BLOCK Investment & Profitability Ecosystem Overview

BLOCK 64 Cash App Margins - Reconciliation to GAAP Variable expenses are investments that we incur to drive the next dollar of gross profit growth, and these typically scale with gross profit. These include discretionary expenses such as sales & marketing investments and teams, customer success teams, as well as non-discretionary expenses such as risk loss, or Cash App peer-to-peer expenses on transaction costs and risk loss. Fixed expenses are investments that may drive longer-term growth, and generally do not scale with an additional dollar of gross profit. These include expenses such as our product and general & administrative teams, professional fees incurred, and corporate overhead expenses such as rent & facilities. ($ in thousands) Cash App gross profit Variable expenses 2018 2019 2020 2021 194,835 457,668 1,225,578 2,070,847 Less: Transaction, loan, and advance losses 7,791 14,699 45,694 Less: Marketing expenses (Cash P2P marketing costs, card issuance costs, marketing expense, partnership fees) Less: Variable personnel expenses (sales & marketing personnel, contractor personnel, travel & entertainment) Less: Cloud storage and processing 162,127 311,204 726,160 126,803 1,007,873 12,088 30,741 55,328 134,626 2,528 5,048 12,509 27,389 Less: Taxes and licenses Total variable expenses Cash App gross profit less variable expenses Cash App structural margin (% of Cash App gross profit) Fixed expenses Less: Fixed personnel expenses (G&A and product development personnel) Less: Professional fees and subscriptions (including add backs for acquisitions) Less: Facilities expenses Total fixed expenses Cash app gross profit less variable and fixed expenses Cash App adjusted fully burdened profit margin (% of Cash App gross profit) 1,995 5,234 10,211 13,160 186,529 366,926 849,902 1,309,851 8,306 4% 90,742 375,676 760,996 20% 31% 37% 288,530 123,375 105,797 517,702 243,294 12%

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