H&R Block Reports Fiscal 2025 Results and Provides Fiscal 2026 Outlook
- 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 /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 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 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, | |
| Media Relations: | Media Desk, |
| 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.
