H&R Block (HRB) investor relations material

Executive summary

• Fiscal 2026 delivered strong financial and operational results, with revenue up 4.9% to $3.95 billion, EBITDA up 8.3% to $1.06 billion, and adjusted EPS up 13.9% to $5.31 year-over-year, reflecting strategic focus on higher-value clients and technology integration.

• Net income from continuing operations rose 20.8% to $736.3 million, with reported EPS up 28.7% to $5.69.

• Enhanced client retention (+190 bps overall, +600 bps for Second Look clients) and nearly doubled engagement in AI Tax Assist compared to FY25.

• Returned $714 million to shareholders via dividends and share repurchases, including a 10% increase in the quarterly dividend.

• Significant progress in omni-channel model, integrating AI and automation to enhance both client and tax pro experiences.

Financial highlights

• Revenue reached $3.95 billion, up 4.9% year-over-year, driven by higher net average charge, U.S. assisted volume, international growth, and Wave's double-digit revenue gains.

• EBITDA was $1.06 billion, up 8.3% year-over-year, with margin expansion to 26.8%.

• Net income from continuing operations was $736 million; adjusted net income was $688 million.

• Adjusted EPS was $5.31, up 13.9% year-over-year, aided by share repurchases and higher adjusted net income.

• Free cash flow was $756 million, and operating cash flow increased 23% to $838.7 million.

Outlook and guidance

• Fiscal 2027 revenue expected between $4.11 billion and $4.16 billion; adjusted EBITDA between $1.11 billion and $1.14 billion.

• Adjusted diluted EPS guidance is $6.04–$6.24; effective tax rate expected at ~23%.

• Board approved a 10% increase in quarterly dividend to $0.46 per share; ~$400 million in share repurchases planned.

• $600 million remains under current share repurchase authorization.

• Industry growth expected to moderate, but company expects to maintain or grow assisted category market share and continue small business services expansion.