H&R Block (HRB) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue grew 4.2% year-over-year to $3.8 billion, with EBITDA of $976.3 million and net income of $609.5 million, while adjusted EPS increased 5.7% to $4.66.

• $600 million was returned to shareholders in fiscal 2025, with a 12% increase in the quarterly dividend and cumulative capital return exceeding $4.5 billion since 2016.

• Transformation efforts focused on engaging clients with complex needs, expanding small business reach, and leveraging technology and AI for efficiency.

• CEO Jeff Jones announced retirement effective December 31, 2025, with Curtis to succeed as President and CEO.

• Spruce mobile banking platform saw a 40% increase in new accounts and total deposits reached $1.75 billion since launch.

Financial highlights

• Total revenue: $3.8 billion, up 4.2% year-over-year; EBITDA: $976.3 million, up 1.4%; net income: $609.5 million, up 1.9%.

• Adjusted EPS: $4.66, up 5.7% year-over-year.

• Free cash flow: approximately $600 million.

• Operating expenses: $2.93 billion, up 4.6% year-over-year, mainly due to higher wages, benefits, healthcare, legal fees, and severance.

• Effective tax rate for FY25: 22%.

Outlook and guidance

• Fiscal 2026 revenue expected between $3.875 billion and $3.895 billion.

• EBITDA guidance: $1.015 billion to $1.035 billion.

• Adjusted EPS guidance: $4.85 to $5.00, with an effective tax rate near 25% and $400 million in share repurchases planned.

• Small business expected to be a meaningful revenue driver; continued franchise acquisitions planned.

• Industry growth for next year expected to align with historical trends (~1%).