01—Abstract
Summary
Summary of the 10-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Block, Inc. (XYZ) reported total net revenue of $24.19 billiona for 2025, essentially flat versus $24.12 billion in 2024, while gross profit rose to $10.36 billion from $8.89 billion.
Excluding bitcoin ecosystem revenue, which fell $1.9 billion to $8.50 billionb, total net revenue increased $1.9 billion, or 14%. Operating income was $1.71 billion versus $892.3 million in 2024, net income attributable to common stockholders was $1.31 billion versus $2.90 billion (2024 included $1.9 billion of tax benefits), and Adjusted EBITDA was $3.47 billion, up 14% year over year. Cash App gross profit grew 21% to $6.34 billion, driven by Cash App Borrow, and Square gross profit grew 9% to $3.94 billion.
Loss-related and credit costs rose sharply: transaction, loan, and consumer receivable losses increased 68% to $1.34 billionc, with loan losses up 154%, as loans are now retained on the balance sheet as held for investment. Total liquidity was $9.19 billion at year-end, against $7.35 billion of principal outstanding across convertible and senior notes, and the company repurchased $2.3 billion of stock in 2025 under an expanded $9 billion authorization.
In February 2026, Block announced a Workforce Plan to reduce its workforce by more than 40%, with estimated charges of $450 million to $500 milliond, mostly expected in the first quarter of 2026 and substantially complete by the end of the second quarter of 2026. The filing also discloses pending matters, including state Attorney General discussions that the company says could result in a material loss, a federal securities class action whose motion to dismiss was denied, and an SEC and DOJ inquiry.
02—Key points
Key Highlights
- Total net revenue of $24.19 billion in 2025, roughly flat versus $24.12 billion in 2024; excluding bitcoin ecosystem revenue, net revenue increased 14%.
- Gross profit rose to $10.36 billion, up 17% year over year, with Cash App gross profit up 21% to $6.34 billion and Square gross profit up 9% to $3.94 billion.
- Operating income of $1.71 billion (vs. $892.3 million in 2024); Adjusted EBITDA of $3.47 billion, up 14%.
- Net income attributable to common stockholders fell to $1.31 billion from $2.90 billion, as 2024 included $1.9 billion of tax benefits.
- Transaction, loan, and consumer receivable losses rose 68% to $1.34 billion, with loan losses up 154% as Cash App Borrow loans moved to held-for-investment accounting.
- Workforce Plan announced February 2026 to reduce the workforce by more than 40%, with estimated charges of $450 million to $500 million.
- Year-end available liquidity of $9.19 billion; $2.3 billion of share repurchases in 2025 under a $9 billion total authorization, with $5.3 billion remaining.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Block kept $0.05.
- Revenue$24.19B100.0%
- Cost of revenue−$13.83B57.2%
- Gross profit$10.36B42.8%
- Operating costs−$8.65B35.8%
- Operating income$1.71B7.1%
- Interest, other & tax−$404.2M1.7%
- Net income$1.30B5.4%
Where FY2025 revenue went
$24.19B- Cost of revenue: $13.83B, 57% of revenue
- Other operating costs: $5.74B, 24% of revenue
- R&D: $2.91B, 12% of revenue
- Net income: $1.30B, 5.4% of revenue
- Interest, other & tax: $404.2M, 1.7% of revenue
Kept 5.4% as net incomeNet income $1.30B · 5.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $24.19B$24.12B | +0.3% |
| Cost of Revenue | $13.83B$15.23B | −9.2% |
| Gross Profit | $10.36B$8.89B | +16.5% |
| R&D Expenses | $2.91B$2.91B | −0.2% |
| Operating Expenses | $8.65B$8.00B | +8.2% |
| Operating Income | $1.71B$892.33M | +91.5% |
| Interest Expense | $256.40M$165.50M | +54.9% |
| Net Income | $1.30B$2.87B | −54.5% |
| EPS (Basic) | $2.13$4.70 | −54.7% |
| EPS (Diluted) | $2.10$4.56 | −53.9% |
| Shares Outstanding (Basic) | 612.24M616.99M | −0.8% |
| Shares Outstanding (Diluted) | 622.84M636.39M | −2.1% |
05—Questions
Frequently Asked Questions
How did Block's core business perform excluding bitcoin?
Excluding bitcoin ecosystem revenue, total net revenue increased $1.9 billion, or 14%, in 2025. Commerce enablement revenue grew 10% to $11.51 billion and financial solutions revenue grew 28% to $4.18 billion, driven mainly by Cash App Borrow.
Why did net income decline despite higher operating income?
Operating income rose to $1.71 billion from $892.3 million, but net income attributable to common stockholders fell to $1.31 billion from $2.90 billion. The 2024 result included $1.9 billion of benefits from income taxes, mainly from releasing a valuation allowance, and 2025 carried a $385.7 million tax provision.
What is the Workforce Plan and what does it cost?
In February 2026 Block announced a Workforce Plan to reduce its current workforce by more than 40%. The company expects charges of $450 million to $500 million, mostly cash severance and notice-period payments plus non-cash share-based vesting expenses, with most charges in the first quarter of 2026 and execution substantially complete by the end of the second quarter of 2026.
Is Block's credit exposure growing?
Yes. Transaction, loan, and consumer receivable losses rose 68% to $1.34 billion. Loan losses increased 154% to $820.8 million, reflecting significant loan growth and the retention of Cash App Borrow and certain other loans on the balance sheet as held for investment, which recognizes expected credit losses upfront at origination.
What legal and regulatory matters could affect investors?
The filing states that state Attorney General matters concerning Cash App customer complaints could result in a material loss, and that a federal securities class action and related shareholder derivative actions are pending after the court denied the company's motions to dismiss on January 6, 2026. The company also continues to cooperate with SEC and DOJ inquiries. It cannot estimate the amount of possible loss in these matters.
06—Continue