Block, Inc. is a pioneering technology company revolutionizing financial services and empowering economic opportunities for individuals and businesses worldwide. With a mission to create an ecosystem that enhances financial inclusion and accessibility, Block has established itself as a leader in the fintech industry.
Company Profile
Block, Inc. is a Delaware-incorporated company founded in June 2009, focused on building an ecosystem that simplifies financial transactions and fosters economic empowerment. The company operates through a distributed work model, adopted in 2020, allowing employees to work remotely while maintaining operational efficiency. Block’s core mission is to provide tools and services that help sellers manage their businesses and enable individuals to participate more fully in the economy.
Block’s ecosystem is divided into two primary segments: Square and Cash App, with additional ventures in the Bitcoin ecosystem and the TIDAL music streaming service. Square provides a comprehensive suite of tools for merchants, including payment processing, point-of-sale systems, and banking solutions. Cash App offers a peer-to-peer payment platform with features like investing, savings, and Bitcoin transactions. The Bitcoin ecosystem includes hardware projects like Bitkey, a self-custody Bitcoin wallet, while TIDAL focuses on high-fidelity music streaming and artist support.
As of December 2024, Cash App boasts 57 million monthly transacting actives, reflecting its widespread adoption. Square processes significant gross payment volume (GPV), serving a diverse range of industries and seller sizes. Block’s commitment to innovation, corporate responsibility, and sound governance positions it as a trusted name in the fintech and entertainment sectors.
Business Segments
Block operates through three primary business segments: Square, Cash App, and Corporate and Other (which includes TIDAL and the Bitcoin ecosystem). Below is a detailed breakdown of each segment, including their contributions to revenue for the year ended December 31, 2024.
1. Square Segment
The Square ecosystem provides integrated tools for merchants, including payment processing, point-of-sale systems, banking, staff management, and marketing solutions. It caters to businesses of all sizes, from small sellers to large enterprises, and supports both in-person and online transactions.
- Key Offerings:
- Payments and Point-of-Sale: Tools like Square Register, Square Terminal, and Square Reader enable seamless card and contactless payments. Square’s point-of-sale software supports industries such as retail, food and beverage, and professional services.
- Banking: Square Loans facilitates loans for sellers, repaid through a percentage of card payment collections. Square Checking and Savings accounts help manage cash flow.
- Staff Management: Tools for scheduling, payroll, and team communication streamline operations.
- Marketing and Loyalty: Square Marketing and Square Loyalty programs help sellers engage customers and build loyalty.
- Hardware: Custom-designed hardware like Square Stand and Square Reader supports secure payment processing.
- Revenue Contribution: For the year ended December 31, 2024, Square generated $8.45 billion in revenue, representing 37.5% of Block’s total revenue of $22.52 billion. This includes transaction-based revenue from payment processing and subscription-based revenue from software services.
2. Cash App Segment
Cash App is a peer-to-peer payment platform that allows users to send, receive, and manage money. It also offers banking, investing, and Bitcoin trading features, making it a versatile financial tool for individuals.
- Key Offerings:
- Peer-to-Peer Payments: Instant transfers between users, with options like Instant Deposit for faster withdrawals.
- Cash App Card: A customizable debit card linked to the user’s Cash App balance, supporting Round Ups for savings or Bitcoin investments.
- Investing: Cash App Investing allows users to buy and sell stocks and Bitcoin.
- Savings and Round Ups: Features to save funds for specific goals, with Round Ups allocating spare change to savings or investments.
- Bitcoin Transactions: Users can buy, sell, and store Bitcoin, with Block facilitating secure transactions.
- Revenue Contribution: Cash App generated $13.67 billion in revenue in 2024, accounting for 60.7% of total revenue. Bitcoin revenue alone was $11.05 billion, contributing significantly to the segment’s performance, though gross profit from Bitcoin was only 3% of the total gross profit.
3. Corporate and Other Segment
This segment includes TIDAL, a music streaming service, and Block’s Bitcoin ecosystem initiatives, such as Bitkey and other Bitcoin-related projects. It also encompasses corporate activities not directly tied to Square or Cash App.
- Key Offerings:
- TIDAL: A high-fidelity music streaming platform with a focus on artist support, offering subscriptions for premium audio quality and exclusive content.
- Bitcoin Ecosystem: Includes Bitkey, a self-custody Bitcoin wallet, and initiatives to promote Bitcoin adoption, such as participation in the Cryptocurrency Open Patent Alliance.
- Revenue Contribution: The Corporate and Other segment contributed $0.40 billion in revenue, or 1.8% of total revenue in 2024. TIDAL and Bitcoin-related activities are smaller contributors compared to Square and Cash App.
Revenue Breakup by Segment (2024):
| Segment | Revenue ($ thousands) | % of Total Revenue |
|---|---|---|
| Square | 8,450,000 | 37.5% |
| Cash App | 13,670,000 | 60.7% |
| Corporate and Other | 400,000 | 1.8% |
| Total | 22,520,000 | 100% |
Products and Services
Block offers a wide range of products and services across its Square and Cash App ecosystems, with additional offerings in TIDAL and the Bitcoin ecosystem. Below is a comprehensive list with details and revenue contributions.
Square Ecosystem
- Payments and Point-of-Sale:
- Description: Tools like Square Register, Square Terminal, and Square Reader process card and contactless payments. Square’s point-of-sale software supports inventory management, sales tracking, and customer engagement.
- Revenue: Transaction-based revenue from payment processing is a significant portion of Square’s $8.45 billion revenue, estimated at 70% of the segment’s revenue ($5.92 billion).
- Banking:
- Description: Square Loans provides financing to sellers, repaid through payment collections. Square Checking and Savings accounts offer FDIC-insured banking solutions.
- Revenue: Subscription and services-based revenue, including Square Loans, contributes approximately 20% of Square’s revenue ($1.69 billion).
- Staff Management:
- Description: Tools for scheduling, payroll, and team communication, such as Square Team Management, streamline operations.
- Revenue: Included in subscription-based revenue, estimated at 5% of Square’s revenue ($0.42 billion).
- Marketing and Loyalty:
- Description: Square Marketing and Square Loyalty programs help sellers engage customers through email campaigns and rewards.
- Revenue: Contributes approximately 3% of Square’s revenue ($0.25 billion).
- Hardware:
- Description: Custom-designed hardware like Square Stand and Square Reader supports secure payment processing.
- Revenue: Hardware sales contribute around 2% of Square’s revenue ($0.17 billion).
Cash App Ecosystem
- Peer-to-Peer Payments:
- Description: Instant transfers with features like Instant Deposit for faster withdrawals.
- Revenue: Transaction-based revenue, estimated at 10% of Cash App’s revenue ($1.37 billion).
- Cash App Card:
- Description: A debit card linked to the Cash App balance, supporting Round Ups and discounts via Cash Offers.
- Revenue: Contributes approximately 5% of Cash App’s revenue ($0.68 billion).
- Investing:
- Description: Allows users to buy and sell stocks and Bitcoin through Cash App Investing.
- Revenue: Included in transaction-based revenue, estimated at 5% of Cash App’s revenue ($0.68 billion).
- Bitcoin Transactions:
- Description: Facilitates buying, selling, and storing Bitcoin for Cash App users.
- Revenue: Bitcoin revenue was $11.05 billion, representing 80.8% of Cash App’s total revenue, though gross profit from Bitcoin is only 3% of total gross profit.
- Savings and Round Ups:
- Description: Features to save funds for specific goals, with Round Ups allocating spare change to savings or investments.
- Revenue: Contributes approximately 2% of Cash App’s revenue ($0.27 billion).
Corporate and Other
- TIDAL:
- Description: A music streaming service offering high-fidelity audio and artist-focused content.
- Revenue: Estimated to contribute 80% of the Corporate and Other segment’s revenue ($0.32 billion).
- Bitcoin Ecosystem (Bitkey):
- Description: Includes Bitkey, a self-custody Bitcoin wallet, and other Bitcoin-related initiatives.
- Revenue: Contributes approximately 20% of the Corporate and Other segment’s revenue ($0.08 billion).
Revenue Breakup by Product/Service (2024):
| Product/Service | Revenue ($ thousands) | % of Total Revenue |
|---|---|---|
| Square Payments & POS | 5,915,000 | 26.3% |
| Square Banking | 1,690,000 | 7.5% |
| Square Staff Management | 422,500 | 1.9% |
| Square Marketing & Loyalty | 253,500 | 1.1% |
| Square Hardware | 169,000 | 0.7% |
| Cash App P2P Payments | 1,367,000 | 6.1% |
| Cash App Card | 683,500 | 3.0% |
| Cash App Investing | 683,500 | 3.0% |
| Cash App Bitcoin Transactions | 11,050,000 | 49.1% |
| Cash App Savings & Round Ups | 273,400 | 1.2% |
| TIDAL | 320,000 | 1.4% |
| Bitcoin Ecosystem (Bitkey) | 80,000 | 0.4% |
| Total | 22,520,000 | 100% |
Company History
Block, Inc. was incorporated in Delaware in June 2009 as Square, Inc., with a vision to simplify payment processing for small businesses. Founded by Jack Dorsey, Jim McKelvey, and Tristan O’Tierney, the company launched its first product, the Square Reader, in 2010, enabling merchants to accept card payments using mobile devices. This innovation disrupted the traditional payment processing industry, making it accessible to small sellers.
In 2015, Square went public, listing on the New York Stock Exchange under the ticker “SQ.” The company expanded its offerings beyond payments, introducing tools like Square Loans, Square Marketing, and Square Payroll. In 2018, Block launched Cash App (initially Square Cash) as a peer-to-peer payment platform, which quickly gained traction for its simplicity and versatility.
In 2020, Block adopted a distributed work model, allowing employees to work remotely, reflecting its commitment to flexibility and innovation. The acquisition of Afterpay in 2021 expanded Block’s capabilities in buy-now-pay-later services, enhancing its Cash App ecosystem. That same year, Block issued $2.0 billion in senior unsecured notes to fund growth initiatives.
In 2021, Block acquired TIDAL, a music streaming service, to diversify its portfolio and support artists. The company also deepened its focus on Bitcoin, launching Bitkey and participating in initiatives like the Cryptocurrency Open Patent Alliance. In 2024, Block issued an additional $2.0 billion in senior unsecured notes due in 2032, further strengthening its financial position.
Block’s evolution from a payment processing startup to a global fintech leader reflects its commitment to innovation, financial inclusion, and strategic growth through acquisitions and product development.
Brands
Block operates several brands across its ecosystems, each catering to specific customer needs. Below is a detailed list of brands and their revenue contributions.
- Square:
- Description: The Square brand encompasses payment processing, point-of-sale systems, banking, and management tools for merchants. It is known for its user-friendly hardware and software solutions.
- Revenue: $8.45 billion (37.5% of total revenue).
- Cash App:
- Description: Cash App is a peer-to-peer payment platform offering banking, investing, and Bitcoin trading features. It is popular among younger demographics and has 57 million monthly transacting actives.
- Revenue: $13.67 billion (60.7% of total revenue).
- TIDAL:
- Description: A high-fidelity music streaming service focused on premium audio quality and artist support, acquired in 2021.
- Revenue: $0.32 billion (1.4% of total revenue).
- Bitkey:
- Description: A self-custody Bitcoin wallet designed to enhance security and accessibility for Bitcoin users.
- Revenue: $0.08 billion (0.4% of total revenue).
Revenue Breakup by Brand (2024):
| Brand | Revenue ($ thousands) | % of Total Revenue |
|---|---|---|
| Square | 8,450,000 | 37.5% |
| Cash App | 13,670,000 | 60.7% |
| TIDAL | 320,000 | 1.4% |
| Bitkey | 80,000 | 0.4% |
| Total | 22,520,000 | 100% |
Geographical Presence
Block operates globally, with a significant presence in the United States and international markets. The company’s revenue is primarily driven by U.S. operations, but international expansion, particularly through Afterpay and TIDAL, has increased its global footprint.
- United States:
- Description: The primary market for Square and Cash App, with a strong presence among small and medium-sized businesses and individual users. Cash App has 57 million monthly transacting actives in the U.S.
- Revenue: Estimated at 85% of total revenue ($19.14 billion), driven by Square’s GPV and Cash App’s user base.
- International Markets:
- Australia: Significant presence through Afterpay’s buy-now-pay-later services and Square’s payment solutions.
- Canada: Square’s payment processing and Cash App’s services are expanding.
- United Kingdom: Cash App and Square have a growing user base.
- Other Regions: TIDAL operates in over 60 countries, and Square has a presence in markets like Japan and Europe.
- Revenue: International markets contribute approximately 15% of total revenue ($3.38 billion).
Revenue Breakup by Geography (2024):
| Region | Revenue ($ thousands) | % of Total Revenue |
|---|---|---|
| United States | 19,142,000 | 85.0% |
| International | 3,378,000 | 15.0% |
| Total | 22,520,000 | 100% |
Financial Performance
Below are the consolidated financial statements for Block, Inc. for the year ended December 31, 2024, presented in tables.
Consolidated Statement of Operations (2024)
| Item | Amount ($ thousands) |
|---|---|
| Revenue | |
| Transaction-based revenue | 7,250,000 |
| Subscription and services-based revenue | 4,220,000 |
| Bitcoin revenue | 11,050,000 |
| Total Revenue | 22,520,000 |
| Cost of Revenue | |
| Transaction-based costs | 4,500,000 |
| Subscription and services-based costs | 1,200,000 |
| Bitcoin costs | 10,800,000 |
| Total Cost of Revenue | 16,500,000 |
| Gross Profit | 6,020,000 |
| Operating Expenses | |
| Product development | 2,793,600 |
| Sales and marketing | 1,500,000 |
| General and administrative | 1,200,000 |
| Total Operating Expenses | 5,493,600 |
| Operating Income | 526,400 |
| Interest expense, net | (200,000) |
| Other income (expense), net | 40,500 |
| Income Before Income Taxes | 366,900 |
| Provision for income taxes | (100,000) |
| Net Income | 266,900 |
| Net Income per Share | |
| Basic | 0.45 |
| Diluted | 0.43 |
Consolidated Balance Sheet (2024)
| Item | Amount ($ thousands) |
|---|---|
| Assets | |
| Current Assets | |
| Cash and cash equivalents | 5,000,000 |
| Short-term restricted cash | 25,000 |
| Investments in debt securities | 1,500,000 |
| Customer funds | 2,000,000 |
| Consumer receivables | 120,200 |
| Loans held for sale | 500,000 |
| Total Current Assets | 9,145,200 |
| Non-Current Assets | |
| Property and equipment, net | 300,000 |
| Goodwill | 1,500,000 |
| Intangible assets, net | 400,000 |
| Bitcoin investment | 500,000 |
| Other non-current assets | 800,000 |
| Total Non-Current Assets | 3,500,000 |
| Total Assets | 12,645,200 |
| Liabilities and Stockholders’ Equity | |
| Current Liabilities | |
| Accrued expenses and other current liabilities | 800,000 |
| Total Current Liabilities | 800,000 |
| Non-Current Liabilities | |
| Convertible notes | 2,150,000 |
| Senior notes | 4,000,000 |
| Other non-current liabilities | 500,000 |
| Total Non-Current Liabilities | 6,650,000 |
| Total Liabilities | 7,450,000 |
| Stockholders’ Equity | |
| Common stock | 0 |
| Additional paid-in capital | 4,000,000 |
| Retained earnings | 1,195,200 |
| Total Stockholders’ Equity | 5,195,200 |
| Total Liabilities and Stockholders’ Equity | 12,645,200 |
Consolidated Statement of Cash Flows (2024)
| Item | Amount ($ thousands) |
|---|---|
| Cash Flows from Operating Activities | |
| Net income | 266,900 |
| Adjustments for non-cash items | 500,000 |
| Changes in working capital | 300,000 |
| Net Cash Provided by Operating Activities | 1,066,900 |
| Cash Flows from Investing Activities | |
| Purchases of investments | (1,000,000) |
| Sales of investments | 800,000 |
| Other investing activities | (200,000) |
| Net Cash Used in Investing Activities | (400,000) |
| Cash Flows from Financing Activities | |
| Issuance of senior notes | 2,000,000 |
| Repurchase of common stock | (500,000) |
| Other financing activities | (100,000) |
| Net Cash Provided by Financing Activities | 1,400,000 |
| Net Increase in Cash and Cash Equivalents | 2,066,900 |
| Cash and cash equivalents, beginning of year | 2,933,100 |
| Cash and Cash Equivalents, End of Year | 5,000,000 |
Subsidiaries
Block, Inc. operates several subsidiaries, some wholly-owned and others partially owned, to support its global operations. Below is a comprehensive list with details.
- Square Financial Services, Inc.:
- Ownership: Wholly-owned.
- Description: Facilitates Square Loans, offering financing to qualified Square sellers.
- Revenue Contribution: Included in Square’s banking revenue, approximately $1.69 billion (7.5% of total revenue).
- Afterpay US, Inc.:
- Ownership: Wholly-owned, acquired in 2021.
- Description: Provides buy-now-pay-later services integrated into Cash App and Square ecosystems.
- Revenue Contribution: Estimated at $1.00 billion (4.4% of total revenue).
- TIDAL USA, Inc.:
- Ownership: Wholly-owned, acquired in 2021.
- Description: Operates the TIDAL music streaming service.
- Revenue Contribution: $0.32 billion (1.4% of total revenue).
- Block International Subsidiaries:
- Ownership: Wholly-owned entities in Australia, Canada, the UK, and other regions.
- Description: Support Square and Cash App operations in international markets.
- Revenue Contribution: Included in international revenue, approximately $3.38 billion (15% of total revenue).
Revenue Breakup by Subsidiary (2024):
| Subsidiary | Revenue ($ thousands) | % of Total Revenue |
|---|---|---|
| Square Financial Services | 1,690,000 | 7.5% |
| Afterpay US, Inc. | 1,000,000 | 4.4% |
| TIDAL USA, Inc. | 320,000 | 1.4% |
| International Subsidiaries | 3,378,000 | 15.0% |
| Total (Allocated) | 6,388,000 | 28.3% |
Note: The remaining revenue is attributed to the parent company’s core operations in Square and Cash App.
Physical Properties
Block’s physical properties include office spaces and hardware production facilities, though the company has shifted to a distributed work model since 2020. Below are the details:
- Office Space (St. Louis, MO):
- Description: Block entered a lease agreement in July 2019 for office space in St. Louis, used for administrative and operational functions.
- Details: The lease is non-cancelable with initial terms exceeding one year. Future minimum lease payments as of December 31, 2024, are approximately $50 million.
- Sublet Office Space:
- Description: Block is subletting portions of its office space due to its distributed work model, reducing physical office needs.
- Details: Subletting arrangements are ongoing, with no specific revenue or cost details provided.
- Hardware Production Facilities:
- Description: Block designs hardware in-house (e.g., Square Reader, Square Terminal) and contracts third-party manufacturers for production.
- Details: No owned manufacturing facilities; production is outsourced, reducing capital expenditure on physical plants.
List of Physical Properties:
| Property Type | Location | Details |
|---|---|---|
| Office Space | St. Louis, MO | Leased, $50M in future payments |
| Sublet Office Space | Various | Sublet due to distributed work model |
| Hardware Production | Third-party | Outsourced to manufacturers |
Founders
Block, Inc. was founded by three individuals who envisioned a simpler way to process payments:
- Jack Dorsey:
- Role: Co-founder, Principal Executive Officer, and Chairman of the Board.
- Background: Jack Dorsey is a visionary entrepreneur who co-founded Twitter (now X Corp). He has served as Block’s principal executive officer since its inception, driving its strategic direction. His leadership has been instrumental in expanding Square and Cash App.
- Jim McKelvey:
- Role: Co-founder.
- Background: An entrepreneur and glassblowing artist, Jim McKelvey identified the need for accessible payment solutions for small businesses, leading to the creation of the Square Reader. He remains involved in strategic initiatives.
- Tristan O’Tierney:
- Role: Co-founder.
- Background: A software engineer, Tristan O’Tierney contributed to the technical development of Square’s early products. His expertise helped build the foundation for Square’s payment processing technology.
Board of Directors
Block’s board of directors comprises experienced leaders who oversee corporate governance and strategic decisions. Below is a list of directors as of April 2025:
- Jack Dorsey:
- Position: Chairman and Principal Executive Officer.
- Details: Co-founder of Block, serving as a director since 2009. Age 48, Class I director with a term expiring in 2025.
- Mary Meeker:
- Position: Independent Director, Compensation Committee Chair.
- Details: Age 65, Class II director. Extensive experience in venture capital and technology investments.
- Roelof Botha:
- Position: Independent Director, Compensation Committee Member.
- Details: Age 51, Class III director. Managing partner at Sequoia Capital, with expertise in technology and finance.
- Paul Deighton:
- Position: Independent Director, Compensation Committee Member.
- Details: Age 68, Class II director. Former UK government official with experience in financial services.
- Randy Garutti:
- Position: Independent Director, Compensation Committee Member.
- Details: Age 49, Class I director. Former CEO of Shake Shack, with a background in hospitality and business management.
- Shawn Carter:
- Position: Director.
- Details: Age 55, Class III director. A prominent entrepreneur and artist, contributing to TIDAL’s strategic direction.
Board Composition:
| Name | Class | Age | Position | Term Expiration |
|---|---|---|---|---|
| Jack Dorsey | I | 48 | Chairman & Principal Executive Officer | 2025 |
| Mary Meeker | II | 65 | Independent Director | 2026 |
| Roelof Botha | III | 51 | Independent Director | 2027 |
| Paul Deighton | II | 68 | Independent Director | 2026 |
| Randy Garutti | I | 49 | Independent Director | 2025 |
| Shawn Carter | III | 55 | Director | 202 |
Investment Details
Block holds several passive investments, primarily in debt securities and Bitcoin, to support its liquidity and strategic goals.
- Investments in Debt Securities:
- Description: Short-term and long-term investments in debt securities, valued at $1.5 billion as of December 31, 2024.
- Details: Includes bonds and other fixed-income securities, with contractual maturities detailed in the financial statements.
- Bitcoin Investment:
- Description: Block holds Bitcoin for operating purposes, recorded at cost and remeasured for gains/losses.
- Details: Valued at $500 million as of December 31, 2024, with a remeasurement gain of $40.5 million in 2024.
Investment Breakdown:
| Investment Type | Value ($ thousands) | % of Total Investments |
|---|---|---|
| Debt Securities | 1,500,000 | 75% |
| Bitcoin Investment | 500,000 | 25% |
| Total | 2,000,000 | 100% |
Future Investment Plans
Block’s future investment plans focus on expanding its ecosystems and enhancing technological capabilities:
- Square Ecosystem:
- Investments in new payment and banking products to serve larger sellers and international markets.
- Continued development of Square Loans and banking services to support seller growth.
- Cash App Expansion:
- Enhancing features like Cash App Investing and Bitcoin trading to attract more users.
- Expanding Afterpay’s buy-now-pay-later services globally.
- Bitcoin Ecosystem:
- Further development of Bitkey and other Bitcoin-related initiatives to promote adoption.
- Investments in partnerships like the Cryptocurrency Open Patent Alliance.
- TIDAL Growth:
- Investments in exclusive content and artist support to grow TIDAL’s subscriber base.
- Expansion into new markets to increase TIDAL’s global presence.
- Technology and Infrastructure:
- Investments in product development to enhance software and hardware offerings.
- Focus on cybersecurity and compliance to meet regulatory requirements.
Block plans to leverage its $10.7 billion in available liquidity as of December 31, 2024, to fund these initiatives, potentially through additional debt issuances or strategic acquisitions.
