Financial Data and Key Metrics Changes - The company achieved a revenue growth of 5% in the first quarter, generating $204 million in total revenue, an increase of $10 million over the prior year [6][10] - EBITDA improved by 9.4% compared to the prior year, with a first quarter EBITDA loss of $170 million, an improvement of $18 million [6][8] - The effective tax rate decreased to 23.6% from 26.2% in the prior year, contributing to a net loss from continuing operations of $165 million, representing a 3.5% improvement [8][10] - Approximately $455 million was returned to shareholders through dividends and share repurchases, bringing the cumulative total of capital return since 2016 to nearly $5 billion [9][10] Business Line Data and Key Metrics Changes - The U.S. assisted business saw higher volumes and net average charges, contributing to the overall revenue growth [6][7] - WAVE continued to experience double-digit growth, particularly in its high-margin subscription product, Pro Tier [6][7] Market Data and Key Metrics Changes - The U.S. consumer tax preparation total addressable market (TAM) is estimated between $20 billion and $25 billion, while the small business TAM is over $100 billion [12][13] - The market is split roughly 55% assisted and 45% DIY, with assisted services projected to gain further market share in 2026 [16] Company Strategy and Development Direction - The company plans to focus on more complex paid filers who demonstrate stronger loyalty and value additional services [13][14] - Investments will continue in improving customer experience and innovating products, such as the Second Look offering and Spruce for financial wellness [14][15] - The company aims to leverage technology and AI to enhance customer experience and operational efficiency [15][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming tax season, with no indications of a late start despite potential complexities from new tax legislation [30][31] - The company remains cautiously optimistic about the impact of the new tax bill, expecting it to serve as a tailwind for the assisted business [31][32] - The leadership transition is seen as smooth, with a strong belief in the company's potential for long-term value creation [18] Other Important Information - The company reported a disciplined approach to capital allocation, including a 12% increase in dividends announced in August [9][10] - The leadership team is aligned on key themes for future growth, emphasizing the importance of meeting customer needs through various channels [15][17] Q&A Session Summary Question: Changes in marketing and operations in Assisted to stem share losses - Management highlighted investments in the Second Look service and AI to improve productivity and client outcomes [22][23] Question: Pricing strategy in DIY and its impact on margins and market share - The pricing strategy remains consistent with prior years, expecting low single-digit price increases across both channels [24] Question: Anticipated complexity from the new tax bill and government shutdown impact - Management indicated no expected delays for the tax season and expressed optimism about the new tax bill serving as a tailwind [30][31] Question: AI differentiation and addressing threats - AI is viewed as an opportunity to enhance client experiences and optimize operations, with ongoing developments in AI Tax Assist [34] Question: Marketing to free customers versus those likely to pay - The focus is on understanding consumer cohorts to effectively reach those likely to convert to paying clients [35][36]

H&R BLOCK Jessica Hazel Vice President, Investor Relations H&R BLOCK Safe Harbor Statement 3 H&R BLOCK Safe Harbor Statement 4 H&R BLOCK Jeff Jones H&R BLOCK ▪ Teams are finalizing tax season plans and applying key learnings from last year 6 ▪ Marketing: Strengthen messaging, personalize experiences, and optimize funnel 1 ▪ Retail & DIY: Enhance client experience, remove friction and boost conversion from marketing demand ▪ Key Products: Deliver value and differentiation with Second Look, AI Tax Assist, Tax ...

Core Insights - H&R Block, Inc. reported a strong start to fiscal 2026 with a 5.0% increase in revenue compared to the previous year, totaling $203.6 million [4][3] - The company returned $455 million to shareholders through dividends and share repurchases, reaffirming its commitment to delivering shareholder value [3][6] - The leadership transition to Curtis Campbell is expected to support the company's ongoing transformation and future performance [2] Financial Performance - Total revenue for the first quarter was $203.6 million, an increase of $9.7 million or 5.0% year-over-year, driven by higher net average charges and increased volume in the Assisted category [4][3] - Operating expenses decreased by $11.6 million or 2.7% to $410.6 million, primarily due to lower legal fees and settlements [5] - The net loss from continuing operations improved by $6.1 million or 3.5% to ($165.4) million, with loss per share from continuing operations increasing by 2.4% to ($1.26) [5][19] Capital Allocation - The company repurchased and retired 7.9 million shares at an aggregate price of $400 million, or $50.90 per share, during the first quarter [7] - Since 2016, H&R Block has returned nearly $5.0 billion to shareholders through dividends and share repurchases, buying back 47% of its shares outstanding [6] Fiscal Year 2026 Outlook - H&R Block expects revenue to be in the range of $3.875 to $3.895 billion and EBITDA to be between $1.015 billion and $1.035 billion for fiscal 2026 [8][14] - The company plans to pay a quarterly cash dividend of $0.42 per share on January 6, 2026, to shareholders of record as of December 4, 2025 [7]

The fixed-rate loan is available now through December 31, with enhanced features and flexible repayment optionsKANSAS CITY, Miss., Oct. 29, 2025 (GLOBE NEWSWIRE) -- H&R Block (NYSE: HRB) today announced the 2025 application period for the Emerald Advance® Loan1, a fixed-rate short-term loan ranging from $350 to $1,500, available November 3 through December 31, 2025. “The goal is to reduce financial stress and bring more joy to the season, and the loan application process is convenient and accessible,” said ...

Core Insights - H&R Block, Inc. will report its fiscal 2026 first quarter results on November 6, 2025, after the market closes [1] - A conference call for analysts and investors will take place on the same day at 4:30 p.m. Eastern time to discuss the results and provide a business update [2] - The conference call will be available via webcast for media and the public, with a replay accessible for 90 days after the event [3] Company Overview - H&R Block, Inc. offers global tax preparation services, financial products, and small-business solutions, combining digital innovation with human expertise [4] - The company aims to assist clients in achieving optimal outcomes during tax season and improving their financial management through its mobile banking app, Spruce [4] - H&R Block supports small-business owners with services such as bookkeeping, payroll, advisory, and payment processing through its Block Advisors and Wave platforms [4]

Core Insights - Spruce, a mobile banking app by H&R Block, launched the Saving Surge Sweepstakes to promote financial health among Americans, offering nearly $5,000 in prizes over six months [1][2] - The initiative aims to address the financial vulnerability of 70% of Americans, providing tools for effective money management [2][5] - Participants can earn entries by engaging in saving behaviors, with monthly prizes awarded to encourage consistent saving habits [3][4] Initiative Details - The Saving Surge Sweepstakes runs from September 1, 2025, to February 28, 2026, allowing Spruce customers to earn up to five entries each month through actions like auto-transfers and $10 deposits [3][10] - Monthly winners will receive direct deposits into their Spruce Savings Account, with one winner receiving $500 and three others receiving $100 [3][8] Financial Tools and Features - Spruce offers features such as a Watchlist Budget Tracker and high-yield savings accounts with a 3.50% APY, designed to reinforce positive financial behaviors [4][11] - The collaboration with Commonwealth aims to enhance financial security for vulnerable populations, leveraging Spruce's tools to make saving engaging and rewarding [5][14] Organizational Background - H&R Block provides tax preparation services and financial products, integrating digital innovation with personal expertise through the Spruce app [12] - Commonwealth is a nonprofit focused on building financial security for low- to moderate-income individuals, having helped over 2 million people save nearly $8 billion [14] - BlackRock's Emergency Savings Initiative supports the movement by promoting savings strategies for low- to moderate-income individuals [15]

Core Insights - H&R Block reported a revenue growth of 4.2% for fiscal 2025, reaching a total revenue of $3.8 billion, driven by increased net average charge and higher company-owned return volumes [4][23] - The company returned $600 million to shareholders through dividends and share repurchases, with a 12% increase in quarterly dividends [1][10] - Earnings per share from continuing operations rose by 6.8% to $4.42, while adjusted earnings per share increased by 5.7% to $4.66 [6][28] Financial Performance - Total operating expenses increased by 4.6% to $2.9 billion, primarily due to higher compensation, marketing, and technology costs [5][23] - Net income from continuing operations grew by 1.9% to $609.5 million [5][23] - The company repurchased approximately 6.5 million shares, representing 4.7% of shares outstanding, at an aggregate price of $400.1 million [10][22] Capital Allocation - H&R Block has consistently paid quarterly dividends since going public in 1962, returning over $4.5 billion to shareholders since 2016 [9][10] - The Board of Directors announced an increase in the quarterly dividend to $0.42 per share, marking eight consecutive annual increases [10][22] Strategic Outlook - The company aims to enhance client engagement, expand its small business reach, and leverage technology and AI for improved efficiencies [3][4] - For fiscal year 2026, H&R Block expects revenue in the range of $3.875 to $3.895 billion and adjusted diluted earnings per share between $4.85 and $5.00 [16][10]

Core Insights - Jeffrey J. Jones II will retire as President and CEO of H&R Block on December 31, 2025, and will remain on the Board until then, transitioning to a Strategic Advisor role until September 2026 [1][6] - Curtis Campbell, currently President of Global Consumer Tax and Chief Product Officer, will succeed Jones as CEO starting January 1, 2026 [1][5] Company Performance and Leadership - Under Jones' leadership since 2017, H&R Block has introduced innovative strategies such as Upfront Transparent Pricing and AI Tax Assist, contributing to significant brand growth and relevance [2][3] - The company increased its quarterly dividend by approximately 70% and repurchased about 40% of its shares, returning over $4.0 billion in capital to shareholders [2] - During Jones' tenure, H&R Block's stock price rose by 123%, and its market capitalization increased from $5.5 billion to $7.4 billion [2] Succession Planning - Campbell's appointment as CEO-elect follows a comprehensive succession-planning process, receiving unanimous support from the Board of Directors [5][6] - Jones expressed confidence in Campbell's ability to continue the company's transformation and sustainable revenue growth [4][5] Community Engagement and Culture - Jones initiated community impact programs such as Make Every Block Better and Fund Her Future, enhancing the company's commitment to community connections and support for small businesses [3] - H&R Block has been recognized for its high associate engagement and was featured in a Harvard Business School case study for its transformation efforts [3] Curtis Campbell's Background - Campbell has extensive experience in the tax industry, having held executive roles at Capital One, Intuit, and Amazon Web Services, and previously served as President and CEO of TaxAct [9][8] - He joined H&R Block in May 2024 and has been leading customer-centric strategies and product management excellence [8]

Core Insights - H&R Block has appointed Jason Lenhart as Senior Vice President and Chief Technology Officer, and Monika Mehrotra as Senior Vice President, Operations & Technology, to enhance its transformation and financial services [1][2]. Leadership Appointments - Jason Lenhart will lead engineering teams to develop scalable, product-driven solutions, leveraging his previous experience at JetBlue where he oversaw software development [2]. - Monika Mehrotra will manage financial products operations, fraud prevention, and global systems, bringing her experience from TransUnion to drive efficiency and innovation [4]. Educational Background - Jason Lenhart holds a Bachelor of Science in Mechanical Engineering from the University of Tennessee, Knoxville, and a Master of Science in Computer Science from Drexel University [3]. - Monika Mehrotra has a Bachelor of Technology in Computer Science from the Institute of Engineering and Technology in India and an MBA in Finance from the University of Chicago Booth School of Business [5]. Company Overview - H&R Block provides global tax preparation services, financial products, and small-business solutions, combining digital innovation with human expertise [7].

Company Performance - H&R Block, Inc. (HRB) stock has gained 17.5% over the past year, outperforming the industry's 32% decline and the Zacks S&P 500 composite's 13.2% growth [1] - In the third quarter of fiscal 2025, H&R Block reported adjusted earnings of $5.38 per share, beating the Zacks Consensus Estimate by 5.1% and increasing 8.9% year-over-year [2] - Total revenues for the same quarter were $2.28 billion, slightly exceeding the Zacks Consensus Estimate by 1.4% and reflecting a 4.2% year-over-year increase [2] Revenue Growth Drivers - The growth in assisted tax preparation revenue is attributed to a surge in net average charges and higher company-owned tax return volumes [3] - The contribution of the assisted tax preparation segment to total revenue has increased from approximately 60% in fiscal year 2022 to 63% in fiscal year 2024, with revenue rates rising by 3.5% and 5% in fiscal 2023 and 2024, respectively [3] Mobile Banking Platform - H&R Block's mobile banking platform, Spruce, has nearly 476,000 sign-ups and is approaching $1 billion in customer deposits as of June 2024 [4] - Close to 50% of fiscal 2024 deposits came from non-tax sources, indicating strong trends in the first quarter of fiscal 2025 [4] Technological Innovations - The incorporation of AI Tax Assist, a generative AI-powered technology, has boosted DIY tax preparation revenues, contributing nearly $350 million, or about 10% of total revenue, with an 11% increase from the previous year [5] - Collaboration with OpenAI is expected to enhance AI Tax Assist, attracting more customers and further boosting revenue [5] Competitive Landscape - The company operates in a highly competitive industry, necessitating continuous innovation and differentiation while managing costs effectively [6] - The need for investment in technology and talent to maintain a competitive edge complicates the balance between growth and profitability [6] Liquidity Position - H&R Block's current ratio at the end of the third quarter of fiscal 2025 was 0.78, lower than the industry's 0.92, indicating a decline of 30.8% from the previous year due to increased current debt [7] - A current ratio below 1 signals inefficiency in meeting short-term obligations [7]