H&R Block Reports Fiscal 2027 First Quarter Results and Reaffirms Fiscal 2027 Outlook

H&R Block Reports Fiscal 2027 First Quarter Results and Reaffirms Fiscal 2027 Outlook H&R Block Reports Fiscal 2027 First Quarter Results and Reaffirms Fiscal 2027 Outlook GlobeNewswire November 09, 2026

— Revenue Increased 10% —

— Repurchased $100 Million of Shares as Part of Full-Year Capital Return Strategy —

KANSAS CITY, Mo., Nov. 09, 2026 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2027 first quarter ended September 30, 2026.

"We are pleased with our start to fiscal 2027, including revenue growth of more than 10%," said Curtis Campbell, president and chief executive officer. "At the same time, we continue advancing strategic initiatives designed to enhance the client experience and support future growth. Our focus remains on executing our strategy and positioning H&R Block for long-term success."

Fiscal 2027 First Quarter Results and Key Financial Metrics

"Our financial position remains strong, and we continue to execute our disciplined capital allocation priorities," said Tiffany Mason, chief financial officer. "During the first quarter, we invested in the business to support future growth while returning capital to shareholders through dividends and share repurchases. We remain confident in the assumptions underlying our fiscal 2027 outlook and are reaffirming our guidance."

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 $224.3 million, an increase of $20.8 million, or 10.2%, versus the prior year. The increase was primarily the result of growth in international services, higher tax protection and identity services, an increase in small business services, and growth in U.S. tax preparation revenues.

Total operating expenses of $456.2 million increased by $45.6 million, or 11.1%, versus the prior year. The increase was primarily due to higher field compensation and benefits, increased general corporate expenses, and higher occupancy and equipment costs.

During the first quarter, the Company recognized $8.0 million of severance and related costs associated with the previously announced seasonal office leadership transition, which were recorded in field compensation and benefits. This charge has been excluded from adjusted results.

Net loss from continuing operations increased by $22.8 million, or 13.8%, to ($188.1) million, and loss per share from continuing operations2 increased 21.4% to ($1.53).

Adjusted net loss from continuing operations2 increased by $14.9 million, or 9.5%, to ($172.1) million, and adjusted loss per share from continuing operations2 increased 16.7% to ($1.40), due to a higher net loss and fewer shares outstanding as a result of share repurchases.

Capital Allocation

The Company reported the following related to its capital structure:

H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. Since 2016, the Company has returned more than $5.3 billion to shareholders in the form of dividends and share repurchases, buying back over 49% of its shares outstanding3.

Fiscal Year 2027 Outlook Reaffirmed

The Company continues to expect:

Conference Call

The Company will host a conference call for analysts and investors to discuss first quarter 2027 results at 4:30 p.m. ET on Monday, November 9, 2026. To join live, participants must register at https://register-conf.media-server.com/register/BI46c1c99bcb2d4f8a8a49d697da287d8d. 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/b3k2w7ce/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. Named CNET's Best Overall online tax service for 2026, the company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and manage their money better 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 share amounts are based on weighted average fully diluted shares over the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted net income, adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA), and adjusted EBITDA from continuing operations, 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 EBITDA and Adjusted Diluted Earnings Per Share 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,
  2026   2025 
REVENUES   
Service revenues   
U.S. services   
Tax preparation$54,467  $51,867 
Small business services 34,896   31,047 
Refund transfers 844   843 
Tax protection and identity services 34,320   29,180 
Card and related services 7,679   7,852 
Other services 6,469   4,828 
Total U.S. services 138,675   125,617 
International services 74,813   66,494 
Total service revenues 213,488   192,111 
Royalties and other revenues   
U.S. royalties 5,683   5,849 
Interest and fee income on Emerald Advance® —   — 
Other 5,165   5,591 
Total royalties and other revenues 10,848   11,440 
Total revenues 224,336   203,551 
OPERATING EXPENSES   
Costs of revenues   
Field compensation and benefits 102,060   82,791 
Occupancy and equipment 132,267   124,474 
Technology and related expenses 32,806   29,924 
General operations expenses 43,141   36,828 
Total costs of revenues 310,274   274,017 
Selling, general and administrative expenses   
Corporate compensation and benefits 99,959   102,865 
Marketing and advertising 11,560   8,342 
General corporate expenses 34,436   25,358 
Total selling, general and administrative expenses 145,955   136,565 
Total operating expenses 456,229   410,582 
Other income (expense), net 6,576   8,102 
Interest expense on borrowings 15,538   17,402 
Loss from continuing operations before income tax benefit (240,855)  (216,331)
Income tax benefit (52,728)  (50,963)
Net loss from continuing operations (188,127)  (165,368)
Net loss from discontinued operations, net (351)  (451)
Net loss$(188,478) $(165,819)
BASIC AND DILUTED LOSS PER SHARE:   
Continuing operations$(1.53) $(1.26)
Discontinued operations —   — 
Consolidated$(1.53) $(1.26)
WEIGHTED AVERAGE DILUTED SHARES 123,077   131,387 
Adjusted diluted EPS(1)$(1.40) $(1.20)
EBITDA(1)$(193,126) $(170,007)
Adjusted EBITDA(1)$(185,175) $(170,007)

(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, 2026 June 30, 2026
     
ASSETS    
Cash and cash equivalents $390,498  $958,706 
Cash and cash equivalents - restricted  21,248   19,195 
Receivables, net  63,606   58,248 
Prepaid expenses and other current assets  102,934   89,408 
Total current assets  578,286   1,125,557 
Property and equipment, net  146,258   141,456 
Operating lease right of use assets  588,526   597,641 
Intangible assets, net  263,019   266,986 
Goodwill  817,318   812,543 
Deferred tax assets and income taxes receivable  220,960   239,745 
Other noncurrent assets, net  71,598   72,423 
Total assets $2,685,965  $3,256,351 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
LIABILITIES:    
Accounts payable and accrued expenses $151,627  $156,330 
Accrued salaries, wages and payroll taxes  75,045   121,878 
Accrued income taxes and reserves for uncertain tax positions  163,420   266,184 
Operating lease liabilities  221,832   228,760 
Deferred revenue and other current liabilities  194,906   220,273 
Total current liabilities  806,830   993,425 
Long-term debt  1,492,058   1,491,493 
Deferred tax liabilities and reserves for uncertain tax positions  166,253   163,660 
Operating lease liabilities  380,448   382,100 
Deferred revenue and other noncurrent liabilities  82,710   108,185 
Total liabilities  2,928,299   3,138,863 
COMMITMENTS AND CONTINGENCIES    
STOCKHOLDERS’ EQUITY:    
Common stock, no par, stated value $.01 per share  1,516   1,538 
Additional paid-in capital  775,027   784,363 
Accumulated other comprehensive loss  (65,289)  (64,088)
Retained earnings (deficit)  (318,300)  30,782 
Less treasury shares, at cost  (635,288)  (635,107)
Total stockholders' equity (deficiency)  (242,334)  117,488 
Total liabilities and stockholders' equity $2,685,965  $3,256,351 
     
     


CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in 000s)
Three months ended September 30,  2026   2025 
     
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $(188,478) $(165,819)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization  32,191   28,922 
Provision for credit losses  2,114   975 
Deferred taxes  21,608   17,800 
Stock-based compensation  4,878   6,173 
Changes in assets and liabilities, net of acquisitions:    
Receivables  (4,557)  262 
Prepaid expenses, other current and noncurrent assets  (8,846)  7,530 
Accounts payable, accrued expenses, salaries, wages and payroll taxes  (59,392)  (59,094)
Deferred revenue, other current and noncurrent liabilities  (53,914)  (46,118)
Income tax receivables, accrued income taxes and income tax reserves  (104,586)  (147,233)
Other, net  526   (236)
Net cash used in operating activities  (358,456)  (356,838)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures  (20,777)  (13,188)
Payments made for business acquisitions, net of cash acquired  (10,261)  (5,069)
Franchise loans funded  (5,218)  (3,667)
Payments from franchisees  310   731 
Other, net  281   267 
Net cash used in investing activities  (35,665)  (20,926)
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  (52,627)  (50,208)
Repurchase of common stock, including shares surrendered  (117,286)  (412,415)
Other, net  (1,498)  (4,382)
Net cash used in financing activities  (171,411)  (225,025)
Effects of exchange rate changes on cash  (623)  (2,949)
Net decrease in cash and cash equivalents, including restricted balances  (566,155)  (605,738)
Cash, cash equivalents and restricted cash, beginning of period  977,901   1,003,139 
Cash, cash equivalents and restricted cash, end of period $411,746  $397,401 
SUPPLEMENTARY CASH FLOW DATA:    
Income taxes paid $30,109  $78,339 
Interest paid on borrowings  28,914   28,471 
Accrued additions to property and equipment  3,637   7,734 
New operating right of use assets and related lease liabilities  53,227   37,885 
Accrued dividends payable to common shareholders  56,550   54,343 
     
     


(in 000s)
  Three months ended September 30,
NON-GAAP FINANCIAL MEASURES - EBITDA AND ADJUSTED EBITDA  2026   2025 
     
Net loss - as reported $(188,478) $(165,819)
Discontinued operations, net  351   451 
Net loss from continuing operations - as reported  (188,127)  (165,368)
Add back:    
Income tax benefit  (52,728)  (50,963)
Interest expense  15,538   17,402 
Depreciation and amortization  32,191   28,922 
   (4,999)  (4,639)
EBITDA from continuing operations $(193,126) $(170,007)
Severance and related costs of discrete strategic initiatives  7,951   — 
Adjusted EBITDA from continuing operations $(185,175) $(170,007)
     


(in 000s, except per share amounts)
  Three months ended September 30,
NON-GAAP FINANCIAL MEASURES - ADJUSTED NET LOSS AND ADJUSTED EPS  2026   2025 
     
Net loss from continuing operations - as reported $ (188,127) $ (165,368)
Adjustments:    
Amortization of intangibles related to acquisitions (pretax)   12,250     10,979  
Severance and related costs of discrete strategic initiatives (pretax)   7,951     —  
Tax effect of pretax adjustments (1)   (4,190)   (2,792)
Adjusted net loss from continuing operations $ (172,116) $ (157,181)
     
Diluted loss per share from continuing operations - as reported $ (1.53) $ (1.26)
Adjustments, net of tax   0.13     0.06  
Adjusted diluted loss per share from continuing operations $ (1.40) $ (1.20)
     

(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, goodwill impairments, severance and related costs of discrete strategic initiatives, and material discrete tax impacts of IRS examination settlements. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures, such as future organizational restructuring initiatives and legal settlements, when such items are not indicative of our ongoing operating performance.

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 net income from continuing operations, and adjusted diluted earnings per share from continuing operations. 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.

Supplemental Revenue Table

U.S. Tax Preparation and Software Revenues (unaudited, in 000s)
  Three months ended September 30,
  2026 2025
U.S. consumer assisted tax preparation $30,742 $29,796
U.S. consumer DIY tax preparation and software  2,994  2,945
Total U.S. consumer tax preparation and software  33,736  32,741
     
U.S. small business assisted tax preparation  20,628  18,848
U.S. small business DIY tax preparation  694  800
Total U.S. small business tax preparation  21,322  19,648
Total U.S. tax preparation and software $55,058 $52,389
     
     



For Further Information

Investor Relations: Jessica Hazel, jessica.hazel@hrblock.com
Media Relations: Media Desk, mediadesk@hrblock.com

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