Block (XYZ) risk factors: FY2025 10-K

1. Risks related to our business and our industry:
2. Operational risks:
3. Economic, financial, and tax risks:
4. Legal, regulatory, and compliance risks:
5. Risks related to ownership of our common stock:

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1. Our growth rate has slowed at times and may slow or decline in the future, and our growth rates in each of our reporting segments may vary. Future revenue and gross profit growth depends on our ability to retain existing sellers and customers, attract new sellers and customers, and increase sales to both new and existing sellers and customers.
2. We have generated significant net losses in the past, and we intend to continue to invest in our business. Thus, our profitability may decline.reworded
3. 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 benefits and could adversely affect our business, financial condition and results of operations.newAI
4. Our business depends on our ability to maintain, protect, and enhance our brands.
5. Our efforts to expand our product portfolio and market reach, including through acquisitions, may not succeed and may reduce our revenue growth and profitability.
6. Our long-term success depends on our ability to develop products and services to address the rapidly evolving market for commerce and financial services, and, if we are not able to implement successful enhancements and new features for our products and services, our business could be materially and adversely affected.reworded
7. Substantial and increasingly intense competition in our markets and industry may harm our business.
8. Developments in the cryptocurrency market subject us to additional risks.
9. The development and use of AI in our products may result in reputational and competitive harm and could adversely impact our business.newAI
10. Acquisitions, strategic investments, new businesses, joint ventures, divestitures, and other transactions we enter into could fail to achieve strategic objectives, disrupt our ongoing operations or result in operating difficulties, liabilities and expenses, harm our business, and negatively impact our results of operations.
11. Operating or expanding our business globally subjects us to new challenges and risks.
12. We are subject to risks related to the banking ecosystem, including through Square Financial Services, our bank partnerships, and FDIC and other regulatory obligations.
13. Our loan products are subject to risks related to general macroeconomic conditions and increase our exposure to customer defaults.reworded
14. TIDAL subjects us to risks and uncertainties related to the music industry.

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1. We, our sellers, our partners, and others who use our services obtain and process a large amount of data. Any real or perceived improper or unauthorized use of, disclosure of, or access to such data could harm our reputation as a trusted brand, as well as have a material and adverse effect on our business.reworded
2. Our products and services may not function as intended due to errors in our software, hardware, and systems, product defects, or due to security breaches or incidents or human error in administering these systems, which could materially and adversely affect our business.Cybersecurity
3. Systems failures, interruptions, delays in service, catastrophic events, and resulting interruptions in the availability of our products or services, or those of our sellers, could harm our business and our brand, and subject us to substantial liability.
4. The theft, loss, or destruction of private keys required to access the bitcoin we hold on behalf of ourselves and other parties, such as our customers and our trading partners, may be irreversible, and any failure to safeguard such bitcoin could materially and adversely affect our business, operating results, and financial condition.
5. Our risk management efforts may not be effective, which could expose us to losses and liability and otherwise harm our business.
6. We are dependent on payment card networks and acquiring processors, and changes to our relationships with payment card networks and acquiring processors could harm our business.
7. We rely on third parties and their systems for a variety of services, including the processing of transaction data and settlement of funds to us and our customers, and these third parties’ failure to perform these services adequately or refusal to continue their relationship with us could materially and adversely affect our business.
8. We depend on key management, as well as our experienced and capable employees, and any failure to attract, motivate, and retain our employees could harm our ability to maintain and grow our business.
9. If we do not continue to maintain and improve our operational, financial, and other internal controls and systems to manage growth effectively, our business could be harmed.reworded
10. Many of the key components in our hardware products are procured from a single or limited number of suppliers. Thus, we are at risk of shortage, price increases, tariffs, changes, delay, or discontinuation of key components, which could disrupt and materially and adversely affect our business.rewordedTariffs
11. Our services must integrate with a variety of operating systems. If we are unable to ensure that our services or hardware interoperate with such operating systems and devices, our business may be materially and adversely affected.

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1. Volatility in general macroeconomic conditions could materially and adversely affect our business and financial results.reworded
2. We may not be able to secure financing on favorable terms, or at all, to meet our future capital needs.new
3. Servicing our Notes may require a significant amount of cash, and we may not have sufficient cash or the ability to raise the funds necessary to settle conversions of the Convertible Notes in cash, repay the Notes at maturity, or repurchase the Notes as required following a fundamental change.
4. We are subject to counterparty risk with respect to the convertible note hedge transactions.
5. Our bitcoin investment is subject to volatile market prices.
6. We are exposed to fluctuations in foreign currency exchange rates.
7. We are subject to taxation related risks in multiple jurisdictions.new
8. We have in the past recorded, and may in the future record, significant valuation allowances on our deferred tax assets, which may have a material impact on our results of operations and cause fluctuations in such results.

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1. Our business is subject to extensive regulation and oversight in a variety of areas, all of which are subject to change and uncertain interpretation.
2. Our business is subject to complex and evolving regulations and oversight related to privacy, data protection, and information security.
3. We are subject to risks related to legal and regulatory matters.
4. As a licensed money transmitter and virtual currency business, we are subject to important obligations and restrictions.reworded
5. We are subject to a number of regulatory risks in the BNPL space.
6. Our subsidiary Cash App Investing is a broker-dealer registered with the SEC and a member of FINRA, and therefore is subject to extensive regulation and scrutiny.
7. Cash App Investing is subject to net capital and other regulatory capital requirements; failure to comply with these rules could harm our business.
8. Our subsidiary Square Financial Services is a Utah state-chartered industrial loan company, which requires that we serve as a source of financial strength to it and subjects us to potential regulatory sanctions and additional risks.
9. Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services, and brand.
10. Assertions by third parties of infringement or other violation by us of their intellectual property rights could harm our business.
11. 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.reworded

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1. The dual class structure of our common stock has the effect of concentrating voting control within our stockholders who held our stock prior to our initial public offering, including many of our employees and directors and their affiliates; this will limit or preclude your ability to influence corporate matters.
2. The market price of our Class A common stock has been and will likely continue to be volatile, and you could lose all or part of your investment.
3. Our Class A common stock is listed to trade on more than one stock exchange, and this may result in price variations between the exchanges.
4. The convertible note hedge and warrant transactions may affect the value of our Class A common stock.
5. Anti-takeover provisions contained in our certificate of incorporation, our bylaws, and provisions of Delaware law could impair a takeover attempt.
6. Our bylaws provide that (1) the Delaware Court of Chancery or another state court or federal court located within the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders and (2) the federal district courts of the U.S. will be the exclusive forum for all causes of action arising under the Securities Act, which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, or employees.

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Headings in the FY2024 10-K with no match this year.

1. We may not be able to secure financing on favorable terms, or at all, to meet our future capital needs, and our existing credit agreement and our Senior Notes contain, and any future debt financing may contain, covenants that impact the operation of our business and pursuit of business opportunities.
2. We may have exposure to greater-than-anticipated tax liabilities, which may materially and adversely affect our business.