Core Thesis - H&R Block, Inc. presents a compelling investment opportunity with a current share price of $50.19 and a favorable valuation indicated by trailing and forward P/E ratios of 11.36 and 10.06 respectively [1] Financial Performance - The company is expected to report a significantly stronger Q4 performance compared to the previous year, driven by a favorable tax benefit that could increase EPS by approximately $0.50 and free up around $90 million for share repurchases [2] - H&R Block has a history of returning 100% of free cash flow to shareholders through dividends and buybacks, having deployed $430 million last year and potentially increasing to $600 million this year, which could retire about 8% of outstanding shares at an average price of $56 [3] Shareholder Returns - Share repurchases are primarily concentrated outside of the tax season, particularly in August, September, and November, creating a near-term catalyst for shareholder returns [4] - The company is expected to grow operating income by approximately 5% through modest pricing and volume improvements, with total returns potentially reaching 12-13% plus a 3% dividend, translating to a mid-teens CAGR [4] Investment Profile - H&R Block offers a low-risk, high-return profile with multiple near-term catalysts, supported by a conservative valuation, strong cash return policy, and structural upside from potential short squeezes [4] - The ongoing short interest of 9% sets the stage for a potential squeeze similar to the post-Q4 earnings reaction, enhancing the investment appeal [2][4]

Core Viewpoint - H&R Block reported mixed results for Q4 fiscal 2025, with earnings missing estimates while revenues exceeded expectations, leading to questions about future performance leading up to the next earnings release [2][5]. Financial Performance - Adjusted earnings per share were $2.27, missing the Zacks Consensus Estimate by 19.2% but increasing by 20.1% year-over-year [2] - Total revenues reached $1.11 billion, surpassing the Zacks Consensus Estimate by 3.7% and showing a year-over-year increase of 4.6% [2] - U.S. tax preparation and related services generated revenues of $975.5 million, up 5% year-over-year [3] - Financial services revenues declined by 14.6% to $16.1 million [3] - International revenues increased by 1.3% to $89.9 million [3] - Wave revenues grew by 14.4% to $29.54 million [3] Cash Flow and Debt - Cash and cash equivalents at the end of fiscal 2025 were $210.28 million, with total cash at $983.28 million [4] - Long-term debt decreased to $1.14 billion from $1.49 billion in the previous quarter [4] - The company utilized $680.89 million in cash for operating activities and incurred capital expenditures of $82.03 million [4] Future Outlook - For fiscal 2026, H&R Block anticipates revenues between $3.875 billion and $3.895 billion [5] - Expected adjusted earnings per share are projected to be in the range of $4.85 to $5.00 [5] - EBITDA is forecasted between $1.015 billion and $1.035 billion, with an effective tax rate of 25% [5] Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 10.85% [6] - H&R Block currently holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [8] VGM Scores - H&R Block has a Growth Score of B, a Momentum Score of F, and a Value Score of A, placing it in the top quintile for value investors [7]

Core Insights - Spruce, a mobile banking app by H&R Block, launched the Saving Surge Sweepstakes to promote financial health among Americans, offering nearly $5,000 in prizes over six months [1][2] - The initiative aims to address the financial vulnerability of 70% of Americans, providing tools for effective money management [2][5] - Participants can earn entries by engaging in saving behaviors, with monthly prizes awarded to encourage consistent saving habits [3][4] Initiative Details - The Saving Surge Sweepstakes runs from September 1, 2025, to February 28, 2026, allowing Spruce customers to earn up to five entries each month through actions like auto-transfers and $10 deposits [3][10] - Monthly winners will receive direct deposits into their Spruce Savings Account, with one winner receiving $500 and three others receiving $100 [3][8] Financial Tools and Features - Spruce offers features such as a Watchlist Budget Tracker and high-yield savings accounts with a 3.50% APY, designed to reinforce positive financial behaviors [4][11] - The collaboration with Commonwealth aims to enhance financial security for vulnerable populations, leveraging Spruce's tools to make saving engaging and rewarding [5][14] Organizational Background - H&R Block provides tax preparation services and financial products, integrating digital innovation with personal expertise through the Spruce app [12] - Commonwealth is a nonprofit focused on building financial security for low- to moderate-income individuals, having helped over 2 million people save nearly $8 billion [14] - BlackRock's Emergency Savings Initiative supports the movement by promoting savings strategies for low- to moderate-income individuals [15]

Core Insights - The 2025 Fund Her Future grant program by Block Advisors provides $100,000 in grants to women-owned small businesses, including one $50,000 grant and five $10,000 grants, along with one year of business services [1][4] - There was a 30% increase in submissions from the previous year, with over 8,000 applicants, highlighting the growing need for funding and support among women entrepreneurs [1][7] - The recipients of the grants are focused on community service and empowerment, addressing various social issues through their businesses [2][3] Company Overview - H&R Block, through its Block Advisors division, aims to support small businesses with services such as bookkeeping, payroll, tax preparation, and business formation [1][6] - The company emphasizes a blend of digital innovation and human expertise to assist clients in achieving better financial outcomes [9] Recipient Highlights - Amy Peterson's Rebel Nell, which received the $50,000 grant, empowers women by transforming graffiti into jewelry and providing workforce development programs [3][4] - Other recipients include: - Heather Boles with Mozzie Style, creating stylish mosquito net clothing [5] - Adrienne Bitar and Jennifer Han with Seen Nutrition, innovating a dietary calcium supplement [5] - Hilary Cocalis with Sipwell Wine Co., promoting sustainable organic wine [5] - Irene Bekoe with That Good Good Shea, focusing on body care and menstrual product access [5] - Jocelyn Ramirez with Todo Verde, offering gluten-free and vegan products [5] Selection Process - The selection of grant recipients was facilitated by Hello Alice, which supports small business owners and helped narrow down the applicants through a rigorous interview and assessment process [7]

Core Insights - Block Advisors by H&R Block has announced the recipients of its second annual Fund Her Future grant program, providing a total of $100,000 in grants to women-owned small businesses, including one $50,000 grant and five $10,000 grants, along with one year of small business services [1][4] - The program saw a 30% increase in submissions from the previous year, with over 8,000 applicants, highlighting the growing need for funding and support among women entrepreneurs [1][5] - The 2025 grant recipients are focused on community upliftment, with businesses addressing various social issues, from health and education to environmental sustainability [2][6] Company Overview - H&R Block, Inc. provides tax preparation services, financial products, and small-business solutions, blending digital innovation with human expertise [8] - The company aims to inspire confidence in clients and communities through its services, including year-round bookkeeping, payroll, advisory, and payment processing solutions [8] Grant Program Details - The selection process for the Fund Her Future grant was conducted in partnership with Hello Alice, which empowers small business owners with resources and connections [5][7] - Each recipient will receive tailored Block Advisors services to support their unique business journeys, including business formation, bookkeeping, payroll, and tax preparation [4][7] Recipients and Their Missions - Amy Peterson, founder of Rebel Nell, received the $50,000 grant and focuses on empowering women through workforce development and financial literacy [3][4] - Other recipients include businesses like Mozzie Style, Seen Nutrition, Sipwell Wine Co., That Good Good Shea, and Todo Verde, each addressing specific community needs and promoting social impact [6][7]

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) H&R Block provides global tax preparation, financial products, and small business solutions, blending digital innovation with human expertise Fiscal Year 2025 Key Performance Metrics | Metric | Value | | :--- | :--- | | U.S. Assisted Tax Returns Prepared | 11.3 million | | DIY Online Paid Tax Returns Filed | 3.8 million | | Consolidated Revenues | $3.8 billion | | Net Income from Continuing Operations | $609.5 million | | EBITDA from Continuing Operations | $976.3 million | | Diluted EPS from Continuing Operations | $4.42 per share | | Shares Repurchased | 6.5 million | | Dividends Declared | $1.50 per share (17.2% YoY increase) | - The company's business model combines assisted tax preparation by professionals with do-it-yourself (DIY) solutions offered through online, mobile, and desktop software, also providing financial products and small business solutions via Block Advisors and Wave brands[14](index=14&type=chunk)[20](index=20&type=chunk)[22](index=22&type=chunk) - Recent corporate developments include the amendment and restatement of the company's **$1.5 billion** unsecured committed line of credit (CLOC), extending its maturity to July 2030[18](index=18&type=chunk) - Jeffrey J. Jones II announced his intention to retire as President and CEO, effective December 31, 2025, with Curtis A. Campbell appointed as his successor[19](index=19&type=chunk) - The company's business is highly seasonal, with a substantial majority of revenues earned from February through April, leading to operational losses during the first two quarters of the fiscal year[31](index=31&type=chunk) - As of June 30, 2025, the company had approximately **4,300 regular full-time associates**, with the seasonal workforce peaking at approximately **70,100 employees** during the fiscal year[36](index=36&type=chunk) [Item 1A. Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces a variety of risks categorized as strategic, operational, information security, legal, and financial - Changes in tax laws or government processes, such as simplification or the expansion of free government filing options (e.g., the IRS direct file system), could reduce demand for the company's services[62](index=62&type=chunk)[65](index=65&type=chunk)[74](index=74&type=chunk) - The company faces substantial competition in both assisted and DIY tax preparation from other firms, software providers, and free offerings, which could impact market share and profitability[67](index=67&type=chunk) - Operational integrity is threatened by the increasing sophistication of third-party fraud, potential interruptions in information systems (including reliance on Microsoft Azure), and the challenges of a highly seasonal business model[78](index=78&type=chunk)[83](index=83&type=chunk)[94](index=94&type=chunk) - A security breach resulting in unauthorized access to client or employee personal information could adversely affect demand, reputation, and financial performance, with complex and evolving data privacy laws potentially increasing costs[104](index=104&type=chunk)[109](index=109&type=chunk) - The company is subject to legal actions and governmental inquiries related to the IRS Free File program and other aspects of its DIY tax preparation services, including the use of pixels[127](index=127&type=chunk) - Financial risks include potential negative impacts on liquidity from credit market disruptions, the dependency of dividends and share repurchases on earnings and Board authorization, and potential changes in corporate tax laws[133](index=133&type=chunk)[136](index=136&type=chunk)[139](index=139&type=chunk) [Item 1B. Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments as of the filing date[144](index=144&type=chunk) [Item 1C. Cybersecurity](index=23&type=section&id=Item%201C.%20Cybersecurity) H&R Block has implemented a cybersecurity program based on the NIST Cybersecurity Framework to manage and mitigate risks - The company's cybersecurity strategy utilizes the National Institute of Standards and Technology (NIST) Cybersecurity Framework and a multi-layered, zero-trust approach to secure systems[145](index=145&type=chunk)[150](index=150&type=chunk) - Oversight is provided by the Audit Committee of the Board of Directors, with the Chief Information Security Officer (CISO) heading the Information Security team and reporting to the Chief Legal and Administrative Officer (CLAO)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - As of the date of this report, the company has not identified any risks from cybersecurity threats or prior incidents that have materially affected its business strategy, results of operations, or financial condition[151](index=151&type=chunk) [Item 2. Properties](index=25&type=section&id=Item%202.%20Properties) The company owns its corporate headquarters in Kansas City, Missouri, while most tax offices and international executive offices are leased - The corporate headquarters in Kansas City, Missouri is owned by the company[152](index=152&type=chunk) - The majority of tax offices and international executive offices are leased[152](index=152&type=chunk) [Item 3. Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) For a description of material pending legal proceedings, the company refers to the discussion in Item 8, Note 12 of the consolidated financial statements - Details on material pending legal proceedings are provided in Note 12 to the consolidated financial statements[154](index=154&type=chunk) [Item 4. Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[155](index=155&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) H&R Block's common stock trades on the NYSE under the symbol HRB, with a new $1.5 billion share repurchase program approved in August 2024 - The company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol HRB, with **11,433 shareholders of record** as of July 31, 2025[156](index=156&type=chunk) Issuer Purchases of Equity Securities (Q4 FY2025) | Period | Total Shares Purchased (in 000s) | Average Price Paid per Share | Maximum Dollar Value Remaining Under Program (in 000s) | | :--- | :--- | :--- | :--- | | April 1 – April 30 | — | $56.73 | $1,100,000 | | May 1 - May 31 | 9 | $62.46 | $1,100,000 | | June 1 - June 30 | 1 | $58.91 | $1,100,000 | | **Total** | **10** | **$61.90** | | - On August 15, 2024, the Board of Directors approved a new **$1.5 billion share repurchase program**, which does not have an expiration date[157](index=157&type=chunk) [Item 6. Selected Financial Data](index=26&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable - Not applicable[160](index=160&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2025, revenue increased 4.2% to $3.8 billion, driven by higher net average charges, while operating expenses rose 4.6% due to increased costs Fiscal Year 2025 vs. 2024 Financial Highlights (Continuing Operations) | Metric | FY 2025 | FY 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,761.0M | $3,610.3M | 4.2% | | Total Operating Expenses | $2,933.0M | $2,805.1M | 4.6% | | Net Income | $609.5M | $598.0M | 1.9% | | Diluted EPS | $4.42 | $4.14 | 6.8% | | Adjusted Diluted EPS | $4.66 | $4.41 | 5.7% | | EBITDA | $976.3M | $963.2M | 1.4% | - The **4.2% revenue increase** was primarily driven by a **5.1% rise in net average charge** for U.S. assisted tax preparation and a **9.8% increase in paid net average charge** for U.S. DIY services[166](index=166&type=chunk)[167](index=167&type=chunk) - The **4.6% increase in operating expenses** was mainly due to higher field wages (+$58.4 million), benefits and other compensation (+$22.0 million), consulting services (+$11.3 million), and technology-related expenses (+$10.5 million)[168](index=168&type=chunk)[169](index=169&type=chunk) - Cash provided by operating activities decreased to **$680.9 million** from **$720.9 million** in the prior year, primarily due to changes in income tax reserves and accounts payable[176](index=176&type=chunk) - The company repurchased **$400.1 million** of its common stock in FY2025 at an average price of **$61.10 per share**, with **$1.1 billion** remaining authorization under the current share repurchase program[182](index=182&type=chunk) - On July 11, 2025, the company amended and restated its **$1.5 billion committed line of credit (CLOC)**, extending the maturity to July 11, 2030[186](index=186&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposures are related to interest rates on its variable-rate credit facility and foreign currency exchange rates from international operations - Interest rate risk is primarily linked to seasonal borrowings on the variable-rate CLOC, while long-term debt is fixed-rate, minimizing the impact of rate changes on earnings[222](index=222&type=chunk)[223](index=223&type=chunk) - Foreign exchange risk is driven by operations in Canada and Australia, with a hypothetical **10% change in foreign exchange rates** estimated to impact FY2025 consolidated pretax income by **$4.5 million**[224](index=224&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=37&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the company's consolidated financial statements, an unqualified auditor's report, and details on critical audit matters like uncertain tax positions and goodwill impairment - The independent auditor, Deloitte & Touche LLP, issued an **unqualified opinion** on the financial statements and the effectiveness of internal control over financial reporting[233](index=233&type=chunk)[234](index=234&type=chunk) - Critical Audit Matters identified were: (1) Income Taxes - Uncertain Tax Positions, specifically related to transfer pricing policies, and (2) Goodwill - Wave Reporting Unit, focusing on the significant judgments in estimating fair value[238](index=238&type=chunk)[241](index=241&type=chunk) Consolidated Statement of Operations Highlights (in millions) | Line Item | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Total Revenues | $3,761.0 | $3,610.3 | $3,472.2 | | Total Operating Expenses | $2,933.0 | $2,805.1 | $2,723.5 | | Income from Continuing Operations Before Taxes | $781.4 | $762.3 | $711.2 | | Net Income from Continuing Operations | $609.5 | $598.0 | $561.8 | | Net Income | $605.8 | $595.3 | $553.7 | Consolidated Balance Sheet Highlights (in millions) | Line Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,162.5 | $1,239.5 | | Total Assets | $3,263.9 | $3,218.8 | | Total Current Liabilities | $1,298.6 | $977.3 | | Long-Term Debt | $1,143.3 | $1,491.1 | | Total Liabilities | $3,175.0 | $3,128.2 | | Total Stockholders' Equity | $88.9 | $90.6 | - The company reports as a **single operating segment**, with the Chief Operating Decision Maker (CEO) reviewing financial information at a consolidated level to evaluate performance and allocate resources[361](index=361&type=chunk)[362](index=362&type=chunk) - As of June 30, 2025, the company had accrued liabilities of **$6.2 million** for litigation and other contingencies, and is responding to governmental inquiries and legal actions related to the IRS Free File Program and its DIY tax services[352](index=352&type=chunk)[358](index=358&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=65&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure - There were no disagreements or reportable events with the company's accountants[365](index=365&type=chunk) [Item 9A. Controls and Procedures](index=65&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of June 30, 2025, with no material changes during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[368](index=368&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of June 30, 2025, based on the COSO 2013 framework[370](index=370&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[372](index=372&type=chunk) [Item 9B. Other Information](index=66&type=section&id=Item%209B.%20Other%20Information) During the fourth quarter of fiscal year 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[373](index=373&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=66&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding executive officers is in Item 1, while other corporate governance details are incorporated by reference from the 2025 proxy statement - Information about executive officers is located in Item 1 of the Form 10-K[374](index=374&type=chunk) - Information regarding directors, corporate governance, and the audit committee is incorporated by reference from the forthcoming definitive proxy statement[374](index=374&type=chunk) [Item 11. Executive Compensation](index=67&type=section&id=Item%2011.%20Executive%20Compensation) All information related to executive compensation is incorporated by reference from the company's definitive proxy statement for its 2025 Annual Meeting of Shareholders - All information related to executive and director compensation is incorporated by reference from the company's definitive proxy statement[376](index=376&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=67&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information concerning security ownership and equity compensation plans is incorporated by reference from the company's definitive proxy statement for its 2025 Annual Meeting of Shareholders - Information regarding security ownership and equity compensation plans is incorporated by reference from the company's definitive proxy statement[377](index=377&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=67&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related person transactions and director independence is incorporated by reference from the company's definitive proxy statement for its 2025 Annual Meeting of Shareholders - Information on related party transactions and director independence is incorporated by reference from the company's definitive proxy statement[378](index=378&type=chunk) [Item 14. Principal Accountant Fees and Services](index=67&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information detailing fees paid to the principal accountant is incorporated by reference from the company's definitive proxy statement for its 2025 Annual Meeting of Shareholders - Information regarding principal accountant fees and services is incorporated by reference from the company's definitive proxy statement[379](index=379&type=chunk) Part IV [Item 15. Exhibit Index](index=68&type=section&id=Item%2015.%20Exhibit%20Index) This section provides a list of all exhibits filed as part of the Form 10-K, including corporate governance documents, debt agreements, and Sarbanes-Oxley Act certifications - The exhibit index lists key documents such as the Amended and Restated Articles of Incorporation, Bylaws, Indentures for Senior Notes, and the Fifth Amended and Restated Credit and Guarantee Agreement[382](index=382&type=chunk)[384](index=384&type=chunk) - Management contracts and compensatory plans, such as the Long-Term Incentive Plans and severance plans, are identified and filed as exhibits[383](index=383&type=chunk) - Certifications by the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[384](index=384&type=chunk)

Financial Performance - H&R Block reported fourth-quarter earnings of $2.27 per share, missing the analyst consensus estimate of $2.83 per share [1] - The company reported quarterly sales of $1.111 billion, exceeding the analyst consensus estimate of $1.075 billion [1] Future Guidance - For FY2026, H&R Block expects adjusted EPS of $4.85-$5.00 per share, below market estimates of $5.25 [2] - The company anticipates revenue of $3.875 billion to $3.895 billion, compared to projections of $3.725 billion [2] Strategic Initiatives - The CEO highlighted meaningful progress in the company's transformation journey, emphasizing strong revenue growth, disciplined capital allocation, and innovation in client offerings [3] - Future efforts will focus on engaging clients with complex needs, expanding small business reach, and leveraging technology and AI for enhanced business efficiencies [3] Stock Performance - Following the earnings announcement, H&R Block shares fell 4.8% to trade at $49.03 [3] Analyst Ratings - Goldman Sachs analyst maintained a Sell rating and lowered the price target from $54 to $48 [6] - Barrington Research analyst maintained an Outperform rating and reduced the price target from $70 to $62 [6]

Core Insights - H&R Block, Inc. (HRB) reported mixed results for Q4 of fiscal 2025, with earnings missing estimates while revenues exceeded expectations [1][9] - Adjusted earnings per share (EPS) were $2.27, falling short of the Zacks Consensus Estimate by 19.2% but showing a year-over-year increase of 20.1% [1][9] - Total revenues reached $1.11 billion, surpassing the Zacks Consensus Estimate by 3.7% and increasing 4.6% year over year [1][9] Financial Performance - Revenues from U.S. tax preparation and related services amounted to $975.5 million, reflecting a 5% year-over-year growth [5] - Financial services revenues totaled $16.1 million, down 14.6% year over year [5] - International revenues increased by 1.3% to $89.9 million, while Wave revenues surged 14.4% to $29.54 million [5] Balance Sheet and Cash Flow - At the end of fiscal 2025, H&R Block had cash and cash equivalents of $210.28 million and total cash of $983.28 million [6] - Long-term debt decreased to $1.14 billion from $1.49 billion in the previous year [6] - The company utilized $680.89 million in cash for operating activities, with capital expenditures of $82.03 million [6] Fiscal 2026 Outlook - For fiscal 2026, H&R Block anticipates revenues between $3.875 billion and $3.895 billion, with the Zacks Consensus Estimate at $3.72 billion [7] - The company expects adjusted EPS in the range of $4.85 to $5.00, while the Zacks Consensus Estimate stands at $5.22 [7] - Projected EBITDA is between $1.015 billion and $1.035 billion, with an expected effective tax rate of 25% [7] Stock Performance - H&R Block shares have declined by 9.5% over the past year, outperforming the industry average decline of 12.8% [4]

Core Insights - H&R Block reported $1.11 billion in revenue for the quarter ended June 2025, a year-over-year increase of 4.6%, with an EPS of $2.27 compared to $1.89 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.07 billion by 3.74%, while the EPS fell short of the consensus estimate of $2.81 by 19.22% [1] Revenue Breakdown - U.S. assisted tax preparation revenue was $686.01 million, surpassing the average estimate of $673.22 million, reflecting a year-over-year increase of 5.2% [4] - U.S. royalties revenue was $49.57 million, slightly above the estimated $47.11 million, but down 4.2% year-over-year [4] - U.S. DIY tax preparation revenue reached $152.09 million, exceeding the estimate of $126.25 million, marking a 13.3% increase year-over-year [4] - International revenue was $89.89 million, above the estimate of $87.73 million, with a year-over-year increase of 1.3% [4] - Refund Transfers revenue was $22.3 million, slightly below the estimate of $23.35 million, but up 4.4% year-over-year [4] - Tax Identity Shield revenue was $14.97 million, slightly above the estimate of $14.81 million, but down 9.7% year-over-year [4] - Peace of Mind Extended Service Plan revenue was $32.46 million, below the estimate of $34.87 million, reflecting a 4.5% year-over-year decline [4] - Interest and fee income on Emerald Advance was $2.36 million, significantly below the estimate of $5.02 million, down 44.1% year-over-year [4] - Other revenue was $18.1 million, slightly below the estimate of $18.93 million, down 4.3% year-over-year [4] - Wave revenue was $29.54 million, exceeding the estimate of $26.41 million, with a year-over-year increase of 14.4% [4] - Emerald Card and Spruce revenue was $13.72 million, above the estimate of $12.69 million, reflecting a 6% year-over-year decline [4] Stock Performance - H&R Block shares have returned -2.7% over the past month, while the Zacks S&P 500 composite has increased by 2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - H&R Block reported quarterly earnings of $2.27 per share, missing the Zacks Consensus Estimate of $2.81 per share, representing an earnings surprise of -19.22% [1] - The company posted revenues of $1.11 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.74% [2] Financial Performance - Earnings per share (EPS) for the same quarter last year was $1.89, indicating a year-over-year increase [1] - Over the last four quarters, H&R Block has surpassed consensus EPS estimates two times and topped revenue estimates three times [2] Market Performance - H&R Block shares have increased by approximately 3.1% since the beginning of the year, compared to the S&P 500's gain of 8.4% [3] - The current Zacks Rank for H&R Block is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.26 on revenues of $192.92 million, and for the current fiscal year, it is $5.12 on revenues of $3.81 billion [7] - The outlook for the Consumer Services - Miscellaneous industry, where H&R Block operates, is currently in the top 29% of Zacks industries, suggesting a favorable environment for stock performance [8]