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As Jason Del Ray digs in, it becomes clear that the Starbucks deal Square signed 3.5yrs ago didn't turn out so well.Tthe deal involved Square taking over as Starbucks’ payment processor in its stores. The filing shows that Square actually lost money on this arrangement.
First, the high level: Square recorded revenue of about $560 million in the first half of the year, a 51 percent increase over the first half of 2014. For the same period, losses were about flat year over year at about $78 million. That doesn’t look great. But the profit-or-loss metric that investors and analysts will look at more closely is adjusted Ebitda, or its profit minus a few standard items like taxes and depreciation. To get to this metric, Square is also stripping out all the revenue and transaction costs associated with its Starbucks partnership*,
http://recode.net/2015/10/14/squares-ipo-filing-its-complicated/
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