Company Overview - H&R Block held its Fiscal Year 2025 Financial Results Conference Call, featuring key executives including CEO Jeff Jones and CFO Tiffany Mason [2][3]. Financial Reporting - The company issued a press release and presentation detailing its financial results, which can be accessed on its investor relations website [3]. - Some financial metrics discussed during the call are presented on a non-GAAP basis, with reconciliations provided in the presentation appendix [4]. Forward-Looking Statements - Management's comments may include forward-looking statements that involve material risks and uncertainties, with actual results potentially differing from projections [3].

Financial Data and Key Metrics Changes - The company reported total revenue growth of 4.2% year-over-year, reaching $3.8 billion in fiscal year 2025 [6][16] - EBITDA for the fiscal year was $976 million, reflecting a 1.4% improvement compared to the previous year [18] - Net income from continuing operations was $609 million, with earnings per share increasing by 6.8% to $4.42 [19] Business Line Data and Key Metrics Changes - Assisted revenue grew by 6.1%, while DIY revenue increased by 9.7% [7] - The company-owned assisted filing volume improved, contributing to market share growth, particularly among clients earning over $100,000 [8] - Small business services achieved double-digit top-line growth, marking a record revenue year [9][10] Market Data and Key Metrics Changes - The company experienced client growth across all income segments, particularly among those earning $80,000 and above [8] - Spruce mobile banking platform saw nearly 40% growth in new accounts, with total customer deposits reaching $1.75 billion since its launch [11][12] Company Strategy and Development Direction - The company is focused on enhancing client experience and balancing volume, price, and mix in its offerings [16][58] - Continued emphasis on serving small businesses through a range of services, including tax, bookkeeping, and payroll [13] - Plans to acquire franchise locations at attractive EBITDA multiples to support long-term growth [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market share and drive growth through AI and improved client experiences [12][24] - The outlook for fiscal year 2026 anticipates revenue between $3.875 billion and $3.895 billion, with EBITDA projected between $1.015 billion and $1.035 billion [23] - The company expects industry growth to align with historical trends, around 1% [22] Other Important Information - A 12% increase in the quarterly dividend was announced, marking a doubling of dividends since 2016 [6][21] - The company returned approximately $600 million to shareholders through dividends and share repurchases in fiscal year 2025 [21] Q&A Session Summary Question: What are the assumptions for assisted and DIY market growth next year? - Management anticipates a similar level of shift to the assisted business as seen in the previous year, driven by consumer demand for assistance [30][32] Question: Will there be changes to bank products to drive early season filers? - Management acknowledged the possibility but deferred specific comments until November for competitive reasons [35] Question: What will be shared in the first quarter call regarding the new strategy? - Management confirmed that the existing strategy will continue under the new CEO, with updates on tax season plans and broader business perspectives expected [40][41] Question: What are the impacts of legal fees and severance on guidance? - Elevated costs from healthcare, legal expenses, and severance have been factored into the fiscal year 2026 guidance, with expectations for improved cost management [46][49] Question: Is the new tax implication a tailwind for guidance? - Management believes it is a tailwind and is cautiously optimistic, using previous shifts as a proxy for future performance [51]

Financial Data and Key Metrics Changes - The company reported total revenue growth of 4.2% year-over-year, reaching $3.8 billion in fiscal year 2025 [6][17] - EBITDA for the fiscal year was $976 million, reflecting a 1.4% improvement compared to the previous year [19] - Net income from continuing operations was $609 million, with earnings per share increasing by 6.8% to $4.42 [20] Business Line Data and Key Metrics Changes - Assisted revenue grew by 6.1%, while DIY revenue increased by 9.7% [7] - Small business revenue experienced double-digit growth, marking a record revenue year for fiscal 2025 [10] - The Spruce mobile banking platform saw nearly 40% growth in newly created accounts, with total customer deposits reaching $1.75 billion since its launch [12][13] Market Data and Key Metrics Changes - The company noted client growth in every income segment above $80,000, with the fastest growth in clients earning over $100,000 [8] - The company experienced a mix shift of about 21 basis points towards the assisted business, indicating a trend towards seeking assistance [33] Company Strategy and Development Direction - The company remains focused on strengthening its operations, generating meaningful cash flow, and increasing shareholder value [5] - There is a commitment to enhancing the client experience and leveraging AI to drive efficiency across the business [13][15] - The company plans to continue acquiring franchise locations to support long-term revenue and earnings growth [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming fiscal year, expecting industry growth to align with historical trends of about 1% [22] - The company anticipates small business contributions to increase significantly in fiscal 2026 and beyond [23] - Management acknowledged the challenges faced in fiscal 2025, including elevated healthcare costs and legal fees, but expressed confidence in cost-saving opportunities for fiscal 2026 [50][52] Other Important Information - The company announced a 12% increase in its quarterly dividend, marking a doubling of dividends since 2016 [6][22] - A succession plan was discussed, with Curtis set to take over as President and CEO starting January 1, 2026 [27][28] Q&A Session Summary Question: What are the assumptions for assisted and DIY market growth next year? - Management indicated a similar level of shift to the assisted business as seen in the previous year, anticipating continued demand for assistance [33][34] Question: Will there be changes to bank products to drive early season filers? - Management acknowledged the possibility but preferred to reserve detailed commentary until November for competitive reasons [38] Question: What will be shared in the first quarter call regarding strategy? - Management confirmed that the strategy will remain consistent, with updates on tax season plans and broader business perspectives expected [44][45] Question: What are the impacts of legal fees and severance on guidance? - Elevated costs from healthcare, legal expenses, and severance were factored into the fiscal 2026 guidance, with expectations for improved cost management [49][52] Question: Is the new tax implication a tailwind for guidance? - Management confirmed that they believe it to be a tailwind and are cautiously optimistic based on previous shifts in the market [55] Question: What initiatives support a healthier balance of volume, price, and mix? - Management elaborated on driving price increases while also focusing on greater volume performance and complexity of clients to achieve a balanced revenue mix [61][62]

Financial Performance - H&R Block's FY25 total revenue grew by 42% to $37610 million[12,40] - The company's FY25 EBITDA reached $976 million[13] a 14% increase compared to the previous year's $9632 million[40] - Adjusted earnings per share increased by 57% to $466[40] - H&R Block forecasts FY26 revenue between $3875 billion and $3895 billion and EBITDA between $1015 billion and $1035 billion[48] Capital Allocation - The company increased its quarterly dividend by 12%[14] - H&R Block has repurchased over 43% of its shares outstanding since 2016[16] - The company plans approximately $400 million in share repurchases[49] Business Segments - Small business revenue experienced double-digit growth[27] with overall revenue increasing 13% year-over-year[27] - Newly created Spruce accounts increased by approximately 40% in FY25[29] - Approximately 50% of FY25 deposit transactions originated from non-tax sources[30,32]

News Release For Immediate Release: August 12, 2025 H&R Block Reports Fiscal 2025 Results and Provides Fiscal 2026 Outlook - Delivered Revenue Growth of 4% and Earnings per Share Growth of 7% - - Returned $600 Million to Shareholders via Dividends and Share Repurchases - Exhibit 99.1 - Increases Quarterly Dividend by 12% - KANSAS CITY, Mo., August 12, 2025 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results for its fiscal 2025 year ended June 30, 2025. 1 "Fiscal ...

Core Insights - H&R Block reported a revenue growth of 4.2% for fiscal 2025, reaching a total revenue of $3.8 billion, driven by increased net average charge and higher company-owned return volumes [4][23] - The company returned $600 million to shareholders through dividends and share repurchases, with a 12% increase in quarterly dividends [1][10] - Earnings per share from continuing operations rose by 6.8% to $4.42, while adjusted earnings per share increased by 5.7% to $4.66 [6][28] Financial Performance - Total operating expenses increased by 4.6% to $2.9 billion, primarily due to higher compensation, marketing, and technology costs [5][23] - Net income from continuing operations grew by 1.9% to $609.5 million [5][23] - The company repurchased approximately 6.5 million shares, representing 4.7% of shares outstanding, at an aggregate price of $400.1 million [10][22] Capital Allocation - H&R Block has consistently paid quarterly dividends since going public in 1962, returning over $4.5 billion to shareholders since 2016 [9][10] - The Board of Directors announced an increase in the quarterly dividend to $0.42 per share, marking eight consecutive annual increases [10][22] Strategic Outlook - The company aims to enhance client engagement, expand its small business reach, and leverage technology and AI for improved efficiencies [3][4] - For fiscal year 2026, H&R Block expects revenue in the range of $3.875 to $3.895 billion and adjusted diluted earnings per share between $4.85 and $5.00 [16][10]

Core Insights - H&R Block is set to announce its fiscal fourth quarter earnings on August 12, 2025, with analysts forecasting earnings of $2.83 per share and revenue of $1.07 billion, indicating a 50% year-over-year increase in adjusted earnings [2] - The company has a current market capitalization of $7.4 billion, with the last twelve months' revenue at $3.7 billion, operational profit at $808 million, and net income at $564 million [2] - Historical trends show that H&R Block shares often experience a boost after earnings releases, with an average one-day gain of 7.6% and peaks reaching as high as 20% [2] Earnings Performance - The upcoming Q4 earnings report is critical as it coincides with the peak of tax season, where assisted filings and last-minute electronic submissions can significantly influence results [2] - Management has reiterated its full-year guidance, focusing on growth within its DIY tax-filing platform and Wave small-business services [2] Historical Returns - Over the last five years, H&R Block has recorded 20 earnings data points, with positive one-day returns occurring approximately 50% of the time, though this ratio falls to 36% when considering the last three years [7] - The median of the 10 positive returns is 7.6%, while the median of the 10 negative returns is -5.2% [7] Correlation and Strategy - Understanding the correlations between short-term and medium-term returns following earnings can provide a strategy for traders, particularly if 1D and 5D returns show high correlation [8] - The performance of peers can also impact H&R Block's stock reaction after earnings announcements, with market adjustments potentially occurring prior to the earnings disclosure [9]

Core Insights - Jeffrey J. Jones II will retire as President and CEO of H&R Block on December 31, 2025, and will remain on the Board until then, transitioning to a Strategic Advisor role until September 2026 [1][6] - Curtis Campbell, currently President of Global Consumer Tax and Chief Product Officer, will succeed Jones as CEO starting January 1, 2026 [1][5] Company Performance and Leadership - Under Jones' leadership since 2017, H&R Block has introduced innovative strategies such as Upfront Transparent Pricing and AI Tax Assist, contributing to significant brand growth and relevance [2][3] - The company increased its quarterly dividend by approximately 70% and repurchased about 40% of its shares, returning over $4.0 billion in capital to shareholders [2] - During Jones' tenure, H&R Block's stock price rose by 123%, and its market capitalization increased from $5.5 billion to $7.4 billion [2] Succession Planning - Campbell's appointment as CEO-elect follows a comprehensive succession-planning process, receiving unanimous support from the Board of Directors [5][6] - Jones expressed confidence in Campbell's ability to continue the company's transformation and sustainable revenue growth [4][5] Community Engagement and Culture - Jones initiated community impact programs such as Make Every Block Better and Fund Her Future, enhancing the company's commitment to community connections and support for small businesses [3] - H&R Block has been recognized for its high associate engagement and was featured in a Harvard Business School case study for its transformation efforts [3] Curtis Campbell's Background - Campbell has extensive experience in the tax industry, having held executive roles at Capital One, Intuit, and Amazon Web Services, and previously served as President and CEO of TaxAct [9][8] - He joined H&R Block in May 2024 and has been leading customer-centric strategies and product management excellence [8]

Analysts on Wall Street project that H&R Block (HRB) will announce quarterly earnings of $2.81 per share in its forthcoming report, representing an increase of 48.7% year over year. Revenues are projected to reach $1.07 billion, increasing 0.8% from the same quarter last year. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Before a c ...

Core Insights - H&R Block has appointed Jason Lenhart as Senior Vice President and Chief Technology Officer, and Monika Mehrotra as Senior Vice President, Operations & Technology, to enhance its transformation and financial services [1][2]. Leadership Appointments - Jason Lenhart will lead engineering teams to develop scalable, product-driven solutions, leveraging his previous experience at JetBlue where he oversaw software development [2]. - Monika Mehrotra will manage financial products operations, fraud prevention, and global systems, bringing her experience from TransUnion to drive efficiency and innovation [4]. Educational Background - Jason Lenhart holds a Bachelor of Science in Mechanical Engineering from the University of Tennessee, Knoxville, and a Master of Science in Computer Science from Drexel University [3]. - Monika Mehrotra has a Bachelor of Technology in Computer Science from the Institute of Engineering and Technology in India and an MBA in Finance from the University of Chicago Booth School of Business [5]. Company Overview - H&R Block provides global tax preparation services, financial products, and small-business solutions, combining digital innovation with human expertise [7].