H&R Block's Earnings and Revenues Surpass Estimates in Q3

Core Insights - H&R Block, Inc. reported strong third-quarter results for fiscal 2025, with adjusted earnings of $5.38 per share, exceeding the Zacks Consensus Estimate by 5.1$2.28 billion, slightly surpassing the estimate by 1.4% and growing 4.2% year-over-year [1] Financial Performance - Revenues from U.S. tax preparation and related services were $2.14 billion, down 5.2$54.5 million, a decline of 12.6%. International revenues decreased by 11.5% to $60.4 million, while Wave revenues increased by 13.3$26.7 million [3] - The company ended the quarter with cash and cash equivalents of $773 million, down from$794.6 million year-over-year. Long-term debt decreased to $1.14 billion from$1.5 billion in the previous year. Operating activities used $429.3 million in cash, with capital expenditures at$71.8 million [4] FY25 Outlook - For fiscal 2025, H&R Block expects revenues between $3.69 billion and$3.75 billion, with a midpoint of $3.72 billion aligning with the Zacks Consensus Estimate. Adjusted EPS is projected in the range of$5.15 to $5.35, with a midpoint of$5.25 above the consensus estimate of $5.23. EBITDA is expected to be between$975 million and $1.02 billion, with an effective tax rate of 13% [5] Stock Performance - H&R Block shares have increased by 25.3% over the past year, significantly outperforming the industry, which has seen an 18% decline [2]