H&R Block Inc.

02/05/2026 | Press release | Distributed by Public on 02/05/2026 15:32

Quarterly Report for Quarter Ending December 31, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RECENT DEVELOPMENTS
On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement (2025 CLOC), which amended and restated our Fourth Amended and Restated Credit and Guarantee Agreement, extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table. All other material terms remain substantially unchanged from the Fourth Amended and Restated Credit and Guarantee Agreement. See our Current Report on Form 8-K filed on July 15, 2025 for additional information.
On August 7, 2025, Jeffrey J. Jones II notified the Board of Directors of the Company of his intention to retire as President and Chief Executive Officer of the Company, effective as of December 31, 2025. Mr. Jones retired from the Board of Directors, effective on December 31, 2025. On August 8, 2025, the Board appointed Curtis A. Campbell, the Company's President, Global Consumer Tax and Chief Product Officer, to succeed Mr. Jones as President and Chief Executive Officer, effective immediately upon Mr. Jones' retirement. See our Current Report on Form 8-K filed on August 11, 2025 for more information.
On August 13, 2025, Kellie J. Logerwell notified H&R Block, Inc. (the "Company") of her intention to retire as the Company's Vice President and Chief Accounting Officer, effective as of October 24, 2025. Ms. Logerwell was succeeded as principal accounting officer by April M. Wasleski, who most-recently served as the Company's Director of Accounting and whose appointment as Vice President and Chief Accounting Officer became effective October 24, 2025. See our Current Report on Form 8-K filed on August 15, 2025 for more information.
On August 26, 2025, we issued $350.0 million of 5.375% Senior Notes due September 15, 2032 (2032 Senior Notes). The 2032 Senior Notes are not redeemable by the bondholders prior to maturity, although we have the right to redeem some or all of these notes at any time, at specified redemption prices. The net proceeds from the 2032 Senior Notes were used for general corporate purposes, which includes, among other uses, the redemption of the $350.0 million in principal outstanding of our 5.250% notes due October 2025 (2025 Senior Notes). We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.
RESULTS OF OPERATIONS
Our subsidiaries provide assisted and do-it-yourself (DIY) tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded products and services, including those of our bank partners, to the general public primarily in the United States (U.S.), Canada and Australia. Tax returns are prepared by H&R Block tax professionals in one of our company-owned or franchise offices, virtually or via an online review, or they are prepared and filed by our clients through our DIY tax solutions. We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report asingle segment that includes all of our continuing operations.
H&R Block, Inc.|Q2 FY2026 Form 10-Q
Consolidated - Financial Results (in 000s, except per share amounts)
Three months ended December 31, 2025 2024 $ Change % Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation $ 55,919 $ 48,380 $ 7,539 15.6 %
Royalties 5,108 3,499 1,609 46.0 %
DIY tax preparation 16,807 13,744 3,063 22.3 %
Refund Transfers 638 637 1 0.2 %
Peace of Mind® Extended Service Plan 16,231 16,145 86 0.5 %
Tax Identity Shield® 4,244 4,013 231 5.8 %
Other 12,845 11,824 1,021 8.6 %
Total U.S. tax preparation and related services 111,792 98,242 13,550 13.8 %
Financial services:
Emerald Card® and SpruceSM
9,124 10,148 (1,024) (10.1) %
Interest and fee income on Emerald Advance® 13,446 12,308 1,138 9.2 %
Total financial services 22,570 22,456 114 0.5 %
International 34,718 31,811 2,907 9.1 %
Wave 29,785 26,561 3,224 12.1 %
Total revenues $ 198,865 $ 179,070 $ 19,795 11.1 %
Compensation and benefits:
Field wages 94,177 81,565 (12,612) (15.5) %
Other wages 73,005 78,731 5,726 7.3 %
Benefits and other compensation 39,989 38,402 (1,587) (4.1) %
207,171 198,698 (8,473) (4.3) %
Occupancy 109,592 104,999 (4,593) (4.4) %
Marketing and advertising 14,995 14,863 (132) (0.9) %
Depreciation and amortization 30,001 29,195 (806) (2.8) %
Bad debt 21,816 19,416 (2,400) (12.4) %
Other 114,169 105,190 (8,979) (8.5) %
Total operating expenses 497,744 472,361 (25,383) (5.4) %
Other income (expense), net 3,034 2,744 290 10.6 %
Interest expense on borrowings (23,378) (21,752) (1,626) (7.5) %
Pretax loss (319,223) (312,299) (6,924) (2.2) %
Income tax benefit (77,657) (69,833) 7,824 11.2 %
Net loss from continuing operations (241,566) (242,466) 900 0.4 %
Net loss from discontinued operations (600) (954) 354 37.1 %
Net loss $ (242,166) $ (243,420) $ 1,254 0.5 %
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations $ (1.91) $ (1.79) $ (0.12) (6.7) %
Discontinued operations (0.01) (0.01) - - %
Consolidated $ (1.92) $ (1.80) $ (0.12) (6.7) %
Adjusted diluted EPS(1)
$ (1.84) $ (1.73) $ (0.11) (6.4) %
EBITDA (1)
$ (265,844) $ (261,352) $ (4,492) (1.7) %
(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.
Q2 FY2026 Form 10-Q| H&R Block, Inc.
Three months ended December 31, 2025 compared to December 31, 2024
Revenues increased $19.8 million, or 11.1%, from the prior year. U.S. assisted tax preparation revenues increased $7.5 million, or 15.6%, primarily due to an increase in company-owned tax return volumes and net average charge in the current year.
U.S. DIY tax preparation revenues increased $3.1 million, or 22.3%, primarily due to higher software downloads.
Wave revenues increased $3.2 million, or 12.1%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.
Total operating expenses increased $25.4 million, or 5.4%, from the prior year. Compensation and benefits increased $8.5 million, or 4.3%, primarily due to higher tax professional wages as a result of higher assisted revenue and higher corporate wages primarily due to salary increases. Certain wage-related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally. This change had no impact on total operating expenses, and prior period amounts have not been reclassified.
Other operating expenses increased $9.0 million, or 8.5%. The components of other expenses are as follows:
(in 000s)
Three months ended December 31, 2025 2024 $ Change % Change
Consulting and outsourced services $ 24,333 $ 18,439 $ (5,894) (32.0) %
Bank partner fees (915) 1,316 2,231 **
Client claims and refunds 3,695 4,332 637 14.7 %
Employee and travel expenses 12,407 12,495 88 0.7 %
Technology-related expenses 29,772 28,062 (1,710) (6.1) %
Credit card/bank charges 19,547 18,546 (1,001) (5.4) %
Insurance 4,866 4,256 (610) (14.3) %
Legal fees and settlements 11,517 7,192 (4,325) (60.1) %
Supplies 4,558 3,570 (988) (27.7) %
Other 4,389 6,982 2,593 37.1 %
$ 114,169 $ 105,190 $ (8,979) (8.5) %
Consulting and outsourced services expense increased $5.9 million, or 32.0%, due to increased spend on various strategic projects.
We recorded an income tax benefit of $77.7 million in the current year compared to $69.8 million in the prior year. The effective tax rate for the three months ended December 31, 2025, and 2024 was 24.3% and 22.4%, respectively.
H&R Block, Inc.|Q2 FY2026 Form 10-Q
Consolidated - Financial Results (in 000s, except per share amounts)
Six months ended December 31, 2025 2024 $ Change % Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation $ 104,563 $ 91,343 $ 13,220 14.5 %
Royalties 10,957 9,351 1,606 17.2 %
DIY tax preparation 20,552 16,980 3,572 21.0 %
Refund Transfers 1,481 1,497 (16) (1.1) %
Peace of Mind® Extended Service Plan 39,740 39,242 498 1.3 %
Tax Identity Shield® 8,366 7,922 444 5.6 %
Other 26,321 25,633 688 2.7 %
Total U.S. tax preparation and related services 211,980 191,968 20,012 10.4 %
Financial services:
Emerald Card® and SpruceSM
16,976 18,974 (1,998) (10.5) %
Interest and fee income on Emerald Advance® 13,446 12,308 1,138 9.2 %
Total financial services 30,422 31,282 (860) (2.7) %
International 100,379 96,666 3,713 3.8 %
Wave 59,635 52,964 6,671 12.6 %
Total revenues $ 402,416 $ 372,880 $ 29,536 7.9 %
Compensation and benefits:
Field wages 163,892 149,659 (14,233) (9.5) %
Other wages 152,284 156,066 3,782 2.4 %
Benefits and other compensation 76,651 77,156 505 0.7 %
392,827 382,881 (9,946) (2.6) %
Occupancy 212,388 206,317 (6,071) (2.9) %
Marketing and advertising 23,337 24,835 1,498 6.0 %
Depreciation and amortization 58,923 58,026 (897) (1.5) %
Bad debt 24,021 22,146 (1,875) (8.5) %
Other 196,830 200,297 3,467 1.7 %
Total operating expenses 908,326 894,502 (13,824) (1.5) %
Other income (expense), net 11,136 14,661 (3,525) (24.0) %
Interest expense on borrowings (40,780) (37,599) (3,181) (8.5) %
Pretax loss (535,554) (544,560) 9,006 1.7 %
Income tax benefit (128,620) (130,673) (2,053) (1.6) %
Net loss from continuing operations (406,934) (413,887) 6,953 1.7 %
Net loss from discontinued operations (1,051) (2,109) 1,058 50.2 %
Net loss $ (407,985) $ (415,996) $ 8,011 1.9 %
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations $ (3.16) $ (3.02) $ (0.14) 4.6 %
Discontinued operations (0.01) (0.01) - - %
Consolidated $ (3.17) $ (3.03) $ (0.14) 4.6 %
Adjusted diluted EPS(1)
$ (3.03) $ (2.89) $ (0.14) 4.8 %
EBITDA (1)
$ (435,851) $ (448,935) $ 13,084 2.9 %
(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.
Q2 FY2026 Form 10-Q| H&R Block, Inc.
Six months ended December 31, 2025 compared to December 31, 2024
Revenues increased $29.5 million, or 7.9%, from the prior year. U.S. assisted tax preparation revenues increased $13.2 million, or 14.5%, primarily due to an increase in net average charge combined with an increase in company-owned tax return volumes in the current year.
U.S. DIY tax preparation revenues increased $3.6 million, or 21.0%, primarily due to higher software downloads and higher paid online volume.
Wave revenues increased $6.7 million, or 12.6%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.
Total operating expenses increased $13.8 million, or 1.5%, from the prior year period. Compensation and benefits increased $9.9 million, or 2.6%, primarily due to higher tax professional wages as a result of higher assisted revenue and higher corporate wages primarily due to salary increases. Certain wage-related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally. This change had no impact on total operating expenses, and prior period amounts have not been reclassified. Occupancy expense increased $6.1 million, or 2.9%, primarily due to higher lease expenses.
Other operating expenses decreased $3.5 million, or 1.7%. The components of other expenses are as follows:
(in 000s)
Six months ended December 31, 2025 2024 $ Change % Change
Consulting and outsourced services $ 37,490 $ 33,883 $ (3,607) (10.6) %
Bank partner fees (1,249) 1,363 2,612 **
Client claims and refunds 9,140 10,276 1,136 11.1 %
Employee and travel expenses 18,080 18,612 532 2.9 %
Technology-related expenses 56,121 52,563 (3,558) (6.8) %
Credit card/bank charges 38,924 36,695 (2,229) (6.1) %
Insurance 7,546 7,800 254 3.3 %
Legal fees and settlements 14,979 21,654 6,675 30.8 %
Supplies 7,657 6,477 (1,180) (18.2) %
Other 8,142 10,974 2,832 25.8 %
$ 196,830 $ 200,297 $ 3,467 1.7 %
Legal expense decreased $6.7 million, or 30.8%, primarily due to lower outside legal counsel spend.
We recorded income tax benefit of $128.6 million in the current year compared to $130.7 million in the prior year. The effective tax rate for both the six months ended December 31, 2025, and 2024 was 24.0%. See Item 1, note 7to the consolidated financial statements for additional discussion.
FINANCIAL CONDITION
These comments should be read in conjunction with the consolidated balance sheets and consolidated statements of cash flows included in Part 1, Item 1.
CAPITAL RESOURCES AND LIQUIDITY-
OVERVIEW - Our primary sources of capital and liquidity include cash from operations (including changes in working capital), draws on our unsecured committed line of credit (CLOC), and issuances of debt. We use our sources of liquidity primarily to fund working capital, service and repay debt, pay dividends, repurchase shares of our common stock, and acquire businesses.
Our operations are highly seasonal and substantially all of our revenues and cash flow are generated during the period from February through April in a typical year. Therefore, we normally require the use of cash to fund losses and working capital needs, periodically resulting in a working capital deficit, during the months of May through
H&R Block, Inc.|Q2 FY2026 Form 10-Q
January. We typically have relied on available cash balances from the prior tax season and borrowings to meet liquidity needs.
Given the likely availability of a number of liquidity options discussed herein, we believe that, in the absence of any unexpected developments, our existing sources of capital as of December 31, 2025 are sufficient to meet our operating, investing and financing needs.
DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS - The following table summarizes our statements of cash flows for the six months ended December 31, 2025 and 2024. See Item 1for the complete consolidated statements of cash flows for these periods.
(in 000s)
Six months ended December 31, 2025 2024
Net cash provided by (used in):
Operating activities $ (970,788) $ (895,638)
Investing activities (91,925) (87,493)
Financing activities 429,536 258,598
Effects of exchange rates on cash (1,106) (9,136)
Net decrease in cash and cash equivalents, including restricted balances $ (634,283) $ (733,669)
Operating Activities.Cash used in operations totaled $970.8 million for the six months ended December 31, 2025 compared to $895.6 million in the prior year period. The increase is primarily due to changes in accrued income taxes and receivables, partially offset by deferred income taxes and a lower net loss.
Investing Activities. Cash used in investing activities totaled $91.9 million for the six months ended December 31, 2025 compared to $87.5 million in the prior year period. The increase is primarily due to higher payments made for business acquisitions.
Financing Activities. Cash provided by financing activities totaled $429.5 million for the six months ended December 31, 2025 compared to $258.6 million in the prior year period. The change is primarily due to higher net proceeds from line of credit borrowings, lower share repurchases for payroll taxes on stock-based awards, partially offset by higher dividends.
CASH REQUIREMENTS-
Dividends and Share Repurchases.Returning capital to shareholders in the form of dividends and the repurchase of outstanding shares is, and has historically been, a significant component of our capital allocation plan.
We have consistently paid quarterly dividends. Dividends paid totaled $104.6 million and $97.0 millionfor the six months ended December 31, 2025 and 2024, respectively. Although we have historically paid dividends and plan to continue to do so, there can be no assurances that circumstances will not change in the future that could affect our ability or decisions to pay dividends.
During the six months ended December 31, 2025, we repurchased $400.1 million of our common stock at an average price of $50.90 per share, excluding excise taxes in connection with such repurchases. In the prior year period, we repurchased $400.1 million of our common stock at an average price of $61.10 per share, excluding excise taxes in connection with such repurchases. Our current share repurchase program has remaining authorization of $700.0 million and does not have an expiration date.
Share repurchases may be effectuated through open market transactions, some of which may be effectuated under SEC Rule 10b5-1. The Company may cancel, suspend, or extend the period for the purchase of shares at any time. Any repurchases will be funded primarily through available cash and cash from operations. Although we may continue to repurchase shares, there is no assurance that we will purchase up to the full Board authorization.
Capital Investment. Capital expenditures totaled $48.7 million and $49.1 million for the six months ended December 31, 2025 and 2024, respectively. Our capital expenditures relate primarily to recurring improvements to retail offices, as well as investments in computers, software and related assets. In addition to our capital
Q2 FY2026 Form 10-Q| H&R Block, Inc.
expenditures, we also made payments to acquire businesses. We acquired franchisee and competitor businesses totaling $35.4 million and $28.0 million during the six months ended December 31, 2025 and 2024, respectively. See Item 1, note 5for additional information on our acquisitions.
FINANCING RESOURCES - The 2025 CLOC has capacity up to $1.5 billion and is scheduled to expire in July 2030. Proceeds under the 2025 CLOC may be used for working capital needs or for other general corporate purposes. We had an outstanding balance of $945.0 millionunder our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of December 31, 2025.
On August 26, 2025, we issued the 2032 Senior Notes. We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.
The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of December 31, 2025 and June 30, 2025:
As of December 31, 2025
June 30, 2025
Short-term Long-term Outlook Short-term Long-term Outlook
Moody's P-3 Baa3 Stable P-3 Baa3 Stable
S&P A-2 BBB Stable A-2 BBB Stable
Other than described above, there have been no material changes in our borrowings from those reported as of June 30, 2025 in our Annual Report on Form 10-K.
CASH AND OTHER ASSETS - As of December 31, 2025, we held cash and cash equivalents, excluding restricted amounts, of $349.2 million, including $199.7 million held by our foreign subsidiaries.
Foreign Operations.Seasonal borrowing needs of our Canadian operations are typically funded by our U.S. operations. To mitigate foreign currency risk, we sometimes enter into foreign exchange forward contracts. There were no forward contracts outstanding as of December 31, 2025.
We do not currently intend to repatriate non-borrowed funds held by our foreign subsidiaries in a manner that would trigger a tax liability.
The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $1.1 million and $9.1 million during the six months ended December 31, 2025 and 2024, respectively.
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS- EAs are originated by Pathward. We purchase participation interests, at par, in all EAs originated by Pathward in accordance with our participation agreement. Our participation interest varies by jurisdiction. We purchased participation interests of $281.1 million during the six months ended December 31, 2025.
Except as described in Recent Developmentsrelated to the 2025 CLOC, the 2032 Senior Notes issuance and the 2025 Senior Notes redemption, there have been no other material changes in our contractual obligations and commercial commitments from those reported in our June 30, 2025 Annual Report on Form 10-K.
SUMMARIZED GUARANTOR FINANCIAL STATEMENTS- Block Financial is a 100% owned subsidiary of H&R Block, Inc. Block Financial is the Issuer and H&R Block, Inc. is the full and unconditional Guarantor of our Senior Notes, CLOC and other indebtedness issued from time to time.
H&R Block, Inc.|Q2 FY2026 Form 10-Q
The following table presents summarized financial information for H&R Block, Inc. (Guarantor) and Block Financial (Issuer) on a combined basis after intercompany eliminations and excludes investments in and equity earnings in non-guarantor subsidiaries.
SUMMARIZED BALANCE SHEET - GUARANTOR AND ISSUER (in 000s)
As of December 31, 2025 June 30, 2025
Current assets $ 330,038 $ 38,254
Noncurrent assets 2,484,987 1,836,847
Current liabilities 92,043 432,139
Noncurrent liabilities 2,440,727 1,148,806
SUMMARIZED STATEMENTS OF OPERATIONS - GUARANTOR AND ISSUER (in 000s)
Six months ended December 31, 2025
Twelve months ended June 30, 2025
Total revenues $ 32,361 $ 126,240
Income (loss) from continuing operations before income taxes (7,472) 58,596
Net income (loss) from continuing operations (5,753) 45,120
Net income (loss) (6,804) 41,443
The table above reflects $2.4 billion and $1.8 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of December 31, 2025 and June 30, 2025, respectively.
REGULATORY ENVIRONMENT
There have been no material changes in our regulatory environment from what was reported in our June 30, 2025 Annual Report on Form 10-K.
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 U.S. generally accepted accounting principles (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 of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.
Q2 FY2026 Form 10-Q| H&R Block, Inc.
The following is a reconciliation of net loss to EBITDA from continuing operations, which is a non-GAAP financial measure:
(in 000s)
Three months ended December 31, Six months ended December 31,
2025 2024 2025 2024
Net loss - as reported $ (242,166) $ (243,420) $ (407,985) $ (415,996)
Discontinued operations, net 600 954 1,051 2,109
Net loss from continuing operations - as reported (241,566) (242,466) (406,934) (413,887)
Add back:
Income tax benefit (77,657) (69,833) (128,620) (130,673)
Interest expense 23,378 21,752 40,780 37,599
Depreciation and amortization 30,001 29,195 58,923 58,026
(24,278) (18,886) (28,917) (35,048)
EBITDA from continuing operations $ (265,844) $ (261,352) $ (435,851) $ (448,935)
The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure:
(in 000s, except per share amounts)
Three months ended December 31, Six months ended December 31,
2025 2024 2025 2024
Net loss from continuing operations - as reported $ (241,566) $ (242,466) $ (406,934) $ (413,887)
Adjustments:
Amortization of intangibles related to acquisitions (pretax) 11,252 10,910 22,231 22,038
Tax effect of adjustments (1)
(2,444) (2,539) (5,236) (5,184)
Adjusted net loss from continuing operations $ (232,758) $ (234,095) $ (389,939) $ (397,033)
Diluted loss per share from continuing operations - as reported $ (1.91) $ (1.79) $ (3.16) $ (3.02)
Adjustments, net of tax 0.07 0.06 0.13 0.13
Adjusted diluted loss per share from continuing operations $ (1.84) $ (1.73) $ (3.03) $ (2.89)
(1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.
FORWARD-LOOKING INFORMATION
This report and other documents filed with the Securities and Exchange Commission (SEC) may contain forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. 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," "could," "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, services or products, 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
H&R Block, Inc.|Q2 FY2026 Form 10-Q
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, operational and regulatory factors, many of which are beyond the Company's control. In addition, factors that may cause the Company's actual 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, and increases in applicable tax rates in jurisdictions where the Company operates. Investors should understand that it is not possible to predict or identify all such factors and, consequently, should not consider any such list to be a complete set of all potential risks or uncertainties.
Details about risks, uncertainties and assumptions that could affect various aspects of our business are included throughout our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and are also described from time to time in other filings with the SEC. Investors should carefully consider all of these risks, and should pay particular attention to Item 1A, "Risk Factors," and Item 7 under "Critical Accounting Estimates" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
H&R Block Inc. published this content on February 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 05, 2026 at 21:32 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]