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

globenewswire.com
HRB The sentiment for HRB is bullish because the company reported a strong start to the fiscal year with increased revenue and share repurchases, and reaffirmed its fiscal 2026 outlook.

— 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 results 1 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 operations 2 increased 2.4% to ($1.26), and adjusted loss per share from continuing operations 2 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:

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 outstanding 3.

Fiscal Year 2026 Outlook Reaffirmed

The Company continues to expect:

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.

(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures.

(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.