:max_bytes(150000):strip_icc()/GettyImages-1653667720-3a7d689de0004094be3c31b2d8c6d16b.jpg "How Block Makes Money")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1653667720-3a7d689de0004094be3c31b2d8c6d16b.jpg)
Key Takeaways
- Block is a financial technology company that provides point-of-sale hardware and software.
- Block’s Cash App product generates most of the company’s revenue.
- The company’s platform, Square, provides payment and financial services to sellers.
Block, formerly Square, is a financial technology (fintech) company that provides hardware and software tools to help businesses run and grow their operations. Block’s primary products are its point-of-sale hardware system, payment processing and analytics software, Square, and Cash App. The company also offers Cash App, two bitcoin businesses, Bitkey and Proto, and has a stake in music-streaming service, TIDAL.
Block’s Financials
Block (SQ) reported annual revenue of $24.19 billion for the 2025 fiscal year, which was a 0.30% increase year-over-year (YOY) from the previous year. The company posted a gross profit of $10.36 billion, up from $8.89 billion in 2024. Bitcoin transactions accounted for over 35% of revenues.
Block’s Industry
Block faces competition from small and large businesses in the business software, payroll processing, payment terminal vending, and banking spaces. Some of the major names competing with Block for market share include PayPal (PYPL), Intuit (INTU), Shopify (SHOP), and Lightspeed.
Block has two reportable segments:
- Cash App: Includes the financial tools within the mobile Cash App, including peer-to-peer payments, bitcoin, and stock investments. Cash App includes a Cash App debit card. Cash App also holds the Afterpay platform.
- Square: Includes the payment services, software solutions, hardware, and financial services for sellers, excluding those under Cash App.
Products and services not assigned to a specific reportable segment include TIDAL and other emerging ecosystems.
History and Leadership
In 2009, Jack Dorsey and Jim McKelvey founded Square, a merchant services and mobile payments platform. By December 2021, Square rebranded as Block. Since its 2015 initial public offering (IPO), Block has become one of the largest and best-known payment services companies in the U.S. The company posted its first annual profit in 2019.
As of 2026, Jack Dorsey serves as the head and chairman of the company. Amrita Ahuja is Block’s foundational lead, overseeing the legal, people, and finance. She is also chairperson of Block’s industrial bank, Square Financial Services.
Recent Developments
Just like other financial services and fintech companies, Block is going through a major shift. It’s restructuring to become an AI-focused company. The goal is to “deliver intelligent financial tools that empower people and businesses around the world. This will increase special AI tools designed to improve the company’s operational efficiency and gross profit.
As a result, the company cut its workforce. In a note posted in February 2026 on X, Dorsey announced that Block was letting 4,000 workers go, leaving under 6,000 employees. In his post, Dorsey said the decision wasn’t prompted by financial distress. Rather, it was in response to the changing landscape and to accommodate new technologies.
Block was fined $80 million in 2025 by financial regulators from 48 states. Officials said that the company violated U.S. banking and anti-money laundering laws. As part of the ruling, Block said it would hire an independent consultant to review its policies. The company was given 12 months to fix any problems and issues found and reported by the consultant.
How Does Block Keep Transactions Secure?
To prevent fraud and identity theft, Block integrates encryption technology on its devices, which do not store card numbers, security codes, or magnetic stripe data.
What Is a Point of Sale Transaction?
A POS or point of sale is a device used to process transactions by retail customers. Services like Square offer POS transactions so merchants can accept card payments through tapping or swiping.
How Many Employees Does Block Have?
As of the end of 2024, Block had 11,372 full-time employees. This figure includes 2,627 outside the U.S.
The Bottom Line
Block is a fintech company that provides its customers with commerce, point-of-sale, finance, and bitcoin services. Jim McKelvey and Jack Dorsey launched it as Square in 2009. Square changed its name to Block in December 2021. The company’s Cash App segment is the main source of its revenue. Since 2017, Cash App has allowed merchants to use Bitcoin to accept payment.
