Block, Inc. (XYZ) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Block, Inc. surfaced in its latest filing.

• In February 2026, we announced a workforce reduction restructuring plan.February 2026
• Square Financial Services received FDIC deposit insurance and charter on March 1, 2021.March 1, 2021
• In January 2025, entered into a settlement agreement and consent order with state money transmitter regulators related to Bank Secrecy Act/anti-money laundering program.January 2025
• We have $575.0 million Convertible Notes (convertible after August 1, 2027), $1.2 billion 2030 Senior Notes, $1.0 billion 2031 Senior Notes, $2.0 billion 2032 Senior Notes, and $1.0 billion 2033 Senior Notes outstanding.August 1, 2027
• Following the publication of a short seller report in March 2023, we received inquiries from the SEC and DOJ; SEC concluded its investigation, but we continue to engage with the DOJ.March 2023
• Upon adoption of ASU 2023-08, we remeasured our bitcoin investment to fair value as of January 1, 2023.January 1, 2023
• Credit agreement requires compliance with a maximum total net leverage ratio measured quarterly.
• As of June 30, 2026, we have released a portion of the valuation allowance for deferred tax assets in California.June 30, 2026
• On January 5, 2026, the OECD announced a 'side-by-side' elective safe harbor for U.S.-parented multinationals under Pillar Two for fiscal years beginning on or after January 1, 2026.January 5, 2026
• We entered into convertible note hedge transactions and warrant transactions with option counterparties in connection with our Convertible Notes.
• FDIC approval for Square Financial Services requires a Capital and Liquidity Maintenance Agreement, a Parent Company Agreement, a $50 million reserve deposit, and a third-party line of credit.
• Jack Dorsey agreed to cause us to perform under the Capital and Liquidity Maintenance Agreement and Parent Company Agreement.