H&R BLOCK INC
For the period ended Dec 31, 2025. Filed Feb 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 5, 2026
HRB$52.69-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0000012659-25-000016
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial InformationCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-05.
0000012659-26-000008
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial InformationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 72 current paragraphs.
36 unchanged; 22 reworded; 8 added; 2 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 15 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
U.S. DIY tax preparation revenues increased $3.1 million, or 22.3%, primarily due to higher software downloads.
Current report
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.
Current report
Consulting and outsourced services expense increased $5.9 million, or 32.0%, due to increased spend on various strategic projects.
Current report
U.S. DIY tax preparation revenues increased $3.6 million, or 21.0%, primarily due to higher software downloads and higher paid online volume.
Current report
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.
Current report
Legal expense decreased $6.7 million, or 30.8%, primarily due to lower outside legal counsel spend.
Current report
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 7 to the consolidated financial statements for additional discussion.
Current report
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.
Removed paragraphs (2)
Previous report
Total operating expenses decreased $11.6 million, or 2.7%, from the prior year. Field wages increased $1.6 million, or 2.4%, due to higher preseason and tax professional wages in the current year. Other wages increased $1.9 million, or 2.5% due to higher corporate wages due to salary increases. Benefits and other compensation decreased $2.1 million, or 5.4% primarily due to lower stock-based compensation expense. Occupancy expense increased $1.5 million, or 1.5%, primarily due to higher lease expenses. Marketing and advertising expense decreased $1.6 million, or 16.3%, due to higher vendor refunds for expired customer incentives and lower online advertising.
Previous report
Consulting and outsourced services expense decreased $2.3 million, or 14.8%, due to lower call center expenses. Technology-related expenses increased by $1.8 million, or 7.5%, due to higher cloud-related technology spend. Legal expenses decreased $11.0 million primarily due to lower outside legal counsel spend in the current year.
Reworded paragraphs (22)
Previous wording
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 will also retire from the Board of Directors, effective on December 31, 2025. On August 8, 2025, the Board appointed Curtis A. Campbell, currently 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.
Current wording
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.
Previous wording
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 will be 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.
Current wording
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.
Previous wording
Revenues increased $9.7 million, or 5.0%, from the prior year. U.S. assisted tax preparation revenues increased $5.7 million, or 13.2%, due to an increase in net average charge and company-owned tax return volumes in the current year.
Current wording
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.
Previous wording
Wave revenues increased $3.4 million, or 13.1%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.
Current wording
Wave revenues increased $3.2 million, or 12.1%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.
Previous wording
We recorded an income tax benefit of $51.0 million in the current year compared to $60.8 million in the prior year. The effective tax rate for the three months ended September 30, 2025, and 2024 was 23.6% and 26.2%, respectively.
Current wording
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.
Previous wording
Other operating expenses decreased $12.4 million, or 13.1%. The components of other expenses are as follows:
Current wording
Other operating expenses decreased $3.5 million, or 1.7%. The components of other expenses are as follows:
Previous wording
DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS– The following table summarizes our statements of cash flows for the three months ended September 30, 2025 and 2024. See Item 1 for the complete consolidated statements of cash flows for these periods.
Current wording
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 1 for the complete consolidated statements of cash flows for these periods.
Previous wording
Operating Activities. Cash used in operations totaled $356.8 million for the three months ended September 30, 2025 compared to $328.6 million in the prior year period. The increase is primarily due to changes in accrued income taxes and other current liabilities, partially offset by a lower net loss.
Current wording
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.
Previous wording
Investing Activities. Cash used in investing activities totaled $20.9 million for the three months ended September 30, 2025 compared to $26.4 million in the prior year period. The decrease is primarily due to lower capital expenditures.
Current wording
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.
Previous wording
Financing Activities. Cash used in financing activities totaled $225.0 million for the three months ended September 30, 2025 compared to $284.5 million in the prior year period. The change is primarily due to proceeds from line of credit borrowings partially offset by higher repurchases of common stock.
Current wording
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.
Previous wording
We have consistently paid quarterly dividends. Dividends paid totaled $50.2 million and$44.7 million for the three months ended September 30, 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.
Current wording
We have consistently paid quarterly dividends. Dividends paid totaled $104.6 million and$97.0 million for 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.
Previous wording
During the three months ended September 30, 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 $209.6 million of our common stock at an average price of $63.51 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.
Current wording
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.
Previous wording
Capital Investment. Capital expenditures totaled $13.2 million and $18.7 million for the three months ended September 30, 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 expenditures, we also made payments to acquire businesses. We acquired franchisee and competitor businesses
Current wording
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
Previous wording
totaling $5.1 million and $5.9 million during the three months ended September 30, 2025 and 2024, respectively. See Item 1, note 5 for additional information on our acquisitions.
Current wording
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 5 for additional information on our acquisitions.
Previous wording
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 $245.0 million under our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenantas of September 30, 2025.
Current wording
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 million under our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenantas of December 31, 2025.
Previous wording
On August 26, 2025, we issued the 2032 Senior Notes. We intend to use the net proceeds from the 2032 Senior Notes for general corporate purposes, which may include, among other uses, redeeming the 2025 Senior Notes. We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.
Current wording
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.
Previous wording
CASH AND OTHER ASSETS– As of September 30, 2025, we held cash and cash equivalents, excluding restricted amounts, of $376.4 million, including $213.1 million held by our foreign subsidiaries.
Current wording
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.
Previous wording
The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $2.9 million during the three months ended September 30, 2025 and in an increase of $3.2 million during the three months ended September 30, 2024.
Current wording
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.
Previous wording
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – Except as described in Recent Developments related 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.
Current wording
Except as described in Recent Developments related 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.
Previous wording
The table above reflects $2.0 billion and $1.8 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of September 30, 2025 and June 30, 2025, respectively.
Current wording
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.
Previous wording
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 disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate.
Current wording
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
Previous wording
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
Current wording
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.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Other operating expenses increased $9.0 million, or 8.5%. The components of other expenses are as follows:
Current report — wording carried from elsewhere
(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.
Current report — wording carried from elsewhere
Six months ended December 31, 2025 compared to December 31, 2024
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
Wave revenues increased $6.7 million, or 12.6%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.
Current report — wording carried from elsewhere
disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.