Opening the filing
8-K
The information furnished pursuant to Item 2.02 on this Report, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 2.05 Costs Associated with Exit or Disposal Activities.
On February 26, 2026, the Company announced a workforce reduction restructuring plan (the “Workforce Plan”) designed to better align our organizational structure with our operating model and strategic priorities.
As part of the Workforce Plan, we expect to reduce our current workforce by more than 40%. The Company currently estimates that we will incur charges of approximately $450 million to $500 million in connection with the Workforce 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 Company expects that the majority of the restructuring charges will be incurred in the first quarter of fiscal 2026, and that the execution of the Workforce Plan will be substantially complete by the end of the second quarter of fiscal 2026. The Company’s estimates are subject to a number of assumptions, and the actual costs incurred may differ materially from those initial estimates.
Forward Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as ““may,” “will,” “appears,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. Forward-looking statements in this Current Report on Form 8-K include, but are not limited to, statements regarding the Company’s financial guidance, the Company’s expected costs related to restructuring and related charges, including the timing of such charges, and the expected benefits from the restructuring plan and related actions. The Company’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to the expected benefits of artificial intelligence tools to our employees, to our customers, to the pace of our innovation and to our overall business. The forward-looking statements contained in this Current Report on Form 8-K are also subject to other risks and uncertainties, including those more fully described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The forward-looking statements in this Current Report on Form 8-K are based on information available to the Company as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements, except as required by law.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1
Q4 2025
Shareholder Letter investors.block.xyz
To Our Shareholders Today we shared a difficult decision with our team. We’re reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation. I want to use this letter to explain why I believe this is the right path for our company, and what Block looks like going forward.
2025 was a strong year for us. Gross profit growth more than doubled from the first quarter to the fourth quarter. We surpassed Rule of 40 in the fourth quarter, reignited Cash App network growth, and drove deeper engagement. We scaled our lending products at strong returns, accelerated Square gross payment volume (GPV) growth, and had our strongest new volume added (NVA) year on record. We shipped our first Proto bitcoin mining units and we increased share repurchases to return more capital to shareholders.
We believe this financial performance is just beginning to reflect the product development velocity improvements we drove this year, and we have conviction in achieving the financial targets we laid out at our recent Investor Day. We believe we can sustain Cash App’s strong gross profit growth and continue accelerating Square’s GPV over the next three years. We have already seen our strategies start to come to life in what we deliver to customers every day. So why are we changing how we operate going forward?
So here’s how we’re going to operate from here.
Q4’25 Highlights 3
Gross Profit $ 2.87 B +24% YoY Growth
Cash App Gross Profit $ 1.83 B +33% YoY Growth
Square Gross Profit $ 993 M +7% YoY Growth
Operating Income $ 485 M 17% Margin 4
Adjusted
Operating Income 5 $ 588 M 20% Margin
Diluted Net Income Per Share (“EPS”)
$ 0.19
Adjusted Diluted EPS 6 $ 0.65 1 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.
2 Square GPV is defined as the total dollar amount of all card and bank payments processed by sellers using Square, net of refunds. New Volume Added (NVA) is the total gross payment volume (GPV)
processed, or expected to be processed, by new sellers during their first 12 months on Square. While intended to represent incremental volume from new cohorts, it may also include GPV from existing sellers in cases such as new locations or event-based merchant tokens. For the purpose of this letter, figures exclude deactivated merchants.
Third, speed. A company of our new size has no excuse for being slow. We will decide faster, ship faster, and learn faster. The structure we’re building is designed for that.
We believe Block will be significantly more valuable as a smaller, faster, intelligence-native company. Everything we do from here is in service of that.
2025 Highlights
Gross Profit $ 10.36 B +17% YoY Growth
Cash App Gross Profit $ 6.34 B +21% YoY Growth
Square Gross Profit $ 3.94 B +9% YoY Growth
Operating Income $ 1.71 B 16% Margin
Adjusted
Operating Income $ 2.08 B 20% Margin
Diluted EPS $ 2.10
Adjusted Diluted EPS $ 2.37
Business Highlights We accelerated the pace of innovation across Block.
In the fourth quarter, we shared major product updates across both Square and Cash App, highlighting how we’re helping sellers grow their businesses more efficiently and helping our customers better manage their finances. At Square Releases, we introduced new products and features for sellers to help manage orders through AI Voice Ordering, reduce costs through simplified vendor cost comparison, and reach new customers by enabling sellers to accept sales in bitcoin just like they would accept a card or tap to pay transaction. We also held our first Cash App Releases, where we launched Cash App Green, our expanded status program, introduced Moneybot, and showcased over 150 upgrades from the past year. We continued to deliver our shipments of Proto mining rigs and made meaningful progress on the development of our next-generation chip architecture.
Fourth Quarter 2025 Financial Highlights
Gross Profit We outperformed our gross profit guidance, growing 24% year over year in the fourth quarter as we continued to launch new products and invest in go-to-market efforts across Square and Cash App to sustain strong growth at scale.
Profitability We drove strong operating income and outperformed our Adjusted Operating Income guidance in the fourth quarter. Operating income was $485 million while Adjusted Operating Income grew to $588 million. Net income attributable to common stockholders was $116 million and Adjusted EBITDA was $930 million. GAAP diluted EPS was $0.19, while Adjusted Diluted EPS grew 38% to $0.65.
Square Gross Payment Volume (GPV)
In the fourth quarter, Square GPV grew 10% year over year (reported and constant currency), with U.S. GPV growing 7.0% year over year and International GPV growing 24% year over year (25% in constant currency). Through February 24, quarter-to-date Square GPV growth accelerated to over 12% year over year on a reported basis (11% in constant currency), with U.S. GPV growing over 7.5% year over year and international GPV growing over 34% year over year (26% in constant currency).
Cash App Monthly Actives In the fourth quarter, Cash App monthly transacting actives grew to 59 million, while PBAs grew 22% year over year to 9.3 million in December, up from 8.3 million in September. We are continuing to invest in Cash App Green as a cornerstone of our engagement strategy.
Guidance We are raising our guidance to reflect the strength we are seeing across our business. We now expect $12.20 billion in gross profit for 2026, reflecting growth of 18% year over year. We expect full year Adjusted Operating Income of $3.20 billion, or 26% margin, growing 54% year over year. We expect gross profit in the first quarter to grow 22% year over year to $2.80 billion and we expect Adjusted Operating Income of $600 million, reflecting Adjusted Operating Income margins of 21%.
12 Commerce Enablement volume includes GPV from Cash App Card, Cash App Pay, BNPL products, and Cash App Business.
Block Financial Metrics