H&R Block Inc. has recently released its 10-K report, detailing its fiscal year 2025 results. The company primarily provides assisted and do-it-yourself tax return preparation services in the United States, Canada, and Australia. In the fiscal year 2025, the company's revenue increased by $150.6 million, or 4.2%, driven by growth in U.S. assisted tax preparation, DIY tax preparation, and Wave revenues.
The company's operating expenses also increased by $128.0 million, or 4.6%, primarily due to higher compensation and benefits, marketing, consulting, technology, and legal costs. Despite this, H&R Block Inc. reported a pretax income increase of $19.1 million, or 2.5%, and a net income from continuing operations of $609.5 million, marking a 1.9% increase from the prior year.
The company's EBITDA stood at $976.3 million, reflecting a $13.2 million, or 1.4%, increase. Diluted earnings per share from continuing operations increased by $0.28, or 6.8%, and adjusted diluted earnings per share from continuing operations increased by $0.25, or 5.7%.
In terms of revenue breakdown, U.S. tax preparation and related services saw a 4.9% increase, totaling $3,302,934, with assisted tax preparation contributing $2,413,229, a 6.1% increase, and DIY tax preparation contributing $383,738, a 9.7% increase. The company's financial services saw a 13.0% decrease, totaling $101,846, while international revenue remained relatively stable at $246,993.
The company's cash provided by operating activities totaled $680.9 million for the year ended June 30, 2025, compared to $720.9 million in the prior year period. Cash used in investing activities totaled $105.4 million, up from $93.9 million in the prior year period, primarily due to higher capital expenditures. Cash used in financing activities totaled $647.4 million, up from $564.3 million in the prior year period, primarily due to higher repurchases of common stock and dividends.
H&R Block Inc.'s capital investment for the year included $82.0 million in capital expenditures and $35.5 million in payments to acquire businesses. The company also repurchased $400.1 million of its common stock during the year, with an average price of $61.10 per share. The company's share repurchase program has remaining authorization of $1.1 billion and does not have an expiration date.
As of June 30, 2025, the company held cash and cash equivalents, excluding restricted amounts, of $983.3 million, including $205.9 million held by its foreign subsidiaries. H&R Block Inc. believes that its existing sources of capital are sufficient to meet its future operating and financing needs, given the likely availability of a number of liquidity options. As a result of these announcements, the company's shares have moved 1.58% on the market, and are now trading at a price of $50.15. Check out the company's full 10-K submission here.
