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Bitcoin Market Price Risk Our bitcoin investment is measured using observed prices from active exchanges and adjustments are recorded in net income through “Remeasurement loss (gain) on bitcoin investment” on the condensed consolidated statements of operations. The bitcoin market price may fluctuate significantly and a decline in the market price of bitcoin could result in a material adverse effect on our financial results in future periods. As of June 30, 2026, the fair value of our bitcoin investment was $533.9 million and, for the three and six months ended June 30, 2026, we recognized a loss of $88.5 million and $261.3 million, respectively, from the remeasurement of our bitcoin investment. There have been no additional material changes in market risk from the information presented in Part II, Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended December 31, 2025.

We are currently a party to, and may in the future be involved in, various legal matters, investigations, subpoenas, inquiries, audits, claims, lawsuits, arbitrations, and disputes, including with regulatory bodies and governmental agencies. For information regarding legal proceedings in which we are involved, see “Litigation and Regulatory Matters” in Note 16, Commitments and Contingencies within Notes to the Condensed Consolidated Financial Statements, which is incorporated herein by reference. In addition, from time to time, we are involved in various other legal matters, investigations, subpoenas, inquiries, audits, claims, lawsuits, arbitrations, and disputes arising in the ordinary course of business. We cannot at this time fairly estimate a reasonable range of exposure, if any, of the potential liability with respect to these other matters. While we do not believe, at this time, that any ultimate liability resulting from any of these other matters will have a material adverse effect on our results of operations, financial position, or liquidity, we cannot give any assurance regarding the ultimate outcome of these other matters, and their resolution could be material to our operating results for any particular period.

• A February 2026 workforce reduction and reorganization increases reliance on AI and automation, risking operational disruptions, talent loss, and compliance gaps if new tools underperform.
• Slowing growth and intense competition, particularly in BNPL and banking services, pressure the company to retain users and expand product adoption without long-term contracts.
• Bitcoin price volatility and evolving cryptocurrency regulations threaten revenue from bitcoin services and expose the company to customer losses and reputational harm.
• Credit losses on unsecured loan products (Square Loans, Cash App Borrow, BNPL) could rise due to macroeconomic deterioration, flawed underwriting models, or merchant failures.
• Extensive regulation as a money transmitter, bank partner, and broker-dealer creates compliance costs and risks of fines, license loss, or operational restrictions.
• Reliance on third-party AI models and payment processors introduces risks of service failures, biased outputs, and security breaches that could damage the brand.