StockNews.AI
HRB
StockNews.AI
1 min

H&R Block Reports Fiscal 2026 First Quarter Results and Reaffirms Fiscal 2026 Outlook

1. H&R Block reported a 5% revenue increase in Q1 FY2026. 2. Shareholders received $455 million via dividends and share buybacks. 3. Operating expenses decreased by 2.7% due to lower legal costs. 4. H&R Block's management reaffirmed the FY2026 outlook. 5. The seasonality of the business impacts Q1 results traditionally.

20m saved
Insight
Article

FAQ

Why Bullish?

The revenue increase and share buybacks indicate strong operational health. Historically, similar positive earnings reports lead to stock price gains for HRB.

How important is it?

Strong revenue growth and capital return signals sustained company health and potential stock appreciation.

Why Short Term?

Positive Q1 results may influence investor sentiment quickly. Market reactions often occur rapidly after financial releases.

Related Companies

HRBTROWTAXVITA
— Revenue Increased 5.0% — — Repurchased $400 Million of Shares — KANSAS CITY, Mo., Nov. 06, 2025 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2026 first quarter ended September 30, 2025. "Fiscal 2026 is off to a strong start, not only in the financial results we are reporting but also in the plans we are preparing to execute in the coming quarters," said Jeff Jones, president and chief executive officer. "Our team is excited to build on our momentum for the remainder of the year." "Leading H&R Block for the last eight years has been an honor," Jones continued. "With Curtis Campbell's leadership and experience, H&R Block is well positioned to continue its transformation and deliver outstanding results for years to come." Fiscal 2026 First Quarter Results and Key Financial Metrics "We were pleased with our first quarter results and returned $455 million to shareholders through dividends and share repurchases," said Tiffany Mason, chief financial officer. "With confidence in our fiscal year plans, we are reaffirming our 2026 outlook and remain committed to delivering value for our shareholders." The Company reminds readers that its business is highly seasonal, and first quarter results consistently reflect this pattern. Historically, this period contributes modestly to annual revenue and typically generates a net loss. For the first quarter, the Company delivered total revenue of $203.6 million, an increase of $9.7 million, or 5.0%, versus the prior year. The increase was primarily the result of an increase in net average charge (NAC) and higher year-over-year volume in the Assisted category, and strong growth in Wave subscription revenue and payments volume. Total operating expenses of $410.6 million decreased by $11.6 million or 2.7%, versus the prior year. The decrease is primarily due to lower legal fees and settlements. Net loss from continuing operations improved $6.1 million, or 3.5% to ($165.4) million. Loss per share from continuing operations2 increased 2.4% to ($1.26), and adjusted loss per share from continuing operations2 increased 2.6% to ($1.20), due to a decrease in net loss but fewer shares outstanding as a result of share repurchases. Capital Allocation The Company reported the following related to its capital structure: As previously announced, a quarterly cash dividend of $0.42 per share will be paid on January 6, 2026 to shareholders of record as of December 4, 2025. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962.Repurchased and retired 7.9 million shares at an aggregate price of $400 million, or $50.90 per share, in the first quarter.The Company has approximately $700 million remaining on its $1.5 billion share repurchase program. Since 2016, the Company has returned nearly $5.0 billion to shareholders in the form of dividends and share repurchases, buying back 47% of its shares outstanding3. Fiscal Year 2026 Outlook Reaffirmed The Company continues to expect: Revenue to be in the range of $3.875 to $3.895 billion.EBITDA4 to be in the range of $1.015 billion 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 The Company will host a conference call for analysts and investors to discuss first quarter 2026 results at 4:30 p.m. ET on Thursday, November 6, 2025. To join live, participants must register at https://register-conf.media-server.com/register/BI38277db3cc6d455fb5f9b3dda471ac3d. 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/rxcxh3vo/lan/en/ 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. 1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.2All 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).3Shares outstanding calculated as of April 30, 2016.4Adjusted Diluted EPS and EBITDA from continuing operations 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. FINANCIAL RESULTS (unaudited, in 000s - except per share amounts)   Three months ended September 30,    2025   2024 REVENUES:     U.S. tax preparation and related services:     Assisted tax preparation  $48,644  $42,963 Royalties   5,849   5,852 DIY tax preparation   3,745   3,236 Refund Transfers   843   860 Peace of Mind® Extended Service Plan   23,509   23,097 Tax Identity Shield®   4,122   3,909 Other   13,476   13,809 Total U.S. tax preparation and related services   100,188   93,726 Financial services:     Emerald Card® and SpruceSM   7,852   8,826 Interest and fee income on Emerald Advance®   —   — Total financial services   7,852   8,826 International   65,661   64,855 Wave   29,850   26,403 Total revenues  $203,551  $193,810 Compensation and benefits:     Field wages   69,715   68,094 Other wages   79,279   77,335 Benefits and other compensation   36,662   38,754     185,656   184,183 Occupancy   102,796   101,318 Marketing and advertising   8,342   9,972 Depreciation and amortization   28,922   28,831 Bad debt   2,205   2,730 Other   82,661   95,107 Total operating expenses   410,582   422,141 Other income (expense), net   8,102   11,917 Interest expense on borrowings   (17,402)  (15,847)Pretax loss   (216,331)  (232,261)Income tax benefit   (50,963)  (60,840)Net loss from continuing operations   (165,368)  (171,421)Net loss from discontinued operations   (451)  (1,155)Net loss  $(165,819) $(172,576)BASIC AND DILUTED LOSS PER SHARE:     Continuing operations  $(1.26) $(1.23)Discontinued operations   —   (0.01)Consolidated  $(1.26) $(1.24)WEIGHTED AVERAGE DILUTED SHARES   131,387   139,154 Adjusted diluted EPS (1)  $(1.20) $(1.17)EBITDA (1)  $(170,007) $(187,583)       (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 September 30, 2025 June 30, 2025     ASSETS    Cash and cash equivalents $376,410  $983,277 Cash and cash equivalents - restricted  20,991   19,862 Receivables, net  64,145   63,621 Prepaid expenses and other current assets  102,692   95,788 Total current assets  564,238   1,162,548 Property and equipment, net  137,623   135,068 Operating lease right of use assets  499,910   521,215 Intangible assets, net  254,136   259,412 Goodwill  797,739   802,053 Deferred tax assets and income taxes receivable  300,251   317,691 Other noncurrent assets  67,425   65,911 Total assets $2,621,322  $3,263,898 LIABILITIES AND STOCKHOLDERS’ EQUITY    LIABILITIES:    Accounts payable and accrued expenses $145,574  $144,046 Accrued salaries, wages and payroll taxes  62,231   107,375 Accrued income taxes and reserves for uncertain tax positions  156,449   296,244 Current portion of long-term debt  —   349,893 Operating lease liabilities  205,152   209,203 Deferred revenue and other current liabilities  170,145   191,849 Total current liabilities  739,551   1,298,610 Long-term debt and line of credit borrowings  1,734,962   1,143,305 Deferred tax liabilities and reserves for uncertain tax positions  310,722   306,134 Operating lease liabilities  306,000   322,847 Deferred revenue and other noncurrent liabilities  80,997   104,106 Total liabilities  3,172,232   3,175,002 COMMITMENTS AND CONTINGENCIES    STOCKHOLDERS’ EQUITY:    Common stock, no par, stated value $.01 per share  1,565   1,644 Additional paid-in capital  757,981   766,998 Accumulated other comprehensive loss  (57,063)  (47,755)Retained earnings (deficit)  (609,299)  12,061 Less treasury shares, at cost  (644,094)  (644,052)Total stockholders' equity (deficiency)  (550,910)  88,896 Total liabilities and stockholders' equity $2,621,322  $3,263,898       CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in 000s)Three months ended September 30,  2025   2024      CASH FLOWS FROM OPERATING ACTIVITIES:    Net loss $(165,819) $(172,576)Adjustments to reconcile net loss to net cash used in operating activities:    Depreciation and amortization  28,922   28,831 Provision for credit losses  975   1,024 Deferred taxes  17,800   19,006 Stock-based compensation  6,173   8,727 Changes in assets and liabilities, net of acquisitions:    Receivables  262   1,029 Prepaid expenses, other current and noncurrent assets  7,530   8,836 Accounts payable, accrued expenses, salaries, wages and payroll taxes  (59,094)  (66,017)Deferred revenue, other current and noncurrent liabilities  (46,118)  (27,025)Income tax receivables, accrued income taxes and income tax reserves  (147,233)  (129,397)Other, net  (236)  (1,019)Net cash used in operating activities  (356,838)  (328,581)CASH FLOWS FROM INVESTING ACTIVITIES:    Capital expenditures  (13,188)  (18,735)Payments made for business acquisitions, net of cash acquired  (5,069)  (5,901)Franchise loans funded  (3,667)  (7,109)Payments from franchisees  731   211 Other, net  267   5,140 Net cash used in investing activities  (20,926)  (26,394)CASH FLOWS FROM FINANCING ACTIVITIES:    Proceeds from line of credit borrowings  245,000   — Repayments of long-term debt  (350,000)  — Proceeds from issuance of long-term debt  346,980   — Dividends paid  (50,208)  (44,653)Repurchase of common stock, including shares surrendered  (412,415)  (238,376)Other, net  (4,382)  (1,421)Net cash used in financing activities  (225,025)  (284,450)Effects of exchange rate changes on cash  (2,949)  3,249 Net decrease in cash and cash equivalents, including restricted balances  (605,738)  (636,176)Cash, cash equivalents and restricted cash, beginning of period  1,003,139   1,075,193 Cash, cash equivalents and restricted cash, end of period $397,401  $439,017 SUPPLEMENTARY CASH FLOW DATA:    Income taxes paid, net (includes payments for purchased investment tax credits) $78,339  $48,343 Interest paid on borrowings  28,471   19,792 Accrued additions to property and equipment  7,734   6,341 New operating right of use assets and related lease liabilities  37,885   21,861 Accrued dividends payable to common shareholders  54,343   52,307 Accrued purchase of common stock  —   7,131       (in 000s)   Three months ended September 30,NON-GAAP FINANCIAL MEASURE - EBITDA   2025   2024       Net loss - as reported  $(165,819) $(172,576)Discontinued operations, net   451   1,155 Net loss from continuing operations - as reported   (165,368)  (171,421)Add back:     Income tax benefit   (50,963)  (60,840)Interest expense   17,402   15,847 Depreciation and amortization   28,922   28,831     (4,639)  (16,162)EBITDA from continuing operations  $(170,007) $(187,583)       (in 000s, except per share amounts)   Three months ended September 30,NON-GAAP FINANCIAL MEASURE - ADJUSTED EPS   2025   2024       Net loss from continuing operations - as reported  $(165,368) $(171,421)Adjustments:     Amortization of intangibles related to acquisitions (pretax)   10,979   11,128 Tax effect of adjustments (1)   (2,792)  (2,645)Adjusted net loss from continuing operations  $(157,181) $(162,938)Diluted loss per share from continuing operations - as reported  $(1.26) $(1.23)Adjustments, net of tax   0.06   0.06 Adjusted diluted loss per share from continuing operations  $(1.20) $(1.17)       (1)Tax effect of adjustments is the difference between the tax provision calculated 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, and free cash flow. 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.

Related News