenue Hardware revenue Bitcoin revenue	Cash App	THREE MONT JUNE 30 (UNAUD Square	HS ENDED , 2021 ITED) Corporate and Other(i)	Total	Cash App	SIX MONTH JUNE 30 (UNAUD Square	S ENDED , 2021 ITED) Corporate and Other(i)	Total
	$ 110,950 494,945 — 2,724,296	$ 1,116,522 151,240 43,726 —	$ — 38,993 — —	$ 1,227,472 685,178 43,726 2,724,296	$ 202,909 931,534 — 6,235,364	$ 1,984,296 272,332 72,514 —	$ — 38,993 — —	$ 2,187,205 1,242,859 72,514 6,235,364
Segment revenue	3,330,191	1,311,488	38,993	4,680,672	7,369,807	2,329,142	38,993	9,737,942
Segmentgrossprofit	$ 546,053	$ 585,137	$ 9,874	$ 1,141,064	$ 1,041,538	$ 1,053,153	$ 9,874	$ 2,104,565
Revenue Transaction-based revenue Subscription and services-based revenue Hardware revenue Bitcoin revenue	Cash App	THREE MONT JUNE 30 (UNAUD Square	HS ENDED , 2020 ITED) Corporate and Other(i)	Total	Cash App	SIX MONTH JUNE 30 (UNAUD Square	S ENDED , 2020 ITED) Corporate and Other(i)	Total
	$ 53,657 271,156 — 875,456	$ 628,915 75,119 19,322 —	$ — — — —	$ 682,572 346,275 19,322 875,456	$ 81,476 464,881 — 1,181,554	$ 1,359,197 177,629 39,997 —	$ — — — —	$ 1,440,673 642,510 39,997 1,181,554
Segment revenue	1,200,269	723,356	—	1,923,625	1,727,911	1,576,823	—	3,304,734
Segmentgrossprofit	$ 281,063	$ 315,700	$ —	$ 596,763	$ 463,795	$ 671,469	$ —	$ 1,135,264

(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 six months ended June 30, 2022 includes $104.1 million and $168.9 million each from Afterpay post-acquisition results.

(iii) The gross profit for both Cash App and Square for the three and six months ended June 30, 2022 includes $74.8 million and $121.0 million each from Afterpay post-acquisition results.

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BLOCK Q2 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	Cash App	THREE MON JUNE 3 (UNAU Square	THS ENDED 0, 2019 DITED) Corporate and Other(i)	Total	Cash App	Total
	$ 16,966 118,442 — 125,085	$ 758,544 89,552 22,260 —	$ — — — —	$ 775,510 207,994 22,260 125,085	$ 32,246 215,036 — 190,613	$ 1,432,272 380,320 40,472 190,613
Segment revenue	260,493	870,356	—	1,130,849	437,895	2,043,677
Segmentgrossprofit	$ 105,341	$ 347,208	$ —	$ 452,549	$ 190,152	$ 837,863

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 ( June 30, 2022 $1,469,648 524,827 530,827 395,720 156,697 35,961 39,389 12,966 (18,766) $ (207,973)	E MONTHS ENDE UNAUDITED) June 30, 2021 $1,141,064 324,059 373,878 220,865 48,173 45,266 3,829 6,464 (75,788) $ 194,318	D June 30, 2020 $596,763 207,730 238,096 136,386 37,603 — — 14,769 (25,591) $ (12,230)	SIX June 30, 2022 $2,764,608 983,051 1,032,389 839,869 247,847 35,961 66,053 28,714 (52,238) $ (417,038)	MONTHS ENDE (UNAUDITED) June 30, 2021 $ 2,104,565 631,769 723,338 416,621 68,568 65,126 6,413 6,717 (48,260) $ 234,273	D June 30, 2020 $1,135,264 403,606 432,631 265,881 146,486 — — 23,975 (19,729) $ (117,586)
Income(loss)before applicable income taxes

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BLOCK Q2 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 Cash App GPV Square	June 30, 2022 $ 52,499 $187,342 $ 0.19 $ 0.18	THREE MONT June 30, 2021 $ 42,828 $359,820 $ 0.56 $ 0.49	HS ENDED June 30, 2020 $ 22,801 $ 97,931 $ 0.20 $ 0.18	June 30, 2019 $ 26,785 $105,304 $ 0.23 $ 0.21	June 30, 2022 $ 96,003 $382,703 $ 0.38 $ 0.36 June 30, 2022 $ 4,224 $ 48,275 $ 52,499	SIX MONTH June 30, 2021 $ 75,966 $596,069 $ 0.93$ $ 0.81$ THREE MON June 30, 2021 $ 4,075 $ 38,753 $ 42,828	S ENDED June 30, 2020 $ 48,544 $107,262 0.18 0.17 THS ENDED June 30, 2020 $ 1,968 $ 20,833 $ 22,801	June 30, 2019
								$ 49,371 $167,001 $ 0.36 $ 0.32 June 30, 2019
								$ 656 $ 26,129
Total GPV								$ 26,785

Adjusted EBITDA

UNAUDITED

In thousands

THREE June 30, 2022 Net income (loss) attributable to common stockholders $(208,014) Net loss attributable to noncontrollinginterests (1,263) Net income (loss) (209,277) Share-based compensation expense 256,638 Depreciation and amortization 90,839 Acquisition-related, integration and other costs 17,067 Interest expense, net 12,966 Other income, net (18,766) Bitcoin impairment losses 35,961 Provision (benefit) for income taxes 1,304 Loss on disposal of property and equipment 548 Acquired deferred revenue adjustment 103 Acquired deferred cost adjustment (41) Adjusted EBITDA $ 187,342	MONTHS EN June 30, 2021 $ 204,021 (343) 203,678 146,365 28,394 14,292 6,464 (75,788) 45,266 (9,360) 374 195 (60) $359,820	DED June 30, 2020 $ (11,478) — (11,478) 96,180 21,056 2,056 14,769 (25,591) — (752) 1,481 302 (92) $ 97,931	SIX June 30, 2022 $(412,213) (4,427) (416,640) 532,061 160,895 93,132 28,714 (52,238) 35,961 (398) 1,082 221 (87) $ 382,703	MONTHS END June 30, 2021 $ 243,029 (343) 242,686 264,988 57,595 14,318 6,717 (48,260) 65,126 (8,413) 989 447 (124) $596,069	ED June 30, 2020
					$ (117,369) —
					(117,369) 173,483 41,117 3,580 23,975 (19,729) — (217) 1,699 959 (236)
					$ 107,262

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BLOCK Q2 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	June 30, 2022	THREE MON June 30, 2021	THS ENDED June 30, 2020	June 30, 2019	June 30, 2022	SIX MONT June 30, 2021	HS ENDED June 30, 2020	June 30, 2019
	$4,404,499 1,785,885 208,125	$4,680,672 2,724,296 —	$1,923,625 875,456 —	$1,174,238 125,085 —	$8,365,144 3,516,678 337,889	$9,737,942 6,235,364 —	$3,304,734 1,181,554 —	$2,133,597 190,613 —
Total net revenue, excluding Bitcoin and BNPL Platform	$2,410,489	$1,956,376	$1,048,169	$1,049,153	$4,510,577	$3,502,578	$2,123,180	$1,942,984
Gross Profit (GAAP) Less: BNPL Platform contribution togrossprofit	June 30, 2022	THREE MON June 30, 2021	THS ENDED June 30, 2020	June 30, 2019	June 30, 2022	SIX MONT June 30, 2021	HS ENDED June 30, 2020	June 30, 2019
	$1,469,648 149,648	$1,141,064 —	$ 596,763 —	$ 465,845 —	$2,764,608 241,929	$2,104,565 —	$1,135,264 —	$ 862,599 —
Totalgrossprofit,excludingBNPL Platform	$1,320,000	$1,141,064	$ 596,763	$ 465,845	$2,522,679	$2,104,565	$1,135,264	$ 862,599
Bitcoin Revenue Bitcoin costs	June 30, 2022	THREE MON June 30, 2021	THS ENDED June 30, 2020	June 30, 2019	June 30, 2022	SIX MONT June 30, 2021	HS ENDED June 30, 2020	June 30, 2019
	$1,785,885 1,744,425	$2,724,296 2,669,641	$ 875,456 858,041	$ 125,085 122,938	$3,516,678 3,431,884	$6,235,364 6,105,776	$1,181,554 1,157,467	$ 190,613 187,634
Bitcoingrossprofit	$ 41,460	$ 54,655	$ 17,415	$ 2,147	$ 84,794	$ 129,588	$ 24,087	$ 2,979
Cash App revenue (GAAP) Less: Bitcoin contribution to Cash App revenue Less: BNPL Platform contribution to Cash App revenue	June 30, 2022	THREE MON June 30, 2021	THS ENDED June 30, 2020	June 30, 2019	June 30, 2022	SIX MONT June 30, 2021	HS ENDED June 30, 2020	June 30, 2019
	$2,622,133 1,785,885 104,063	$3,330,191 2,724,296 —	$1,200,269 875,456 —	$ 260,493 125,085 —	$5,084,476 3,516,678 168,945	$7,369,807 6,235,364 —	$ 1,727,911 1,181,554 —	$ 437,895 190,613 —
Total Cash App revenue, excluding Bitcoin and BNPL Platform	$ 732,185	$ 605,895	$ 324,813	$ 135,408	$1,398,853	$1,134,443	$ 546,357	$ 247,282
Square gross profit (GAAP) Less: Squaregrossprofit – U.S.			THR June 30, 2022	EE MONTHS EN June 30, 2021	DED June 30, 2020	SIX June 30, 2022	MONTHS END June 30, 2021	ED June 30, 2020
			$ 755,439 657,046	$ 585,137 536,965	$ 315,700 298,274	$1,416,660 1,213,908	$1,053,153 966,093	$ 671,469 632,238
Total Square Gross profit – International Less: BNPL Platform contribution to Squaregrossprofit – Interna		tional	98,393 31,430	48,172 —	17,426 —	202,752 77,622	87,060 —	39,231 —
Total Square gross profit – International, excludingBitcoin and BNPL Platform			$ 66,693	$ 48,172	$ 17,426	$ 125,130	$ 87,060	$ 39,231

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BLOCK Q2 2022 29

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

UNAUDITED

In thousands

UNAUDITED In thousands
						THREE	MONTHS ENDED			SIX	MONTHS ENDED
						June 30,	June 30,		June 30, June 30,		June 30,		June 30,
						2022	2021		2020 2022		2021		2020
Subscription and services-based revenue (GAAP)					$1,094,856		$685,178		$346,275$2,054,413		$1,242,859 $642,510
Less: BNPL Platform contribution to subscription	and services-based revenue					208,125		—	— 337,889			—	—
Total subscription and services-based revenue,excludingBNPL Platform					$	886,731	$685,178		$346,275 $1,716,524		$1,242,859 $642,510
Subscription and services-based costs (GAAP)					$	213,271	$120,810		$ 51,365$ 396,128		$ 209,382 $ 93,273
Less: BNPL Platform contribution to subscription	and services-based costs					58,477		—	— 95,960			—	—
Total subscription and services-based costs,excludingBNPL Platform					$	154,794	$120,810		$ 51,365 $ 300,168		$ 209,382 $ 93,273
Subscription and services-based gross profit (GAAP)					$	881,585	$564,368		$294,910$1,658,285		$1,033,477 $549,237
Less: BNPL Platform contribution to subscription	and services-basedgrossprofit					149,648		—	— 241,929			—	—
Total subscription and services-basedgrossprofit,excludingBNPL Platform $						731,937	$564,368		$294,910 $1,416,356		$1,033,477 $549,237
		THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS		ENDED
		JUNE 30, 2022			JUNE 30, 2021				JUNE 30, 2020		JUNE	30, 2019
	Cash App		Square	Cash App Square				Cash App Square		Cash App		Square
Segment revenue (GAAP)	$2,622,133 $1,725,525$3,330,191 $1,311,488							$1,200,269 $723,356		$	260,493	$	870,356
Less: BNPL Platform contribution to segment
revenue		104,063	104,063			—	—		— —		—		—
Total segment revenue, excluding BNPL
Platform		2,518,070	1,621,462		3,330,191 1,311,488			1,200,269 723,356			260,493		870,356
Segment cost of revenue (GAAP)		1,917,240	970,086		2,784,138 726,351				919,206 407,656		155,152		523,148
Less: BNPL Platform contribution to segment
cost of revenue		29,239	29,239			—	—		— —		—		—
Total segment cost of revenue, excluding
BNPL Platform		1,888,001	940,847		2,784,138 726,351				919,206 407,656		155,152		523,148
Segment gross profit (GAAP)		704,893	755,439		546,053 585,137				281,063 315,700		105,341		347,208
Less: BNPL Platform contribution to segment
grossprofit		74,824	74,824			—	—		— —		—		—
Total segment gross profit, excluding
BNPL Platform	$	630,069$	680,615$		546,053 $ 585,137			$	281,063 $315,700	$	105,341	$	347,208

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BLOCK Q2 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	SIX MONTH JUNE 3 Cash App $ 5,084,476 168,945 4,915,531 3,755,924 47,980 3,707,944 1,328,552 120,965 $ 1,207,587	S ENDED 0, 2022 Square $ 3,169,229 168,945 3,000,284 1,752,569 47,980 1,704,589 1,416,660 120,965 $ 1,295,695	SIX MONTH JUNE 30 Cash App $ 7,369,807 — 7,369,807 6,328,269 — 6,328,269 1,041,538 — $ 1,041,538	S ENDED , 2021 Square $2,329,142 — 2,329,142 1,275,989 — 1,275,989 1,053,153 — $1,053,153	SIX MONTH JUNE 3 Cash App $ 1,727,911 — 1,727,911 1,264,116 — 1,264,116 463,795 — $ 463,795	S ENDED 0, 2020 Square $ 1,576,823 — 1,576,823 905,354 — 905,354 671,469 — $ 671,469$	SIX MONT JUNE Cash App $ 437,895 — 437,895 247,743 — 247,743 190,152 — 190,152	HS ENDED 30, 2019 Square
								$ 1,605,782 —
Total segment revenue, excluding BNPL Platform								1,605,782
Segment cost of revenue (GAAP) Less: BNPL Platform contribution to segment cost of revenue								958,071 —
Total segment cost of revenue, excludingBNPL Platform								958,071
Segment gross profit (GAAP) Less: BNPL Platform contribution to segmentgrossprofit								647,711 —
Total segment gross profit, excludingBNPL Platform								$ 647,711

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BLOCK Q2 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 JUNE 30 Cash App $ 720,180 104,063 $ 616,117 SIX MONTH JUNE 30 Cash App $ 1,342,489 168,945 $ 1,173,544	THS ENDED , 2022 Square $ 317,835 104,063 $ 213,772 S ENDED , 2022 Square $ 600,485 168,945 $ 431,540	THREE MONT JUNE 30 Cash App $ 494,945 — $ 494,945 SIX MONTH JUNE 30 Cash App $ 931,534 — $ 931,534	HS ENDED , 2021 Square $ 151,240 — $ 151,240 S ENDED , 2021 Square $ 272,332 — $ 272,332	THREE MON JUNE 3 Cash App $ 271,156 — $ 271,156 SIX MONTH JUNE 3 Cash App $ 464,881 — $ 464,881	THS ENDED 0, 2020 Square $ 75,119 — $ 75,119 S ENDED 0, 2020 Square $ 177,629 — $ 177,629	THREE MON JUNE 3 Cash App $ 118,442 — $ 118,442 SIX MONTH JUNE 3 Cash App $ 215,036 — $ 215,036	THS ENDED 0, 2019 Square
								$ 89,552 —
Total segment revenue, subscription and services-based excluding BNPL Platform								$ 89,552
Segment revenue, subscription and services- based (GAAP) Less: BNPL Platform contribution to segment revenue, subscription and services-based (GAAP)								S ENDED 0, 2019 Square
								$ 165,284 —
Total segment revenue, subscription and services-based excluding BNPL Platform								$ 165,284

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BLOCK Q2 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 June 30, 2022 $ (208,014) (1,263) (209,277) 256,638 17,067 57,288 3,826 5,115 35,961 — 548 103 (41) (57,734) $ 109,494 $ 1,247 $ 110,741 581,350 581,350 $ (0.36) $ (0.36) 581,350 619,272 $ 0.19 $ 0.18	EE MONTHS END June 30, 2021 $ 204,021 (343) 203,678 146,365 14,292 9,234 2,305 (76,744) 45,266 — 374 195 (60) (90,447) $ 254,458 $ 1,611 $ 256,069 455,431 522,578 $ 0.45 $ 0.40 455,431 522,577 $ 0.56 $ 0.49	ED June 30, 2020 $ (11,478) — (11,478) 96,180 2,056 4,134 17,580 (20,998) — — 1,481 302 — (92) $ 89,165 $ 1,565 $ 90,730 440,117 440,117 $ (0.03) $ (0.03) 440,117 500,201 $ 0.20 $ 0.18	SI June 30, 2022 $ (412,213) (4,427) (416,640) 532,061 93,132 99,421 7,456 (44,626) 35,961 — 1,082 221 (87) (96,060) $ 211,921 $ 2,488 $ 214,409 561,501 561,501 $ (0.73) $ (0.73) 561,501 602,002 $ 0.38 $ 0.36	X MONTHS ENDE June 30, 2021 $ 243,029 (343) 242,686 264,988 14,318 16,118 4,137 (47,844) 65,126 — 989 447 (124) (137,984) $ 422,857 $ 3,339 $ 426,196 455,203 519,713 $ 0.53 $ 0.48 455,203 523,557 $ 0.93 $ 0.81	D June 30, 2020
						$ (117,369) —
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 on disposal of property and equipment Acquired deferred revenue adjustment Acquired deferred cost adjustment Tax effect of non-GAAP net income adjustments						(117,369) 173,483 3,580 8,286 30,108 (20,998) — 990 1,699 959 (236) —
Adjusted Net Income(Loss)- basic						$ 80,502
Cash interest expense on convertible notes						$ 2,938
Adjusted Net Income(Loss)- diluted						$ 83,440
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic						437,529
Diluted						437,529
Net Income (loss) per share attributable to common stockholders: Basic						$ (0.27)
Diluted						$ (0.27)
Weighted-average shares used to compute Adjusted Net Income (Loss) Per Share: Basic						437,529
Diluted						495,181
Adjusted Net Income (Loss) Per Share: Basic						$ 0.18
Diluted						$ 0.17

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BLOCK Q2 2022 33

Non-GAAP Operating Expenses UNAUDITED

In thousands

Operating expenses Share-based compensation Depreciation and amortization Bitcoin impairment losses Loss on disposal of property and equipment Acquisition related,integration and other costs	THR June 30, 2022 $(1,683,421) 256,499 72,715 35,961 548 17,067 $(1,300,631) $ (530,827) 179,137 33,705 29 $ (311,956) $ (530,827)) 25,133 1,438 80 $ (504,176) $ (395,720) 52,229 13,036 439 17,067 $ (312,949)	EE MONTHS END June 30, 2021 $(1,016,070) 146,253 22,989 45,266 374 14,292 $ (786,896) $ (324,059) 106,161 15,400 6 $ (202,492) $ (373,878) 13,777 2,450 — $ (357,651) $ (220,865) 26,315 5,139 368 14,292 $ (174,751)	ED June 30, 2020 $ (619,815) 96,085 18,788 — 1,481 2,056 $ (501,405) $ (207,730) 69,565 13,601 147 $ (124,417) $ (238,096) 8,884 1,033 (59) $ (228,238) $ (136,386) 17,636 4,154 1,393 2,056 $ (111,147)	SI June 30, 2022 $(3,205,170) 531,813 127,302 35,961 1,082 93,132 $(2,415,880) $ (983,051 324,212 79,499 10 $ (579,380) $(1,032,389) 46,389 2,929 500 $ (982,571) $ (839,869) 161,212 20,388 572 93,132 $ (564,565)	X MONTHS ENDE June 30, 2021 $ (1,911,835) 264,777 47,890 65,126 989 14,318 $(1,518,735) $ (613,769) 193,056 34,258 345 $ (404,110) $ (723,338) 24,657 3,723 — $ (694,958) $ (416,621) 47,064 9,909 644 14,318 $ (344,686)	D June 30, 2020
						$(1,248,604) 173,312 36,423 — 1,699 3,580
Non-GAAP operatingexpenses						$(1,033,590)
Product development Share-based compensation Depreciation and amortization Loss(gain)on disposal ofpropertyand equipment						$ (403,606) 126,965 26,827 305
Non-GAAPproduct development						$ (249,509)
Sales and marketing Share-based compensation Depreciation and amortization Loss on disposal ofpropertyand equipment						$ (432,631) 15,291 1,997 1
Non-GAAP sales and marketing						$ (415,342)
General and administrative Share-based compensation Depreciation and amortization Loss on disposal of property and equipment Acquisition related,integration and other costs						$ (265,881) 31,056 7,599 1,393 3,580
Non-GAAPgeneral and administrative						$ (222,253)

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 June 30, 2022 $ 18,124 33,705 1,438 13,036 24,536 $ 90,839	EE MONTHS END June 30, 2021 $ 5,405 15,400 2,450 5,139 — $ 28,394	ED June 30, 2020 $ 2,268 13,601 1,033 4,154 — $ 21,056	SIX June 30, 2022 $ 33,593 79,449 2,929 20,388 24,536 $ 160,895	MONTHS ENDED June 30, 2021 $ 9,705 34,258 3,723 9,909 — $ 57,595	June 30, 2020
						$ 4,694 26,827 1,997 7,599 —
Total depreciation and amortization						$ 41,117

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BLOCK Q2 2022 34

AI assistant

Block, Inc. — Interim / Quarterly Report 2022

30034_rns_2022-08-04_712a3460-e744-4b07-afbd-773149ad0687.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.

Q2’22 Highlights

ON THE COVER

[To Our Shareholders]

August 4, 2022

Q2 2022 GROSS PROFIT

Square Ecosystem

Enhancing our ecosystem of products

Growing upmarket

Expanding globally

Cash App Ecosystem

Network strength

Driving engagement

Financial Discussion

REVENUE AND GROSS PROFIT

SQUARE ECOSYSTEM REVENUE AND GROSS PROFIT

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

CASH APP ECOSYSTEM REVENUE AND GROSS PROFIT

OPERATING EXPENSES

EARNINGS

BALANCE SHEET/CASH FLOW

July Trends and Forward-Looking Commentary

BUSINESS TRENDS

Square ecosystem

Cash App ecosystem

OPERATING EXPENSES

MEDIA CONTACT [email protected] INVESTOR RELATIONS CONTACT Earnings [email protected] 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

Operating 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

Adjusted Net Income and Adjusted EPS UNAUDITED

Non-GAAP Operating Expenses UNAUDITED

Depreciation and Amortization by Function

UNAUDITED

More from Block, Inc.

Block, Inc. Interim / Quarterly Report 2022