H&R Block Reports Fiscal 2025 Third Quarter Results
H&R Block (NYSE: HRB) reported strong fiscal 2025 third quarter results with notable growth across key metrics. The company achieved revenue growth of 4.2% to $2.3 billion, driven by increased net average charge and higher company-owned return volumes. Net income from continuing operations rose 4.5% to $722.9 million, while earnings per share grew 9.2% to $5.32.
The company maintained its shareholder-friendly capital allocation strategy, announcing a quarterly dividend of $0.375 per share and completing share repurchases of 6.5 million shares at $400 million. Since 2016, H&R Block has returned over $4.5 billion to shareholders and bought back 43% of outstanding shares.
Management reaffirmed its FY2025 outlook, projecting revenue between $3.69-$3.75 billion and EBITDA of $975 million to $1.02 billion, with adjusted EPS expected at $5.15-$5.35.
H&R Block (NYSE: HRB) ha riportato risultati solidi nel terzo trimestre fiscale 2025, con una crescita significativa nei principali indicatori. L'azienda ha registrato una crescita dei ricavi del 4,2% raggiungendo 2,3 miliardi di dollari, trainata dall'aumento della media netta delle commissioni e dal maggior volume di ritorni di proprietà aziendale. Il reddito netto dalle operazioni continue è aumentato del 4,5% a 722,9 milioni di dollari, mentre l'utile per azione è cresciuto del 9,2% a 5,32 dollari.
L'azienda ha mantenuto una strategia di allocazione del capitale favorevole agli azionisti, annunciando un dividendo trimestrale di 0,375 dollari per azione e completando riacquisti di azioni per 6,5 milioni di titoli, pari a 400 milioni di dollari. Dal 2016, H&R Block ha restituito oltre 4,5 miliardi di dollari agli azionisti e ha riacquistato il 43% delle azioni in circolazione.
Il management ha confermato le previsioni per l'esercizio 2025, stimando ricavi tra 3,69 e 3,75 miliardi di dollari e un EBITDA compreso tra 975 milioni e 1,02 miliardi, con un utile per azione rettificato previsto tra 5,15 e 5,35 dollari.
H&R Block (NYSE: HRB) reportó sólidos resultados en el tercer trimestre fiscal 2025, con un crecimiento destacado en métricas clave. La compañía logró un crecimiento de ingresos del 4,2% hasta 2,3 mil millones de dólares, impulsado por un aumento en el cargo promedio neto y mayores volúmenes de devoluciones propias de la empresa. El ingreso neto de operaciones continuas aumentó un 4,5% hasta 722,9 millones de dólares, mientras que las ganancias por acción crecieron un 9,2% hasta 5,32 dólares.
La empresa mantuvo su estrategia de asignación de capital favorable a los accionistas, anunciando un dividendo trimestral de 0,375 dólares por acción y completando recompras de acciones por 6,5 millones de títulos por 400 millones de dólares. Desde 2016, H&R Block ha devuelto más de 4,5 mil millones de dólares a los accionistas y ha recomprado el 43% de las acciones en circulación.
La dirección reafirmó sus perspectivas para el año fiscal 2025, proyectando ingresos entre 3,69 y 3,75 mil millones de dólares y un EBITDA entre 975 millones y 1,02 mil millones, con ganancias por acción ajustadas esperadas entre 5,15 y 5,35 dólares.
H&R Block (NYSE: HRB)는 2025 회계연도 3분기 강력한 실적을 보고했으며 주요 지표 전반에 걸쳐 눈에 띄는 성장을 기록했습니다. 회사는 4.2% 증가한 23억 달러의 매출 증가를 달성했으며, 이는 순평균 요금 상승과 회사 소유 반품량 증가에 힘입은 결과입니다. 계속 영업 이익은 4.5% 증가한 7억 2,290만 달러를 기록했고, 주당순이익은 9.2% 증가한 5.32달러를 기록했습니다.
회사는 주주 친화적인 자본 배분 전략을 유지하며 주당 0.375달러의 분기 배당금을 발표하고 4억 달러 규모의 650만 주 자사주 매입을 완료했습니다. 2016년 이후 H&R Block은 주주에게 45억 달러 이상을 환원했으며, 유통 주식의 43%를 자사주로 매입했습니다.
경영진은 2025 회계연도 전망을 재확인하며 매출 36억 9천만 달러에서 37억 5천만 달러, EBITDA는 9억 7,500만 달러에서 10억 2천만 달러, 조정 주당순이익은 5.15달러에서 5.35달러 사이로 예상했습니다.
H&R Block (NYSE : HRB) a publié de solides résultats pour le troisième trimestre de l'exercice 2025, avec une croissance notable sur les indicateurs clés. La société a enregistré une croissance du chiffre d'affaires de 4,2 % à 2,3 milliards de dollars, portée par une augmentation du montant moyen net facturé et un volume plus élevé de retours détenus par l'entreprise. Le résultat net des activités poursuivies a augmenté de 4,5 % pour atteindre 722,9 millions de dollars, tandis que le bénéfice par action a progressé de 9,2 % pour s'établir à 5,32 dollars.
L'entreprise a maintenu sa stratégie d'allocation de capital favorable aux actionnaires, annonçant un dividende trimestriel de 0,375 dollar par action et finalisant des rachats d'actions pour 6,5 millions de titres, soit 400 millions de dollars. Depuis 2016, H&R Block a reversé plus de 4,5 milliards de dollars à ses actionnaires et racheté 43 % des actions en circulation.
La direction a réaffirmé ses prévisions pour l'exercice 2025, prévoyant un chiffre d'affaires compris entre 3,69 et 3,75 milliards de dollars et un EBITDA entre 975 millions et 1,02 milliard, avec un bénéfice par action ajusté attendu entre 5,15 et 5,35 dollars.
H&R Block (NYSE: HRB) meldete starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit bemerkenswertem Wachstum in wichtigen Kennzahlen. Das Unternehmen erzielte ein Umsatzwachstum von 4,2 % auf 2,3 Milliarden US-Dollar, getrieben durch höhere durchschnittliche Nettogebühren und ein größeres Volumen an firmeneigenen Rücksendungen. Der Nettoertrag aus fortgeführten Geschäftsbereichen stieg um 4,5 % auf 722,9 Millionen US-Dollar, während der Gewinn je Aktie um 9,2 % auf 5,32 US-Dollar zunahm.
Das Unternehmen setzte seine aktionärsfreundliche Kapitalallokationsstrategie fort, kündigte eine vierteljährliche Dividende von 0,375 US-Dollar pro Aktie an und schloss Aktienrückkäufe von 6,5 Millionen Aktien im Wert von 400 Millionen US-Dollar ab. Seit 2016 hat H&R Block über 4,5 Milliarden US-Dollar an die Aktionäre zurückgeführt und 43 % der ausstehenden Aktien zurückgekauft.
Das Management bestätigte seinen Ausblick für das Geschäftsjahr 2025 und prognostizierte einen Umsatz zwischen 3,69 und 3,75 Milliarden US-Dollar sowie ein EBITDA von 975 Millionen bis 1,02 Milliarden US-Dollar, mit einem bereinigten Gewinn je Aktie von voraussichtlich 5,15 bis 5,35 US-Dollar.
- Revenue increased 4.2% to $2.3 billion
- Net income grew 4.5% to $722.9 million
- EPS from continuing operations increased 9.2% to $5.32
- Improved volume and market share trends in Assisted channel
- Strong share repurchase program with $1.1 billion remaining authorization
- Consistent dividend payments since 1962
- Lower international revenue reported
- Decreased interest and fee income on Emerald Advance
- Operating expenses increased 3.4% to $1.3 billion
Insights
H&R Block reported solid Q3 growth with aggressive share repurchases continuing, while maintaining full-year guidance amid tax season improvements.
H&R Block delivered a balanced financial performance in its critical tax season quarter, with revenue increasing
The company's performance in its assisted tax preparation channel shows signs of operational improvement, with management highlighting better volume and market share trends. This suggests their business transformation efforts are gaining traction even in a competitive tax preparation landscape. Importantly, operating expenses increased by only
H&R Block's capital allocation remains shareholder-friendly with a continuing quarterly dividend of
The reaffirmed full-year outlook (revenue of
For a tax-focused business where Q3 represents peak season activity, these results demonstrate operational resilience with modest growth rather than breakthrough performance - suggesting the company's transformation is progressing steadily rather than dramatically accelerating.
— Delivered Revenue Growth of
— Improved Volume and Market Share Trends in Assisted Channel Through April 30 —
— Reaffirms Full Year 2025 Outlook —
KANSAS CITY, Mo., May 07, 2025 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2025 third quarter ended March 31, 2025.
"Today we are reaffirming our FY25 outlook," said Jeff Jones, president and chief executive officer. "Our transformation continues to gather momentum and deliver results. We meaningfully enhanced the new client experience this season, driving higher client satisfaction scores and improving volume and market share trends in the Assisted channel."
Fiscal 2025 Third Quarter Results and Key Financial Metrics
"In the Assisted channel, we struck a healthy balance of price, volume, and mix in the quarter which is a testament to our redesigned client experience and our unwavering commitment to delivering value for our clients," said Tiffany Mason, chief financial officer. "I remain confident in our ability to continue driving significant value as we have a resilient business with strong financial fundamentals, consistent cash flow generation, and a shareholder-friendly capital return practice."
Total revenue of
Total operating expenses of
Net income from continuing operations increased
Earnings per share from continuing operations2 increased
Capital Allocation
The Company reported the following related to its capital structure:
- As previously announced, a quarterly cash dividend of
$0.37 5 per share will be paid on July 3, 2025 to shareholders of record as of June 4, 2025. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. - In the first and second quarters of fiscal 2025, the company repurchased 6.5 million shares at an aggregate price of
$400 million , or$61.10 per share. - The Company has approximately
$1.1 billion remaining on its$1.5 billion share repurchase program.
Since 2016, the Company has returned more than
Fiscal Year 2025 Outlook Reaffirmed
The Company continues to expect:
- Revenue to be in the range of
$3.69 t o$3.75 billion . - EBITDA4 to be in the range of
$975 million to$1.02 billion . - Effective tax rate to be approximately
13% , resulting in a one-time benefit to EPS of approximately 50 cents. - Adjusted Diluted Earnings Per Share4 to be in the range of
$5.15 t o$5.35 .
Conference Call
The Company will host a conference call for analysts and investors to discuss third quarter 2025 results at 4:30 p.m. ET on Wednesday, May 7, 2025. To join live, participants must register at https://register-conf.media-server.com/register/BI6c8ca5ffb9a24eecba80c3c3a79d2043. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.
The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/wfx9997r and will be available for replay 2 hours after the call is concluded and continuing for 90 days.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.
About Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
2All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, and free cash flow which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
3Shares outstanding calculated as of April 30, 2016.
4Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.
| For Further Information | ||
| Investor Relations: | Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com | |
| Media Relations: | Media Desk, mediadesk@hrblock.com | |
| FINANCIAL RESULTS | (unaudited, in 000s - except per share amounts) | |||||||||||||||
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| REVENUES: | ||||||||||||||||
| U.S. tax preparation and related services: | ||||||||||||||||
| Assisted tax preparation | $ | 1,635,877 | $ | 1,534,825 | $ | 1,727,220 | $ | 1,622,430 | ||||||||
| Royalties | 133,961 | 141,915 | 143,312 | 153,070 | ||||||||||||
| DIY tax preparation | 214,666 | 198,570 | 231,646 | 215,529 | ||||||||||||
| Refund Transfers | 113,732 | 118,937 | 115,229 | 120,892 | ||||||||||||
| Peace of Mind® Extended Service Plan | 15,625 | 16,813 | 54,867 | 59,100 | ||||||||||||
| Tax Identity Shield® | 7,025 | 7,536 | 14,947 | 16,810 | ||||||||||||
| Other | 14,582 | 12,065 | 40,215 | 32,637 | ||||||||||||
| Total U.S. tax preparation and related services | 2,135,468 | 2,030,661 | 2,327,436 | 2,220,468 | ||||||||||||
| Financial services: | ||||||||||||||||
| Emerald Card® and SpruceSM | 40,195 | 41,160 | 59,169 | 61,493 | ||||||||||||
| Interest and fee income on Emerald Advance® | 14,286 | 21,169 | 26,594 | 36,702 | ||||||||||||
| Total financial services | 54,481 | 62,329 | 85,763 | 98,195 | ||||||||||||
| International | 60,438 | 68,264 | 157,104 | 158,398 | ||||||||||||
| Wave | 26,717 | 23,580 | 79,681 | 70,656 | ||||||||||||
| Total revenues | $ | 2,277,104 | $ | 2,184,834 | $ | 2,649,984 | $ | 2,547,717 | ||||||||
| Compensation and benefits: | ||||||||||||||||
| Field wages | 532,916 | 510,299 | 682,575 | 650,529 | ||||||||||||
| Other wages | 74,621 | 75,356 | 230,687 | 222,125 | ||||||||||||
| Benefits and other compensation | 111,575 | 99,653 | 188,731 | 170,964 | ||||||||||||
| 719,112 | 685,308 | 1,101,993 | 1,043,618 | |||||||||||||
| Occupancy | 119,709 | 119,364 | 326,026 | 319,843 | ||||||||||||
| Marketing and advertising | 196,667 | 194,349 | 221,502 | 211,135 | ||||||||||||
| Depreciation and amortization | 29,221 | 30,672 | 87,247 | 91,004 | ||||||||||||
| Bad debt | 40,479 | 41,008 | 62,625 | 67,560 | ||||||||||||
| Other | 193,603 | 185,929 | 393,900 | 360,111 | ||||||||||||
| Total operating expenses | 1,298,791 | 1,256,630 | 2,193,293 | 2,093,271 | ||||||||||||
| Other income (expense), net | 4,554 | 5,224 | 19,215 | 20,982 | ||||||||||||
| Interest expense on borrowings | (24,686 | ) | (26,070 | ) | (62,285 | ) | (63,304 | ) | ||||||||
| Pretax income | 958,181 | 907,358 | 413,621 | 412,124 | ||||||||||||
| Income taxes | 235,253 | 215,772 | 104,580 | 72,527 | ||||||||||||
| Net income from continuing operations | 722,928 | 691,586 | 309,041 | 339,597 | ||||||||||||
| Net loss from discontinued operations | (598 | ) | (849 | ) | (2,707 | ) | (2,097 | ) | ||||||||
| Net income | $ | 722,330 | $ | 690,737 | $ | 306,334 | $ | 337,500 | ||||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||||||
| Continuing operations | $ | 5.32 | $ | 4.87 | $ | 2.23 | $ | 2.34 | ||||||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | ||||||||
| Consolidated | $ | 5.31 | $ | 4.86 | $ | 2.21 | $ | 2.32 | ||||||||
| WEIGHTED AVERAGE DILUTED SHARES | 135,329 | 141,540 | 137,944 | 144,594 | ||||||||||||
| Adjusted diluted EPS (1) | $ | 5.38 | $ | 4.94 | $ | 2.41 | $ | 2.54 | ||||||||
| EBITDA (1) | $ | 1,012,088 | $ | 964,100 | $ | 563,153 | $ | 566,432 | ||||||||
| (1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures. | ||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | (unaudited, in 000s - except per share data) | |||||||
| As of | March 31, 2025 | June 30, 2024 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 772,946 | $ | 1,053,326 | ||||
| Cash and cash equivalents - restricted | 16,744 | 21,867 | ||||||
| Receivables, net | 352,398 | 69,075 | ||||||
| Prepaid expenses and other current assets | 104,450 | 95,208 | ||||||
| Total current assets | 1,246,538 | 1,239,476 | ||||||
| Property and equipment, net | 146,456 | 131,319 | ||||||
| Operating lease right of use assets | 417,197 | 461,986 | ||||||
| Intangible assets, net | 270,007 | 264,102 | ||||||
| Goodwill | 785,936 | 785,226 | ||||||
| Deferred tax assets and income taxes receivable | 308,989 | 271,658 | ||||||
| Other noncurrent assets | 69,888 | 65,043 | ||||||
| Total assets | $ | 3,245,011 | $ | 3,218,810 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| LIABILITIES: | ||||||||
| Accounts payable and accrued expenses | $ | 243,754 | $ | 155,830 | ||||
| Accrued salaries, wages and payroll taxes | 269,849 | 105,548 | ||||||
| Accrued income taxes and reserves for uncertain tax positions | 346,733 | 318,830 | ||||||
| Current portion of long-term debt | 349,787 | — | ||||||
| Operating lease liabilities | 173,902 | 206,070 | ||||||
| Deferred revenue and other current liabilities | 205,778 | 191,050 | ||||||
| Total current liabilities | 1,589,803 | 977,328 | ||||||
| Long-term debt and line of credit borrowings | 1,142,890 | 1,491,095 | ||||||
| Deferred tax liabilities and reserves for uncertain tax positions | 337,634 | 291,063 | ||||||
| Operating lease liabilities | 252,630 | 265,373 | ||||||
| Deferred revenue and other noncurrent liabilities | 114,892 | 103,357 | ||||||
| Total liabilities | 3,437,849 | 3,128,216 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, no par, stated value $.01 per share | 1,644 | 1,709 | ||||||
| Additional paid-in capital | 758,821 | 762,583 | ||||||
| Accumulated other comprehensive loss | (71,317 | ) | (48,845 | ) | ||||
| Retained earnings (deficit) | (236,909 | ) | 12,654 | |||||
| Less treasury shares, at cost | (645,077 | ) | (637,507 | ) | ||||
| Total stockholders' equity (deficiency) | (192,838 | ) | 90,594 | |||||
| Total liabilities and stockholders' equity | $ | 3,245,011 | $ | 3,218,810 | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | (unaudited, in 000s) | |||||||
| Nine months ended March 31, | 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 306,334 | $ | 337,500 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 87,247 | 91,004 | ||||||
| Provision for credit losses | 56,042 | 61,359 | ||||||
| Deferred taxes | (12,503 | ) | (58,223 | ) | ||||
| Stock-based compensation | 25,420 | 25,310 | ||||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||
| Receivables | (335,605 | ) | (348,106 | ) | ||||
| Prepaid expenses, other current and noncurrent assets | (7,504 | ) | (18,037 | ) | ||||
| Accounts payable, accrued expenses, salaries, wages and payroll taxes | 240,246 | 223,045 | ||||||
| Deferred revenue, other current and noncurrent liabilities | 20,684 | 12,483 | ||||||
| Income tax receivables, accrued income taxes and income tax reserves | 50,049 | 93,961 | ||||||
| Other, net | (1,088 | ) | (32 | ) | ||||
| Net cash provided by operating activities | 429,322 | 420,264 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (71,784 | ) | (53,831 | ) | ||||
| Payments made for business acquisitions, net of cash acquired | (35,323 | ) | (43,163 | ) | ||||
| Franchise loans funded | (21,455 | ) | (18,815 | ) | ||||
| Payments from franchisees | 11,478 | 12,884 | ||||||
| Other, net | 6,194 | 3,282 | ||||||
| Net cash used in investing activities | (110,890 | ) | (99,643 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayments of line of credit borrowings | (1,950,000 | ) | (1,025,000 | ) | ||||
| Proceeds from line of credit borrowings | 1,950,000 | 1,025,000 | ||||||
| Dividends paid | (147,136 | ) | (135,127 | ) | ||||
| Repurchase of common stock, including shares surrendered | (436,516 | ) | (379,018 | ) | ||||
| Other, net | (11,854 | ) | (6,358 | ) | ||||
| Net cash used in financing activities | (595,506 | ) | (520,503 | ) | ||||
| Effects of exchange rate changes on cash | (8,429 | ) | (2,739 | ) | ||||
| Net decrease in cash and cash equivalents, including restricted balances | (285,503 | ) | (202,621 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 1,075,193 | 1,015,316 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 789,690 | $ | 812,695 | ||||
| SUPPLEMENTARY CASH FLOW DATA: | ||||||||
| Income taxes paid, net (includes payments for purchased investment tax credits) | $ | 65,505 | $ | 35,888 | ||||
| Interest paid on borrowings | 63,251 | 66,464 | ||||||
| Accrued additions to property and equipment | 2,448 | 1,477 | ||||||
| New operating right of use assets and related lease liabilities | 135,372 | 139,872 | ||||||
| Accrued dividends payable to common shareholders | 50,194 | 44,648 | ||||||
| (in 000s) | ||||||||||||||||
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||
| NON-GAAP FINANCIAL MEASURE - EBITDA | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income - as reported | $ | 722,330 | $ | 690,737 | $ | 306,334 | $ | 337,500 | ||||||||
| Discontinued operations, net | 598 | 849 | 2,707 | 2,097 | ||||||||||||
| Net income from continuing operations - as reported | 722,928 | 691,586 | 309,041 | 339,597 | ||||||||||||
| Add back: | ||||||||||||||||
| Income taxes | 235,253 | 215,772 | 104,580 | 72,527 | ||||||||||||
| Interest expense | 24,686 | 26,070 | 62,285 | 63,304 | ||||||||||||
| Depreciation and amortization | 29,221 | 30,672 | 87,247 | 91,004 | ||||||||||||
| 289,160 | 272,514 | 254,112 | 226,835 | |||||||||||||
| EBITDA from continuing operations | $ | 1,012,088 | $ | 964,100 | $ | 563,153 | $ | 566,432 | ||||||||
| (in 000s, except per share amounts) | ||||||||||||||||
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||
| NON-GAAP FINANCIAL MEASURE - EBITDA | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income from continuing operations - as reported | $ | 722,928 | $ | 691,586 | $ | 309,041 | $ | 339,597 | ||||||||
| Adjustments: | ||||||||||||||||
| Amortization of intangibles related to acquisitions (pretax) | 11,278 | 12,869 | 33,316 | 37,693 | ||||||||||||
| Tax effect of adjustments (1) | (2,927 | ) | (2,793 | ) | (8,111 | ) | (8,815 | ) | ||||||||
| Adjusted net income from continuing operations | $ | 731,279 | $ | 701,622 | $ | 334,246 | $ | 368,475 | ||||||||
| Diluted earnings per share from continuing operations - as reported | $ | 5.32 | $ | 4.87 | $ | 2.23 | $ | 2.34 | ||||||||
| Adjustments, net of tax | 0.06 | 0.07 | 0.18 | 0.20 | ||||||||||||
| Adjusted diluted earnings per share from continuing operations | $ | 5.38 | $ | 4.94 | $ | 2.41 | $ | 2.54 | ||||||||
| (1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis. | ||||||||||||||||
Non-GAAP Financial Information
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.
We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, and free cash flow. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.
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