ZACKS·2026-02-05 18:05Core Insights - H&R Block Inc. (HRB) reported second-quarter fiscal 2026 earnings and revenues that exceeded the Zacks Consensus Estimate, but the stock declined 7.1% post-results due to a loss and weak earnings guidance for fiscal 2026 [1][8] - The company guided adjusted earnings for fiscal 2026 in the range of $4.85-$5.00 per share, with the midpoint of $4.92 per share being lower than the current Zacks Consensus Estimate of $4.94 [1] Financial Performance - H&R Block reported a second-quarter loss of $1.84 per share, which was 6.1% narrower than the consensus estimate but 6.4% wider year over year [2] - Revenues for the quarter were $198.9 million, beating the consensus mark by 6.8% and increasing 11.1% from the year-ago quarter [2] Revenue Breakdown - Revenues from U.S. tax preparation and related services were $111.8 million, reflecting a year-over-year increase of 13.8% [3] - Financial services revenues totaled $22.6 million, showing a marginal year-over-year rise [3] - International revenues reached $34.7 million, up 9.1% year over year [3] - Wave revenues increased by 12.1% to $29.8 million [3] Balance Sheet and Cash Flow - At the end of the quarter, H&R Block had cash and cash equivalents of $349.2 million, with long-term debt rising to $2.5 billion from $1.7 billion at the end of the first quarter of fiscal 2026 [4] - The company utilized $614 million in cash for operating activities, while capital expenditures were $35.6 million [4] Fiscal 2026 Guidance - H&R Block expects revenues to be between $3.875 billion and $3.895 billion, with the midpoint of $3.885 billion slightly above the consensus estimate of $3.88 billion, indicating static demand [5] - The company guided EBITDA between $1.015 billion and $1.035 billion and an effective tax rate of 43% for fiscal 2026 [5]