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H&R Block Reports Fiscal 2025 Results and Provides Fiscal 2026 Outlook

1. H&R Block achieved 4% revenue growth, 7% EPS growth in fiscal 2025. 2. Returned $600 million to shareholders via dividends and buybacks. 3. Quarterly dividend increased by 12%, marking eighth consecutive annual increase. 4. Fiscal 2026 revenue forecasted between $3.875 and $3.895 billion. 5. The company plans to leverage technology for enhanced client engagement.

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Why Bullish?

Strong financial results and shareholder returns signal confidence in growth. Company historically performs well after such results.

How important is it?

Consistent revenue growth and increased dividends indicate strong financial health, likely impacting stock price positively.

Why Short Term?

Expect increased investor interest shortly after positive earnings and dividend news. Similar past trends show immediate positive reactions post-announcement.

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HRBVITATAX
- Delivered Revenue Growth of 4% and Earnings per Share Growth of 7% - - Returned $600 Million to Shareholders via Dividends and Share Repurchases - - Increases Quarterly Dividend by 12% - KANSAS CITY, Mo., Aug. 12, 2025 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2025 year ended June 30, 2025. "Fiscal 2025 marked another year of meaningful progress in our transformation journey, with strong revenue growth, disciplined capital allocation, and continued innovation across our client offerings,” said Jeff Jones, president and chief executive officer. “As we look ahead, we are intensifying efforts to engage clients with more complex needs, expanding our small business reach, and further leveraging technology and AI to deliver greater business efficiencies and seamless, personalized experiences that distinguish H&R Block in the marketplace." Fiscal 2025 Results and Key Financial Metrics "We are pleased to have delivered strong revenue growth in fiscal 2025, propelled by a robust NAC across both Assisted and DIY and increased company-owned Assisted volume, including a landmark year for our small business operations," said Tiffany Mason, chief financial officer. "As we enter fiscal 2026, we remain committed to providing a compelling value proposition to our clients, maintaining our disciplined capital allocation strategy, and continuing to deliver meaningful, long-term value for our shareholders." Total revenue of $3.8 billion increased by $150.6 million, or 4.2%, primarily due to an increase in overall net average charge (NAC) and higher company-owned return volumes in the U.S., partially offset by lower interest and fee income on Emerald Advance. Total operating expenses of $2.9 billion increased by $128.0 million, or 4.6%, primarily due to higher compensation and benefits, marketing, consulting, technology and legal costs, partially offset by lower bad debt. Net income from continuing operations increased $11.5 million, or 1.9%, to $609.5 million. Earnings per share from continuing operations2 of $4.42 increased by $0.28, or 6.8%; adjusted earnings per share from continuing operations2 of $4.66 increased by $0.25, or 5.7%, due to fewer shares outstanding from share repurchases and higher net income. During the fourth quarter of fiscal 2025, the Company expected to recognize a one-time tax benefit related to the closure of various matters under examination that would have increased the Company's earnings per share by approximately $0.50. Due to external factors beyond the Company's control, the completion of these matters was delayed beyond fiscal 2025. Capital Allocation The Company announced today that the Board of Directors increased the quarterly dividend by 12%, representing eight consecutive annual increases. The quarterly cash dividend is now $0.42 per share, payable on October 6, 2025 to shareholders of record as of September 4, 2025.In fiscal 2025, the Company repurchased and retired approximately 6.5 million shares, or 4.7% of shares outstanding, at an aggregate price of $400.1 million, or $61.10 per share.The Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. Since 2016, the Company has returned more than $4.5 billion to shareholders in the form of dividends and share repurchases, buying back over 43% of its shares outstanding3. Fiscal Year 2026 Outlook For fiscal year 2026, the Company expects: Revenue to be in the range of $3.875 to $3.895 billion.EBITDA4 to be in the range of $1.015 to $1.035 billion.Effective tax rate to be approximately 25%.Adjusted Diluted Earnings Per Share4 to be in the range of $4.85 to $5.00. Conference Call & Webcast The Company will host a conference call for analysts and investors to discuss fiscal 2025 results, outlook, and give a general business update at 4:30 p.m. ET on Tuesday, August 12, 2025. To join live, participants must register at https://register.vevent.com/register/BIde20112dcb6f48afb47e1f4828d62d83. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time. The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/yzzds4pa and will be available for replay 2 hours after the call is concluded and continuing for 90 days. About H&R Block H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News. About Non-GAAP Financial Information This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information." Forward-Looking Statements This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties. 1 All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.2 All per share amounts are from continuing operations and based on weighted average fully diluted shares over the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, and free cash flow, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).3 Shares outstanding calculated as of April 30, 2016.4 EBITDA from continuing operations and Adjusted Diluted EPS are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures. For Further Information Investor Relations: Jessica Hazel, (816) 854-4214, jessica.hazel@hrblock.comMedia Relations: Media Desk, mediadesk@hrblock.com FINANCIAL RESULTS (unaudited, in 000s - except per share amounts)  Three months ended June 30, Year ended June 30,   2025   2024   2025   2024 REVENUES:        U.S. tax preparation and related services:        Assisted tax preparation $686,009  $652,405  $2,413,229  $2,274,835 Royalties  49,565   51,732   192,877   204,802 DIY tax preparation  152,092   134,283   383,738   349,812 Refund Transfers  22,297   21,357   137,526   142,249 Peace of Mind® Extended Service Plan  32,459   33,987   87,326   93,087 Tax Identity Shield®  14,973   16,576   29,920   33,386 Other  18,103   18,918   58,318   51,555 Total U.S. tax preparation and related services  975,498   929,258   3,302,934   3,149,726 Financial services:        Emerald Card® and SpruceSM  13,719   14,600   72,888   76,093 Interest and fee income on Emerald Advance®  2,364   4,231   28,958   40,933 Total financial services  16,083   18,831   101,846   117,026 International  89,889   88,725   246,993   247,123 Wave  29,541   25,816   109,222   96,472 Total revenues $1,111,011  $1,062,630  $3,760,995  $3,610,347 Compensation and benefits:        Field wages  244,785   218,473   927,360   869,002 Other wages  76,312   76,694   306,999   298,819 Benefits and other compensation  61,998   57,759   250,729   228,723    383,095   352,926   1,485,088   1,396,544 Occupancy  112,842   112,618   438,868   432,461 Marketing and advertising  64,298   66,612   285,800   277,747 Depreciation and amortization  29,580   30,780   116,827   121,784 Bad debt  11,959   23,963   74,584   91,523 Other  137,958   124,900   531,858   485,011 Total operating expenses  739,732   711,799   2,933,025   2,805,070          Other income (expense), net  12,331   15,143   31,546   36,125 Interest expense on borrowings  (15,828)  (15,776)  (78,113)  (79,080)Income from continuing operations before income taxes  367,782   350,198   781,403   762,322 Income taxes  67,373   91,832   171,953   164,359 Net income from continuing operations  300,409   258,366   609,450   597,963 Net loss from discontinued operations  (970)  (549)  (3,677)  (2,646)Net income $299,439  $257,817  $605,773  $595,317          DILUTED EARNINGS PER SHARE:        Continuing operations $2.21  $1.82  $4.42  $4.14 Discontinued operations  (0.01)  (0.01)  (0.03)  (0.02)Consolidated $2.20  $1.81  $4.39  $4.12          WEIGHTED AVERAGE DILUTED SHARES  135,318   141,761   137,340   143,890          Adjusted diluted EPS(1) $2.27  $1.89  $4.66  $4.41 EBITDA(1) $413,190  $396,754  $976,343  $963,186           (1)   All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures. CONSOLIDATED BALANCE SHEETS (unaudited, in 000s - except per share data)As of June 30,  2025   2024      ASSETS    Cash and cash equivalents $983,277  $1,053,326 Cash and cash equivalents - restricted  19,862   21,867 Receivables, net  63,621   69,075 Prepaid expenses and other current assets  95,788   95,208 Total current assets  1,162,548   1,239,476 Property and equipment, net  135,068   131,319 Operating lease right of use asset  521,215   461,986 Intangible assets, net  259,412   264,102 Goodwill  802,053   785,226 Deferred tax assets and income taxes receivable  317,691   271,658 Other noncurrent assets  65,911   65,043 Total assets $3,263,898  $3,218,810 LIABILITIES AND STOCKHOLDERS’ EQUITY    LIABILITIES:    Accounts payable and accrued expenses $144,046  $155,830 Accrued salaries, wages and payroll taxes  107,375   105,548 Accrued income taxes and reserves for uncertain tax positions  296,244   318,830 Current portion of long-term debt  349,893   — Operating lease liabilities  209,203   206,070 Deferred revenue and other current liabilities  191,849   191,050 Total current liabilities  1,298,610   977,328 Long-term debt  1,143,305   1,491,095 Deferred tax liabilities and reserves for uncertain tax positions  306,134   291,063 Operating lease liabilities  322,847   265,373 Deferred revenue and other noncurrent liabilities  104,106   103,357 Total liabilities  3,175,002   3,128,216 COMMITMENTS AND CONTINGENCIES    STOCKHOLDERS’ EQUITY:    Common stock, no par, stated value $.01 per share  1,644   1,709 Additional paid-in capital  766,998   762,583 Accumulated other comprehensive loss  (47,755)  (48,845)Retained earnings  12,061   12,654 Less treasury shares, at cost  (644,052)  (637,507)Total stockholders' equity  88,896   90,594 Total liabilities and stockholders' equity $3,263,898  $3,218,810       CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in 000s)Year ended June 30,  2025   2024 CASH FLOWS FROM OPERATING ACTIVITIES:    Net income $605,773  $595,317 Adjustments to reconcile net income to net cash provided by operating activities:    Depreciation and amortization  116,827   121,784 Provision for credit losses  65,191   82,567 Deferred taxes  (34,612)  (40,940)Stock-based compensation  32,503   34,277 Changes in assets and liabilities, net of acquisitions:    Receivables  (62,247)  (108,394)Prepaid expenses and other current and noncurrent assets  3,183   (7,287)Accounts payable, accrued expenses, salaries, wages and payroll taxes  (23,009)  (4,662)Deferred revenue, other current and noncurrent liabilities  (1,575)  (28,507)Income tax receivables, accrued income taxes and income tax reserves  (20,613)  75,444 Other, net  (538)  1,261 Net cash provided by operating activities  680,883   720,860      CASH FLOWS FROM INVESTING ACTIVITIES:    Capital expenditures  (82,034)  (63,678)Payments made for business acquisitions, net of cash acquired  (35,518)  (43,358)Franchise loans funded  (21,705)  (18,891)Payments from franchisees  23,786   24,926 Other, net  10,098   7,143 Net cash used in investing activities  (105,373)  (93,858)     CASH FLOWS FROM FINANCING ACTIVITIES:    Repayments of line of credit borrowings  (1,950,000)  (1,025,000)Proceeds from line of credit borrowings  1,950,000   1,025,000 Dividends paid  (197,330)  (179,775)Repurchase of common stock, including shares surrendered  (437,133)  (379,569)Other, net  (12,980)  (4,967)Net cash used in financing activities  (647,443)  (564,311)     Effects of exchange rate changes on cash  (121)  (2,814)     Net increase (decrease) in cash and cash equivalents, including restricted balances  (72,054)  59,877 Cash, cash equivalents and restricted cash, beginning of the year  1,075,193   1,015,316 Cash, cash equivalents and restricted cash, end of the year $1,003,139  $1,075,193      SUPPLEMENTARY CASH FLOW DATA:    Income taxes paid, net (includes payments for purchased investment tax credits) $226,820  $131,173 Interest paid on borrowings  74,639   75,694 Accrued additions to property and equipment  2,591   3,052 Accrued dividends payable to common shareholders  50,208   44,653               (in 000s)  Three months ended June 30, Year ended June 30,NON-GAAP FINANCIAL MEASURE - EBITDA  2025   2024   2025   2024          Net income - as reported $299,439  $257,817  $605,773  $595,317 Discontinued operations, net  970   549   3,677   2,646 Net income from continuing operations - as reported  300,409   258,366   609,450   597,963 Add back:        Income taxes  67,373   91,832   171,953   164,359 Interest expense  15,828   15,776   78,113   79,080 Depreciation and amortization  29,580   30,780   116,827   121,784    112,781   138,388   366,893   365,223 EBITDA from continuing operations $413,190  $396,754  $976,343  $963,186             (in 000s, except per share amounts)  Three months ended June 30, Year ended June 30,NON-GAAP FINANCIAL MEASURE - ADJUSTED EPS  2025   2024   2025   2024          Net income from continuing operations - as reported $300,409  $258,366  $609,450  $597,963 Adjustments:        Amortization of intangibles related to acquisitions (pretax)  11,357   13,142   44,673   50,835 Tax effect of adjustments(1)  (2,754)  (2,936)  (10,865)  (11,751)Adjusted net income from continuing operations $309,012  $268,572  $643,258  $637,047 Diluted earnings per share from continuing operations - as reported $2.21  $1.82  $4.42  $4.14 Adjustments, net of tax  0.06   0.07   0.24   0.27 Adjusted diluted earnings per share from continuing operations $2.27  $1.89  $4.66  $4.41           (1) The tax effect of adjustments is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis. NON-GAAP FINANCIAL INFORMATION Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies. We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and free cash flow yield. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

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