Block, Inc.XYZ

Block, Inc. Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
NET INCOME (LOSS) PER SHARE
The Company computes net income (loss) per share attributable to our common stockholders using the two-class method required for multiple classes of common stock and participating securities. The holders of our Class A and Class B common stock (together, "common stock") have identical liquidation and dividend rights but different voting rights. Accordingly, we present net income (loss) per share for Class A and Class B common stock together.

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding adjusted for the dilutive effect of all potential shares of common stock. In periods when the Company reported a net loss, diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive.
The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data):
Year Ended December 31,
202520242023
Basic net income per share:
Numerator
Net income attributable to common stockholders$1,305,636 $2,897,047 $9,772 
Denominator
Shares used to compute basic net income per share612,243 616,993 608,856 
Basic net income per share$2.13 $4.70 $0.02 
Diluted net income per share:
Numerator
Net income attributable to common stockholders$1,305,636 $2,897,047 $9,772 
Interest expense on convertible notes4,016 6,216 — 
Net income used to compute diluted net income (loss) per share$1,309,652 $2,903,263 $9,772 
Denominator
Shares used to compute basic net income per share612,243 616,993 608,856 
Stock options, restricted stock, and employee stock purchase plan5,392 7,289 5,168 
Convertible notes5,203 12,108 — 
Shares used to compute diluted net income per share622,838 636,390 614,024 
Diluted net income per share$2.10 $4.56 $0.02 

The following potential common shares were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in thousands):
Year Ended December 31,
202520242023
Stock options, restricted stock, and employee stock purchase plan36,268 37,687 40,431 
Convertible notes— — 14,297 
Common stock warrants8,248 12,108 20,243 
Total anti-dilutive securities44,516 49,795 74,971 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsNew StandardsPay vs Performance