• Gross profit growth more than doubled from Q1 to Q4 2025
• Surpassed Rule of 40 in Q4, reignited Cash App network growth, and drove deeper engagement
• Scaled lending products, accelerated Square GPV growth, and had strongest new volume added year on record

Block, Inc. reported its financial results for the fourth quarter and fiscal year ended December 31, 2025. The company had a strong year, with gross profit growth more than doubling from the first quarter to the fourth quarter. It surpassed the Rule of 40 metric in the fourth quarter, reignited Cash App network growth, and drove deeper engagement. Block also scaled its lending products at strong returns, accelerated Square gross payment volume growth, and had its strongest new volume added year on record. Additionally, the company shipped its first Proto bitcoin mining units and increased share repurchases. Despite the strong financial performance, Block announced a major workforce reduction, cutting over 4,000 jobs, or more than 40% of its workforce. The company believes that intelligence tools have changed what it means to build and run a company, and that a smaller, more focused team leveraging these tools can be more efficient and effective. Going forward, Block plans to put intelligence at the core of how the entire company works, with a focus on building customer capabilities, interfaces, proactive intelligence, and an intelligence model to orchestrate operations. The company believes this will allow it to better serve its customers and deliver more value per customer.

For fiscal year 2026, Block expects to incur charges of approximately $450 million to $500 million in connection with the workforce reduction restructuring plan, consisting primarily of cash expenditures for notice period and severance payments, employee benefits, and related costs as well as non-cash expenses related to vesting of share-based awards. The majority of these charges are expected to be incurred in the first quarter of fiscal 2026, and the execution of the plan is expected to be substantially complete by the end of the second quarter of fiscal 2026.

Block believes it can sustain Cash App's strong gross profit growth and continue accelerating Square's gross payment volume over the next three years. The company is moving towards a model where customers can build their own features directly on top of Block's capabilities, which the company believes will dramatically increase the value it can deliver per customer. Block also plans to operate with extreme focus on four key areas: customer capabilities, interfaces, proactive intelligence, and an intelligence model to orchestrate operations. The company believes this will allow it to be significantly more valuable as a smaller, faster, intelligence-native company.