H&R Block Earnings Call Transcripts
Fiscal Year 2026
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Fiscal 2026 saw robust revenue, EBITDA, and EPS growth, driven by a strategic focus on higher-value clients, technology integration, and omni-channel service. The outlook for 2027 anticipates continued revenue and profit growth, increased investments, and disciplined capital returns, despite moderating industry growth.
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Strong Q3 results exceeded expectations with revenue up 5.3% and adjusted EPS up 12%. Assisted channel market share held flat, AI-driven innovations improved client retention and conversion, and full-year guidance was raised.
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Q2 revenue rose 11% year-over-year to $199M, driven by higher assisted tax prep and Wave growth, while operating expenses increased 5%. Fiscal 2026 outlook is reaffirmed, with a focus on technology, AI, and client-centric strategies to drive long-term growth.
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Q1 saw 5% revenue growth and improved EBITDA, with strong capital returns and a leadership transition underway. Full-year guidance is reaffirmed, with continued investment in technology and client experience to drive growth in both consumer and small business segments.
Fiscal Year 2025
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Fiscal 2025 saw 4.2% revenue growth, strong gains in Assisted, DIY, and small business segments, and a 12% dividend increase. Fiscal 2026 guidance projects higher revenue, EBITDA, and EPS, with continued focus on cost control and franchise acquisitions.
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Q3 saw 4% revenue and 9% EPS growth, driven by higher assisted volumes and improved client retention. Fiscal 2025 guidance is reiterated, with strong capital returns and a focus on complex clients amid industry shifts toward assisted tax preparation.
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Q2 revenue was flat at $179M, with strong small business and digital growth offset by lower Emerald Advance volume. Full-year guidance is reaffirmed, with robust capital returns and new client offerings like Price Match Guarantee and enhanced AI tools.
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Revenue grew 5% year-over-year in Q1, with strong small business and Wave segment growth, and continued innovation in AI and digital platforms. Legal expenses were elevated but fully accrued, and the fiscal 2025 outlook is reaffirmed, including a one-time tax rate benefit.
Fiscal Year 2024
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Revenue grew 4% to $3.6B in FY 2024, with EBITDA and EPS outpacing revenue. FY 2025 guidance calls for continued growth, aided by a one-time tax benefit, and a new $1.5B share repurchase authorization. DIY and Small Business segments led performance.