H&R Block(HRB) - 2026 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 FY2026 was $203.6 million, an increase of $9.7 million or 5.0% year-over-year[3] - Net loss from continuing operations improved by $6.1 million or 3.5% to ($165.4) million[4] - Net loss for the three months ended September 30, 2025, was $165,819, compared to a net loss of $172,576 for the same period in 2024, showing an improvement of about 3.9%[14] - EBITDA from continuing operations for Q3 2025 was $(170,007), an improvement from $(187,583) in Q3 2024, indicating a reduction in losses of approximately 9.4%[15] - Adjusted diluted loss per share from continuing operations was $(1.20) for Q3 2025, compared to $(1.17) for Q3 2024, reflecting a slight increase in loss per share of about 2.6%[15] Shareholder Returns - The company repurchased and retired 7.9 million shares at an aggregate price of $400 million, averaging $50.90 per share[9] - H&R Block has returned nearly $5.0 billion to shareholders since 2016 through dividends and share repurchases, buying back 47% of its shares outstanding[5] Future Projections - The company expects revenue for FY2026 to be in the range of $3.875 to $3.895 billion[9] - Adjusted diluted earnings per share for FY2026 is projected to be in the range of $4.85 to $5.00[9] - EBITDA for FY2026 is expected to be in the range of $1.015 billion to $1.035 billion[9] - The effective tax rate is anticipated to be approximately 25%[9] Operating Expenses and Assets - Operating expenses decreased by $11.6 million or 2.7% to $410.6 million, primarily due to lower legal fees and settlements[4] - Total assets decreased to $2,621,322, down from $3,263,898 as of June 30, 2025, representing a decline of approximately 19.6%[13] - Total current liabilities decreased to $739,551 from $1,298,610, a reduction of about 43.2%[13] - Long-term debt increased to $1,734,962 from $1,143,305, representing an increase of approximately 51.8%[13] Cash Flow - Cash and cash equivalents at the end of the period were $397,401, down from $439,017 at the end of Q3 2024, a decrease of approximately 9.5%[14] - Net cash used in operating activities was $(356,838) for Q3 2025, compared to $(328,581) for Q3 2024, indicating an increase in cash outflow of about 8.6%[14] - Capital expenditures for Q3 2025 were $(13,188), down from $(18,735) in Q3 2024, a decrease of approximately 29.5%[14] - Proceeds from line of credit borrowings amounted to $245,000, with repayments of long-term debt totaling $(350,000) during the same period[14] Seasonal Business Model - H&R Block's first quarter results reflect the company's highly seasonal business model, typically generating a net loss during this period[2]