H&R Block (HRB) investor relations material

Executive summary

• Revenue grew 5.3% year-over-year in Q3 2026 to $2.4 billion, driven by higher net average charge and volume in U.S. assisted tax preparation, international growth, and increased Refund Transfer volume.

• Net income from continuing operations rose 17.4% to $848.8 million, with diluted EPS up 24.2% to $6.61, aided by a one-time $84.1 million non-cash tax benefit from an IRS examination settlement.

• Adjusted net income increased 5.8% to $773.7 million, and adjusted EPS rose 11.9% to $6.02.

• Strategy focused on expert-led, technology-enabled experiences and AI-driven enhancements, resulting in measurable gains in client engagement, retention, and satisfaction.

• Maintained and improved assisted channel market share for the third consecutive year, with a focus on higher-lifetime-value, complex clients.

Financial highlights

• U.S. assisted tax preparation revenue grew 6.5% year-over-year, primarily from higher average charges and increased company-owned volumes.

• EBITDA for Q3 2026 was $1.07 billion, up 5.9% year-over-year.

• Operating expenses increased 4.8% to $1.4 billion, mainly due to higher field wages.

• Cash and cash equivalents at March 31, 2026, were $867 million.

• Year-to-date, $560.9 million was returned to shareholders via dividends and share repurchases.

Outlook and guidance

• Fiscal 2026 revenue expected between $3.91 and $3.92 billion, a 4.1% year-over-year increase at midpoint.

• EBITDA projected at $1.025 to $1.035 billion, a 5.5% year-over-year increase at midpoint.

• Adjusted diluted EPS forecasted at $5.10 to $5.20, a 10.5% year-over-year increase at midpoint.

• Effective tax rate anticipated to be approximately 14%.

• Long-term growth algorithm targets 3–6% revenue growth, adjusted EBITDA at 1.5x revenue growth, and double-digit EPS growth.