Block, Inc. ($XYZ)

We're going to kick in and get started. First of all, I want to thank everyone again for joining us this afternoon. I'm really happy to have Block with us and Owen Jennings with us as well. We also have Juan, who heads up credit and underwriting as well as Matt Ross from Investor Relations with us. And so guys, thank you all for being with us. It's a name that we've spent a lot of our time focused on really for many years. We did the IPO years ago, but it's totally changed over the years, has become a bigger and more interesting company over time. Let me start off with a quick legal disclaimer I have to read, and then we'll go into the questions. So just bear with me for 60 seconds. During this conversation, Owen may make forward-looking statements, including about Block's expectations for its financial performance that are subject to certain risks and uncertainties. These statements are based on information available to Block assumptions, it believes are reasonable as of today's date. Block disclaims any obligation to update any forward-looking statements, except as required by law. You may speak to certain non-GAAP metrics. Please take a look back at Block's most recent filings with the SEC for a discussion of the company's risk factors. Reconciliations of non-GAAP metrics to their most directly comparable GAAP financial measure are available on Block's shareholder letter on its Investor Relations website. Further, any discussion on Block's lending and banking products refer to products that are offered through Square Financial Services or its bank partners.

Okay. With that, look, Owen, I mean, first of all, thanks again for being with us. It's -- as I mentioned, we're excited to have you. It's really an interesting time on the story. You've been at Block for a long time and business lead for almost 2 years now. So maybe just start off with what you see as different about the company now and really after the last 2 years of you being in this spot, how things operate differently, whether it's internally or not today versus 2 years ago would be a good place to start.

Sure. And thanks so much for having me, Darrin. Excited to chat. I think -- yes, so I've been at Block for more than 12 years. I started on the Square side of the business and led business operations as we were kind of like gearing up for the IPO, becoming more of a mature company and then went over to the Cash App side in 2016. And so that's when cash was like 25 people. It was just a peer-to-peer product at the time. About 2 years ago, we decided to functionalize the company. We used to have more of like a rigid business unit structure, and there were these harder lines between Square and Cash App and some of the other products that we were building. And I think that action functionalization actually probably is like one of the key things that feels different now. I would say that over the past 12 years, there's been probably several different chapters at Block. On the functionalization side, I think primarily what it gives us is just like the ability to have an overall Block view and overall Block prioritization. It also lets us just like more flexibly move resources across projects. And then I think critically, one of the kind of key parts of our master plan right now is connecting neighborhoods together in the neighborhoods product, and I'm happy to talk about that later. But really, like functionalization was the big unlock, which is allowing us to build that product because we have to build in the Cash App code base. We have to build in the Square code base. We have to have a unified understanding of who a consumer is or who a buyer is. And then I think the second part is just around velocity, like the primary drumbeat that I've had with the development teams is high quality, high velocity. I think that was true for all of 2025. It's even more true now with some of -- how these AI tools are flowing through. So right now, what it feels like at Block is like more functional, more cohesive as like a unified singular company and moving more quickly, particularly with the flow-through from the AI tools.

Very helpful, Owen. Look, just taking a recap of fourth quarter '25 results. I mean, you had solid earnings with 24% gross profit growth, 33% growth in Cash App gross profit. And honestly, I think an even bigger headline was the 40% reduction in force. And so maybe just starting there, given I know it's on some folks' mind, just walk us through the decision-making process behind that reduction first, and we'll go from there.

Yes. I mean, obviously, I've been at the company for a long time. A number of the folks who we parted ways with were like long-time friends, long-time colleagues. And so these are like the toughest sorts of decisions. But I think it was the right choice for us to make as a company for our customers and for our investors. I think fundamentally, if I think about the pace of progress from an AI tool perspective, I would say there was kind of a meaningful clip of improvement from like the start of 2025 through like, let's say, November of 2025. And in that era, I think we went from -- especially on the development side, we went from like engineers writing code to like engineers using tools that like help them auto complete. For less complex code bases, you saw like vibe coding flowing through. there was a fundamental change in like the last week of November, first week of December with like Opus 4.6 and Codex 5.3. And we basically crossed the chasm where these AI tools clearly could write code that would pass the quality bar and that would pass human review. And it was like a fundamental change. And I think many of us spent like December and the holidays playing with these tools, applying these tools to our work and kind of understanding how that flows through. And so I think we're feeling it kind of most acutely on the development side for engineering, for product management and for design. But also, I think the tools are flowing through just like across disciplines and across all of the workflows you have at a tech company. And so then like from that perspective, we basically had the decision of like, okay, we are in the process in Q1 of like fundamentally thinking about like how do we want to structure the org, how do we want to operate? What does the development team look like? Like are we shifting from the status quo of a few years ago of like 1 PM, one designer, 8 to 12 engineers focused on a road map in kind of a waterfall fashion to like 2 or 3 or 4 builders in a squad who can just go and like run at a problem and can be like 5 or 10x more effective because of the underlying tools. And so we had a pretty clear perspective on what we thought was going to happen. And then I think the decision was we can hold off on this sort of change or we can kind of take more of a proactive move from more of a position of strength. The business is doing well. I think that's the other part is that like this seems like a relatively sudden change perhaps from the outside. But for us, like we've been building in this space, and we've been applying these tools to our work for years and years. Like I was using Goose 2 years ago. That's our -- that was like the first agent harness that was released, and we released it in an open source way and codeveloping the MCP with OpenAI and Anthropic. And so there's a lot of steps that got us here, but we felt like we're in a strong position to make this move. And we think that just like the fundamental nature of how you build software and how you run a company is changing, and we didn't want to be reactive 5 months, 6 months down the line or do this incrementally and have this hanging over our head for years and years. And so we made that decision.

What gives you confidence you can actually execute on your growth strategies, though, with only -- just over half your existing workforce?

Well, I think -- yes, great question. I think fundamentally, there's still this, I think, like inherent perspective that the number of people working at a company is going to be highly correlated with output. I think that basically is not true anymore. I think it was more true before like Opus 4.6 and Codex 5.3 and what we've been seeing in the past few months. But I just like fundamentally don't think that's true. There's countless examples I can go through, but we're seeing small squads or small pods of individuals who are doing the work that like you would have otherwise thought a year ago would take dozens and dozens of developers. But the very way that we approach this was like it's incredibly nuanced. It's incredibly deliberate. So we had a few sets of principles that we wanted to work off of. First was reliability and stability is #1. The second is compliance and trust is #2. So it's like not take any risk there. And then three is how are we like reliably delivering durable growth across all of our brands. And we didn't go into this with some sort of number. Like this was not a cost-cutting exercise. This was a -- how do we design the organ operating model in the era of AI. That's how we're approaching it. And so we took a blank sheet of paper and we said, okay, who do we need in order to make sure that we're going to be stable and we're going to be reliable, Who do we need to make sure we're good on all of our regulatory requirements, our financial partnership requirements, et cetera? And what teams do we need and how do we need to be organized in order to deliver the features and products that are on our road map. And we pressure tested that and we brought in the right people at the company. And we feel really good about the position that we're in. Like if anything, our expectation is that we're going to be moving faster from a product development perspective in the coming months and quarters rather than slower. And again, I think that's the fundamental -- I had many conversations here today where there's like this implicit assumption that how can that be true. But I think the paradigm has like completely changed over the past few months.

Just a couple of follow-ups on that. One is, I mean, when you say you pressure tested it, how could you do that before actually implementing change? And then I guess, was there an element of just -- you maybe overhired a bit also? Or is this -- how much of it was AI-driven versus streamlining the business?

Yes. On the pressure testing side, I think there's a few different things. So one is like, unfortunately, this is not the first time that there's been a reduction in force at Block or like in the tech space more broadly. And so even though the magnitude of this for all of Block seems large, there's been like pockets of the company where this sort of thing has happened before. And so there's some pattern recognition there. I also think it's about like do you have believable people who are in the know who like have all of the context and who deeply understand the business and who you're confident in their decision-making. I think that's like a critical piece. And so this was not just like Jack and his direct reports. There was a number of people who are working on this, thinking about this, who are like -- who are deeply trusted, and there's obviously mitigation plans in place should anything happen. So that's kind of the answer to the first question. Sorry, remind me of the second question.

No, I was just trying to figure out on top of just pressure testing, if there was excess in the company. I mean maybe you grew to a degree that had [indiscernible].

Yes. I've seen the tweets and things like that. So one, I don't know. I think that perhaps with some individuals, there's this thing with Jack, where Jack doesn't necessarily get the credit that he deserves. I mean Jack invented Twitter, invented Square, invented Cash App, invented Proto. And so I don't really understand that one, but I think there's a bit of a Jack overhang. I think if you look at basically any metric, like look at gross profit per FTE, I think you see that we were like above average, pretty reasonable relative to the peer set that makes sense. I don't hear the sort of complaints with other folks. And then if you look at like gross profit per employee in 2025 or now extrapolated for 2026, I think it's like world-class. I think it's like NVIDIA and Meta or something. But moreover, I think if this actually were about whatever the claims are, like organizational bloat or overhiring or whatever, I think you would have seen a different action. Like what we described was like this is a 40-ish percent action at the Block level, it was more extreme on the development side, engineering, design, product management. And so that's not the sort of thing that's like correlated to like the bureaucracy and the bloat and what have you. So it just doesn't add up, and there's a bunch of folks who are tripping without context.

Okay. All right. That's really helpful, Owen. Just shifting gears a bit, I mean, because it was probably overshadowed by the RIF, but your underlying trends were really strong also. I mean you talked about growth of 12% on GPV through February, mid-February, which was despite pretty tough weather. What's driving that? I mean just give us a reminder of where you stand on that? And I know you've invested in sales and other areas, but what's the latest update?

Yes, we feel really good about where GPV growth is at. The basic way that I think about GPV growth is you have kind of new GPV that you're adding. And then you have kind of like the volume retention side, which is like same-store growth and then subtracting churn. I think things feel good kind of across the board. So we've massively ramped our go-to-market motion. Nick Molnar, Co-Founder of Afterpay, took over sales and marketing a bit ago. We've been ramping field sales. We've been ramping ISOs. The self-onboard motion has been quite strong as well. And so a lot of the work that was done in the preceding months and quarters then like starts to flow through in Q4 and Q1 and going forward. And then I think from a volume retention perspective, this comes down to like continued investments in how we think about support, concierge support, account management, pushing a reduced churn, but then also just like net new feature development. Like new feature development is not only allowing us to win business. It's also helping us keep customers or grow with customers and capture a larger share of their wallet. And so across -- that's kind of how we break down the GPV equation. But across the board, we feel really good, both in the U.S. and also internationally.

Do you have the products you think you need right now to meet the demand and really sustain the growth you've been seeing?

I think we definitely have the products right now to meet and sustain, but I think there's always opportunities to continue to grow. So I think we've been really focused on the food and beverage space on the Square side over the past couple of years. And there's a few more things that we want to ship. I think, again, with these AI tools, it's becoming easier and faster to actually get these into market. We actually had a great example where we have a tool called Builderbot, which you can imagine is like an internal version of Claude code, but it's built on top of Goose. And we actually fed Builderbot like one of the key features that -- feature requests we're getting from the sales team. And Builderbot just like built the whole thing, and it's like -- it's in prod. So I think there's more examples of that. And then I think we need to continue to work through vertical by vertical. Like there are still gaps with FSR, there are still gaps with retail. There are still opportunities with services. But like I don't think that's preventing us from getting to like the kind of long-term guidance we had around like the mid-teens GPV growth kind of long-term thing. But I think we're just going to continue to build and hopefully, that compounds positively.

On that note, I mean, AI, is it going to help with feature parity that you guys can offer into new verticals beyond, obviously, the restaurant area? And just help me understand kind of where you're utilizing it.

100%. We're using it everywhere, and it's not really as a tool, but like it has fundamentally changed the workflows for how we develop over the past several months. And it's -- as I said, it's been compounding for years and years. But in particular, things feel way different over the past few months. And so it's not just on the Square side and like point-of-sale features, it's like everything that we are building, every -- not only at Block, like if the tools are there, if you are on the tools, as we say internally, like this is meaningfully compressing the time required in order to build software. We're having certain instances now where like it used to be the case that a lot of the time software development was actually the long pole to like get something in the market. We're increasingly seeing now like one spins up a quick feature. And then actually the long pole is like having a conversation with the partner or going through like legal and compliance or doing the modeling on how we should price the thing or what have you. So that's like a paradigm shift where like you can now just have dozens of agents like working on your behalf, and that is now the workflow and the software is being created. And now we need to like curate that. We need to edit that. We need to do code review. But anyway, long way of saying, yes, it's going to speed everything up.

Shifting gears to Cash App. I mean it's been showing outstanding growth. Some of it is obviously Borrow driven. But even without Borrow, you've seen the non -- let's call it, non-Cash App Borrow, Cash App growth accelerate to what we calculated almost 15% growth at this point, 14% plus. And so -- but starting with Borrow for a moment, I mean, it's been a big part of the growth story in '25 and now into '26. And a lot of that has to do with also the migration to Square Financial Services, right? Just how sustainable are these levels of growth that you're seeing in Cash App with Borrow, but even excluding Borrow?

Yes. So I don't love the breakdown of like lending growth and non-lending growth because I think it's too course of a view. Like on the non-lending growth side, there's just a number of different drivers with like different idiosyncratic things happening where you have like primary banking actives and direct deposit actives and Cash Card spend growing in that like 20-ish percent range. And then you have certain areas where like we're making strategic decisions like, for instance, Bitcoin, we're like choosing to monetize less there. And so that's going to be a drag or cash for business, we're less focused on that exact product type. That's going to be a drag. The core growth of Cash App, we're really happy with. So like network expansion has been our #1 focus. We've seen really healthy acceleration there. We added 1 million in September, then we added 1 million again in December, and we think there continues to be like a number of tailwinds there. On the primary banking active side, I mean, Cash App Green was launched in mid-November. I think the print in December was really strong. I think it's clear that it's like really resonating with our customers. And then even on the Borrow side, like there's definitely kind of an idiosyncratic boost that you get when you like migrate over to SFS. But I think there's so much opportunity for us to sustain, especially when I think about like the consumer credit product suite overall, where you have Borrow and all the different ways that we can continue to improve upon Borrow. We also have Afterpay on Cash Card post purchase, which is doing phenomenally. We have Cash App Afterpay applied to peer-to-peer, which like just rolled out like several weeks ago, which is doing quite well. We also just rolled out Afterpay on the Cash Card prepurchase in alpha or beta a few weeks ago. And so I think one of the areas where we've demonstrated like really meaningful market fit is just like simple access to liquidity. That's what so many Americans need and what so many Americans rely on us for. And so I continue to think that we're going to see strong growth, both for like the kind of core ecosystem, as you said, and all these nonlending products, but then also our consumer credit products as well.

So I mean, if we talk about on that note, the MAU growth rate, the potential to grow actual monthly active users, you've had -- I think it was really since early '24, it had been relatively flat, right, for a while. And then third quarter this past year, this past third quarter, we saw it start to inflect and grow again. And then again, it grew once again in the fourth quarter, and you talk about it growing low single digits now. So help us understand your ability to sustain that. I mean you're at almost 60 million users already, monthly active users, which is not a small number. So the ability to keep that going.

I think there's still room to go. I think -- I'll break it down into kind of some of the more kind of near-term tactical things and then perhaps some of like the bigger bets. So on a short-term basis, one thing I want to call out is we report monthly actives. I look at so many different metrics like daily actives, weekly actives, quarterly actives, the ratio between those things, how it looks by platform, by geo, et cetera. And trends are looking healthier and healthier. I think we still have an opportunity to convert quarterly actives and annual actives into monthly actives. And there's a bunch of headroom there. And it's not necessarily like a lapsed or churned customer. It's just -- if you go from sending 4 peer-to-peer payments a year to using the Cash App Card, then you're going to go from being a monthly active 4x to 12x. So there's a big opportunity there. Again, continue to focus on what we call like network enhancements. So there's all sorts of flows with millions of people going through them. There's all sorts of areas where we can reduce false positives, make sure that it's as easy and simple as possible to use Cash App, continue to invest in go-to-market, life cycle paid. That's all kind of bread and butter. I think longer term, one of the -- I think maybe 2 things that are probably I'm most excited about. One is Neighborhoods. And so I think Neighborhoods has the ability to drive like a step function change in actives growth for Cash. I want to get to the place, and I think we're like just on the verge of the place where Square is the biggest strategic advantage for Cash App and Cash App is the biggest strategic advantage for Square. I think that's really exciting. Again, that's like core to like our overall strategy. And then I think Moneybot. Moneybot, we're actually -- this week, we're in the process of rolling out Moneybot to more and more customers. I think there's nothing else like this in the consumer fintech industry. I like to think of it as like having a protector or a CFO in your pocket. I've been using it for months and months. We're not even talking about monetizing Moneybot yet, but you can imagine that being a meaningful driver of just like a new way of thinking about your finances, a new way of interacting with your money. And so I think that there are some of those longer-term bets as well that should be tailwinds for network expansion for years to come.

Yes. So you put it all together, I mean, you have effectively MAU growth in the low single digits, which you feel sound pretty confident around based on harvesting more of the quarterly or annual actives and more areas that probably haven't been really tapped yet. You have Borrow driving a lot of inflows, right? It's not just a product in itself. It's actually driving the ecosystem to some degree as well. And then you have incremental banking products, right? You put it all together, is that going to drive the organic trends, again, putting aside just the lending-oriented aspect of it, does that give you confidence in sustainability? Or am I missing new products?

We feel good. I mean, look, we're going to continue to roll out new features and new products. I think we've had a strong track record of doing that. I mean when I joined Cash App, we're basically just a peer-to-peer app. And then we basically rolled out a new major financial service every like 12 to 18 months, whether it was like the card or Bitcoin or...

Product velocity was high.

Stock investing or what have you. So we'll continue to invest. I think there's a number of things that we haven't talked about around like the Cash App credit score, I think, is going to be like a complete game changer for our customers and for like the underwriting industry overall. I think the connectivity between Afterpay and Cash App and how we're sending Afterpay customers into Cash App, Cash App customers into Afterpay. I guess the broader point is like fundamentally, this is an ecosystem. Internally, we talk about like we want to build a financial operating system for the next generation. And so there's going to be more and more products and features that we can build that capture a larger share of a given customer's wallet. But like right now, I mean, I guess I would say the proof is in the pudding. We have millions and millions of customers who are choosing Cash App as their primary financial institution, who are choosing to earn green, whether that's through like depositing their income or through using Cash App Card and bringing that to top of wallet. And so I feel really good about where we're positioned. But again, like there's always more to build.

So you have accelerated growth in GPV. It sounds like there's conviction around the NVA there, obviously supporting more to go. You obviously have really good momentum on Cash App between Borrow, but even without Borrow, obviously, MAU growth. For a pretty long time, we've been wanting to see the ecosystem is connected and you brought up Neighborhoods, right? And so can you just start -- take a step back and maybe explain to the audience one more time what your goal is with Neighborhoods. And then we could just touch on -- has there been any traction, any evidence of success, merchant feedback or trends showing signs that it's going well?

Yes. I think that -- I'm glad to spend the time because I think this is like probably the most important thing that we're building right now across the entirety of the company. So the main thing that a seller says when you talk to a seller like a small business is I want incremental growth. And then the environment that they have to operate in is not great. Like basically, to get incremental growth, either they're paying like a large share of their tickets to like the DoorDashes and the Uber Eats of the world. And then you kind of get addicted to that thing and then you can't get off of it. And then if you do, like growth comes down or they're up against like a more established, larger, let's say, quick-serve restaurant, like a Starbucks or a Burger King or a McDonald's who has like a tech team and has their own app and has their own life cycle marketing and what have you. So the basic question for us is like how do we give those same tools to every small business who's using Square, and that's what we've built with Neighborhoods. And so I mean, I can show you after on my phone. But essentially, let's say, I run a bagel shop in New York City, Owen's Bagels. You come in, we'll give you like a $1 reward that you can claim within Cash App. So we'll say like, hey, Darrin, here's $3, download Cash App in order to claim it. And what we're seeing right now is like when people go through that flow, about half of them are like existing Cash App customers and half of them are new or lapsed customers. So pretty meaningful in terms of the ability to drive acquisition. And we're seeing really strong attach rates as well. Like for every buyer who's presented with that flow, it's about like a 5% to 10% attach rate. From a seller's perspective, they're then gaining a follower. So now I have the applet in my Cash App where I can see Owen's Bagels and then the seller has the ability to send them marketing campaigns, send them offers and then discounts, connect with them, the same sorts of tools that the mega quick-serve restaurants and full-serve restaurants have. And so the seller is getting incremental growth. There's a bunch of other benefits, too. They're only paying 1% because like our cost of funding is lower. So anyway, there's a bunch of benefits for the seller that we're able to offer. And then on the consumer side, they're getting rewards in the form of local cash into their Cash App and they're getting like a seamless checkout option directly from Cash App. And so we've spent a lot of time focused on this problem. Brian Grassadonia, who used to be my boss, was the CEO of Cash App. This is like one of his primary focuses is like connecting these 2 parts of the ecosystem. And so we've been testing in certain geographies, making sure that the flows are right, the conversion rates are right. And like it is working. It is an incredible product. And so now the focus is just on scale. So about like 3 weeks ago, we shifted our onboarding motion from something that was like inbound and like quite operationally intensive, where like someone on the account management team would have a conversation with the seller, but like now we have auto enablement. And so we're able to take a cohort of sellers and turn Neighborhoods on for them. We've done that a few times. We've seen that the retention rate for sellers who like stay in the program is like 75% to 80%. So it's like quite strong relative to expectations. And now it's just about like going through this motion and getting more and more locations who are on Neighborhoods, and we have an understanding of how that's going to flow through into the attach to Cash App and then the subsequent attach to commerce. And so I'm like incredibly, incredibly excited about this. The key question that I've got today is like what is different now like Block has tried to do stuff like this before. I think there's 2 key things that I would call out. So one, in previous worlds where we've built kind of the consumer side of the Square network, we weren't in a functional org model. And so we had these like really strong boundaries and lines between Cash App and Square. And so we needed to do that functionalization about 18 months ago in order to be able to build and get where we are. And then second is scale. I think like there's not a question of if there's a buyer base, if there's a consumer base. We have tens and tens of millions of customers who are using Cash App. And so now this is just about like what is that flow at the point of sale, at the point of purchase where you're able to connect the buyer with the seller.

Yes. I mean right now, I think you were in a few markets, right? You were testing [indiscernible] was one, but there's a few others. I mean, what's the trajectory? And I don't know if you want to -- you don't have to be so precise, but just a sense of where you hope to be over the next 12 to 18 months on this?

Yes. I mean I hope to be at like a way, way larger scale. I think -- so I think right now, there's like a perfect customer on the Square side for the Neighborhoods product. It's like someone who has Square Register, which is like you have a seller-facing display and a buyer-facing display on the hardware, someone who's already used to selling online and so you have like your catalog set up, et cetera. That's a very large number in itself. And so that's like the first target. And we'll probably take -- we'll probably do tests like a combo of just like auto enabling and rolling out and then also like a geo-based approach, both for the seller side and the consumer side. And then I think over time, you start to have the conversation of like how do we get this out just like this is just like default on. And so it's like regardless of hardware type, like what does that thing look like? How does like the in-store redemption thing look like? What could this possibly look like internationally, like all of these things. But we are investing really meaningfully in this. As I said, like this is like one of the core pillars for like the overall business strategy because I think then once you actually do this, once you actually have like a meaningful share of local economies running on Block, then you're able to do things like meaningfully reduce costs for sellers or meaningfully increase rewards or meaningfully increase your reliance on certain parts of the legacy financial system. And so this is something we're really committed to.

Right. That sounds really encouraging. I mean you obviously could drive more MAUs in a pretty material way also. Just last one for me, and maybe we'll take 1 or 2 questions. Pricing. We noticed a few pricing changes over the past month or so with some increase to Cash App instant deposit that we wrote about. I think there was some on cross-border transactions as well. Just how are you thinking about pricing going forward? I know there was also -- you mentioned even somewhat of a reduction on the Bitcoin side. So just a sense of the overall environment.

I think I'll take the Bitcoin one separately because I think that's a little bit of a different flavor. But by and large, across all of the other pricing adjustments on Square, Cash App, et cetera, I see that as like an always-on motion. So basically like we're constantly tuning knobs and twisting dials for how we think about the value exchange with customers. So like, for instance, on the Cash App side, we launched Green. With the launch of Cash App Green, that means we're offering Borrow to more customers, higher Borrow limits. We're giving people free ATM transactions. We're giving people free paper money deposit, et cetera. And so then we might like twist a knob or tune a dial somewhere else to monetize more in a place that's strategic. So the same thing on the Square side, like we've launched pricing and packaging or internally, we call it P&P. We're going to continue to kind of twist knobs there and make sure it's like should we add another tier? Should we change the eligibility for this? Should we change the limit for this? I think pricing is one of those things that you can constantly be iterating on, constantly be testing on. And we want to make sure that we're kind of at that efficient frontier of like where we're monetizing, where customers are finding value and kind of like maximizing the business results. On Bitcoin, in particular, I think this was a bit more idiosyncratic. On the Bitcoin side, I think we kind of lost our position. Like we were the first public company to launch Bitcoin buy sell. We were the cheapest, we were the simplest, we were the easiest. We kind of had like a really, really strong market fit there. Over the years, for a number of reasons, like Bitcoin got more expensive on Cash App. It was harder to use, limits were more restrictive. And so we're really trying to get back to that place where we are the market leader, at least for like the average customer in the U.S., maybe not like the super advanced, super high-volume trading platforms. But for the average customer, it should be very obvious that you're going to Cash App for Bitcoin.

Very helpful. All right, guys. Why don't we see if there's any questions from the audience? And I think we have time for maybe 1 or 2. There's one in the back.

A question on the -- you talked about meaningfully reducing costs for sellers, right? And as you connect your buyer and seller ecosystem, are you starting to see that already come through for sellers? And how does that affect your margins, especially in the face of A2A payments, non-card payments as well?

Yes. I mean the primary thing that's happening now is Cash App Pay. So we have Cash App Pay and Cash App Pay is rolled out to a number of sellers. It's also like the primary way that you pay for something through the Neighborhoods product. And because of the share of Cash App Pay transactions that are funded through stored balance, we're able to reduce the fee that a given seller pays. So I think about -- I think roughly 70% of Cash App Pay transactions are paid via stored balance. And so let's say that there's a given seller who would be paying like a 2.5% swipe rate for like a given card. Right now, we're saying we can offer you Cash App Pay transactions for 1%. But like as we see more and more of that and as store balances evolve and so on and so forth, you could see us like lowering that even more. And then like for a given seller who's on Neighborhoods, I think like one of the key questions is going to be like what share of their volume is coming from followers like is coming through the Neighborhoods program. And if that percentage is like reasonably high, you can see this just being a complete game changer for sellers because, one, they can have a reasonably large share of their transactions that are at a lower cost. That's like huge and blends down. But then two, like if a good share of your GPV is coming through Neighborhoods, then you're really going to want to invest in outreach to your buyers and like use the marketing tools, use the discounting tools, loyalty tools, et cetera, in order to drive your business forward. So I think Cash App Pay is probably just the start. I know you've mentioned A2A and other things. I think there's no shortage of things that we can do because of the position that we're in on both sides of the counter with these face-to-face transactions. So I think about Bitcoin, I think about stablecoins, I think about agentic commerce. But right now, I think Cash App Pay is like the most meaningful manifestation of this dynamic.

All right. Any other quick ones or -- all right. Why don't we leave it there? Owen, thank you so much. That was a very helpful conversation.

Thanks, Darrin. Appreciate it.