XYZ 10-Q Quarterly Reports

Block Quarterly Report for Q3 Ended Sep 30, 2026

Block Quarterly Report for Q2 Ended Jun 30, 2026

Block, Inc. (XYZ) reported net income attributable to common stockholders of $88.5 million for the three months ended June 30, 2026, compared to $538.5 million a year earlier, and a net loss attributable to common stockholders of $220.2 million for the six months. Total net revenue rose to $6.62 billion for the quarter (up 9%) and $12.67 billion for the six months (up 7%), while bitcoin ecosystem revenue fell 13% and 18%, respectively. Gross profit was $3.17 billion for the quarter, up 25% year over year, with Cash App gross profit up 31% and Square gross profit up 13%. Operating income fell to $446.9 million from $484.3 million, reflecting higher transaction, loan, and consumer receivable losses ($585.5 million in the quarter versus $294.1 million), general and administrative expenses ($825.9 million, including litigation and regulatory accruals), and restructuring charges of $495.0 million for the six months tied to the February 2026 Workforce Plan, which reduced headcount by more than 40%. Adjusted Operating Income was $863.8 million and Adjusted EBITDA was $1.17 billion for the quarter. The balance sheet shows cash and cash equivalents of $6.43 billion and total liquidity of $8.76 billion, including an undrawn $900.0 million revolving credit facility. The company repaid $1.0 billion of 2026 Senior Notes and $575.0 million of 2026 Convertible Notes at maturity during the period, leaving $5.78 billion of principal debt outstanding. Repurchases of common stock totaled $700.9 million in the six months, with $4.6 billion remaining under the $9 billion authorization. The company accrued $526 million for a potential DOJ resolution and states that a loss in excess of that amount is reasonably possible and could be material. The filing also reports that the SEC staff concluded its investigation in March 2026 without recommending enforcement, while the DOJ inquiry remains ongoing and the securities class action survived a motion to dismiss in January 2026. The company estimates annualized net cost savings from the Workforce Plan of approximately $800 million to $900 million.

Block Quarterly Report for Q1 Ended Mar 31, 2026

Block, Inc. (XYZ) reported a net loss attributable to common stockholders of $308.7 million for the first quarter of 2026, compared with net income of $189.9 million in the first quarter of 2025. Total net revenue rose to $6.06 billion from $5.77 billion, while gross profit increased to $2.91 billion from $2.29 billion. The loss was driven by higher operating expenses, including $495.3 million of restructuring charges tied to the Workforce Plan, under which the company reduced its workforce by more than 40%, and a $240 million accrued estimate of loss related to a DOJ inquiry. Transaction, loan, and consumer receivable losses rose to $500.1 million from $169.7 million, and operating income swung to a loss of $172.0 million from income of $329.3 million. Cash App gross profit was $1.91 billion, up 38% year over year, driven by growth in Cash App Borrow, while Square gross profit was $981.5 million, up 9%. Bitcoin ecosystem revenue declined $533.4 million, or 23%, reflecting lower trading volume and bitcoin prices. Adjusted EBITDA was $1.01 billion compared with $812.8 million a year earlier. Management cites available liquidity of $9.1 billion and expects annualized net cost savings from the Workforce Plan of approximately $800 million to $900 million. During the quarter the company repurchased $636.0 million of Class A common stock, leaving $4.7 billion authorized under its program. Investors should weigh the strong gross profit growth in Cash App and Square against the rising credit losses, restructuring costs, the unresolved DOJ matter, and the pending securities and derivative litigation, for which the filing states a loss could be material but cannot be estimated.

Block Quarterly Report for Q3 Ended Sep 30, 2025

Block, Inc. (XYZ) reported third-quarter 2025 results in this Form 10-Q filed November 6, 2025. Total net revenue for the three months ended September 30, 2025 was $6.11 billion, up 2% from $5.98 billion a year earlier, while gross profit rose to $2.66 billion from $2.25 billion. Operating income was $409.4 million versus $323.0 million, and net income attributable to common stockholders was $461.5 million versus $283.8 million. For the nine months, total net revenue declined 1% to $17.94 billion, mainly because bitcoin revenue fell $1.36 billion, while excluding bitcoin revenue the company's net revenue grew 12%. Growth was driven by Cash App Borrow and Square's software and payments products. Credit costs rose sharply. Transaction, loan, and consumer receivable losses were $363.5 million in the quarter, up from $192.1 million, as loan volumes grew and the company began classifying most newly originated customer loans as held for investment starting in the second quarter of 2025. Loans held for investment reached $2.20 billion net of allowance, versus $365.1 million at year-end 2024. On the balance sheet, the company issued $2.2 billion of senior notes due 2030 and 2033 in August 2025 and repaid $1.0 billion of 2025 convertible notes at maturity. It repurchased $1.5 billion of Class A stock in the first nine months, with $1.1 billion remaining under the program, and ended the quarter with $10.5 billion in available liquidity. The filing also discloses ongoing state Attorney General, SEC, and DOJ matters, and a San Francisco gross receipts tax assessment for which the company has recorded no liability.

Block Quarterly Report for Q2 Ended Jun 30, 2025

Block, Inc. (XYZ) reported second-quarter 2025 total net revenue of $6.05 billion, down from $6.16 billion a year earlier, as bitcoin revenue fell $467.7 million to $2.14 billion. Gross profit rose to $2.54 billion, and the filing states it was up 14% year over year. Cash App gross profit was $1.50 billion (up 16%) and Square gross profit was $1.03 billion (up 11%). Operating income was $484.3 million versus $306.6 million, and net income attributable to common stockholders was $538.5 million versus $195.3 million. The results include a $212.2 million gain from remeasuring the company's bitcoin investment, and Adjusted EBITDA was $891.4 million versus $759.5 million. Transaction, loan, and consumer receivable losses rose 53% to $294.1 million in the quarter, which the filing attributes mainly to growth in loan volumes, particularly Cash App Borrow. Liquidity at June 30, 2025 was $8.5 billion, down from $10.7 billion at December 31, 2024, mainly because of a $1.0 billion cash payment to settle the 2025 Convertible Notes and $1.1 billion of share repurchases in 2025. Total debt principal outstanding was $5.15 billion. The company also disclosed a $40 million NYDFS civil penalty, ongoing state Attorney General and SEC/DOJ inquiries, and a San Francisco gross receipts tax dispute with a potential exposure of up to $114 million, for which no liability has been recorded. The filing notes that the One Big Beautiful Bill Act was enacted on July 4, 2025, with the company evaluating its effects and anticipating material cash tax savings starting in fiscal 2025. Operating cash flow for the six months was $507.7 million, compared with $1.01 billion a year earlier.

Block Quarterly Report for Q1 Ended Mar 31, 2025

Block, Inc. (XYZ) reported first-quarter 2025 results in this Form 10-Q filed May 1, 2025. Total net revenue was $5.77 billion, down from $5.96 billion a year earlier, primarily because bitcoin revenue fell $429.7 million to $2.30 billion. Excluding bitcoin revenue, total net revenue increased $244.4 million, or 8%. Gross profit rose to $2.29 billion from $2.09 billion, up 9% year over year, with Cash App gross profit up 10% to $1.38 billion and Square gross profit up 9% to $897.9 million. Operating income was $329.3 million versus $249.7 million a year earlier, and Adjusted EBITDA was $812.8 million versus $705.1 million. Net income attributable to common stockholders fell to $189.9 million from $472.0 million, mainly because of a $93.4 million remeasurement loss on the bitcoin investment compared with a $233.4 million gain in the prior-year quarter. Diluted EPS was $0.30 versus $0.74. Liquidity remained substantial at $9.2 billion, though it declined $1.5 billion from December 31, 2024. The decline reflected a $1.0 billion cash payment to settle the 2025 Convertible Notes at maturity and $445.3 million of share repurchases in the quarter. The company held $5.2 billion in aggregate principal amount of debt, including $1.0 billion of 2026 Senior Notes, $1.0 billion of 2031 Senior Notes, $2.0 billion of 2032 Senior Notes, and $575.0 million each of the 2026 and 2027 Convertible Notes. Operating cash flow was $133.3 million, compared with $489.4 million a year earlier. The filing also discloses legal and regulatory matters. In April 2025 the company entered into a consent order with the New York State Department of Financial Services and paid a $40 million civil monetary penalty. Ongoing matters include multistate Attorney General inquiries about Cash App customer complaints, SEC and DOJ inquiries, and a San Francisco gross receipts tax assessment of $71.4 million that the company paid as a deposit. The company estimates a possible loss range of approximately $0 to $92 million for that tax matter, but has not recorded a liability because a loss is not considered probable.

Block Quarterly Report for Q3 Ended Sep 30, 2024

Block, Inc. (XYZ) reported a strong third quarter of 2024 in this Form 10-Q, with total net revenue of $5.98 billion for the three months ended September 30, 2024, up from $5.62 billion a year earlier, and net income attributable to common stockholders of $283.8 million, compared with a net loss of $88.7 million in the prior-year quarter. Gross profit rose to $2.25 billion, and operating income was $323.0 million versus an operating loss of $9.9 million. Management highlighted Adjusted Operating Income of $443.5 million and Adjusted EBITDA of $807.5 million for the quarter. Cash App segment gross profit was $1.31 billion and Square segment gross profit was $932.4 million, both up year over year. Bitcoin revenue made up a large share of total revenue (41% for the quarter), while bitcoin contributed only 3% of total gross profit. The balance sheet expanded with the issuance of $2.0 billion of 6.50% senior unsecured notes due 2032 in May 2024. Total liquidity was $10.7 billion at September 30, 2024, including $775.0 million undrawn under the revolving credit facility. The company repurchased $987.2 million of Class A common stock during the first nine months of 2024, and $2.9 billion remained available under its repurchase authorization. Total debt principal was $6.15 billion in convertible and senior notes, with $998.7 million of 2025 Convertible Notes classified as current. The filing also flags legal and regulatory matters, including a Consumer Financial Protection Bureau (CFPB) matter where a draft consent order was sent in August 2024, ongoing state money transmission regulator discussions, SEC and DOJ inquiries, and a San Francisco gross receipts tax assessment. The company estimates losses from the San Francisco matter could range from approximately $0 to $85 million, and it has not recorded a liability for that exposure. Management states that the CFPB, state regulator, and other matters could result in material losses, though amounts cannot currently be estimated.

Block Quarterly Report for Q2 Ended Jun 30, 2024

Block, Inc. reported second-quarter 2024 total net revenue of $6.16 billion, up 11% year over year from $5.53 billion, and gross profit of $2.23 billion, up 20%. Operating income was $306.6 million, compared with an operating loss of $132.1 million a year earlier. Net income attributable to common stockholders was $195.3 million, or $0.31 per diluted share, versus a net loss of $102.0 million in the prior-year quarter. Results were affected by a $70.1 million loss from remeasuring the company's bitcoin investment. Adjusted EBITDA was $759.5 million, compared with $384.4 million in the second quarter of 2023. Cash App gross profit rose 23% to $1.3 billion and Square gross profit rose 15% to $922.6 million. Bitcoin revenue accounted for 42% of total revenue in the quarter, but bitcoin generated only 3% of total gross profit. The company issued $2.0 billion of 6.50% senior unsecured notes due 2032 in May 2024, and ended the quarter with $10.3 billion in available liquidity. Total debt principal was $6.15 billion. The board also authorized an additional $3 billion share repurchase on July 25, 2024, after the prior $1 billion program was completed as of July 31, 2024. Six-month operating cash flow was $1.01 billion, compared with $407.7 million a year earlier. The filing also flags several open regulatory matters. The CFPB has authority to settle or pursue enforcement action related to Cash App complaint handling, and SEC and DOJ inquiries continue following a March 2023 short seller report. The company estimates a possible San Francisco gross receipts tax loss of $0 to $76 million for fiscal years 2020 through 2024, which it has not accrued because a loss is not considered probable.

Block Quarterly Report for Q1 Ended Mar 31, 2024

Block, Inc. (XYZ) reported first-quarter 2024 results in this Form 10-Q, filed May 2, 2024. Total net revenue was $5.96 billion, up from $4.99 billion a year earlier, a 19% increase. Bitcoin revenue of $2.73 billion drove much of the growth; excluding bitcoin revenue, total net revenue rose 14%. Gross profit reached $2.09 billion, up 22% year over year, with Cash App gross profit of $1.26 billion and Square gross profit of $820.3 million. Operating income was $249.7 million, compared with an operating loss of $6.2 million a year earlier, and net income attributable to common stockholders was $472.0 million, or $0.74 per diluted share. Results include a $233.4 million gain from remeasurement of the company's bitcoin investment, which is recorded in other income. The company reported Adjusted Operating Income of $364.3 million and Adjusted EBITDA of $705.1 million, compared with $51.0 million and $368.4 million in the first quarter of 2023. Total liquidity was $8.02 billion at March 31, 2024, including $5.75 billion of cash and cash equivalents and an undrawn $775.0 million revolving credit facility. The company repurchased 3.6 million Class A shares for $252.1 million in the quarter, leaving $591.1 million authorized under its $1 billion program. The filing also flags risks that investors should weigh. The Consumer Financial Protection Bureau has issued a Notice and Opportunity to Respond and Advise (NORA) indicating it is considering recommending legal action related to Cash App customer complaint handling, and the company is also responding to SEC and Department of Justice inquiries following a March 2023 short seller report. The company cannot estimate the range of potential liability beyond accrued amounts, which were not material at March 31, 2024. Total debt principal was $4.15 billion, and the company's credit ratings are non-investment grade (BB+, BB+, Ba2).

Block Quarterly Report for Q3 Ended Sep 30, 2023

Block, Inc. (XYZ) reported third-quarter 2023 total net revenue of $5.62 billion, up 24% year over year, and gross profit of $1.90 billion, up 21%. Bitcoin revenue was the largest driver of top-line growth, at $2.42 billion for the quarter, but the filing notes bitcoin contributed only 2% of gross profit. Net loss for the quarter was $33.8 million, compared with a net loss of $18.7 million in the prior-year quarter. For the nine months ended September 30, 2023, net loss was $178.9 million, versus $435.4 million a year earlier, and operating cash flow was $898.9 million. Operating loss was $9.9 million for the quarter, compared with $48.8 million a year earlier. Management said it will pursue expense discipline, including a cap on headcount and a reduction in workforce levels, and may incur restructuring costs in the short term. Cash App gross profit was $983.9 million in the quarter, up 27%, and Square gross profit was $899.0 million, up 15%. Management reported $8.1 billion in available liquidity at quarter end, including $775.0 million available under its revolving credit facility. On October 26, 2023, the board authorized repurchases of up to $1 billion of Class A common stock, with the stated goal of offsetting dilution from stock-based compensation. Total debt principal outstanding was $4.15 billion at September 30, 2023, after the company paid $461.8 million in cash to settle its 2023 Convertible Notes at maturity in May 2023. The filing also discloses regulatory inquiries from the SEC and Department of Justice received after a March 2023 short seller report, and Consumer Financial Protection Bureau civil investigative demands related to Cash App customer complaint handling. The company states that none of these matters is expected to have a material adverse effect on its results of operations, financial position, or liquidity, though it cannot reliably estimate a range of exposure. Beginning in the fourth quarter of 2023, the company will report BNPL results entirely within the Cash App segment rather than splitting them equally between Cash App and Square.

Block Quarterly Report for Q2 Ended Jun 30, 2023

Block, Inc. (XYZ) reported a net loss attributable to common stockholders of $122.5 million for the three months ended June 30, 2023, compared with a net loss of $208.0 million in the year-earlier quarter. Total net revenue rose to $5.53 billion from $4.40 billion, and gross profit increased to $1.87 billion from $1.47 billion. Operating loss narrowed to $132.1 million from $213.8 million. Segment results showed Cash App gross profit of $968.0 million and Square gross profit of $888.3 million for the quarter. Bitcoin revenue contributed $2.39 billion of total net revenue, and the filing notes that bitcoin gross profit was only 2% of total gross profit in the quarter. The company reported Adjusted EBITDA of $384.4 million for the quarter, compared with $187.3 million a year earlier, and Adjusted Operating Income of $25.5 million. Operating cash flow for the six months ended June 30, 2023 was $407.7 million, compared with $114.8 million in the prior-year period. Block ended the quarter with $7.5 billion in available liquidity, including $775.0 million undrawn under its revolving credit facility, and paid $461.8 million in cash to settle its 2023 Convertible Notes at maturity in May 2023. The filing also discloses regulatory and legal matters that investors should monitor. Block received Civil Investigative Demands from the Consumer Financial Protection Bureau and multiple state Attorneys General concerning Cash App customer complaint handling, and it received inquiries from the SEC and Department of Justice after a March 2023 short seller report. The company states it cannot reliably estimate the range of potential liability beyond amounts accrued, which was not material as of June 30, 2023.

Block Quarterly Report for Q1 Ended Mar 31, 2023

Block, Inc. (XYZ) reported a first-quarter 2023 net loss of $19.3 million, compared with a net loss of $207.4 million in the first quarter of 2022. Total net revenue rose to $4.99 billion from $3.96 billion, an increase of $1.03 billion, or 26%, driven by growth in transaction-based revenue, subscription and services-based revenue (including the Afterpay BNPL platform), and bitcoin revenue. Excluding bitcoin revenue, total net revenue increased by $596.5 million, or 27%. Gross profit was $1.71 billion, and operating loss narrowed to $6.2 million from $226.8 million a year earlier. Adjusted EBITDA was $368.4 million versus $195.4 million, and Adjusted Operating Income was $51.0 million versus a loss of $42.3 million. The company ended the quarter with $5.06 billion in cash and cash equivalents and total liquidity of $7.0 billion excluding customer funds and undrawn revolver amounts. Total assets were $31.34 billion and total liabilities were $13.86 billion. Operating cash flow was $294.4 million. Principal debt outstanding exceeded $4.6 billion, including $460.6 million of 2023 Convertible Notes maturing May 15, 2023, of which $401.9 million had already been converted. Management stated that available funds are sufficient to meet liquidity needs for the foreseeable future. The filing also discloses regulatory matters, including Civil Investigative Demands from the Consumer Financial Protection Bureau and multiple state Attorneys General related to Cash App customer complaints, for which the accrued amount was not material. The trademark dispute with H&R Block was settled on March 31, 2023, and the case was dismissed on April 24, 2023.

Block Quarterly Report for Q3 Ended Sep 30, 2022

Block, Inc. (formerly Square, Inc.; NYSE: XYZ) reported a net loss of $18.7 million for the three months ended September 30, 2022, compared with a net loss of $2.9 million in the prior-year quarter, and a nine-month net loss of $435.4 million versus net income of $239.8 million a year earlier. Total net revenue for the quarter was $4.52 billion, up from $3.84 billion, while nine-month revenue declined to $12.88 billion from $13.58 billion, driven by lower bitcoin revenue. Gross profit rose to $1.57 billion for the quarter and $4.33 billion for the nine months. Operating expenses grew sharply, with general and administrative expense of $1.24 billion for the nine months including a $66.3 million one-time charge tied to the Afterpay acquisition, and transaction, loan, and consumer receivable losses rising to $395.4 million for the nine months. The quarter's results reflect the January 31, 2022 acquisition of Afterpay Limited, which added a buy now pay later platform. Goodwill rose to $11.56 billion and total assets to $29.12 billion at September 30, 2022, from $15.03 billion at December 31, 2021, with the Afterpay deal valued at $13.8 billion in stock. Consumer receivables of $1.25 billion now appear on the balance sheet. Cash, cash equivalents, restricted cash, customer funds, and marketable debt securities totaled $9.49 billion, and the company reported that about $7.1 billion in funds were available, including $600.0 million undrawn under its revolving credit facility. Net cash provided by operating activities was $130.5 million for the nine months, compared with $653.5 million a year earlier. Gross payment volume grew to $54.37 billion for the quarter from $45.43 billion, and Adjusted EBITDA was $327.4 million versus $233.4 million. The filing also discloses ongoing litigation, including a trademark suit from H&R Block, and regulatory inquiries from the Consumer Financial Protection Bureau and state Attorneys General related to Cash App customer complaints, with the accrued amount not material as of September 30, 2022.

Block Quarterly Report for Q2 Ended Jun 30, 2022

Block, Inc. (formerly Square, Inc.; the filing describes the company's December 1, 2021 name change from Square to Block) reported a net loss attributable to common stockholders of $208.0 million for the quarter ended June 30, 2022, compared with net income of $204.0 million in the year-earlier quarter, and a net loss of $412.2 million for the six months ended June 30, 2022. Total net revenue fell to $4.40 billion in the quarter from $4.68 billion, a decline driven by a $938.4 million drop in bitcoin revenue. Excluding bitcoin revenue, total net revenue increased by $662.2 million, or 34%, in the quarter. Gross profit rose to $1.47 billion from $1.14 billion, and operating expenses increased sharply, with total operating expenses of $1.68 billion versus $1.02 billion, including higher general and administrative costs and transaction, loan, and consumer receivable losses. The quarter reflects the acquisition of Afterpay Limited, completed January 31, 2022, for consideration of $13.84 billion, which added $11.67 billion of goodwill and consumer receivables of $1.26 billion on the balance sheet. Total assets rose to $28.89 billion at June 30, 2022 from $15.03 billion at December 31, 2021. Cash, cash equivalents, restricted cash, customer funds, and marketable debt securities totaled $9.11 billion, and the company reported approximately $6.8 billion of available funds including an undrawn $600.0 million revolving credit facility. Net cash provided by operating activities for the six months was $114.8 million. The filing also discloses a $36.0 million bitcoin impairment charge in the quarter, a $641.0 million foreign currency translation adjustment in other comprehensive loss, a pending HRB trademark lawsuit tied to the Block name, and CFPB and state Attorney General civil investigative demands related to Cash App customer complaints and disputes.

Block Quarterly Report for Q1 Ended Mar 31, 2022

Block, Inc. (NYSE: XYZ), formerly Square, Inc., reported a first-quarter 2022 net loss of $207.4 million attributable in part to common stockholders of $204.2 million, compared with net income of $39.0 million in the prior-year quarter. Total net revenue was $3.96 billion, down from $5.06 billion, a decline driven mainly by bitcoin revenue falling to $1.73 billion from $3.51 billion. Excluding bitcoin, net revenue rose by $683.7 million, or 44%, to the company's own stated figure, with transaction-based revenue up 28% to $1.23 billion and subscription and services-based revenue up 72% to $959.6 million. Gross profit increased to $1.29 billion from $963.5 million, while operating expenses rose to $1.52 billion from $895.8 million, including a $66.3 million one-time charge tied to share-based compensation acceleration at Afterpay. The quarter was shaped by the January 31, 2022 acquisition of Afterpay Limited, which the company paid for with 113.6 million Class A shares valued at $13.8 billion and which added $11.7 billion of goodwill and $2.3 billion of acquired intangible assets. Afterpay contributed $129.8 million of subscription and services-based revenue in February and March 2022. Total assets grew to $29.13 billion from $13.93 billion at year-end 2021, and stockholders' equity rose to $17.45 billion. The company redeemed Afterpay's convertible notes at face value on March 4, 2022, for $1.07 billion in payments to redeem convertible notes in the cash flow statement, and reported cash, cash equivalents, restricted cash, customer funds, and marketable debt securities of $9.5 billion. Investors should note that adjusted EBITDA declined to $195.4 million from $236.2 million, share-based compensation rose to $275.4 million from $118.6 million, and the company reported a $1.1 billion BNPL-related consumer receivables balance supported by warehouse facilities of $208.1 million drawn against $1.8 billion of commitments. The filing also discloses a Consumer Financial Protection Bureau investigation into Cash App customer complaint handling and a trademark infringement lawsuit from H&R Block, with a preliminary injunction granted on April 28, 2022 preventing use of the Block, Inc. name in connection with Cash App Taxes.

Block Quarterly Report for Q3 Ended Sep 30, 2021

Square, Inc. (now Block, Inc.) reported a quarter in which total net revenue for the three months ended September 30, 2021 was $3.84 billion, up from $3.03 billion a year earlier, and net income attributable to common stockholders was $84 thousand, compared with $36.5 million in the prior-year quarter. For the nine months ended September 30, 2021, net revenue was $13.58 billion versus $6.34 billion, and net income attributable to common stockholders was $243.1 million versus a net loss of $80.9 million. Bitcoin revenue drove much of the growth, rising to $8.05 billion for the nine months from $2.82 billion, but gross profit from bitcoin was only 4% and 5% of total gross profit in the three and nine month periods, respectively. Adjusted EBITDA was $233.4 million for the quarter and $829.5 million for the nine months, versus $181.3 million and $288.6 million a year earlier. The company disclosed $71.1 million of bitcoin impairment losses for the nine months, with the bitcoin investment's fair value at $351.7 million against a carrying value of $148.9 million. Cash, cash equivalents, restricted cash and marketable debt securities totaled $6.9 billion at September 30, 2021, and the company stated it had approximately $7.4 billion in available funds including an undrawn $500.0 million revolving credit facility. Long-term debt rose during the period, including $2.0 billion of senior unsecured notes issued in May 2021, and the company launched Square Banking to U.S. sellers on July 20, 2021. The filing describes the pending acquisition of Afterpay Limited under a Scheme of Arrangement, with estimated aggregate consideration of $26.6 billion based on the September 30, 2021 closing stock price of $239.84, comprising approximately 111 million shares of Class A common stock. The company stated the transaction is expected to close in the first quarter of 2022, and stockholders approved the share issuance at a special meeting on November 3, 2021. Completion remains subject to Afterpay shareholder approval, regulatory clearances, and other closing conditions.

Block Quarterly Report for Q2 Ended Jun 30, 2021

Square, Inc. (now Block, Inc.) reported a strong second quarter of 2021 in this Form 10-Q for the period ended June 30, 2021. Total net revenue for the three months ended June 30, 2021 was $4,680,672 thousand ($4.68 billion), up from $1,923,625 thousand, and for the six months was $9.74 billion, compared with $3.30 billion a year earlier. Bitcoin revenue drove much of the growth, rising to $2.72 billion in the quarter and representing 58% of total net revenue, though bitcoin contributed only 5% of gross profit. Gross profit was $1,141,064 thousand for the quarter versus $596,763 thousand a year earlier. Operating income was $124,994 thousand for the quarter (versus a loss of $23,052 thousand), and net income attributable to common stockholders was $204,021 thousand, or $0.40 diluted EPS. Adjusted EBITDA was $359,820 thousand for the quarter, and gross payment volume (GPV) was $42,828 million. The balance sheet shows cash and cash equivalents of $4,581,234 thousand and total cash, restricted cash and marketable debt securities of $6.6 billion as of June 30, 2021. During the period the company issued $2.0 billion of senior unsecured notes (2026 and 2031 Senior Notes), and long-term debt totaled $4,841,277 thousand on the balance sheet. The company also disclosed a bitcoin impairment charge of $45,266 thousand in the quarter, with bitcoin's fair value at $281.4 million exceeding its carrying value of $154.9 million. Square Financial Services began banking operations on March 1, 2021, and the company acquired a majority interest in TIDAL on April 30, 2021. Subsequent to the period, on August 1, 2021, the company agreed to acquire Afterpay for an estimated aggregate consideration of $28.2 billion, comprising approximately 114 million shares of Class A common stock, subject to shareholder, regulatory and other closing conditions. The filing also notes that the Texas Comptroller has indicated it seeks $38 million, including interest and penalties, in a sales and use tax audit, which the company disputes.

Block Quarterly Report for Q1 Ended Mar 31, 2021

Square, Inc. (now Block, Inc.) reported total net revenue of $5.06 billion for the three months ended March 31, 2021, up from $1.38 billion a year earlier. The increase was driven overwhelmingly by bitcoin revenue, which rose to $3.51 billion from $306.1 million and accounted for 69% of total revenue. Excluding bitcoin, total net revenue increased by $471.2 million, or 44%, per the filing. Gross profit was $963.5 million versus $538.5 million, and the company reported net income of $39.0 million compared with a net loss of $105.9 million in the prior-year quarter. The filing notes that bitcoin contributed only 8% of total gross profit. Operating income was $67.7 million versus an operating loss of $90.3 million a year earlier. Operating expenses rose to $895.8 million from $628.8 million, led by sales and marketing (up 80%) and product development (up 58%). Transaction and loan losses fell 81% to $20.4 million. Other expense, net rose to $27.5 million, primarily reflecting a $28.9 million loss on revaluation of the company's DoorDash equity investment. Adjusted EBITDA was $236.2 million compared with $9.3 million. The company ended the quarter with approximately $4.8 billion in available funds, including an undrawn $500.0 million revolving credit facility, and reported an accumulated deficit of $155.2 million. The company adopted ASU No. 2020-06 on January 1, 2021, which reclassified convertible notes wholly as debt and reduced future non-cash interest expense. Subsequent to quarter end, Square completed the acquisition of a majority interest in TIDAL for $302 million. The filing also notes that Square Financial Services received its FDIC and Utah charter approval on March 1, 2021, and that a Texas Comptroller sales and use tax audit seeks $38 million including interest and penalties, which the company disputes.

Block Quarterly Report for Q3 Ended Sep 30, 2020

Square, Inc. reported third-quarter 2020 total net revenue of $3.03 billion, up from $1.27 billion in the prior-year quarter, driven primarily by bitcoin revenue of $1.63 billion (versus $148.3 million). Gross profit was $794.5 million versus $500.0 million, and operating income was $49.3 million versus $32.1 million. Net income for the quarter was $36.5 million, or $0.07 per diluted share, compared with $29.4 million in the prior-year period. For the nine months ended September 30, 2020, the company reported a net loss of $80.9 million and operating loss of $64.0 million, compared with a net loss of $15.5 million a year earlier. The company reorganized into two reportable segments, Seller and Cash App, effective June 30, 2020. Cash App's segment revenue for the quarter was $2.07 billion, of which $1.63 billion was bitcoin revenue, while Seller revenue was $965.3 million. Transaction and loan losses fell to $15.2 million in the quarter from $32.7 million, reflecting the release of $39.6 million of previously established provisions for the first and second quarters of 2020. The filing also describes the COVID-19 impact, the PPP lending program (with $873.4 million of loans facilitated and $473.5 million of PPPLF advances outstanding), and the issuance of $1.0 billion of 0.125% convertible senior notes due 2025 in March 2020. As of September 30, 2020, the company held $3.3 billion of cash, cash equivalents, restricted cash, and marketable debt securities, and reported $3.8 billion in available funds including its undrawn $500 million revolving credit facility. Total assets were $8.11 billion and total stockholders' equity was $2.06 billion. The filing notes a $38 million Texas sales and use tax assessment that the company disputes, and a planned $50 million bitcoin investment in October 2020.

Block Quarterly Report for Q2 Ended Jun 30, 2020

Square, Inc. (now Block, Inc.) reported a net loss of $11.5 million for the three months ended June 30, 2020, compared with a net loss of $6.7 million in the prior-year quarter, and a net loss of $117.4 million for the six months ended June 30, 2020, versus $44.9 million a year earlier. Total net revenue rose to $1.92 billion for the quarter from $1.17 billion, and to $3.30 billion for the six months from $2.13 billion. The increase was driven primarily by Bitcoin revenue of $875.5 million in the quarter, while transaction-based revenue declined 12% for the quarter as Gross Payment Volume (GPV) fell 15% amid COVID-19 shelter-in-place orders. Gross profit for the quarter was $596.8 million, against $465.8 million a year earlier, and transaction and loan losses rose to $146.5 million for the six months from $62.1 million. The company now reports two segments, Seller and Cash App. Cash App net revenue for the quarter was $1.20 billion, up from $260.5 million, while Seller net revenue was $723.4 million, down from $870.4 million. Management states it expects COVID-19 to have a material and adverse impact on the business, and the filing notes Square Capital ceased facilitating new business loans other than PPP loans during the second quarter. The company held $3.2 billion in cash, cash equivalents, restricted cash and marketable debt securities at June 30, 2020, and issued $1.0 billion of 0.125% convertible senior notes due 2025 in March 2020. Square Capital also drew $447.8 million under the Paycheck Protection Program Liquidity Facility. The filing discloses a $38 million Texas sales and use tax assessment that the company intends to contest, and states that the Texas Comptroller's position is without merit. Operating cash flow was negative $151.8 million for the six months, compared with positive $165.8 million a year earlier, largely reflecting PPP loans facilitated, net of loans sold, of $465.5 million.

Block Quarterly Report for Q1 Ended Mar 31, 2020

Square, Inc. reported net revenue of $1.381 billion for the three months ended March 31, 2020, up from $959.4 million a year earlier, driven by a sharp rise in bitcoin revenue to $306.1 million from $65.5 million and transaction-based revenue of $758.1 million. However, the company posted a net loss of $105.9 million, compared with a net loss of $38.2 million in the prior-year quarter. Operating loss widened to $90.3 million, largely because transaction and loan losses rose to $108.9 million from $27.8 million, reflecting incremental provisions tied to the COVID-19 outbreak. Gross Payment Volume rose to $25.7 billion from $22.6 billion, but the filing states that the company experienced a significant slowdown in GPV in the latter half of March 2020, with Seller GPV decreasing 35% in that period versus the prior year. The balance sheet strengthened materially during the quarter. Cash and cash equivalents rose to $1.96 billion from $1.05 billion, supported by net proceeds of $936.5 million from the issuance of $1.0 billion of 0.125% convertible senior notes due 2025 in March 2020. Long-term debt increased to $1.76 billion from $938.8 million. Net cash provided by operating activities was $121.3 million. The company stated that it had approximately $3.4 billion in available funds, including its revolving credit facility, and management expects COVID-19 to have a material and adverse impact on its business, results of operations, financial condition and cash flows. Investors should also note the San Francisco Gross Receipts Tax dispute, for which the company estimates potential additional losses of approximately $0 to $66 million if the proposed settlement is not approved or the company does not prevail. Management has also paused investment pacing in hiring, real estate and marketing, and the filing notes that the company will change its reporting to two segments, Seller and Cash App, in subsequent quarters of 2020.

Block Quarterly Report for Q3 Ended Sep 30, 2019

Square, Inc. reported third-quarter 2019 results in this Form 10-Q, with total net revenue of $1,266.5 million for the three months ended September 30, 2019, up from $882.1 million, and $3.40 billion for the nine months, up from $2.37 billion. Gross profit was $500.0 million for the quarter and operating income was $32.1 million, compared with an operating loss of $9.9 million a year earlier. Net income for the quarter was $29.4 million ($0.07 basic per share), while the nine-month period showed a net loss of $15.5 million. Growth was led by transaction-based revenue of $816.6 million and subscription and services-based revenue of $279.8 million, with bitcoin revenue of $148.3 million also rising sharply. Gross Payment Volume grew 25% in the quarter, and the company reported Adjusted EBITDA of $131.3 million for the quarter. The balance sheet at September 30, 2019 showed cash and cash equivalents of $612.0 million and total short- and long-term investments of about $1.12 billion, against $1.07 billion in principal of convertible senior notes outstanding. Net cash provided by operating activities for the nine months was $404.6 million, while share-based compensation was $218.0 million for the period, a significant non-cash expense. The company agreed to sell its Caviar business to DoorDash, closing October 31, 2019 for $410 million in gross proceeds ($310 million cash and $100 million of DoorDash preferred stock). The filing also discloses ongoing legal and tax matters, including a dispute with the San Francisco Tax Collector over gross receipts taxes, where the company estimates additional exposure of approximately $0 to $56 million, and the Caviar courier misclassification lawsuits, for which liability cannot yet be reliably determined. The company stated it will discontinue reporting Adjusted Revenue after the third quarter of 2019 following SEC staff comments.

Block Quarterly Report for Q2 Ended Jun 30, 2019

Square, Inc. reported a net loss of $6.7 million for the three months ended June 30, 2019, compared with a net loss of $5.9 million a year earlier, and a net loss of $44.9 million for the six months ended June 30, 2019, versus $29.9 million in the prior-year period. Total net revenue rose to $1,174.2 million for the quarter from $814.9 million, and to $2,133.6 million for the six months from $1,483.5 million, with the filing stating growth of 44% in both periods. Growth was led by transaction-based revenue, which rose 24% for the quarter on Gross Payment Volume growth of 25%, and by subscription and services-based revenue, which rose 87% for the quarter, driven by Cash App, Square Capital, Caviar and Instant Deposit. Bitcoin revenue grew sharply, to $125.1 million in the quarter from $37.0 million, while operating expenses increased 47% for the quarter as product development and sales and marketing spending rose. On the balance sheet, total assets were $4.65 billion at June 30, 2019, and cash, cash equivalents and investments in marketable debt securities totaled $1,650.3 million, excluding restricted cash. Long-term debt stood at $919.0 million net carrying value, against $1.07 billion in principal across the 2022 and 2023 convertible senior notes. The company also disclosed a $410 million agreement, signed July 31, 2019, to sell its Caviar business to DoorDash, Inc., payable in a combination of cash and DoorDash preferred stock. The filing also notes an unresolved San Francisco Tax Collector assessment on the company's primary business classification, which the company disputes and cannot estimate a range of loss for. The filing reports that disclosure controls were effective as of June 30, 2019, and that holders of Class B common stock held approximately 71.2% of the combined voting power. Management states that existing cash and investments, together with credit facility availability, are sufficient for working capital and planned capital expenditures for at least the next 12 months.

Block Quarterly Report for Q1 Ended Mar 31, 2019

Square, Inc. reported first-quarter 2019 total net revenue of $959.4 million, up 43% from $668.6 million in the first quarter of 2018, with transaction-based revenue of $656.8 million (up 26%) and subscription and services-based revenue of $218.9 million (up 126%). Gross Payment Volume (GPV) processed was $22.6 billion, up 27%, and the filing states that GPV from larger sellers (those generating more than $125,000 in annualized GPV) represented 51% of GPV, up from 47%. Bitcoin revenue rose 92% to $65.5 million. Despite this growth, the company reported a net loss of $38.2 million (diluted loss of $0.09 per share), compared with a net loss of $24.0 million a year earlier, and operating loss widened slightly to $22.0 million from $21.0 million. Adjusted Revenue was $489.1 million and Adjusted EBITDA was $61.7 million, both non-GAAP measures reconciled in the filing. On the balance sheet, total assets grew to $4.40 billion from $3.28 billion at December 31, 2018, largely driven by a $1.03 billion increase in settlements receivable and a corresponding rise in customers payable to $1.66 billion, reflecting timing of period-end settlement. Cash, cash equivalents, restricted cash and marketable debt securities totaled $1.62 billion. Cash flow from operations was $32.4 million, and cash used in investing activities was $70.4 million. Long-term debt, net, was $909.3 million, comprising the 2023 Notes ($862.5 million principal) and 2022 Notes ($211.7 million principal), and the $375.0 million revolving credit facility remained undrawn. The company adopted ASC 842 on January 1, 2019, recognizing $112.0 million of operating right-of-use assets and $135.6 million of operating lease liabilities. The filing also notes a $14.1 million loss from revaluing the company's equity investment in Eventbrite, litigation over worker classification at Caviar, and a San Francisco Tax Collector decision on its business classification for which the company could be liable for additional taxes that could be material in aggregate. Share-based compensation was $61.1 million in the quarter.

Block Quarterly Report for Q3 Ended Sep 30, 2018

Square, Inc. reported third-quarter 2018 total net revenue of $882.1 million, up from $585.2 million in the prior-year quarter, and net income of $19.6 million, compared with a net loss of $16.1 million a year earlier. For the nine months ended September 30, 2018, total net revenue was $2,365.6 million and the net loss was $10.2 million. Transaction-based revenue grew 29% in both the three- and nine-month periods, driven by Gross Payment Volume (GPV) growth of 29% and 30%, respectively. Subscription and services-based revenue rose 155% in the quarter and 129% for the nine months, and bitcoin revenue of $43.0 million in the quarter was a new contributor. Quarterly net income was helped by a $36.9 million gain on revaluation of the company's Eventbrite equity investment following Eventbrite's initial public offering, so it should not be read as purely operating profitability. The balance sheet expanded substantially, with total assets of $3.97 billion at September 30, 2018, versus $2.19 billion at December 31, 2017. The increase reflects the Weebly acquisition, completed May 31, 2018 for $272.5 million in total consideration, and the May 2018 issuance of $862.5 million of 0.50% convertible senior notes due 2023. Total convertible notes principal outstanding was $1.23 billion, and the company reported $1,708.4 million of cash, cash equivalents and marketable debt securities. Management stated it believes existing resources are sufficient for at least the next 12 months. The filing also flags material risks, including a San Francisco Gross Receipts Tax dispute in which the Tax Collector classified the company's primary business as financial services, a pending class action and PAGA claims by Caviar couriers alleging misclassification as independent contractors, and a dual-class structure in which Class B holders controlled approximately 77.6% of voting power. Adoption of ASC 606 added $1.6 million and $5.3 million to revenue for the three and nine months, respectively.

Block Quarterly Report for Q2 Ended Jun 30, 2018

Square, Inc. reported total net revenue of $814.9 million for the three months ended June 30, 2018, up from $551.5 million a year earlier, and $1,483.5 million for the six months, up from $1,013.1 million. Transaction-based revenue rose 30% to $625.2 million in the quarter, and the filing attributes this to 30% growth in Gross Payment Volume (GPV) to $21.37 billion. Subscription and services-based revenue grew 127% to $134.3 million in the quarter, driven by Instant Deposit, Caviar, Cash Card, Square Capital, and acquisitions. Bitcoin revenue of $37.0 million appeared for the first time as a revenue line. The company remained loss-making but near breakeven at the operating line. Net loss was $5.9 million for the quarter versus $16.0 million a year earlier, and $29.9 million for the six months versus $31.1 million. Operating loss narrowed to $2.6 million for the quarter from $12.2 million. Share-based compensation was $52.1 million in the quarter, and the company reported Adjusted EBITDA of $68.3 million, up from $36.5 million. Accumulated deficit stood at $877.2 million. Balance sheet and capital activity were significant in the period. Cash and cash equivalents rose to $1.39 billion from $696.5 million at December 31, 2017. The company issued $862.5 million of 0.50% convertible senior notes due 2023 in May 2018, and total long-term debt reached $1.07 billion. The Weebly acquisition, completed May 31, 2018, was valued at $271.3 million including 2,406,071 Class A shares, and goodwill increased to $255.7 million. The filing also notes a San Francisco Tax Collector decision for fiscal 2014 and 2015 that the company paid and intends to contest, with a possible additional liability for later years that the company cannot estimate.

Block Quarterly Report for Q1 Ended Mar 31, 2018

Square, Inc. reported a net loss of $23,986 thousand for the three months ended March 31, 2018, compared with a net loss of $15,090 thousand a year earlier, while total net revenue grew 45% to $668,603 thousand from $461,554 thousand. Growth was led by transaction-based revenue of $523,037 thousand (up 30%), with subscription and services-based revenue rising 98% to $97,054 thousand, hardware revenue up 60% to $14,417 thousand, and a new bitcoin revenue line of $34,095 thousand. Gross Payment Volume grew 31%, to $17.83 billion, and transaction-based margin as a percentage of GPV improved to 1.09% from 1.07%. Operating expenses rose 47% to $276,162 thousand, driven by product development (up 53%) and sales and marketing (up 55%), with share-based compensation of $46,824 thousand versus $31,670 thousand a year earlier. Operating loss widened to $20,992 thousand from $14,082 thousand. Adjusted EBITDA was $35,894 thousand compared with $27,025 thousand, a non-GAAP measure the company reconciles to net loss. Cash, cash equivalents, restricted cash and marketable securities totaled $1,152,796 thousand at March 31, 2018, and operating cash flow was $52,053 thousand. The filing also discloses $440.0 million of 0.375% convertible senior notes due 2022, which holders became able to convert during the quarter ending June 30, 2018, and a pending acquisition of Weebly Inc. for about $265 million, half in cash and half in Class A common stock, expected to close in the second quarter of 2018. Risk disclosures highlight a San Francisco Tax Collector decision on gross receipts and payroll taxes, which the company paid for fiscal 2014 and 2015 while contesting it, and a dual-class structure giving Class B holders about 79.6% of voting power.

Block Quarterly Report for Q3 Ended Sep 30, 2017

Square, Inc. reported third-quarter 2017 results in this Form 10-Q. Total net revenue was $585.2 million for the three months ended September 30, 2017, up from $439.0 million a year earlier, and $1.60 billion for the nine months, up from $1.26 billion. Transaction-based revenue rose to $510.0 million for the quarter. Subscription and services-based revenue grew to $65.1 million, and Starbucks transaction-based revenue fell to zero after Starbucks moved to another payments provider in the fourth quarter of 2016. Gross Payment Volume was $17.4 billion for the quarter, up from $13.2 billion. Operating loss narrowed to $14.9 million for the quarter from $32.0 million, and the net loss was $16.1 million, compared with $32.3 million in the prior-year quarter. Nine-month net loss was $47.2 million versus $156.4 million, which included a $48.0 million litigation settlement expense in 2016. The balance sheet strengthened during 2017. In March 2017 the company issued $440.0 million of 0.375% convertible senior notes due 2022, with a conversion price of approximately $22.95 per share, and it bought convertible note hedges for $92.1 million while selling warrants for $57.2 million. Cash and cash equivalents were $658.4 million at September 30, 2017, and cash, cash equivalents and marketable securities totaled $1.06 billion across the company's principal liquid holdings. The company also invested $25.0 million in Eventbrite and paid Starbucks $54.8 million to terminate a warrant. The filing states that existing cash, marketable securities and credit facility availability will be sufficient for at least the next 12 months. Adjusted EBITDA was $34.3 million for the quarter, compared with $11.6 million a year earlier, and is a non-GAAP measure the company defines in the filing. The filing also highlights ongoing risks, including a dual-class share structure in which Class B holders controlled about 82.5% of voting power at September 30, 2017, a Caviar courier misclassification litigation that the parties have settled subject to Superior Court confirmation, and dependence on card networks and acquiring processors. Accumulated deficit stood at $827.1 million.

Block Quarterly Report for Q2 Ended Jun 30, 2017

Square, Inc. reported a net loss of $15.962 million for the three months ended June 30, 2017, versus $27.345 million a year earlier, and a six-month net loss of $31.052 million versus $124.100 million in the prior-year period. Total net revenue rose to $551.505 million for the quarter (up 26%) and $1.013 billion for the six months (up 24%). Growth was driven by transaction-based revenue, which increased 32% for the quarter on Gross Payment Volume (GPV) growth of 32%, and by subscription and services-based revenue, which nearly doubled to $59.151 million. The Starbucks transaction revenue and costs fell to zero after Starbucks moved to another payments provider in the fourth quarter of 2016, and the company states it does not expect Starbucks transaction-based revenue in the future. Operating loss narrowed to $12.224 million for the quarter from $27.360 million, and Adjusted EBITDA rose to $36.496 million from $12.554 million. Balance sheet and financing changed materially in 2017. In March 2017 the company issued $440.0 million of 0.375% convertible senior notes due 2022, with net proceeds of $393.4 million, and entered into convertible note hedge and warrant transactions intended to raise the effective conversion price from about $22.95 to about $31.18 per share. Cash and cash equivalents were $716.989 million at June 30, 2017, and cash, cash equivalents and marketable securities totaled $1,044.4 million. Stockholders' equity increased to $703.744 million, and the company had an accumulated deficit of $810.974 million. The company stated that its existing cash, marketable securities and its undrawn $375.0 million revolving credit facility should be sufficient for at least the next 12 months. The filing highlights risks including dependence on card networks and acquiring processors, the Caviar courier misclassification litigation, for which a preliminary global settlement has been reached subject to arbitrator approval, and governance concentration, with Class B holders controlling about 84% of voting power as of June 30, 2017.

Block Quarterly Report for Q1 Ended Mar 31, 2017

Square, Inc. (now Block, Inc.) reported net revenue of $461.6 million for the three months ended March 31, 2017, up from $379.3 million a year earlier, and a net loss of $15.1 million, narrowed from $96.8 million. The prior-year quarter included $50.0 million of litigation settlement expense related to Robert E. Morley and $38.8 million of Starbucks transaction-based revenue, which the company says it does not expect to recur since Starbucks completed its transition to another payments provider in Q4 2016. Gross Payment Volume rose 33% to $13.6 billion, and transaction-based revenue grew 34% to $403.5 million. Adjusted EBITDA was $27.0 million versus a loss of $9.1 million a year earlier. During the quarter the company issued $440.0 million of 0.375% convertible senior notes due 2022, with a conversion price of approximately $22.95 per share. It entered into convertible note hedges costing $92.1 million and sold warrants for $57.2 million, with a warrant strike of $31.17. It also paid $54.8 million to terminate the Starbucks warrant. Cash, cash equivalents and restricted cash rose to $740.99 million at March 31, 2017, and cash, cash equivalents and marketable securities totaled $954.0 million. The $375.0 million revolving credit facility was undrawn. The filing also describes ongoing litigation over the classification of Caviar couriers as independent contractors, for which the parties reached a preliminary global settlement subject to arbitrator approval. Class B common stock held approximately 86.4% of voting power as of March 31, 2017, and the company reported an accumulated deficit of $795.0 million.

Block Quarterly Report for Q3 Ended Sep 30, 2016

Square, Inc. (now Block, Inc.) reported net revenue of $439.0 million for the three months ended September 30, 2016, up from $332.2 million a year earlier, and $1,256.8 million for the nine months, up from $892.8 million. Transaction revenue was the main driver, at $388.3 million for the quarter, while software and data product revenue rose to $35.3 million and hardware revenue to $8.2 million. Starbucks transaction revenue fell sharply to $7.2 million as Starbucks transitions to another payment processor. The company's operating loss narrowed to $32.0 million in the quarter from $52.2 million, but its net loss for the nine months widened to $156.4 million from $131.5 million, largely due to a $48 million payment under the Robert E. Morley litigation settlement and share-based compensation of $104.9 million for the nine months. The balance sheet showed cash and cash equivalents of $437.9 million, with total cash, cash equivalents and marketable securities of $529.8 million as of September 30, 2016. Accumulated deficit reached $764.1 million. The company has a $375.0 million revolving credit facility, none of which had been drawn. Management stated that existing cash, marketable securities and credit availability should be sufficient for working capital and planned capital expenditures for at least the next 12 months. The filing highlights reliance on the Starbucks transition and a dual-class structure in which Class B holders held approximately 92% of voting power. Management also reported Adjusted Revenue of $177.8 million for the quarter, up 51%, and Adjusted EBITDA of $11.6 million, compared with a loss of $15.8 million a year earlier. Both are non-GAAP measures that exclude the Starbucks agreement.

Block Quarterly Report for Q2 Ended Jun 30, 2016

Square, Inc. reported a net loss of $27.3 million for the three months ended June 30, 2016, compared with $29.6 million in the prior-year quarter, and a net loss of $124.1 million for the six months ended June 30, 2016, versus $77.6 million a year earlier. Total net revenue rose to $438.5 million for the quarter (up 41%) and $817.8 million for the six months (up 46%). Growth was driven by transaction revenue of $364.9 million in the quarter, with gross payment volume (GPV) of $12.5 billion, up 42%. Software and data product revenue grew 130% in the quarter and hardware revenue grew 209%, while Starbucks transaction revenue declined 2% in the quarter. Profitability pressures were visible in operating expenses, which rose 49% in the quarter to $176.3 million, and in general and administrative expense, which included $48.0 million for the settlement of the Robert E. Morley and REM Holdings 3, LLC litigation during the six months. Share-based compensation was $36.9 million in the quarter and $68.1 million for the six months. Adjusted EBITDA was $12.6 million for the quarter, compared with $0.9 million a year earlier. Cash and cash equivalents were $342.4 million at June 30, 2016, and total cash, cash equivalents and marketable securities were $423.0 million. Operating cash use for the six months was $35.8 million. The filing also flags risk around Starbucks, which has announced it will transition to another payment processor and is being renegotiated to extend beyond the third quarter of 2016. The company also noted it had fully transitioned Square Capital from merchant cash advances to loans, a $6.0 million out-of-period adjustment to transaction losses, and a dual-class structure in which Class B holders held approximately 95% of voting power as of June 30, 2016.

Block Quarterly Report for Q1 Ended Mar 31, 2016

Square, Inc. reported a net loss of $96.8 million for the three months ended March 31, 2016, compared with a net loss of $48.0 million in the prior-year quarter. Total net revenue rose to $379.3 million from $250.6 million, up 51%, driven by transaction revenue of $300.5 million (up 42%), software and data product revenue of $23.8 million (up 197%), and hardware revenue of $16.2 million (up 634%). Gross Payment Volume reached $10.3 billion, up 45%. Operating loss widened to $97.1 million, largely because general and administrative expenses rose to $96.1 million, including a $50.0 million litigation accrual related to Robert E. Morley and REM Holdings 3, LLC, for which the company signed a binding term sheet stipulating material settlement terms. Cash and cash equivalents fell to $370.6 million from $470.8 million at December 31, 2015, while the company also held $43.4 million of short-term investments and $29.7 million of long-term investments, bringing cash, equivalents and marketable securities to $443.8 million. Net cash used in operating activities was $15.5 million, and the company has a $375.0 million revolving secured credit facility, undrawn, maturing in November 2020. Management states that existing cash and credit availability should suffice for working capital and planned capital expenditures for at least the next 12 months. Investors should note that Starbucks, a major customer, has announced it will transition to another payment processor before its agreement expires in the third quarter of 2016. The company presents Adjusted Revenue of $146.2 million (up 64%) and Adjusted EBITDA of negative $9.1 million, both excluding Starbucks activity and the litigation accrual, as supplemental non-GAAP measures.