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]

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]