Intuit expects profit below estimates on higher marketing spend during US tax season | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]An Intuit logo appears in this illustration taken August 18, 2025. REUTERS/Dado Ruvic/Illustration [Purchase Licensing Rights, opens new tab]- Companies- Summary- Intuit has partnerships with AI startups Anthropic and OpenAI- Company's second-quarter revenue up 17% at $4.65 billion- Intuit expects abo ...

A downtrend has been apparent in H&R Block (HRB) lately with too much selling pressure. The stock has declined 28.7% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. Thi ...

Group 1 - The IRS offers a free filing option called IRS Direct File, which allows users to file federal taxes without any costs, and it often includes state taxes as well [2][3] - IRS Direct File is designed for straightforward tax situations, such as W-2 income and standard deductions, but is not available in every state [3] - The IRS Free File program allows individuals with an adjusted gross income of $79,000 or less to use paid tax software for free, with participation from companies like TurboTax, H&R Block, and TaxAct [4] Group 2 - Users must access the Free File program through the IRS website to avoid being directed to paid plans by tax software companies [5] - Many tax software companies advertise free filing but often charge for more complex tax situations, with TurboTax and H&R Block being notable examples [6] - FreeTaxUSA is recommended for more complex tax returns, offering free federal filing and a state filing fee of approximately $15, which may sometimes be waived [7]

Core Insights - H&R Block is launching a specialized tax filing tool, Creator Suite, aimed at content creators, reflecting its commitment to supporting the entrepreneurial landscape in America [1][2][3] Group 1: Creator Suite Features - Creator Suite is designed to treat content creation as a legitimate $250 billion industry, providing a DIY online filing platform with tailored prompts for creators [2][8] - The platform includes payroll, bookkeeping, and business formation services, along with the Spruce mobile banking app for managing personal finances [2][10] - It offers features like smart prompts for various income sources, deduction discovery mode for creator-specific write-offs, and automated reconciliation for tax forms [7][9] Group 2: Financial Challenges for Creators - A survey indicates that 70% of creators find managing finances difficult, with 25% citing taxes as their primary business stressor [6] - The survey also reveals that 70% are confused about tax forms, and 71% were unaware that brand trips are taxable income [6] - Nearly 25% of creators have made costly tax mistakes, highlighting the need for specialized support [6] Group 3: Market Potential - The U.S. creator economy was valued at $50.9 billion in 2024 and is projected to grow to $277.41 billion by 2032, emphasizing the importance of accurate tax filing and financial management for creators [8] - H&R Block aims to build an ecosystem that supports creators year-round, not just during tax season, to enhance their financial health [9][11]

Financial 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]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

分组1 - H&R Block reported a quarterly loss of $1.84 per share, which is better than the Zacks Consensus Estimate of a loss of $1.96, but worse than a loss of $1.73 per share a year ago, resulting in an earnings surprise of +5.96% [1] - The company posted revenues of $198.87 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 6.77%, and showing an increase from $179.07 million in the same quarter last year [2] - H&R Block has surpassed consensus EPS estimates three times and revenue estimates four times over the last four quarters [2] 分组2 - The stock has underperformed, losing about 11.2% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $5.67 on revenues of $2.34 billion, and for the current fiscal year, it is $4.94 on revenues of $3.88 billion [7] - The Consumer Services - Miscellaneous industry, to which H&R Block belongs, is currently in the top 20% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - For Q2 FY2026, the company reported revenue of $199 million, an increase of 11% year-over-year, driven by higher assisted tax preparation volume and net average charge [20][21] - The second-quarter EBITDA loss was $266 million compared to a loss of $261 million in the prior year, with a net loss from continuing operations of $242 million, reflecting a 40 basis point improvement [22][23] - Adjusted loss per share was $1.84, compared to $1.73 last year, indicating a year-over-year increase in loss per share despite an improvement in net loss [22][23] Business Line Data and Key Metrics Changes - The company saw strong demand for tax preparation services in its company-owned offices, leading to improved conversion rates year-over-year [21] - Continued double-digit growth in the Wave segment, particularly in the high-margin subscription product Pro Tier, was noted [21] - The introduction of the Second Look service as a core component of the new client experience is expected to deepen engagement and improve retention [10][11] Market Data and Key Metrics Changes - The company anticipates industry growth of approximately 1% for the tax season, with expectations for assisted services to gain market share from DIY due to increased complexity from tax law changes [20][24] - The effective tax rate for the quarter was 24.3%, compared to 22.4% in the prior year, indicating a slight increase in tax obligations [22] Company Strategy and Development Direction - The company is focused on enhancing client experiences through expert-led, technology-enabled services, aiming to reduce friction and build confidence for clients [5][6] - A multi-year client-centered strategy is being implemented to improve customer centricity and leverage technology for operational efficiency [15][16] - The integration of AI tools is seen as a critical enabler for long-term growth, enhancing both client and tax pro experiences [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming tax season, emphasizing preparedness for changes due to the One Big Beautiful Bill Act [4][32] - The company is committed to disciplined execution of its strategy, focusing on delivering value for shareholders while navigating the complexities of the current tax environment [24][26] Other Important Information - The company returned $508 million to shareholders in the form of dividends and share repurchases in the first half of the fiscal year, with approximately $700 million remaining on its current share repurchase program [23] - The company is integrating Wave into its small business solutions to enhance service offerings and tackle complexity for small business owners [18] Q&A Session Summary Question: Impact of the IRS e-filing opening and government shutdown - Management noted no material impact from the government shutdown and expressed confidence in guiding clients through uncertainties related to tax law changes [30] Question: Trends observed in the early tax season - Management indicated it is too early to provide definitive trends but expressed confidence in the preparations made for the season [31][32] Question: Expectations for refund amounts this year - Management expects some clients may see larger refunds due to changes in standard deductions and new tax provisions, although it is still early to confirm this [40][42] Question: Outlook for assisted share loss - Management explained that challenges in market share growth stem from manual processes and emphasized the importance of leveraging technology to improve client experiences [48][49] Question: Drivers for industry growth expectations - Management reiterated a 1% growth expectation, with potential upside from larger refunds and a shift from DIY to assisted services due to increased complexity [56]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, the company reported revenue of $199 million, an increase of 11% year-over-year, driven by higher assisted tax preparation volume and increased DIY software sales [20][21] - The second-quarter EBITDA loss was $266 million compared to a loss of $261 million in the prior year, with a net loss from continuing operations of $242 million, reflecting a 40 basis point improvement [22][23] - Adjusted loss per share was $1.84, up from $1.73 last year, indicating a year-over-year increase despite an improved net loss [23] Business Line Data and Key Metrics Changes - The company saw strong demand for tax preparation services, leading to improved conversion rates year-over-year in company-owned offices [21] - Continued double-digit growth in the Wave segment, particularly in the high-margin subscription product Pro Tier, was noted [21] - The introduction of the Second Look service as a core component of the new client experience is expected to deepen engagement and improve retention [10][11] Market Data and Key Metrics Changes - The company anticipates industry growth of approximately 1% for the tax season, with expectations for assisted services to gain market share from DIY due to increased complexity from tax law changes [20][32] - The One Big Beautiful Bill Act is expected to drive clients towards seeking assistance, reinforcing the company's position in the assisted tax preparation market [7][33] Company Strategy and Development Direction - The company is focused on enhancing client experiences through technology-enabled services and expert-led interactions, aiming to reduce friction and build client confidence [5][10] - A multi-year client-centered strategy is being implemented to shift from a seasonal approach to a long-term view, emphasizing continuous testing and learning [16][18] - The integration of AI tools is seen as a critical enabler for improving client experiences and operational efficiency [19][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming tax season, highlighting the preparedness of tax professionals to navigate complexities arising from new tax laws [30][32] - The company is reaffirming its fiscal 2026 outlook, projecting revenue between $3.875 and $3.895 billion and EBITDA between $1.015 and $1.035 billion [24][25] - Management emphasized the importance of disciplined execution and the potential for long-term growth through strategic initiatives [26] Other Important Information - The company returned $508 million to shareholders in the form of dividends and share repurchases in the first half of the fiscal year, with approximately $700 million remaining on the current share repurchase program [23] - The effective tax rate for the quarter was 24.3%, compared to 22.4% in the prior year [22] Q&A Session Summary Question: Impact of the government shutdown on tax filing - Management indicated no material impact from the government shutdown, noting the company's extensive experience in navigating such situations [30] Question: Trends observed in the early tax season - Management stated it is early in the season but expressed confidence in the preparations made and the expected industry growth [31][32] Question: Expectations for refund amounts this year - Management suggested that some clients may see larger refunds due to changes in deductions and tax laws, although it is still early to confirm specific data [40][42] Question: Outlook for assisted share loss - Management explained that while there have been challenges in maintaining market share, they are focused on improving client experiences through technology [48][49] Question: Marketing approach for the season - Management confirmed no significant changes in marketing spend but emphasized a focus on meeting high lifetime value customers and leveraging AI in marketing strategies [58][59]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, the company reported revenue of $199 million, an increase of 11% year-over-year, driven by higher assisted tax preparation volume and net average charge [19][20] - The second-quarter EBITDA loss was $266 million compared to a loss of $261 million in the prior year, with a net loss from continuing operations of $242 million, reflecting a 40 basis point improvement [22][23] - Adjusted loss per share was $1.84, up from $1.73 last year, indicating a year-over-year increase despite improved net loss [22][23] Business Line Data and Key Metrics Changes - The company saw strong demand for tax preparation services, leading to improved conversion rates year-over-year in company-owned offices [20] - Wave, the small business solution, experienced continued double-digit growth, particularly in its high-margin subscription product Pro Tier [19][21] - The introduction of the "Second Look" service has been transformed into a core component of the new client experience, aimed at improving client retention and engagement [9][10] Market Data and Key Metrics Changes - The company anticipates industry growth of approximately 1% for the tax season, consistent with historical norms, with expectations for assisted services to gain market share from DIY due to increased complexity from tax law changes [24][33] - The effective tax rate for the quarter was 24.3%, compared to 22.4% in the prior year, reflecting changes in tax regulations [22] Company Strategy and Development Direction - The company is focused on enhancing client experiences through technology-enabled services and expert-led interactions, aiming to build trust and deliver meaningful outcomes [4][5] - A multi-year client-centered strategy is being implemented to shift from a seasonal approach to a long-term view, emphasizing continuous testing and learning [14][15] - The integration of AI tools is seen as a critical enabler for improving client experiences and operational efficiency, with a focus on reducing manual processes for tax professionals [18][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's preparedness for the tax season, emphasizing the importance of client support amid new tax law complexities [30][32] - The company is optimistic about its ability to adapt and deliver value, with a commitment to disciplined execution of its strategy [26] - The outlook for fiscal 2026 remains reaffirmed, with revenue expected between $3.875 and $3.895 billion and adjusted EPS between $4.85 and $5.00 [24] Other Important Information - Total operating expenses for the quarter were $498 million, a 5% increase year-over-year, primarily due to higher field wages and consulting costs related to strategic initiatives [21][22] - The company returned $508 million to shareholders in the form of dividends and share repurchases in the first half of the fiscal year [23] Q&A Session Summary Question: Impact of the IRS e-filing opening and government shutdown - Management noted no material impact from the government shutdown, emphasizing their preparedness to guide clients through uncertainties [30] Question: Trends observed in the early tax season - Management indicated it is too early to provide definitive trends but expressed confidence in the preparations made for the season [31][32] Question: Expectations for refund amounts this year - Management expects some clients may see larger refunds due to changes in deductions and tax law, although it is still early to confirm [40][42] Question: Outlook for assisted share loss - Management explained that while they have faced challenges in maintaining market share, they are focused on leveraging technology to improve client experiences and reduce manual processes [46][48] Question: Drivers for industry growth expectations - Management reiterated that while they expect 1% industry growth, there could be upside potential due to larger refund sizes and a shift from DIY to assisted services [54][55]