H&R Block, Inc. (NYSE:HRB) is among the 12 Best Consumer Stocks to Buy According to Wall Street. Goldman Sachs Lowers its Price Target on H&R Block, Inc. (HRB) to $32 and Maintains a Sell Rating On February 6, 2026, Goldman Sachs lowered its price target on H&R Block, Inc. (NYSE:HRB) to $32 from $48 and maintained a Sell rating. The firm noted that the second quarter is one of the company’s seasonally lightest periods and said the upcoming 2026 tax season carries risks of limited growth and potential mar ...

Group 1 - H&R Block Inc. rebounded by 9.56 percent to close at $31.05 on Friday, following nine consecutive days of losses, as investors sought bargains ahead of a dividend payment [1] - Common shareholders as of March 4 are set to receive a dividend of $0.42 per share on April 6, 2026 [1] - Since 2016, H&R Block has increased its dividends by 110 percent and returned over $5 billion to shareholders through dividends and share buybacks [2] Group 2 - In the second quarter of fiscal year 2026, H&R Block narrowed its net loss to $242 million from $243 million year-on-year [2] - The six-month net loss decreased by 2 percent to $407.98 million from $416 million year-on-year [3] - Total revenues for the three-month period reached $198.86 million, an 11 percent increase from $179.07 million in the same quarter a year earlier [3] Group 3 - H&R Block targets revenues between $3.875 billion and $3.895 billion for the current year, representing a growth of 3 to 3.5 percent from $3.76 billion in 2025 [4] - Adjusted diluted earnings per share are projected to be between $4.85 and $5 [4]

Core Insights - Ten stocks showed strong gains, outperforming a lackluster performance on Wall Street, driven by corporate earnings and positive outlooks [1] Group 1: Procore Technologies Inc. (NYSE:PCOR) - Procore Technologies rebounded by 9.31 percent to close at $52.34 after a strong earnings performance and a double-digit growth outlook for 2026 [4] - The company narrowed its full-year net loss by 4.9 percent to $100.78 million from $105.96 million in 2024, while revenues increased by 13 percent to $1.3 billion from $1.15 billion year-on-year [4] - In Q4, net loss declined by 40 percent to $37.6 million from $62.29 million, and revenues rose by 15.56 percent to $349 million from $302 million [5] - The net revenue retention rate was 106 percent, with total organic customers reaching 17,850, adding 227 customers [5] - Procore's CEO highlighted the potential of AI as a significant catalyst for the industry, positioning the company as a potential AI leader [6] - For 2026, Procore targets revenue growth of 13 percent year-on-year to a range of $1.489 billion to $1.494 billion, with Q1 revenues expected to be between $351 million and $353 million [7] Group 2: H&R Block Inc. (NYSE:HRB) - H&R Block rebounded by 9.56 percent to close at $31.05, as investors sought bargains after nine consecutive days of losses [9] - The company announced a dividend payment of $0.42 per share on April 6, 2026, for common shareholders as of March 4 [9] - Since 2016, H&R Block has increased its dividends by 110 percent, returning over $5 billion to shareholders through dividends and share buybacks [9] - In Q2 of fiscal year 2026, H&R Block narrowed its net loss to $242 million from $243 million year-on-year, with a six-month net loss down by 2 percent to $407.98 million from $416 million [10] - Total revenues for the three-month period reached $198.86 million, an 11 percent increase from $179.07 million in the same quarter last year, with a six-month total up by 8 percent to $402.4 million from $372.88 million [11] - For the current year, H&R Block targets revenues between $3.875 billion and $3.895 billion, reflecting a growth of 3 to 3.5 percent from $3.76 billion in 2025 [11]

Core Insights - H&R Block is launching a specialized tax filing tool, Creator Suite, aimed at content creators, reflecting its commitment to supporting the entrepreneurial landscape in America [1][2][3] Group 1: Creator Suite Features - Creator Suite is designed to treat content creation as a legitimate $250 billion industry, providing a DIY online filing platform with tailored prompts for creators [2][8] - The platform includes payroll, bookkeeping, and business formation services, along with the Spruce mobile banking app for managing personal finances [2][10] - It offers features like smart prompts for various income sources, deduction discovery mode for creator-specific write-offs, and automated reconciliation for tax forms [7][9] Group 2: Financial Challenges for Creators - A survey indicates that 70% of creators find managing finances difficult, with 25% citing taxes as their primary business stressor [6] - The survey also reveals that 70% are confused about tax forms, and 71% were unaware that brand trips are taxable income [6] - Nearly 25% of creators have made costly tax mistakes, highlighting the need for specialized support [6] Group 3: Market Potential - The U.S. creator economy was valued at $50.9 billion in 2024 and is projected to grow to $277.41 billion by 2032, emphasizing the importance of accurate tax filing and financial management for creators [8] - H&R Block aims to build an ecosystem that supports creators year-round, not just during tax season, to enhance their financial health [9][11]

Core Insights - H&R Block is enhancing its services for the 2026 tax season by integrating advanced technology with human expertise to help clients navigate complex tax legislation [1][2][3] Company Enhancements - The company has introduced AI-powered tools to improve efficiency and provide support for clients facing unprecedented tax legislation [2][6] - H&R Block's AI Tax Assist offers clients instant answers 24/7, available in both DIY Online and Desktop Software, leveraging the latest GenAI capabilities [6] - A Smart Product Selector tool has been developed to assist filers in choosing the appropriate DIY online support tier, ensuring accurate pricing and seamless data import [6] Professional Support - H&R Block's team of tax professionals, including tax attorneys and analysts, work year-round to analyze new legislation and provide guidance during complex tax situations [3] - A Tax Pro Review service is offered for free to new clients in paid tiers until February 28, 2026, allowing for professional optimization and filing of returns [6] Industry Context - The 2026 tax season is expected to be one of the most complex in years due to significant changes introduced by the One Big Beautiful Bill Act [1]

Financial Performance - Net loss for the six months ended December 31, 2025, was $407,985, compared to a net loss of $415,996 for the same period in 2024, showing a slight improvement of 2.4%[13] - The net loss from continuing operations attributable to common shareholders for the three months ended December 31, 2025, was $241.8 million, compared to a loss of $242.7 million in the same period of 2024[26] - The net loss for the three months ended December 31, 2025, was $242,166,000, slightly improved from a net loss of $243,420,000 in the same quarter of 2024[72] Revenue - For the three months ended December 31, 2025, total revenues increased to $198.9 million, up 11% from $179.1 million in the same period of 2024[23] - U.S. assisted tax preparation revenues rose to $55.9 million, a 15.5% increase compared to $48.4 million in Q2 FY2025[23] - International revenues for the three months ended December 31, 2025, were $34.7 million, an increase from $31.8 million in the same period of 2024[23] Assets and Liabilities - Total assets decreased to $2,930,010, down from $3,263,898 as of June 30, 2025, representing a decline of approximately 10.2%[11] - Total liabilities increased to $3,753,088, up from $3,175,002, indicating a rise of about 18.1%[11] - Total stockholders' equity showed a deficiency of $823,078 as of December 31, 2025, compared to a positive equity of $88,896 as of June 30, 2025[11] Cash Flow - Cash and cash equivalents decreased to $349,194 from $983,277, a reduction of approximately 64.5%[11] - Net cash used in operating activities was $970,788 for the six months ended December 31, 2025, compared to $895,638 for the same period in 2024, reflecting an increase of approximately 8.4%[13] - The company repurchased and retired common shares amounting to $404,118 during the reporting period[14] Stock and Dividends - Cash dividends declared were $0.42 per share, totaling $53,215 for the period[14] - The company declared cash dividends of $0.375 per share, totaling $50.2 million for the six months ended December 31, 2025[23] - The company repurchased common stock totaling $412,645,000 during the six months ended December 31, 2025[13] Credit and Receivables - The company reported a provision for credit losses of $21,144, slightly up from $20,727 in the previous year[13] - Loans to franchisees with a principal balance more than 90 days past due were $3.0 million as of December 31, 2025[30] - The net balance of Emerald Advance® receivables was $311.4 million, with $36.5 million classified as non-accrual[34] Goodwill and Intangible Assets - Goodwill increased to $953.9 million as of December 31, 2025, following acquisitions totaling $15.7 million during the period[36] - Amortization of intangible assets for the six months ended December 31, 2025, was $22.4 million, compared to $25.0 million for the same period in 2024[38] Debt and Financing - Total long-term debt rose to $2.4 billion as of December 31, 2025, compared to $1.5 billion as of June 30, 2025[40] - The company issued $350 million of 5.375% Senior Notes due September 15, 2032, to refinance existing debt and for general corporate purposes[40] - The outstanding balance under the 2025 CLOC was $945.0 million as of December 31, 2025, with no limitations imposed by the debt-to-EBITDA covenant[45] Tax and Liabilities - The effective tax rate for continuing operations was 24.0% for the six months ended December 31, 2025, consistent with the same period in 2024[47] - The estimated liability related to the 100% accuracy guarantee was $10.9 million as of December 31, 2025, down from $11.4 million as of June 30, 2025[49] - Estimated liabilities related to acquisitions amounted to $36.9 million as of December 31, 2025[50] Operational Metrics - The Chief Operating Decision Maker uses consolidated revenues, operating expenses, net income, and EBITDA as key financial metrics for evaluating performance and growth opportunities[69] - Total operating expenses for the six months ended December 31, 2025, were $908,326,000, compared to $894,502,000 for the same period in 2024, marking a 1.5% increase[72] - The total compensation and benefits expense was $207,171,000 for the three months ended December 31, 2025, compared to $198,698,000 in the same period of 2024[72]

Core Insights - H&R Block Inc. (HRB) reported second-quarter fiscal 2026 earnings and revenues that exceeded the Zacks Consensus Estimate, but the stock declined 7.1% post-results due to a loss and weak earnings guidance for fiscal 2026 [1][8] - The company guided adjusted earnings for fiscal 2026 in the range of $4.85-$5.00 per share, with the midpoint of $4.92 per share being lower than the current Zacks Consensus Estimate of $4.94 [1] Financial Performance - H&R Block reported a second-quarter loss of $1.84 per share, which was 6.1% narrower than the consensus estimate but 6.4% wider year over year [2] - Revenues for the quarter were $198.9 million, beating the consensus mark by 6.8% and increasing 11.1% from the year-ago quarter [2] Revenue Breakdown - Revenues from U.S. tax preparation and related services were $111.8 million, reflecting a year-over-year increase of 13.8% [3] - Financial services revenues totaled $22.6 million, showing a marginal year-over-year rise [3] - International revenues reached $34.7 million, up 9.1% year over year [3] - Wave revenues increased by 12.1% to $29.8 million [3] Balance Sheet and Cash Flow - At the end of the quarter, H&R Block had cash and cash equivalents of $349.2 million, with long-term debt rising to $2.5 billion from $1.7 billion at the end of the first quarter of fiscal 2026 [4] - The company utilized $614 million in cash for operating activities, while capital expenditures were $35.6 million [4] Fiscal 2026 Guidance - H&R Block expects revenues to be between $3.875 billion and $3.895 billion, with the midpoint of $3.885 billion slightly above the consensus estimate of $3.88 billion, indicating static demand [5] - The company guided EBITDA between $1.015 billion and $1.035 billion and an effective tax rate of 43% for fiscal 2026 [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

分组1 - H&R Block reported a quarterly loss of $1.84 per share, which is better than the Zacks Consensus Estimate of a loss of $1.96, but worse than a loss of $1.73 per share a year ago, resulting in an earnings surprise of +5.96% [1] - The company posted revenues of $198.87 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 6.77%, and showing an increase from $179.07 million in the same quarter last year [2] - H&R Block has surpassed consensus EPS estimates three times and revenue estimates four times over the last four quarters [2] 分组2 - The stock has underperformed, losing about 11.2% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $5.67 on revenues of $2.34 billion, and for the current fiscal year, it is $4.94 on revenues of $3.88 billion [7] - The Consumer Services - Miscellaneous industry, to which H&R Block belongs, is currently in the top 20% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, the company reported revenue of $199 million, an increase of 11% year-over-year, driven by higher assisted tax preparation volume and increased DIY software sales [20][21] - The second-quarter EBITDA loss was $266 million compared to a loss of $261 million in the prior year, with a net loss from continuing operations of $242 million, reflecting a 40 basis point improvement [22][23] - Adjusted loss per share was $1.84, up from $1.73 last year, indicating a year-over-year increase despite an improved net loss [23] Business Line Data and Key Metrics Changes - The company saw strong demand for tax preparation services, leading to improved conversion rates year-over-year in company-owned offices [21] - Continued double-digit growth in the Wave segment, particularly in the high-margin subscription product Pro Tier, was noted [21] - The introduction of the Second Look service as a core component of the new client experience is expected to deepen engagement and improve retention [10][11] Market Data and Key Metrics Changes - The company anticipates industry growth of approximately 1% for the tax season, with expectations for assisted services to gain market share from DIY due to increased complexity from tax law changes [20][32] - The One Big Beautiful Bill Act is expected to drive clients towards seeking assistance, reinforcing the company's position in the assisted tax preparation market [7][33] Company Strategy and Development Direction - The company is focused on enhancing client experiences through technology-enabled services and expert-led interactions, aiming to reduce friction and build client confidence [5][10] - A multi-year client-centered strategy is being implemented to shift from a seasonal approach to a long-term view, emphasizing continuous testing and learning [16][18] - The integration of AI tools is seen as a critical enabler for improving client experiences and operational efficiency [19][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming tax season, highlighting the preparedness of tax professionals to navigate complexities arising from new tax laws [30][32] - The company is reaffirming its fiscal 2026 outlook, projecting revenue between $3.875 and $3.895 billion and EBITDA between $1.015 and $1.035 billion [24][25] - Management emphasized the importance of disciplined execution and the potential for long-term growth through strategic initiatives [26] Other Important Information - The company returned $508 million to shareholders in the form of dividends and share repurchases in the first half of the fiscal year, with approximately $700 million remaining on the current share repurchase program [23] - The effective tax rate for the quarter was 24.3%, compared to 22.4% in the prior year [22] Q&A Session Summary Question: Impact of the government shutdown on tax filing - Management indicated no material impact from the government shutdown, noting the company's extensive experience in navigating such situations [30] Question: Trends observed in the early tax season - Management stated it is early in the season but expressed confidence in the preparations made and the expected industry growth [31][32] Question: Expectations for refund amounts this year - Management suggested that some clients may see larger refunds due to changes in deductions and tax laws, although it is still early to confirm specific data [40][42] Question: Outlook for assisted share loss - Management explained that while there have been challenges in maintaining market share, they are focused on improving client experiences through technology [48][49] Question: Marketing approach for the season - Management confirmed no significant changes in marketing spend but emphasized a focus on meeting high lifetime value customers and leveraging AI in marketing strategies [58][59]