Block, Inc. (SQ): Business Model Canvas [Dec-2025 Updated]

You're trying to map out how Block, Inc. actually makes its money, right? It's not just one business; it's a dual-engine machine-Square for sellers and Cash App for consumers-all aiming for a projected $10.24 billion in gross profit by late 2025. Honestly, understanding this structure, which supports 58 million monthly Cash App users and a projected $3.0 billion to $3.5 billion in cash flow, is key to seeing where the real value lies. Let's break down the nine essential blocks of this complex, yet surprisingly elegant, financial ecosystem below.

Block, Inc. (SQ) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships that make Block, Inc.'s dual-sided ecosystem run smoothly. These partnerships are the connective tissue, helping Square sellers process payments and Cash App users access financial services. Honestly, without these agreements, the whole structure slows down.

Card Network Processing: Visa, Mastercard, and American Express

Block, Inc. relies on the major card networks to ensure Square hardware and the Cash App Card function everywhere. While specific Block, Inc. processing volume data tied directly to Visa, Mastercard, and American Express for 2025 isn't always public, we see the integration points. For instance, the Square Debit Card is issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard. This allows Square Checking account holders to use their card where Mastercard is accepted. Square hardware lets sellers accept payments via chip cards, magstripe swipes, and contactless methods, which inherently involves these networks. Block, Inc. reported processing 124 Million Transactions as Americans shopped local during the Black Friday/Cyber Monday period in 2025.

Here's a snapshot of the broader network health, which impacts Block, Inc.'s operating environment:

Network Metric (Visa Q4 2025)	Value
Processed Transactions	67.7 billion
Revenue	$10.7 billion
Year-over-Year Processed Transaction Growth	10%

Banking Infrastructure: Green Dot Bank and Other Financial Institutions

Cash App's banking features, like direct deposit and the Cash App Card, require licensed banking partners. Green Dot Bank has historically been a key entity here. To be fair, the nature of these regulated relationships means specific 2025 contribution metrics are often kept close to the vest. What we do know is that Block, Inc. has a standing commitment to maintain capital levels with its subsidiary bank partners. For example, in prior years, the company noted it may make periodic cash contributions to Green Dot Bank to maintain its capital, leverage, and other financial commitments as agreed with regulators. This ensures the stability required for services like the Cash App Card, which is issued by Sutton Bank, Member FDIC, a partner for many of its debit card functions.

Bitcoin Mining Development: Core Scientific

The partnership with Core Scientific is a concrete example of Block, Inc.'s Proto team moving into the hardware space, aiming to decentralize the Bitcoin network. This is a direct, measurable commitment to the crypto infrastructure play.

Core Scientific Mining Chip Partnership Details	Data Point
Chip Technology	3-nanometer ASIC miners
Preorder Hashrate Volume	Approximately 15 EH/s
Prepayment Made (as of Jan 2025)	$21.3 million
Delivery Expectation	Second half of 2025

This deal is a good example of how Block, Inc. envisions its mining products advancing the industry through open and transparent development.

Buy Now, Pay Later (BNPL) Integration: Afterpay Merchant Network

The integration of Afterpay into the Cash App ecosystem is designed to create a powerful loop between Square sellers and Cash App consumers. This is a major driver for the Cash App segment. The rollout of retroactive BNPL functionality for Cash App Card purchases started in February 2025, allowing users to split past eligible purchases. By March 2025, this integration exposed Afterpay's BNPL offerings to Block, Inc.'s full base of 57 million monthly active users on Cash App.

The financial impact of this integration is clear:

• BNPL revenues were $312.9 million in Q1 2025.
• This was up from $283.5 million reported in Q1 2024.
• BNPL helped drive 10% year-over-year gross profit growth for Cash App in Q1 2025.
• The Afterpay Card launched in 20 states and Washington D.C. by February 2025.
• As of Q3 2024, Afterpay reported over 348,000 merchants globally.

Square's Restaurant Ecosystem: Grubhub and Vertical Partners

Block, Inc. is actively expanding Square's value proposition by integrating with vertical service providers, which deepens seller reliance on the platform. A recent, notable example is the October 2025 partnership with Grubhub. This move helps sellers focus on their core business by simplifying operations.

The Grubhub integration specifically brings two key features to the food ordering landscape:

• Restaurants manage all Grubhub orders directly through the Block Square point-of-sale (POS) system.
• Millions of Grubhub customers gain the option to pay using Cash App Pay.

This strategy shows Block, Inc. is focused on operational integration and payment flexibility to grow payment volumes and deposit flows.

Block, Inc. (SQ) - Canvas Business Model: Key Activities

You're looking at the core operational engine for Block, Inc. as of late 2025. These are the daily, intensive tasks that keep the two massive ecosystems-Square and Cash App-running and growing. It's a balancing act between merchant services and consumer finance, all underpinned by a growing bet on Bitcoin.

Developing and iterating on the Square AI suite for merchants

Block, Inc. is actively embedding artificial intelligence across the Square ecosystem to help sellers run and grow their businesses more efficiently. This involves delivering AI tools to sellers to automate operations and finances. The focus is on making selling easier with software solutions and commerce tools. To be fair, the specific metrics on AI iteration are often bundled into broader product development, but the commitment is clear, evidenced by the launch of the Cash App Moneybot AI Tool on November 13, 2025.

Scaling Cash App's direct deposit and lending products (Cash App Borrow)

Scaling lending is a major Key Activity, especially since Block shifted the origination of the majority of Borrow loans to its bank subsidiary, Square Financial Services (SFS), in Q2 2025. This move helped deliver stable risk loss and strong annualized net margins of 24% during that quarter. The growth in this area is significant:

• Cash App Borrow grew 134% from a year ago in Q3 2025.
• First-time borrowers can qualify for up to $500.
• The product maintains repayment rates above 97% despite 70% of actives having credit scores below 580.
• Cash App reached 58 million monthly active users in September 2025.
• Gross profit per monthly transacting active user for Cash App was $94 in Q3 2025, up 25% year-over-year.

The direct deposit feature is a critical feeder for lending; users who deposit their paycheck into Cash App are reportedly 2.5 times more likely to accept a Borrow offer than card-only users.

Building Bitcoin infrastructure, including Bitkey and Proto hardware

Block is deeply involved in building out the Bitcoin layer of the financial system. This is not just about holding the asset; it's about building the tools for self-custody and mining. Proto, the Bitcoin mining chip, generated its first revenue in Q3 2025, with plans for a launch in the second half of 2025. Bitkey, the self-custody wallet, began shipping its first hardware devices to customers in March 2024.

Here's a snapshot of the Bitcoin-related activity and holdings as of Q3 2025:

Metric	Value
Bitcoin (BTC) Held at Quarter's End	8,780 BTC
Proto Expected Contribution	Business growth in the second half of 2025
Bitcoin Revenue (Q3 2025)	$1.97 billion

Maintaining and securing two massive, interconnected financial platforms

The daily activity here centers on keeping the two platforms operational, secure, and compliant while managing the associated risk from high-velocity products. The scale is immense, requiring constant security and risk model maintenance. For instance, transaction, loan, and consumer receivable losses rose by 89% year-over-year in Q3 2025, a direct consequence of the growth in Cash App Borrow volumes. The company is focused on connecting sellers and consumers at scale, which is a core security and operational challenge.

Expanding Gross Payment Volume (GPV) for Square, which accelerated to 12% in Q3 2025

The Square segment continues to focus on gaining profitable market share, especially in target verticals like food and beverage and with larger sellers, as well as expanding internationally. The growth in GPV reflects this strategy working. In Q3 2025, Square's GPV grew 12.2% year-over-year, reaching $67.15 billion. This growth was not uniform across geographies:

• U.S. GPV grew 8.9%.
• International GPV increased 26% (or 25% on a constant currency basis).

This volume translated to Square generating a gross profit of $1.02 billion in Q3 2025, up 9.2% year-over-year. The growth rate for GPV from sellers with over half a million dollars in volume was 20% year-over-year in Q3 2025, marking their strongest growth rate for that cohort since Q1 2023.

Overall Q3 2025 performance highlights the dual focus:

Metric (Q3 2025)	Square	Cash App	Block Total
Gross Profit (YoY Growth)	$1.02 billion (9.2%)	$1.62 billion (24.3%)	$2.66 billion (18.3%)
GPV (YoY Growth)	$67.15 billion (12.2%)	$2.13 billion (down 18.6%)	$69.28 billion (10.9%)

Finance: draft 13-week cash view by Friday.

Block, Inc. (SQ) - Canvas Business Model: Key Resources

You're looking at the core assets that power Block, Inc.'s entire operation as of late 2025. These aren't just assets; they are the engines driving the connected ecosystems of Square and Cash App. The strength of these resources defines the company's competitive moat.

Proprietary software platforms: Cash App and Square ecosystems

The Key Resources start with the dual platforms. Square is the commerce engine, providing everything from point-of-sale hardware and software to integrated banking and lending for merchants. Cash App functions as a consumer financial operating system, moving far beyond simple peer-to-peer (P2P) transfers. It now integrates commerce tools, lending, investing, and significant cryptocurrency functionality, aiming to be the primary financial hub for its users.

The ecosystems are deeply connected, which is a major resource advantage. For instance, the Cash App Card acts as a distribution surface for new features like Afterpay integration, while Square Financial Services supports lending across the Square side.

Intellectual property (IP) in payment processing and Bitcoin technology

Block, Inc. has built substantial IP around its commitment to Bitcoin and advanced financial technology. This isn't just about processing payments; it's about owning the rails for next-generation finance. You see this IP manifest in several areas:

• The proprietary technology underpinning the seamless integration of Bitcoin buying, selling, and payments across Cash App.
• The development of hardware and software for Bitcoin mining through its Proto suite.
• The creation of Bitkey, a self-custody Bitcoin wallet, which represents deep IP in non-custodial security.
• The use of Artificial Intelligence and Machine Learning models for underwriting, particularly for Cash App Borrow loans, which helps maintain low loss rates.

Square Financial Services, Inc. (Industrial Bank Charter)

This is a critical, hard-to-replicate resource. Square Financial Services, Inc. began operations after completing the charter approval process with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions, starting in March 2021. This Industrial Loan Company (ILC) charter allows Block to bring banking capabilities in-house, primarily underwriting and originating business loans for Square Capital's existing lending product, moving away from reliance on partners like Celtic Bank.

A large, active user base

Scale is a resource in itself, creating network effects and distribution advantages. The user base is massive and engaged, especially on the consumer side. As of September 2025, the Cash App segment reported 58 million monthly active users. This large base is crucial for monetizing lending products like Cash App Borrow and for driving adoption of the Cash App Card, which had 25 million monthly active users by the end of 2024.

Significant cash flow and financial scale

The financial health supports continued investment and expansion. While the specific cash flow projection you mentioned is a key internal target, the publicly guided financial scale for the full year 2025 demonstrates the underlying strength of the business model. Here's a look at the key financial metrics guiding resource allocation:

Metric	2025 Full Year Guidance/Projection
Projected Cash Flow (as per outline)	$3.0 billion to $3.5 billion
Gross Profit Guidance	$10.243 billion
Adjusted Operating Income Guidance	$2.056 billion
Q3 2025 Cash App Gross Profit	$1.62 billion
Q3 2025 Square Gross Profit	$1.02 billion

The company is focused on expanding its primary banking actives, which reached 8.3 million year-over-year as of Q3 2025. Also, the company repurchased approximately $1.5 billion of stock through the end of September 2025, showing a commitment to returning capital. Finance: draft 13-week cash view by Friday.

Block, Inc. (SQ) - Canvas Business Model: Value Propositions

You're looking at the core reasons why sellers and consumers stick with Block, Inc.'s ecosystem as of late 2025. It's not just about processing payments; it's about building a complete financial toolkit for both sides of commerce.

For Sellers: A complete, integrated Point-of-Sale (POS) and business management platform

For the businesses you serve, the value proposition centers on an integrated platform that goes well beyond simple card readers. Square's ecosystem is driving significant gross profit, hitting $1.02 billion in Q3 2025, which was up about 9% year-over-year. The engine behind this is Gross Payment Volume (GPV), which reached $67.15 billion in Q3 2025, marking a 12.2% increase from the prior year. You see a clear trend toward larger businesses, too; mid-market sellers (those with over $500,000 in annualized GPV) accounted for 45% of total Square GPV in Q3 2025, with that segment growing 20% year-over-year. This shows sellers are adopting the full suite of tools, not just the entry-level hardware.

Here's a quick look at the seller ecosystem's scale and growth:

• Q3 2025 Square Gross Profit: $1.02 billion.
• Q3 2025 Square GPV: $67.15 billion.
• International GPV Growth (Q3 2025): 26%.
• Mid-Market Seller GPV Share (Q3 2025): 45%.
• Square Banking Users (as of 2025): Over 1 million business owners.

For Consumers: Accessible, mobile-first financial services (banking, P2P, investing)

On the consumer side, Cash App is the primary value driver, delivering a Q3 2025 gross profit of $1.62 billion, a strong 24% jump year-over-year. The platform is clearly monetizing its active base well, with annualized gross profit per monthly active user hitting $94 in Q3 2025. As of September 2025, the user base stands at 58 million monthly active users. The value proposition here is the breadth of services available directly in the app, making it a true mobile-first financial hub.

Democratizing economic access for the underbanked and small businesses

Block, Inc. explicitly builds technology to increase access to the economy for everyone. This is quantified by the growth in services aimed at those outside traditional finance. For instance, the Cash App Borrow feature reached 5 million monthly active users by the end of 2024. Furthermore, the Square ecosystem, which targets small and medium businesses, serves over 1.3 million businesses during the BFCM 2025 weekend alone. The focus on international expansion, seen in the 26% international GPV growth in Q3 2025, also speaks to broadening economic reach beyond the U.S..

Seamless integration of BNPL (Afterpay) across both merchant and consumer sides

Afterpay's value is in making purchasing power immediate while allowing deferred payment, which benefits both the consumer's cash flow and the merchant's sales velocity. In Q3 2025, the Buy Now, Pay Later platform's Gross Merchandise Value (GMV) grew 17% year-over-year, reaching $9.7 billion. This integration is driving deeper engagement; over the BFCM 2025 weekend, the average BNPL basket size grew 10% compared to the previous year.

The integration metrics show consumer adoption:

Metric	Value (Q3 2025 or Latest Available)	Context
Afterpay GMV	$9.7 billion	Q3 2025 Gross Merchandise Value
BNPL Basket Size Growth	10%	BFCM 2025 average basket size increase
Cash App Card MAU	25 million	Monthly Active Users as of December 2024
Total Block Transactions Processed	Over 124 million	BFCM 2025 four-day period

Enabling simple, defintely secure Bitcoin transactions and self-custody

Block, Inc. maintains a strong commitment to Bitcoin, viewing it as a key component of an open financial system. While Bitcoin revenues for Q3 2025 were $1.97 billion, showing a 19% year-over-year decline, the company's long-term commitment is evident in its balance sheet and profit allocation strategy. As of 2024, Block held 8,692 Bitcoin on its balance sheet. To show commitment to the asset itself, the company allocates 10% of all profits derived from Bitcoin products directly back into purchasing more Bitcoin. Furthermore, the company is developing Bitkey for simple self-custody and Proto for mining products, signaling a focus on the entire Bitcoin stack, not just trading.

Finance: draft the Q4 2025 cash flow projection by next Tuesday.

Block, Inc. (SQ) - Canvas Business Model: Customer Relationships

You're looking at how Block, Inc. manages the connection with its massive, diverse customer base across Cash App and Square. It's not one-size-fits-all; the relationship model changes based on the product and the size of the seller.

Automated, in-app customer support for Cash App users

Block, Inc. has made significant investments in Cash App customer support following unprecedented growth during the pandemic years. The current support structure emphasizes self-service and in-app tools, though live phone support is available. Block reached an agreement with the Consumer Financial Protection Bureau in early 2025 to resolve a matter principally related to historical customer service programs, stating the current experience is improved. Cash App serves about 57 million monthly active users as of Q1 2025, projecting growth to 54.9 million for the full year 2025. The platform's gross profit per transacting active user reached $87 in Q2 2025.

Key support access points for Cash App users include:

• Real-time in-app messaging.
• Email support.
• Live phone support.
• A dispute submission tool within the app.

Dedicated sales and account management for larger Square sellers

For Square sellers, especially those on the larger end, the relationship shifts toward dedicated attention. Mid-market sellers, defined as those with annualized Gross Payment Volume (GPV) greater than $500k, accounted for 45% of Square's total GPV in Q3 2025. Square's total GPV in Q3 2025 was reported at $67.2 billion. Seller cohorts that adopt Square's full software ecosystem see about 9% higher sales. More than 4 million sellers trust Square to power their business as of 2025.

High-touch, consultative service for Square Capital loan recipients

For Square Capital loan recipients, the relationship model is more intensive, focusing on the success of the funded business. Square has funded over 900K+ businesses globally as of 2025. 88% of businesses with Square Loans report growth after receiving funding. Loan offers can range up to $350,000. Repayment terms involve a minimum payment of 1/18th of the initial loan balance every 60 days, with full repayment required within 18 months. Support for these loan recipients is available via a dedicated phone line, 1 (855) 700-6000, or through email contact initiated in the Square Dashboard. Cash App Borrow, a similar credit product, reached 5 million monthly active users by the end of 2024 and maintains repayment rates above 97%.

Community-driven, viral growth and network effects on Cash App

Cash App's growth is heavily reliant on network effects, where the value increases as more people use it. The platform had 57 million monthly active users as of Q1 2025. Active monthly users making deposits into their Cash App account increased by 25% year-over-year in the last quarter of 2024. Active Cash App Borrow users bring in 13% more inflows and conduct 6% more transactions than non-active users. The Cash App Card reached 25 million monthly active users in the last quarter of 2024.

Self-service onboarding for new, micro-sized Square merchants

The entry point for new, micro-sized Square merchants leans heavily on self-service, streamlined by product integration. All new Square sellers now receive a Square Checking account by default, integrating them immediately into the banking ecosystem. The new unified Square Point of Sale app is designed to make it easier for sellers to discover the right tools for their business, suggesting a low-friction, self-directed setup process.

Here is a snapshot of the scale and engagement across Block, Inc.'s customer relationship touchpoints:

Segment/Metric	Value	Reporting Period/Context
Cash App Monthly Active Users	57 million	Q1 2025
Cash App Gross Profit	$5.24 billion	Fiscal Year 2024
Square Total Sellers	More than 4 million	As of 2025
Square Mid-Market GPV Share	45%	Q3 2025
Square Loans Businesses Funded	900K+	As of 2025
Cash App Borrow Active Users	5 million	End of 2024

If onboarding for a new merchant takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

Block, Inc. (SQ) - Canvas Business Model: Channels

You're looking at how Block, Inc. gets its value propositions to the customer base as of late 2025. It's a dual-pronged approach, hitting consumers hard with Cash App and businesses with Square, plus the integrated Afterpay offering. Here's the quick math on the reach we're seeing.

Direct-to-consumer mobile app distribution (Cash App)

The primary channel for the consumer side is the mobile app distribution for Cash App. This channel is driving massive engagement, especially as more users adopt it as their main banking interface. As of September 2025, Cash App reached 58 million monthly active users. The monetization per user is clearly increasing through this direct channel; gross profit per monthly transacting active hit $94 in the third quarter of 2025. Furthermore, the push to become a primary banking relationship is showing results, with primary banking actives reaching 8.3 million in Q3 2025, an 18% year-over-year increase. The Black Friday to Cyber Monday (BFCM) weekend in 2025 showed this channel's strength, with approximately 49.8 million unique consumers engaging across Block's platforms, including Cash App Card holders.

Online and retail sales of Square hardware (e.g., Square Reader, Terminal)

For Square sellers, hardware remains a critical entry point and an enabler for software adoption. The hardware sales channel saw revenue growth of approximately 14% in 2025, fueled by upgraded Point-of-Sale (POS) systems and mobile readers. This hardware is the physical bridge to the digital ecosystem. The overall Square Gross Payment Volume (GPV) growth in Q3 2025 was 12% year-over-year, showing that the installed base is transacting more. The company is simplifying access with new unified subscription plans-Free, Plus, and Premium-launched in October 2025, which are tied to the hardware deployment.

Direct sales teams targeting mid-market and enterprise Square sellers

Block, Inc. is actively pushing its Square offering upmarket, using direct sales teams to land larger, more complex sellers. This focus is yielding tangible results in volume contribution. In the second quarter of 2025, mid-market sellers accounted for 44% of Square's total GPV, an increase from 41% the prior year. The sales-driven new volume added metric showed an acceleration, up 28% year-to-date, with management expecting Q4 growth to exceed 40%, signaling strong returns on those sales investments. The Square segment gross profit growth in Q3 2025 was 9% year-over-year, with transaction revenues hitting $1.87 billion, up 9.4% year-over-year for the quarter.

E-commerce platform integrations (e.g., WooCommerce, Shopify)

While specific revenue breakdowns for third-party e-commerce integrations like WooCommerce or Shopify are not explicitly detailed as a standalone channel metric, their impact is captured within the overall Square GPV. The Square segment processed $67.15 billion in GPV in Q3 2025, a 12.2% increase year-over-year. The company's strategy involves product innovation and expanded seller partnerships to drive this growth, which inherently includes supporting online sales channels where sellers operate. The BFCM weekend saw Block serve more than 1.3 million businesses across its platforms.

Afterpay's integrated checkout option at merchant point-of-sale

Afterpay is a key channel for driving larger transaction sizes at the point-of-sale, both online and in-person where integrated. During the 2025 BFCM shopping period, transactions across all Block platforms, including Afterpay, increased by 10% year-over-year, totaling more than 124 million transactions. Specifically for the Buy Now, Pay Later (BNPL) service, the average basket size grew by 10%, and consumer spend per customer rose by 6% over that same weekend, suggesting deeper habituation with the service at checkout. The Cash App segment gross profit growth of 24% in Q3 2025 was driven in part by growth across BNPL.

Here's a snapshot of the key Q3 2025 channel performance metrics:

Metric	Cash App (Consumer)	Square (Seller)	Block Total (Combined)
Gross Profit (Q3 2025)	$1.62 billion	$1.02 billion	$2.66 billion
Year-over-Year Gross Profit Growth (Q3 2025)	24%	9%	18%
Gross Payment Volume (GPV) Growth (Q3 2025)	N/A (Reported by GP)	12%	N/A (Total GPV not isolated)
Monthly Active Users / Businesses Served	58 million MAU (Sept 2025)	1.3 million+ businesses served (BFCM)	49.8 million unique consumers (BFCM)

The full-year 2025 guidance, raised after Q3 results, projects total Block gross profit to reach $10.243 billion, marking 15% year-over-year growth. For Q4 2025 specifically, management guided gross profit to $2.755 billion, a strong 19% year-over-year increase.

Block, Inc. (SQ) - Canvas Business Model: Customer Segments

Micro to mid-sized businesses (SMBs) in retail, food, and services (Square)

4 million businesses served as of 2024.

Square Gross Payment Volume (GPV) growth was 12% year-over-year in Q3 2025.

International GPV growth reached 26% in Q3 2025.

Square segment gross profit grew 9% year-over-year in Q3 2025.

The Square ecosystem served approximately 49.8 million unique consumers during the BFCM weekend in 2025.

Larger, multi-location franchise and enterprise sellers (Square\'s upmarket push)

Mid-market sellers (annualized GPV greater than $500,000) accounted for 45% of Square\'s total GPV in Q3 2025.

GPV from sellers doing over $500,000 a year grew 20% year-over-year in Q3 2025.

Sales-driven new volume added (NVA) was up 28% year-to-date in Q3 2025, with Q4 growth expected to exceed 40%.

Individual consumers, often younger and underbanked (Cash App)

Cash App Monthly Active Users (MAUs) reached 58 million in September 2025.

Cash App gross profit per monthly transacting active was $94 in Q3 2025 (annualized).

This monetization metric grew 25% year-over-year in Q3 2025.

Primary banking actives reached 8.3 million in Q3 2025, up 18% year-over-year.

Cash App Borrow originations growth was 134% year-over-year in Q3 2025.

Bitcoin enthusiasts and investors using Bitkey and Cash App\'s crypto features

Cash App gross profit increased 24% year-over-year in Q3 2025, driven in part by crypto features.

Afterpay users seeking installment payment options

Afterpay had 24 million active customers globally as of September 30, 2025.

Afterpay has more than 348,000 global merchant partners.

Average BNPL basket size grew 10% over the BFCM weekend in 2025.

BNPL consumer spend per customer was up 6% over the BFCM weekend in 2025.

The following table summarizes key customer segment metrics as of late 2025 data:

Customer Segment Group	Key Metric	Value (Latest Available)	Period/Date
Square Sellers (Total)	Number of Businesses Served	4 million	2024
Square Sellers (Upmarket)	% of GPV from Mid-Market (>$500k Annually)	45%	Q3 2025
Cash App Consumers	Monthly Active Users (MAUs)	58 million	September 2025
Cash App Consumers	Gross Profit per Monthly Active (Annualized)	$94	Q3 2025
Cash App Consumers	Primary Banking Actives	8.3 million	Q3 2025
Afterpay Users	Active Customers (Global)	24 million	September 30, 2025
All Ecosystem Users	Unique Consumers Engaging (BFCM)	49.8 million	BFCM 2025

The distribution of Square's Gross Payment Volume (GPV) by industry in one estimate included:

• Food and Drink: 27%
• Retail: 19%
• Professional Services: 15%
• Beauty and Personal Care: 10%
• Healthcare and Fitness: 10%
• Home & Repair: 10%
• All others: 10%

Block\'s trailing twelve-month revenue as of September 30, 2025, was $24B.

Block\'s Q3 2025 Gross Profit was $2.66 billion.

During the 2025 BFCM weekend, Block served more than 1.3 million businesses across its platforms.

Block, Inc. (SQ) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive Block, Inc.'s operations as of late 2025. Honestly, managing these costs, especially with the growth in lending products, is a major focus for the finance team right now.

The cost structure is heavily influenced by the volume of transactions flowing through the Square and Cash App ecosystems. A significant portion of revenue is immediately offset by costs associated with facilitating those payments. For instance, in the third quarter of 2025, the combined Transaction, loan, and risk loss expense grew a staggering 89% year over year, largely due to scaling lending products like Cash App Borrow and the new post-purchase Buy Now, Pay Later (BNPL) offering. This growth in risk-related costs is a key variable to watch.

Overall operating costs are substantial. Block, Inc.'s Non-GAAP operating expenses for the third quarter of 2025 reached $2.20 billion. This figure encompasses the personnel, R&D, and sales/marketing efforts you mentioned.

Personnel costs are managed under a stated internal headcount cap of 12,000 employees. To give you context on the actual workforce size, the total employee count at the end of 2024 was reported at 11,372, down from 12,985 in 2023. Keeping headcount near that 12,000 mark is a clear cost discipline action.

Research and development (R&D) is a continuous drain, though management noted that Product development costs remained flat year over year in Q3 2025, suggesting a pause or efficiency drive in that specific area for the quarter.

Hardware manufacturing and distribution costs for POS devices are a smaller, but present, cost component. In Q3 2025, Hardware revenues were $70.2 million, which gives you a sense of the scale of that segment, though the associated cost of goods sold isn't explicitly broken out here.

Here's a look at some of the key financial metrics related to costs and expenses from the latest reported quarter:

Cost/Expense Category Driver	Latest Real-Life Number (Q3 2025 or Contextual)	Context/Unit
Non-GAAP Operating Expenses (Total)	$2.20 billion	Q3 2025
Transaction, Loan, and Risk Loss Expense Growth	89%	Year-over-Year Growth (Q3 2025)
Adjusted Operating Income	$480 million	Q3 2025
Headcount Cap (Internal Management Target)	12,000	Employees
Reported Headcount (Latest Full Year)	11,372	End of 2024 Employees
Hardware Revenue (Scale Indicator)	$70.2 million	Q3 2025 Revenue

The costs associated with card networks are embedded within the Cost of Revenue, which is not fully detailed here, but the resulting Transaction Revenue for Q3 2025 was $1.87 billion. Sales and marketing expenses are part of the overall operating spend, noted as contributing to growth initiatives across both major segments.

You can see the pressure points clearly:

• Transaction processing costs and fees paid to card networks (Implied in Cost of Revenue).
• Significant investment in research and development (R&D) for new products (Product development costs flat in Q3 2025).
• Sales and marketing expenses to drive Cash App and Square adoption (Part of $2.20B OpEx).
• Personnel costs, managed by a headcount cap of 12,000 employees.
• Hardware manufacturing and distribution costs for POS devices (Cost component of $70.2M Q3 revenue).

Finance: draft 13-week cash view by Friday.

Block, Inc. (SQ) - Canvas Business Model: Revenue Streams

Block, Inc.'s revenue streams are heavily weighted toward transaction processing, but the growth narrative is increasingly centered on higher-margin services and the company's strategic Bitcoin holdings.

Transaction fees from Gross Payment Volume (GPV) on Square and Cash App

Transaction-based revenues, derived from fees charged on payment processing across both the Square and Cash App segments, formed a significant portion of the top line. For the third quarter of 2025, the company reported transaction-based revenues of $1.87 billion, which represented 30.6% of the net revenues for that period. You can see the underlying activity driving this through the Gross Payment Volume (GPV). In the third quarter of 2025, Block's Square segment reported a GPV of $67.15 billion, marking a 12.2% year-over-year increase. Cash App's contribution is reflected in the overall transaction revenue growth, with Cash App monthly active users reaching 58 million as of September 2025.

Subscription and Value-Added Services (VAS) fees, a key growth driver

Subscription and services-based revenue is cited as Block, Inc.'s largest revenue source, indicating a successful shift toward more predictable, higher-margin income. While the exact revenue figure for this stream in Q3 2025 wasn't isolated, the gross profit contribution gives you a sense of scale. In the third quarter of 2025, Cash App's gross profit grew 24% year-over-year to $1.62 billion, and Square's gross profit rose 9% year-over-year to $1.02 billion. This segment includes fees from various software subscriptions, financial services, and other value-added tools for sellers and consumers.

Key components driving this revenue stream include:

• VAS growth from Cash App Borrow and Cash App Card integrations.
• Subscription revenue from Square's advanced software offerings.
• Revenue from the TIDAL ecosystem, though smaller in scale.

Bitcoin revenue, based on the volume of Bitcoin sold to customers

Block, Inc.'s direct revenue from selling Bitcoin to customers remains a substantial, albeit volatile, component of its overall revenue. In the third quarter of 2025, Bitcoin revenue was approximately $1.97 billion, which was nearly one-third of the total reported revenue for the quarter. This figure was down from $2.4 billion in the same quarter last year. As of the end of September 2025, Block held 8,780 BTC on its balance sheet.

Afterpay installment fees and late payment charges

Revenue from the Buy Now, Pay Later (BNPL) service, Afterpay, is generated through merchant fees and charges to consumers. Although specific 2025 fee revenue is not detailed, the underlying activity shows its scale; in the December quarter of 2024, Afterpay's gross transaction value climbed to $10.3 billion. The company makes money when customers pay on time, but also from late fees. To be defintely clear, as of June 2025 globally, 96% of all Afterpay instalments were paid on time, meaning only 4% incurred late fees or were subject to other charges.

Interest income from Square Capital loans and Cash App Borrow

Interest income is generated from the company's lending activities across both ecosystems, most notably through Square Capital for merchants and the growing Cash App Borrow product for consumers. While the specific interest income amount for the third quarter of 2025 is not explicitly broken out in the available data, the investment in scaling these lending products is evident, as transaction, loan, and risk loss expense grew 89% year-over-year in Q3 2025 due to growth in loan volumes. For the fourth quarter of 2025, the company expects net interest expense of $45 million.

Here is a snapshot of the key revenue-related figures from Block, Inc.'s third quarter of 2025:

Revenue Component	Amount (Q3 2025)	Context/Notes
Total Net Revenue	$6.11 billion	Reported total revenue for the period.
Bitcoin Revenue	$1.97 billion	Second-largest revenue source, nearly 1/3 of total revenue.
Transaction-based Revenues	$1.87 billion	30.6% of net revenues, covering Square and Cash App processing fees.
Square GPV	$67.15 billion	Total payment volume processed by the Square ecosystem.
Cash App Gross Profit	$1.62 billion	Indicates the scale of VAS/Subscription revenue within Cash App.
Square Gross Profit	$1.02 billion	Indicates the scale of VAS/Subscription revenue within Square.

Finance: finalize the Q4 2025 revenue projection model by end of day Tuesday.