Core Insights - H&R Block reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 5% year-on-year to $203.6 million [1] - The company anticipates full-year revenue to be approximately $3.89 billion, aligning closely with analysts' estimates [1] - The non-GAAP loss per share was $1.20, which was 11.3% better than analysts' consensus estimates [1] Company Overview - H&R Block, founded in 1955, specializes in tax preparation and offers professional tax assistance and financial solutions to individuals and small businesses [4] Revenue Growth - The company has experienced a sluggish annualized revenue growth of 5.3% over the last five years, which is below the standard for the consumer discretionary sector [5] - Recent performance indicates a slowdown in demand, with an annualized revenue growth of 4.2% over the last two years, also below the five-year trend [6] Financial Highlights - Revenue for Q3 was $203.6 million, surpassing analyst estimates of $200.6 million, reflecting a 5% year-on-year growth [7] - Adjusted EPS was -$1.20, beating analyst estimates of -$1.35 by 11.3% [7] - Adjusted EBITDA was -$170 million, better than the expected -$202.8 million, with an EBITDA margin of -83.5% [7] - The company reaffirmed its full-year revenue guidance of $3.89 billion and adjusted EPS guidance of $4.93 [7] - EBITDA guidance for the full year is set at $1.03 billion, consistent with analyst expectations [7] - The operating margin improved to -106%, up from -118% in the same quarter last year [7] - Free cash flow was reported at -$370 million, compared to -$347.3 million in the same quarter last year [7] - Market capitalization stands at $6.47 billion [7]