H&R Block (HRB) Q4 2024 earnings summary

Executive summary

• Achieved another year of revenue growth, with EBITDA and double-digit EPS growth outpacing revenue year-over-year.

• Announced a 17% increase in quarterly dividend and a new $1.5 billion share repurchase authorization.

• Leadership transition: Tony Bowen retiring as CFO, succeeded by Tiffany Mason; new Chief Strategy and Operations Officer appointed.

• Repurchased $350 million in shares, reducing outstanding shares by 5.5%.

• FY25 guidance projects continued revenue, EBITDA, and EPS growth.

Financial highlights

• FY24 revenue reached $3.61 billion, up 4% ($138 million) year-over-year.

• EBITDA increased 5.3% to $963 million; pre-tax income up 7% to $762 million.

• Adjusted EPS grew 15% to $4.41; reported EPS up 16% to $4.14.

• Operating expenses were $2.8 billion, up 3%, mainly due to higher labor and bad debt costs.

• Free cash flow for FY24 was $721 million.

Outlook and guidance

• FY25 revenue expected between $3.69–$3.75 billion; EBITDA between $975 million–$1.02 billion.

• Adjusted EPS guidance of $5.15–$5.35, benefiting from a one-time low effective tax rate (~13%), contributing ~$0.50 to EPS.

• Industry growth expected at 1%, with DIY outpacing Assisted; goal to maintain overall market share.

• Continued focus on cost leverage, margin expansion, and opportunistic franchise acquisitions.