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 ...

Financial Data and Key Metrics Changes - The company reported total revenue growth of 4.2% year-over-year, reaching $3.8 billion in fiscal year 2025 [6][16] - EBITDA for the fiscal year was $976 million, reflecting a 1.4% improvement compared to the previous year [18] - Net income from continuing operations was $609 million, with earnings per share increasing by 6.8% to $4.42 [19] Business Line Data and Key Metrics Changes - Assisted revenue grew by 6.1%, while DIY revenue increased by 9.7% [7] - The company-owned assisted filing volume improved, contributing to market share growth, particularly among clients earning over $100,000 [8] - Small business services achieved double-digit top-line growth, marking a record revenue year [9][10] Market Data and Key Metrics Changes - The company experienced client growth across all income segments, particularly among those earning $80,000 and above [8] - Spruce mobile banking platform saw nearly 40% growth in new accounts, with total customer deposits reaching $1.75 billion since its launch [11][12] Company Strategy and Development Direction - The company is focused on enhancing client experience and balancing volume, price, and mix in its offerings [16][58] - Continued emphasis on serving small businesses through a range of services, including tax, bookkeeping, and payroll [13] - Plans to acquire franchise locations at attractive EBITDA multiples to support long-term growth [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market share and drive growth through AI and improved client experiences [12][24] - The outlook for fiscal year 2026 anticipates revenue between $3.875 billion and $3.895 billion, with EBITDA projected between $1.015 billion and $1.035 billion [23] - The company expects industry growth to align with historical trends, around 1% [22] Other Important Information - A 12% increase in the quarterly dividend was announced, marking a doubling of dividends since 2016 [6][21] - The company returned approximately $600 million to shareholders through dividends and share repurchases in fiscal year 2025 [21] Q&A Session Summary Question: What are the assumptions for assisted and DIY market growth next year? - Management anticipates a similar level of shift to the assisted business as seen in the previous year, driven by consumer demand for assistance [30][32] Question: Will there be changes to bank products to drive early season filers? - Management acknowledged the possibility but deferred specific comments until November for competitive reasons [35] Question: What will be shared in the first quarter call regarding the new strategy? - Management confirmed that the existing strategy will continue under the new CEO, with updates on tax season plans and broader business perspectives expected [40][41] Question: What are the impacts of legal fees and severance on guidance? - Elevated costs from healthcare, legal expenses, and severance have been factored into the fiscal year 2026 guidance, with expectations for improved cost management [46][49] Question: Is the new tax implication a tailwind for guidance? - Management believes it is a tailwind and is cautiously optimistic, using previous shifts as a proxy for future performance [51]

Financial Data and Key Metrics Changes - The company reported total revenue growth of 4.2% year-over-year, reaching $3.8 billion in fiscal year 2025 [6][17] - EBITDA for the fiscal year was $976 million, reflecting a 1.4% improvement compared to the previous year [19] - Net income from continuing operations was $609 million, with earnings per share increasing by 6.8% to $4.42 [20] Business Line Data and Key Metrics Changes - Assisted revenue grew by 6.1%, while DIY revenue increased by 9.7% [7] - Small business revenue experienced double-digit growth, marking a record revenue year for fiscal 2025 [10] - The Spruce mobile banking platform saw nearly 40% growth in newly created accounts, with total customer deposits reaching $1.75 billion since its launch [12][13] Market Data and Key Metrics Changes - The company noted client growth in every income segment above $80,000, with the fastest growth in clients earning over $100,000 [8] - The company experienced a mix shift of about 21 basis points towards the assisted business, indicating a trend towards seeking assistance [33] Company Strategy and Development Direction - The company remains focused on strengthening its operations, generating meaningful cash flow, and increasing shareholder value [5] - There is a commitment to enhancing the client experience and leveraging AI to drive efficiency across the business [13][15] - The company plans to continue acquiring franchise locations to support long-term revenue and earnings growth [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming fiscal year, expecting industry growth to align with historical trends of about 1% [22] - The company anticipates small business contributions to increase significantly in fiscal 2026 and beyond [23] - Management acknowledged the challenges faced in fiscal 2025, including elevated healthcare costs and legal fees, but expressed confidence in cost-saving opportunities for fiscal 2026 [50][52] Other Important Information - The company announced a 12% increase in its quarterly dividend, marking a doubling of dividends since 2016 [6][22] - A succession plan was discussed, with Curtis set to take over as President and CEO starting January 1, 2026 [27][28] Q&A Session Summary Question: What are the assumptions for assisted and DIY market growth next year? - Management indicated a similar level of shift to the assisted business as seen in the previous year, anticipating continued demand for assistance [33][34] Question: Will there be changes to bank products to drive early season filers? - Management acknowledged the possibility but preferred to reserve detailed commentary until November for competitive reasons [38] Question: What will be shared in the first quarter call regarding strategy? - Management confirmed that the strategy will remain consistent, with updates on tax season plans and broader business perspectives expected [44][45] Question: What are the impacts of legal fees and severance on guidance? - Elevated costs from healthcare, legal expenses, and severance were factored into the fiscal 2026 guidance, with expectations for improved cost management [49][52] Question: Is the new tax implication a tailwind for guidance? - Management confirmed that they believe it to be a tailwind and are cautiously optimistic based on previous shifts in the market [55] Question: What initiatives support a healthier balance of volume, price, and mix? - Management elaborated on driving price increases while also focusing on greater volume performance and complexity of clients to achieve a balanced revenue mix [61][62]

Financial Performance - H&R Block's FY25 total revenue grew by 42% to $37610 million[12,40] - The company's FY25 EBITDA reached $976 million[13] a 14% increase compared to the previous year's $9632 million[40] - Adjusted earnings per share increased by 57% to $466[40] - H&R Block forecasts FY26 revenue between $3875 billion and $3895 billion and EBITDA between $1015 billion and $1035 billion[48] Capital Allocation - The company increased its quarterly dividend by 12%[14] - H&R Block has repurchased over 43% of its shares outstanding since 2016[16] - The company plans approximately $400 million in share repurchases[49] Business Segments - Small business revenue experienced double-digit growth[27] with overall revenue increasing 13% year-over-year[27] - Newly created Spruce accounts increased by approximately 40% in FY25[29] - Approximately 50% of FY25 deposit transactions originated from non-tax sources[30,32]