H&R Block (HRB) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue was flat at $179.1 million, with net loss increasing to $243.4 million and operating expenses rising 5.8% due to higher wages, marketing, and legal costs.

• Small Business segment delivered double-digit revenue growth, with strong adoption of high-margin subscription products and continued digital transformation initiatives.

• Full-year FY25 outlook reaffirmed, with preparations for the second half and tax season underway.

• Adjusted diluted loss per share for Q2 was $(1.73), down from $(1.27) last year; EBITDA loss was $(261.4) million, up from $(231.4) million.

Financial highlights

• Total Q2 revenue was $179.1 million, flat year-over-year, as gains in Wave and international tax prep offset lower Emerald Advance volume.

• Operating expenses rose to $472.4 million, mainly from higher wages, healthcare, occupancy, and marketing.

• EBITDA loss was $261.4 million versus $231.4 million last year; net loss for the quarter was $243.4 million, up from $189.8 million.

• Adjusted loss per share was $(1.73), up from $(1.27), reflecting a higher net loss and fewer shares outstanding.

• Cash and cash equivalents at quarter-end were $320.1 million, down from $1.05 billion at June 30, 2024.

Outlook and guidance

• Full-year revenue expected between $3.69 billion and $3.75 billion; EBITDA between $975 million and $1.02 billion.

• Adjusted diluted EPS guidance is $5.15–$5.35, including a one-time benefit of about $0.50 from a 13% effective tax rate.

• Management expects pretax losses in the first half to be offset by income in the third and fourth quarters due to business seasonality.