This report contains forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements related to the plans, expectations, and timelines for Block, Inc. and its consolidated subsidiaries (the “Company”) regarding the Company’s strategies, plans, and methods of becoming operationally net zero carbon; the environmental impact of cryptocurrencies; intentions regarding the Company’s carbon offset removal and clean energy portfolios; intentions regarding removal of ocean-bound plastics and alignment with the United Nations Sustainable Development Goals; the Bitcoin Clean Energy Initiative and the Company’s investments in clean energy-based mining, including its investments, potential impact, and participation by other companies; the Company’s effort to reduce internal emissions through its hardware sustainability initiatives; the Company’s planned benefits offerings; the Company’s efforts and intentions in advancing inclusion and diversity; the Company’s business plans and objectives; strategies and systems for implementing the Company’s goals; commitments to programs and policies; and expectations and priorities for Company initiatives. These statements are based on Block’s current assumptions and expectations.

Such statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause the Company’s actual results, performance, or achievements to differ materially from results expressed or implied in this report. Risks that contribute to the uncertain nature of the forward-looking statements include, among others, risks listed or described from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s most recently filed Quarterly Report on Form 10-Q or Annual Report on Form 10-K, which are filed with the SEC and available on the Investor Relations page of the Company’s website. All forward-looking statements are based on information and estimates available to the Company at the time of this report and are not guarantees of future performance or commitments. Except as required by law, the Company assumes no obligation to update any of the statements in this report.

Square gross profit retention rate is calculated as the year-over-year gross profit growth of all existing quarterly seller cohorts, averaged over the last four quarters (excluding gross profit from hardware, Caviar, PPP loans, and Weebly prior to the acquisition). A Square cohort represents new sellers onboarded to Square during a given period.

Square gross payment volume is defined as the total dollar amount of all card payments processed by sellers using Square, net of refunds, and ACH transfers.

Active Square seller is a seller who has made 5 or more payments in the last 12 months.

Cash App Inflows refers to funds entering the Cash App ecosystem. Inflows does not include the movement of funds when funds remain in the Cash App ecosystem or when funds leave the Cash App ecosystem, or inflows related to the Afterpay app.

A Cash App monthly transacting active is a Cash App account that has at least one financial transaction using any product or service within Cash App during a specified period. A transacting active for a specific Cash App product has at least one financial transaction using that product during the specified period and is referred to as an active. Examples of transactions include sending or receiving a peer-to-peer payment, transferring money into or out of Cash App, making a purchase using Cash App Card, earning a dividend on a stock investment, paying back a loan, among others. Certain of these accounts may share an alias identifier with one or more other transacting active accounts. This could represent, among other things, one customer with multiple accounts or multiple customers sharing one alias identifier (for example, families).

Cash gross profit retention is calculated as the year-over-year gross profit growth of all existing quarterly Cash App cohorts, averaged over the last four quarters, and excluding BNPL platform gross profit and contra revenue. A Cash App transacting active’s cohort is determined based on the date they first became a transacting active on the platform. For example, retention for our 2019 cohort is the average annual gross profit growth from transacting actives who completed a first transaction in 2019. Each of our annual Cash App cohorts since 2013 and the pre-2019 cohort have exhibited positive overall gross profit retention on aggregate from the date of their first transaction through December 31, 2023.

A paycheck deposit monthly active is a Cash App account that receives $300 or more through direct deposit into Cash App during the month.

Block aims to ensure our central purpose and work aligns with the United Nations’ key pillars of sustainability. These development goals serve as a collective call to action for the global community to drive towards a healthy, equitable, and more inclusive future.