Block (XYZ) Risk Factor Changes

•general economic, regulatory, and market conditions, in particular conditions that adversely affect our sellers’ business and the amount of transactions they are processing, or adversely affect customer spending or r…

Investors, regulators, customers, employees and other stakeholders continue to focus on sustainability matters.

Increased scrutiny from investors, regulators, and other stakeholders relating to sustainability issues could result in additional costs for us and may adversely impact our reputation.

The regulation of BNPL products is evolving, and states or countries have and may continue to pass new or additional regulations or additional and changing legal, regulatory, tax, licensing, and compliance requirement…

We have obtained licenses to operate as a money transmitter and to engage in virtual currency business activity in the U.S.

As a licensed money transmitter and virtual currency business, we are subject to important obligations and restrictions.

Some of the laws and regulations affecting the internet, mobile commerce, dispute resolution, payment processing, BNPL, AI, bitcoin and equity investing, streaming service, business financing, and employment were not…

The number and significance of our legal or regulatory matters have increased as we have grown larger, as our business has expanded in scope and geographic reach, and as our products and services have increased in com…

We are currently, and may continue to be, subject to a variety of legal and regulatory matters, including claims, lawsuits (including class actions and individual lawsuits), arbitrations, disputes, investigations, sub…

Likewise, the California Consumer Privacy Act of 2018 (“CCPA”) became effective on January 1, 2020 and was amended by the California Privacy Rights Act, which was passed in November 2020 and became effective on Januar…

We are subject to laws and regulations relating to the collection, use, retention, privacy, protection, security, and transfer of information, including personal information of our employees and customers.

For example, Cash App and Square have features that permit our customers and sellers to transact in bitcoin.

As of December 31, 2025, our deferred tax assets relate predominantly to the U.S.

We are subject to tax in multiple U.S.

The manner in which we account for our bitcoin under applicable accounting rules has changed.

Our ability to make required cash payments in connection with conversions of the Convertible Notes, repurchase the Notes as required following a fundamental change, or to repay or refinance the Notes at maturity will…

As of December 31, 2025, we had $575.0 million outstanding aggregate principal amount of 2026 Convertible Notes, $575.0 million outstanding aggregate principal amount of 2027 Convertible Notes, $1.0 billion outstandin…

Our credit agreement contains affirmative and negative covenants, including covenants that restrict our domestic restricted subsidiaries from incurring debt for borrowed money, us and our domestic restricted subsidiar…

The terms of our warehouse funding facilities contain covenants that may be triggered in certain situations (such as non-repayments on consumer borrowings exceeding certain monetary thresholds or key management resign…

We fund our operations primarily through debt and equity financings, bank credit agreements, warehouse funding facilities, and cash from operations.

We may not be able to secure financing on favorable terms, or at all, to meet our future capital needs.

From time to time, we have experienced and may continue to experience material and adverse impacts to our business as a result of the uncertainty and volatility in the banking and financial services sectors, adverse m…

Our performance is subject to economic conditions and the impact of such conditions on levels of spending by businesses and individuals.

Volatility in general macroeconomic conditions could materially and adversely affect our business and financial results.

Some of our hardware devices manufactured outside of the United States are subject to tariffs when imported to the United States.

Many of the key components in our hardware products are procured from a single or limited number of suppliers.

To maintain and grow our business, we will need to identify, attract, hire, develop, motivate, and retain highly skilled employees.

Significant natural or other disasters, including pandemics, and severe weather events such as storms, flooding, or wildfires could also have a material and adverse impact on our sellers or other customers, which, in…

More generally, if our privacy, data protection, or cybersecurity measures or those of third-party developers or vendors are inadequate or are breached or otherwise compromised, and, as a result, there is improper dis…

Adverse changes in the macroeconomic environment or the credit quality of our sellers could cause some sellers who utilize Square Loans to cease operations or to experience a decline in their payment processing volume…

Our loan products are subject to risks related to general macroeconomic conditions and increase our exposure to customer defaults.

•economic and political instability and other geopolitical risks.

•enactment of or increases in tariffs, sanctions, fines, or other trade restrictions, including retaliatory actions;

Our investments in bitcoin, our bitcoin ecosystem, and our Cash App and Square features that facilitate transactions in bitcoin by our customers and sellers each subject us to additional risks related to developments…

Our success depends in part on our ability to develop new technologies, to adapt to technology changes and evolving industry standards, to incorporate new technologies into our products and services, and to provide pr…

We intend to continue to broaden the scope of products and services we offer.

Harm to our brands can arise from many sources, including failure by us or our partners and service providers to satisfy expectations of service and quality; inadequate protection or misuse of sensitive information; f…

From time to time, we have made and we may in the future make decisions that will have a negative effect on our short-term operating results if we believe those decisions will improve our operating results over the lo…

We intend to continue to make investments in our business, including with respect to our employee base, sales and marketing, development of new products, services, and features; acquisitions; infrastructure; expansion…

We have generated significant net losses in the past, and we intend to continue to invest in our business.

•regulatory scrutiny or changes in the BNPL space;

•obligations and restrictions as a licensed money transmitter and virtual currency business;

•litigation, including intellectual property claims, government investigations or inquiries, and legal and regulatory matters;

•real or perceived improper or unauthorized use of, disclosure of, or access to data;

•risks related to our loan products such as repayments and general macroeconomic conditions; and

•our ability to develop products and services to address the rapidly evolving market for commerce and financial services;

Our income tax obligations are based on our corporate operating structure, including the manner in which we develop, value, and use our intellectual property and the scope of our international operations.

On August 16, 2022, the Inflation Reduction Act was enacted in the United States, which introduced, among provisions, a new minimum corporate income tax on certain large corporations, an excise tax of 1% on certain sh…

Our tax liability could be adversely affected by changes in tax laws, rates, regulations, and administrative practices.

We are subject to income taxes and non-income taxes in the United States and other countries in which we transact or conduct business, and such laws and rates vary by jurisdiction.

We may have exposure to greater-than-anticipated tax liabilities, which may materially and adversely affect our business.

These challenges have increased as we shift to a more distributed workforce.

While we maintain a program of insurance coverage for various types of liabilities, we may self-insure against certain business risks and expenses where we believe we can adequately self-insure against the anticipated…

If we fail to successfully operate and grow our TIDAL business, we will not realize the benefits anticipated when we acquired a majority interest in the business, and any such failure could result in adverse effects o…

Maintaining and growing our Square Loans business is dependent on institutional third-party investors purchasing the eligible business loans originated by us.

Square Loans is our commercial lending program.

•any inability to secure financing on favorable terms, or at all, or comply with covenants in our existing credit agreement, the indentures, or future agreements;

Tax laws are routinely re-examined and evaluated globally.

We are subject to the periodic examination of our domestic and foreign tax returns by the Internal Revenue Service, and state, local, and foreign tax authorities, some of whom are challenging our tax positions.

We are subject to taxation related risks in multiple jurisdictions.

We sell some of our Square Loans to third-party investors, while we remain as servicer of the Square Loans and earn a servicing fee for facilitating the repayment of these loans.

These challenges have magnified as we continue to be a distributed workforce.

While we maintain a program of insurance coverage for various types of liabilities, our insurance may not be adequate to cover all losses, and coverage may be denied or limited due to policy terms.

Our technologies or features may be licensed under commercial, non-commercial, or open-source terms to third parties for use in their own products and services.

In addition, because the servicing fees we receive from third-party investors and lenders depend on the repayment of the loans, if there is an increase in sellers and customers who utilize our loan products who are un…

Revenue generated by our loan products such as Square Loans, as well as Cash App Borrow, and our BNPL products depends on our ability to recoup the loan amount and to effectively manage risk.

Our AI initiatives may not improve efficiency, performance, or profitability as expected, and may underperform or fail entirely due to technological limitations, regulatory requirements, or other factors.

Our ability to develop and deploy AI features depends on the availability and pricing of third-party AI models, tools, and technical infrastructure, and increases in such costs or constraints on availability could adv…

Consumer and societal attitudes toward AI are evolving and there is a risk that customers, regulators or the public may perceive AI technologies negatively.

We have incorporated and expect to continue to incorporate AI technologies, including generative AI and AI agents, into our products and technologies.

The development and use of AI in our products may result in reputational and competitive harm and could adversely impact our business.

In addition, any reassignment of responsibilities, together with potential increased reliance on automation and AI tools to support certain legal, regulatory compliance and risk management functions, may limit our cap…

We may also incur additional costs not currently contemplated, including costs related to technology implementation, operational disruptions, employee claims, regulatory compliance, or other matters arising from the w…

The workforce reduction and reorganization may disrupt our operations and adversely affect employee morale and productivity.

In February 2026 we announced a workforce reduction restructuring plan designed to better align our organizational structure with our operating model and strategic priorities.

Our recently announced workforce reduction and related reorganization, including the potential for increased reliance on proactive intelligence and artificial intelligence tools, may not achieve their intended benefit…

•any inability to secure financing on favorable terms, or at all;

•development and use of AI, including generative AI, in our products;

•our recently announced workforce reduction and related reorganization, including the potential for increased reliance on proactive intelligence and artificial intelligence tools;