Exhibit 99.1     

Q4 2024

Shareholder Letter

		investors.block.xyz

1 Cash App is a financial services platform, not a bank. Throughout this letter, any reference to Cash App’s banking offerings such as “bank our base,” “banking offerings,” or “banking capabilities” refers to products and services that are offered through Block’s Industrial Loan Company, Square Financial Services, Inc., or through our third-party bank partners.

2 Reconciliations of non-GAAP financial measures used in this letter to their nearest GAAP equivalents are provided at the end of this letter. Please see these reconciliations for additional detail and a description of certain items that affected operating income (loss) and net income (loss) in the fourth quarter and fiscal 2024.

3 Margins are all calculated as a percent of gross profit. Operating income included contingencies, restructuring, and other costs, primarily related to accrued expenses in connection with certain litigation and regulatory matters.

4 Net income attributable to common stockholders. The net income results reported in this letter for the fourth quarter of 2024 reflect the impact of ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which we early adopted in the fourth quarter of 2023 using the modified retrospective approach. In Q4 2024, net income includes one-time benefits from income taxes of $1.9 billion in fiscal 2024 related to both the release of the Company’s valuation allowance associated with certain federal and state deferred tax assets as well as the recognition of deferred tax assets as part of internal legal entity restructuring efforts.

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5 Margins above are all calculated as a percent of gross profit. Operating income included contingencies, restructuring, and other costs, primarily related to accrued expenses in connection with certain litigation and regulatory matters.

6 Net income attributable to common stockholders. The net income results reported in this letter for fiscal 2024 reflect the impact of ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which we early adopted in the fourth quarter of 2023 using the modified retrospective approach. In Q4 2024, net income includes one-time benefits from income taxes of $1.9 billion in fiscal 2024 related to both the release of the Company’s valuation allowance associated with certain federal and state deferred tax assets as well as the recognition of deferred tax assets as part of internal legal entity restructuring efforts.

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Business Highlights

Square

Our product innovation and go-to-market strategies are driving renewed momentum across Square.

We spent 2024 focused on improving Square’s onboarding, commerce, and app infrastructure. Now, we are focused on shipping new products and features faster.

We have rolled out our new single app to half of new sellers onboarding to Square and have begun rolling out the new experience to existing sellers, a key strategic priority over the past year. We expect this will increase the discoverability of Square for new sellers, simplify onboarding, and allow sellers to benefit from all the features we’ve built across our broader ecosystem.

We launched several new products to better support food and beverage sellers and extend into new markets.

Building on the addition of bar tabs, we rolled out scan-to-pay functionality, which allows diners to pay at the table via a QR code without waiting for a check. We introduced house accounts, which allow sellers to invoice regular customers at a cadence that best serves their business needs.

We also provided our full-service restaurant sellers with a feature that allows them to split a single item — such as an appetizer or bottle of wine — among multiple diners, a key feature for many of our international markets.

Cash flow remains a critical challenge for many small businesses and we’re actively working to improve it.

We recently launched Instant Payouts for restaurant sellers using Square Checking, enabling them to receive funds for orders made through third-party delivery platforms immediately, instead of waiting up to a week or more. This feature is available to sellers on our food and beverage Plus and Premium software packages, offering a differentiated value proposition powered by our banking infrastructure.

We diversified our go-to-market strategy in Square and expanded our efforts further in the fourth quarter.

We grew our Square marketing spend over 60% year over year in the fourth quarter to drive greater customer acquisition, building on our improved onboarding and app redesign. We continued to see strong returns on our marketing spend as we increased our investment throughout the second half of the year, giving us confidence to invest further in 2025 across both proven and experimental channels.

We are growing our field sales presence so we can serve more upmarket sellers. We hired our first dedicated field sales cohort in November and have continued to hire field sales representatives in the first quarter of 2025.

Partnerships continue to be an important aspect of our go-to-market strategy. In 2024, our partnerships team surpassed our expectations for lead generation and volume. Average expected seller volume for partner-driven leads exceeded $1 million in the fourth quarter, meaningfully larger than our existing base. We are growing our partnerships team and working through a pipeline of additional opportunities as we enter 2025.

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Cash App

Cash App’s “bank our base” strategy has driven meaningful growth, as we continue to build trust with customers by delivering differentiated financial services and commerce solutions.

Our goal is to make Cash App the top provider of banking services to households in the United States that earn up to $150,000 per year. To achieve this, we first focused on creating a competitive banking offering by introducing benefits that go beyond what traditional financial institutions provide. Paycheck deposit actives can access free overdraft coverage, a 4.0% interest rate on savings, and priority phone support, among other features.7 These differentiated offerings helped us reach 2.5 million paycheck deposit actives in December, a 25% year-over-year increase, with faster growth in the second half of 2024 versus the first half.

Looking to 2025, we’re leveraging marketing to drive even greater inflows and paychecks into Cash App from both existing and new actives.

Marketing investment increased by more than 2x in the second half of 2024 compared to the first half, and we plan to scale this further in 2025 with efforts aimed at increasing awareness of Cash App’s banking capabilities to expand consumers’ view of the value we provide.

In February 2025, we began rolling out a new offering that integrates Afterpay with Cash App Card, enabling eligible customers to retroactively pay over time for their purchases.

Cash App Card has reached significant scale with 25 million monthly actives as of December 2024. This product has strongly resonated with younger customers, and we estimate 21% of all 18-to-21-year-olds in the U.S. used Cash App Card in 2024.8 Additionally, nearly 70% of Gen Z is likely or extremely likely to opt for BNPL options, favoring flexible payment arrangements.9 This provides Afterpay on Cash App Card with a valuable opportunity to meet the spending habits of this demographic, expanding both usage and engagement.

In early testing we have seen encouraging adoption of customers using Afterpay on Cash App Card for a small fee, across hundreds of thousands of actives throughout 2024. This feature has led to higher gross profit per active, which we see as a meaningful growth driver with the potential to compound over the next several years.

We have also continued to expand distribution of Cash App Pay with one of the largest online travel agent sites and one of the largest fast food chains in the world in the fourth quarter, and saw Cash App Pay volumes grow more than 4x year over year to $4 billion in 2024.

7 A paycheck deposit active is a Cash App account that receives ACH inflows during a specified period, but excludes tax refunds and ACH transfers.

8 Calculated as the number of 18-to-21 year-olds who had at least one Cash App Card transaction in 2024 divided by the U.S. population of 18-to-21-year-olds as reported in the July 2023 U.S. Census estimates.

9 Velera, Eye on Payments 2024 (October 16, 2024).

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Financial Discussion

We achieved 36.5 on a Rule of 40 basis in 2024, with 18% gross profit growth and 18% Adjusted Operating Income margin.10 We’re executing well on our strategic growth initiatives across Block and are focused on expanding profitability while investing to fuel long-term growth. We remain committed to achieving Rule of 40 in 2026 and expect to deliver another strong year of financial performance in 2025.

Fourth Quarter 2024 Financial Highlights

10 Rule of 40 is the sum of our gross profit growth and Adjusted Operating Income margin as a percent of gross profit. We may refer to a “Rule of” number other than 40 to refer to the sum of gross profit growth and Adjusted Operating Income margin as a percent of gross profit for the period given.

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

12 Gross profit per monthly transacting active is calculated based on Cash App annualized gross profit excluding our BNPL platform during a given quarter divided by the monthly transacting actives for the last month of the quarter. Gross profit for our BNPL platform was $298 million for the fourth quarter of 2024. A paycheck deposit active is a Cash App account that receives ACH inflows during a specified period, but excludes tax refunds and ACH transfers.

13 We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP metrics, including Adjusted Operating Income (Loss), or GAAP reconciliations of the aforementioned, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as contingencies, restructuring and other charges. Accordingly, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation S-K to exclude such reconciliations, as the reconciliations of these non-GAAP guidance metrics to their corresponding GAAP equivalents are not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided reconciliations of other historical GAAP to non-GAAP metrics in tables at the end of this letter.

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Block Financial Metrics

Block grew gross profit 14% year over year in the fourth quarter, with 16% year-over-year growth in Cash App and 12% year-over-year growth in Square. Within Cash App, we saw broad-based strength across Cash App Card, BNPL, and Cash App Borrow, and for Square, growth was driven by software and integrated payments and banking products. On a GAAP basis, we generated $13 million of operating income compared to a loss of $131 million in the fourth quarter of 2023, which included contingencies, restructuring, and other costs — primarily related to accrued expenses in connection with certain litigation and regulatory matters. We were pleased to reach resolutions with the CFPB and nearly all of our state money transmitter license regulators, and we are continuing negotiations with our final state money transmitter license regulator, the New York Department of Financial Services, which is also one of our virtual currency regulators, on our compliance program. Adjusted Operating Income more than doubled year over year to $402 million as we continued to drive efficient growth at scale. On a GAAP basis, we delivered positive diluted EPS of $3.05, which included $1.9 billion of one-time benefits from a valuation allowance release as well as the recognition of certain deferred tax assets, and grew Adjusted EPS to $0.71, representing a 51% increase year over year.

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Square

Growth in Square gross profit was driven primarily by our software and integrated payments and banking products as we executed on our cross-sell strategies and grew upmarket.14 Similar to prior years, gross profit retention remained over 100% in 2024.15

Square GPV in the fourth quarter was $58.9 billion, up 10% and 9.8% year over year on a reported and constant currency basis, respectively. Square GPV growth consists of same-store growth, churn, and acquisition of new sellers. GPV growth accelerated in the fourth quarter due to a combination of improved same-store growth and improved retention.

On a year-over-year basis in the fourth quarter, GPV from food and beverage was up 13% and GPV from both services and retail were up 8%. We saw a more pronounced acceleration in year-over-year growth for our mid-market seller segments (>$500K in annualized GPV) during the fourth quarter.

14 Square is a financial services platform, not a bank. Any reference to Square’s banking offerings refers to products and services that are offered through Block’s Industrial Loan Company, Square Financial Services, Inc., or through our third-party bank partners.

15 Square gross profit retention rate is calculated as the year-over-year gross profit growth of all existing quarterly seller cohorts, averaged over the last four quarters (excluding gross profit from hardware, Caviar, PPP loans, and Weebly prior to the acquisition). A Square cohort represents new sellers onboarded to Square during a given period.

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Cash App

Cash App gross profit increased 16% year over year, driven by broad-based strength across Cash App Card, BNPL, and Cash App Borrow. In 2024, gross profit retention for Cash App remained above 100%.20

Cash App’s paycheck deposit monthly actives grew 25% year over year to 2.5 million as we continued to execute on the “bank our base” strategy. Gross profit per active reached $76 in the fourth quarter, up 13% year over year and inflows per transacting active in the fourth quarter were $1,255, up 10% year over year as we deepened our relationship with customers.

16 Historically, our Cash App ecosystem has experienced improvements in revenue, gross profit, and inflows related to the distribution of government funds as customers have deposited more funds into Cash App during these times, including during the first quarter when U.S. tax refunds are typically distributed.

17 Inflows per transacting active refers to total inflows in the quarter divided by monthly actives for the last month of the quarter. Inflows refers to funds entering the Cash App ecosystem. Inflows does not include the movement of funds when funds remain in the Cash App ecosystem or when funds leave the Cash App ecosystem, or inflows related to the Afterpay or Verse apps. Inflows from Verse actives were not material to overall inflows.

18 We calculate monetization rate by dividing Cash App gross profit, excluding contributions from our BNPL platform, by Cash App inflows.

19 Gross profit per monthly transacting active is calculated based on Cash App annualized gross profit excluding our BNPL platform during a given quarter divided by the monthly transacting actives for the last month of the quarter. Gross profit for our BNPL platform was $242 million or $968 million on an annualized basis for Q4’23, $208 million or $831 million on an annualized basis for Q1’24, $220 million or $881 million on an annualized basis for Q2’24, $242 million or $968 million on an annualized basis for Q3’24, and $298 million or $1.19 billion on an annualized basis for Q4’24.

20 Cash App annual gross profit retention is calculated as the year-over-year gross profit growth of all existing quarterly Cash App cohorts, averaged over the last four quarters, and excluding BNPL platform gross profit and contra revenue. A Cash App transacting active’s cohort is determined based on the date they first became a transacting active on the platform. For example, retention for our 2019 cohort is the average annual gross profit growth from transacting actives who completed a first transaction in 2019. Each of our annual Cash App cohorts since 2018 have exhibited positive overall gross profit retention on aggregate from the date of their first transaction through December 31, 2024.

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Our BNPL platform grew 19% year over year to $10.3 billion in gross merchandise value (GMV), driven by our Pay-in-Four offering’s strong volume growth and Gift Cards as we expanded eligibility globally. Gross profit for our BNPL platform was $298 million, up 23% year over year for the fourth quarter of 2024.

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

Within operating expenses in the fourth quarter, product development expenses were up 12% year over year on a GAAP basis, driven primarily by investments in software and technology infrastructure. Sales and marketing expenses grew 3% year over year on a GAAP basis. Cash App marketing expenses were down 3% on a GAAP basis in the fourth quarter driven by improvements in peer-to-peer risk loss, partially offset by a meaningful step up in go-to-market initiatives. Other sales and marketing expenses were up 13% year over year on a GAAP basis as we increased spend in Square customer acquisition. General and administrative expenses were down 2% year over year on a GAAP basis as we continued to focus on expense efficiency.

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

Cash Flow ($M)

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Net cash provided by operating activities was $1.7 billion for the twelve months ended December 31, 2024, compared to $101 million for the twelve months ended December 31, 2023. We grew Adjusted FCF more than 4x year over year to $2.1 billion. In 2024, we continued to prudently invest in our lending products, while focusing on returning capital to shareholders. We sell a majority of Square Loans to investors and utilize warehouse facilities to reduce Block capital required to fund BNPL growth. We invested in growing Cash App Borrow given the strong unit economics and returns, and are evaluating balance sheet diversification strategies.

In the fourth quarter of 2024, we repurchased 2.3 million shares of our Class A common stock for an aggregate amount of $183 million. As of December 31, 2024, $2.7 billion of our $4 billion share repurchase authorization remained available and authorized for repurchases.

We ended the quarter with $10.7 billion of total liquidity, with $9.9 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as $775 million available to be withdrawn from our revolving credit facility.

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Guidance

2025 Outlook21

For 2025, we expect at least 15% gross profit growth year over year, consistent with the initial outlook we shared in our third quarter shareholder letter, and despite an additional 50 basis points of FX headwinds since that initial outlook was provided. We expect to deliver Adjusted Operating Income of $2.1 billion, equating to a margin of approximately 21% on gross profit, which implies an initial expectation of Rule of 35.5 in 2025. Our 2025 guidance delivers margin expansion of approximately 240 basis points even as we plan to increase investment in go-to-market initiatives across Square and Cash App by more than 20% this year. In Square, we’re building on 2024 investments in marketing, sales, and partnerships, where early marketing efforts have demonstrated strong returns on investment. Increased spend will help us leverage recent product investments to reach more sellers. In Cash App, we’re investing in brand awareness, incentives, and lifecycle marketing to drive paycheck deposit and new product adoption. We see a significant opportunity to enhance awareness of Cash App’s breadth and capabilities as a financial services platform, reinforcing paycheck deposit growth throughout 2025 and beyond.

We anticipate gross profit growth will accelerate throughout the year, with clear visibility into the key drivers. In Square, expanded go-to-market initiatives in the second half of 2024 combined with investments in product development and account management, are expected to drive new customer acquisition and improved retention. We expect this to drive an improvement in both GPV and gross profit growth. We expect a more pronounced gross profit acceleration for Cash App, driven by the February launch of After pay on Cash App Card, our planned expansion of Cash Borrow eligibility, and ramping marketing investments to support the growth of Cash App Card and paycheck deposit actives.

In 2025, we expect a non-GAAP effective tax rate in the mid-20% range, consistent with 2024. In the first quarter of 2025, we will begin burdening our Adjusted Net Income with stock-based compensation, consistent with Adjusted Operating Income, to better reflect how we operate the business.

21 We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP metrics, including Adjusted Operating Income (Loss), non-GAAP effective tax rate, or GAAP reconciliations of any of the aforementioned, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as contingencies, restructuring and other charges. Accordingly, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation S-K to exclude such reconciliations, as the reconciliations of these non-GAAP guidance metrics to their corresponding GAAP equivalents are not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided reconciliations of other historical GAAP to non-GAAP metrics in tables at the end of this letter, as well as relevant non-GAAP definitions.

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We’re excited about Square’s improving growth trajectory and plans for another strong year for Cash App. We remain committed to long-term growth investments while maintaining operational efficiency. With our updated outlook, we now expect to exit 2025 at a Rule of 40 run rate and remain on track to achieve our target of Rule of 40 in 2026.

Q1 2025 Outlook22

22 We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP metrics, including Adjusted Operating Income (Loss) or GAAP reconciliations of the aforementioned, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as contingencies, restructuring and other charges. Accordingly, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation S-K to exclude such reconciliations, as the reconciliations of these non-GAAP guidance metrics to their corresponding GAAP equivalents are not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided reconciliations of other historical GAAP to non-GAAP metrics in tables at the end of this letter.

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Earnings Webcast

Block (NYSE:XYZ) will host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time, February 20, 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 first quarter of 2025 on May 1, 2025, after the market closes, and will also host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time on the same day to discuss those financial results.

MEDIA CONTACT

press@block.xyz

INVESTOR RELATIONS CONTACT

ir@block.xyz

Jack Dorsey		Amrita Ahuja

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Consolidated Statements of Operations

In thousands, except per share data

(i) Includes one-time benefits from income taxes of $1.9 billion in fiscal 2024 related to both the release of the Company’s valuation allowance against deferred tax assets associated with certain federal and state deferred tax assets as well as the recognition of deferred tax assets as part of internal legal entity restructuring efforts.

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Consolidated Balance Sheets

In thousands, except per share data

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Consolidated Statements of Cash Flows

In thousands

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Consolidated Statements of Cash Flows, Continued

In thousands

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Reportable Segment Disclosures

Information on the reportable segments revenue and segment operating profit, as well as amounts for the “Corporate and Other” category, which includes products and services not assigned to reportable segments and intersegment eliminations

In thousands