H&R Block(US:HRB)2026-02-05 21:31Financial 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]