H&R Block Inc. Reports 4.2% Revenue Increase

By Philip Seaworth • Sunday, August 17 10:24 • Permanent Link

H&R Block Inc. has recently released its 10-K report, revealing a 4.2% increase in revenue, reaching $3.76 billion in fiscal year 2025. The company's U.S. assisted tax preparation revenues increased by 6.1%, while U.S. DIY tax preparation revenues saw a 9.7% increase. The net income from continuing operations stood at $609.5 million, marking a 1.9% rise from the prior year. The company's EBITDA also increased by 1.4% to $976.3 million. Diluted earnings per share from continuing operations increased by 6.8%, reaching $4.42.

The company's operating expenses increased by 4.6%, primarily due to higher compensation and benefits, marketing, consulting, technology, and legal costs. The increase in field wages by 6.7% was attributed to higher tax professional wages, while other wages increased by 2.7% due to higher corporate wages. Benefits and other compensation rose by 9.6%, and marketing and advertising expenses increased by 2.9%.

H&R Block Inc. reported a net cash provided by operating activities of $680.9 million in fiscal year 2025, compared to $720.9 million in the prior year period. Cash used in investing activities totaled $105.4 million, primarily due to higher capital expenditures, while cash used in financing activities amounted to $647.4 million, mainly due to higher repurchases of common stock and dividends.

The company repurchased $400.1 million of its common stock at an average price of $61.10 per share in the year ended June 30, 2025. H&R Block Inc. also paid dividends totaling $197.3 million in the same period. The company's capital expenditures totaled $82.0 million, primarily relating to recurring improvements to retail offices and investments in computers, software, and related assets.

As of June 30, 2025, H&R Block Inc. held cash and cash equivalents of $983.3 million, including $205.9 million held by its foreign subsidiaries. The company's short-term and long-term debt ratings as of June 30, 2025, were P-3 and Baa3, respectively, with a stable outlook.

Following these announcements, the company's shares moved 1.58%, and are now trading at a price of $50.15. For more information, read the company's full 10-K submission here.

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