H&R Block Reports Fiscal 2026 Results and Enters Fiscal 2027 with Confidence

- Delivered Revenue Growth of 5% - 

- Generated Strong Operating Cash Flow, Up 23% -

- Returned $714 Million to Shareholders via Dividends and Share Repurchases -

- Raises Quarterly Dividend by 10% -

KANSAS CITY, Mo., Aug. 11, 2026 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2026 year ended June 30, 2026.

"Fiscal 2026 provided meaningful evidence that the strategic choices we are making are strengthening H&R Block," said Curtis Campbell, president and chief executive officer. "The results we delivered reflect continued progress in the quality of our business, improvements in the mix of our client base, and evidence that our testing and experimentation are accelerating our ability to learn, adapt, and scale what works. Together, they reinforce the value of our expert-led, technology-enabled strategy and give us confidence in the opportunities ahead."

Fiscal 2026 Results and Key Financial Metrics

"Fiscal 2026 was a year of meaningful progress for H&R Block. Strong execution drove accelerating revenue growth, margin expansion, and higher operating cash flow generation, while reinforcing our ability to strengthen client outcomes and deliver disciplined returns to shareholders," said Tiffany Mason, chief financial officer. "Entering fiscal 2027, we are well positioned to build on this momentum and continue delivering meaningful long-term value."

Total revenue of $3.95 billion increased by $184.4 million, or 4.9%, versus the prior year. The increase was primarily the result of higher net average charge (NAC) and company-owned volume in U.S. assisted tax preparation, growth in international revenue, and an increase in Wave subscription revenue and payments volume.

Total operating expenses of $3.0 billion increased by $104.7 million, or 3.6%, versus the prior year. The increase was primarily due to higher field wages as a result of increased assisted tax preparation revenue, and higher occupancy costs and technology-related expenses.

Net income from continuing operations increased by $126.9 million, or 20.8%, to $736.3 million, and earnings per share from continuing operations2 increased 28.7% to $5.69.

During the third quarter, the Company recognized a one-time non-cash tax benefit related to the resolution of an IRS examination. The $84.1 million benefit reduced income tax expense, providing a $0.65 benefit to earnings per share for fiscal 2026.

Adjusted net income from continuing operations2 increased by $44.7 million, or 6.9%, to $688.0 million, and adjusted earnings per share from continuing operations2 increased 13.9% to $5.31 driven by fewer shares outstanding from share repurchases and higher adjusted net income.

Capital Allocation

• The Company announced today that the Board of Directors increased the quarterly dividend by 10%, representing nine consecutive annual increases. The quarterly cash dividend is now $0.46 per share, payable on October 6th to shareholders of record as of September 3rd.
• In fiscal 2026, the Company repurchased and retired approximately 10.5 million shares, or 7.9% of shares outstanding, at an aggregate price of $500.3 million, or $47.48 per share.
• The Company has approximately $600 million remaining on its $1.5 billion share repurchase program.
• During fiscal 2026, the Company returned a total of $713.7 million to shareholders via dividends and share repurchases as part of its disciplined capital allocation priorities.

H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. Since 2016, the Company has returned more than $5.2 billion to shareholders in the form of dividends and share repurchases, buying back over 48% of its shares outstanding3.

Fiscal Year 2027 Outlook

For fiscal year 2027, the Company expects:

• Revenue to be in the range of $4.11 to $4.16 billion.
• Adjusted EBITDA4 to be in the range of $1.11 to $1.14 billion.
• Effective tax rate to be approximately 23%.
• Adjusted Diluted Earnings Per Share4 to be in the range of $6.04 to $6.24.

Conference Call & Webcast

The Company will host a conference call for analysts and investors to discuss fourth quarter 2026 results at 4:30 p.m. ET on Tuesday, August 11, 2026. To join live, participants must register at https://register-conf.media-server.com/register/BI60bdfcc5143e4b4bab4f944036d27add. 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/yc868747/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 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 based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted net income, adjusted earnings per share (EPS) and earnings before interest, tax, depreciation, and amortization (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).
3 Shares outstanding calculated as of April 30, 2016.
4 Adjusted Diluted EPS and Adjusted EBITDA 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 June 30, Year ended June 30,   2026   2025   2026   2025 REVENUES:        U.S. tax preparation and related services:        Assisted tax preparation $714,197  $686,009  $2,560,895  $2,413,229 Royalties  46,290   49,565   185,429   192,877 DIY tax preparation  148,821   152,092   384,618   383,738 Refund Transfers  23,716   22,297   145,132   137,526 Peace of Mind® Extended Service Plan  30,524   32,459   84,611   87,326 Tax Identity Shield®  17,334   14,973   34,185   29,920 Other  21,657   18,103   62,978   58,318 Total U.S. tax preparation and related services  1,002,539   975,498   3,457,848   3,302,934 Financial services:        Emerald Card® and SpruceSM  12,249   13,719   68,815   72,888 Interest and fee income on Emerald Advance®  2,009   2,364   30,653   28,958 Total financial services  14,258   16,083   99,468   101,846 International  94,884   89,889   265,382   246,993 Wave  33,188   29,541   122,694   109,222 Total revenues $1,144,869  $1,111,011  $3,945,392  $3,760,995 Compensation and benefits:        Field wages  255,261   244,785   996,666   927,360 Other wages  79,801   76,312   310,788   306,999 Benefits and other compensation  61,772   61,998   256,574   250,729    396,834   383,095   1,564,028   1,485,088 Occupancy  117,499   112,842   457,199   438,868 Marketing and advertising  69,086   64,298   277,811   285,800 Depreciation and amortization  31,998   29,580   122,440   116,827 Bad debt  12,074   11,959   75,901   74,584 Other  140,606   137,958   540,327   531,858 Total operating expenses  768,097   739,732   3,037,706   2,933,025          Other income (expense), net  11,736   12,331   26,813   31,546 Interest expense on borrowings  (15,524)  (15,828)  (80,611)  (78,113)Income from continuing operations before income taxes  372,984   367,782   853,888   781,403 Income taxes  78,512   67,373   117,570   171,953 Net income from continuing operations  294,472   300,409   736,318   609,450 Net loss from discontinued operations  (792)  (970)  (2,722)  (3,677)Net income $293,680  $299,439  $733,596  $605,773          DILUTED EARNINGS PER SHARE:        Continuing operations $2.31  $2.21  $5.69  $4.42 Discontinued operations  (0.01)  (0.01)  (0.03)  (0.03)Consolidated $2.30  $2.20  $5.66  $4.39          WEIGHTED AVERAGE DILUTED SHARES  126,989   135,518   128,866   137,340          Adjusted diluted EPS(1) $2.38  $2.27  $5.31  $4.66 EBITDA(1) $420,506  $413,190  $1,056,939  $976,343          

(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,  2026   2025      ASSETS    Cash and cash equivalents $958,706  $983,277 Cash and cash equivalents - restricted  19,195   19,862 Receivables, net  58,248   63,621 Prepaid expenses and other current assets  89,408   95,788 Total current assets  1,125,557   1,162,548 Property and equipment, net  141,456   135,068 Operating lease right of use asset  597,641   521,215 Intangible assets, net  266,986   259,412 Goodwill  812,543   802,053 Deferred tax assets and income taxes receivable  239,745   317,691 Other noncurrent assets  72,423   65,911 Total assets $3,256,351  $3,263,898 LIABILITIES AND STOCKHOLDERS’ EQUITY    LIABILITIES:    Accounts payable and accrued expenses $156,330  $144,046 Accrued salaries, wages and payroll taxes  121,878   107,375 Accrued income taxes and reserves for uncertain tax positions  266,184   296,244 Current portion of long-term debt  —   349,893 Operating lease liabilities  228,760   209,203 Deferred revenue and other current liabilities  220,273   191,849 Total current liabilities  993,425   1,298,610 Long-term debt  1,491,493   1,143,305 Deferred tax liabilities and reserves for uncertain tax positions  163,660   306,134 Operating lease liabilities  382,100   322,847 Deferred revenue and other noncurrent liabilities  108,185   104,106 Total liabilities  3,138,863   3,175,002 COMMITMENTS AND CONTINGENCIES    STOCKHOLDERS’ EQUITY:    Common stock, no par, stated value $.01 per share  1,538   1,644 Additional paid-in capital  784,363   766,998 Accumulated other comprehensive loss  (64,088)  (47,755)Retained earnings  30,782   12,061 Less treasury shares, at cost  (635,107)  (644,052)Total stockholders' equity  117,488   88,896 Total liabilities and stockholders' equity $3,256,351  $3,263,898      

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in 000s)Year ended June 30,  2026   2025 CASH FLOWS FROM OPERATING ACTIVITIES:    Net income $733,596  $605,773 Adjustments to reconcile net income to net cash provided by operating activities:    Depreciation and amortization  122,440   116,827 Provision for credit losses  64,878   65,191 Deferred taxes  13,996   (34,612)Stock-based compensation  30,478   32,503 Changes in assets and liabilities, net of acquisitions:    Receivables  (69,094)  (62,247)Prepaid expenses and other current and noncurrent assets  (5,324)  3,183 Accounts payable, accrued expenses, salaries, wages and payroll taxes  13,565   (23,009)Deferred revenue, other current and noncurrent liabilities  33,529   (1,575)Income tax receivables, accrued income taxes and income tax reserves  (97,079)  (20,613)Other, net  (2,290)  (538)   Net cash provided by operating activities  838,695   680,883      CASH FLOWS FROM INVESTING ACTIVITIES:    Capital expenditures  (82,614)  (82,034)Payments made for business acquisitions, net of cash acquired  (57,639)  (35,518)Franchise loans funded  (18,453)  (21,705)Payments from franchisees  28,097   23,786 Other, net  5,800   10,098    Net cash used in investing activities  (124,809)  (105,373)     CASH FLOWS FROM FINANCING ACTIVITIES:    Repayments of line of credit borrowings  (2,375,000)  (1,950,000)Proceeds from line of credit borrowings  2,375,000   1,950,000 Repayments of long-term debt  (350,000)  — Proceeds from issuance of long-term debt  346,980   — Dividends paid  (211,005)  (197,330)Repurchase of common stock, including shares surrendered  (512,905)  (437,133)Other, net  (7,290)  (12,980)Net cash used in financing activities  (734,220)  (647,443)     Effects of exchange rate changes on cash  (4,904)  (121)     Net increase (decrease) in cash and cash equivalents, including restricted balances  (25,238)  (72,054)Cash, cash equivalents and restricted cash, beginning of the year  1,003,139   1,075,193 Cash, cash equivalents and restricted cash, end of the year $977,901  $1,003,139      SUPPLEMENTARY CASH FLOW DATA:    Income taxes paid, net (includes payments for purchased investment tax credits) $202,134  $226,820 Interest paid on borrowings  76,728   74,639 Accrued additions to property and equipment  3,996   2,591 Accrued dividends payable to common shareholders  52,627   50,208      

        (in 000s)  Three months ended June 30, Year ended June 30,NON-GAAP FINANCIAL MEASURE - EBITDA  2026  2025  2026  2025         Net income - as reported $293,680 $299,439 $733,596 $605,773Discontinued operations, net  792  970  2,722  3,677Net income from continuing operations - as reported  294,472  300,409  736,318  609,450Add back:        Income taxes  78,512  67,373  117,570  171,953Interest expense  15,524  15,828  80,611  78,113Depreciation and amortization  31,998  29,580  122,440  116,827   126,034  112,781  320,621  366,893EBITDA from continuing operations $420,506 $413,190 $1,056,939 $976,343         

  (in 000s, except per share amounts)  Three months ended June 30, Year ended June 30,NON-GAAP FINANCIAL MEASURES -
ADJUSTED NET INCOME AND ADJUSTED EPS  2026   2025   2026   2025          Net income from continuing operations - as reported $294,472  $300,409  $736,318  $609,450 Adjustments:        Amortization of intangibles related to acquisitions (pretax)  12,469   11,357   46,870   44,673 Discrete tax impact of IRS examination settlements  —   —   (84,113)  — Tax effect of adjustments(1)  (2,738)  (2,754)  (11,119)  (10,865)Adjusted net income from continuing operations $304,203  $309,012  $687,956  $643,258          Diluted earnings per share from continuing operations - as reported $2.31  $2.21  $5.69  $4.42 Adjustments, net of tax  0.07   0.06   (0.38)  0.24 Adjusted diluted earnings per share from continuing operations $2.38  $2.27  $5.31  $4.66          

(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 material discrete tax impacts of IRS examination settlements, 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, such as 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.