Higher tax prep revenue and seasonal loss at H&R Block (NYSE: HRB)

Rhea-AI Filing Summary

H&R Block reported its usual seasonal loss for the quarter ended December 31, 2025, but with higher revenue and slightly improved year‑to‑date results. Quarterly revenue rose 11.1% to $198.9 million, and six‑month revenue grew 7.9% to $402.4 million, driven by assisted and DIY tax preparation and Wave small‑business services.

Net loss from continuing operations was $241.6 million for the quarter and $406.9 million for six months, with diluted loss per share of $1.91 and $3.16, respectively. EBITDA from continuing operations was $(265.8) million for the quarter and $(435.9) million year‑to‑date, reflecting the off‑season nature of the business.

The company continued heavy capital returns and balance sheet activity. It repurchased $400.1 million of stock at an average $50.90 per share and paid $104.6 million in dividends in six months, while issuing $350.0 million of 5.375% Senior Notes due 2032 and redeeming its 2025 notes. H&R Block also extended its $1.5 billion unsecured credit line to 2030, ending the quarter with $349.2 million of cash and $2.44 billion of long‑term debt, and a stockholders’ equity deficit largely driven by buybacks and seasonal losses.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the quarterly period ended			December 31, 2025
OR
☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the transition period from to

Commission file number 1-06089

H&R Block, Inc.

(Exact name of registrant as specified in its charter)

Missouri						44-0607856
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

One H&R Block Way, Kansas City, Missouri 64105

(Address of principal executive offices, including zip code)

(816) 854-3000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, without par value			HRB			New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer ☑           Accelerated filer ☐         Non-accelerated filer ☐          Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐    No  ☑

The number of shares outstanding of the registrant's Common Stock, without par value, at the close of business on January 30, 2026: 126,759,738 shares.

Table of Contents

Form 10-Q for the Period ended December 31, 2025

Table of Contents

			PART I
Item 1.			Consolidated Statements of Operations and Comprehensive Loss     Three and six months ended December 31, 2025 and 2024			1
			Consolidated Balance Sheets          As of December 31, 2025 and June 30, 2025			2
			Consolidated Statements of Cash Flows     Six months ended December 31, 2025 and 2024			3
			Consolidated Statements of Stockholders' Equity     Three and six months ended December 31, 2025 and 2024			4
			Notes to Consolidated Financial Statements			6
Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			17
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			26
Item 4.			Controls and Procedures			26
			PART II
Item 1.			Legal Proceedings			26
Item 1A.			Risk Factors			26
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			27
Item 3.			Defaults Upon Senior Securities			27
Item 4.			Mine Safety Disclosures			27
Item 5.			Other Information			27
Item 6.			Exhibits			27
			Signatures			28

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PART I    FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS:																		(unaudited, in 000s, except per share amounts)
						Three months ended December 31,												Six months ended December 31,
						2025						2024						2025						2024
REVENUES:
Service revenues						$	167,779					$	152,968					$	359,890					$	334,739
Royalty, product and other revenues						31,086						26,102						42,526						38,141
						198,865						179,070						402,416						372,880
OPERATING EXPENSES:
Costs of revenues						339,919						314,209						613,936						583,790
Selling, general and administrative						157,825						158,152						294,390						310,712
Total operating expenses						497,744						472,361						908,326						894,502
Other income (expense), net						3,034						2,744						11,136						14,661
Interest expense on borrowings						(23,378)						(21,752)						(40,780)						(37,599)
Loss from continuing operations before income tax benefit						(319,223)						(312,299)						(535,554)						(544,560)
Income tax benefit						(77,657)						(69,833)						(128,620)						(130,673)
Net loss from continuing operations						(241,566)						(242,466)						(406,934)						(413,887)
Net loss from discontinued operations, net of tax benefits of $178, $286, $313, and $631						(600)						(954)						(1,051)						(2,109)
NET LOSS						$	(242,166)					$	(243,420)					$	(407,985)					$	(415,996)
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations						$	(1.91)					$	(1.79)					$	(3.16)					$	(3.02)
Discontinued operations						(0.01)						(0.01)						(0.01)						(0.01)
Consolidated						$	(1.92)					$	(1.80)					$	(3.17)					$	(3.03)
DIVIDENDS DECLARED PER SHARE						$	0.42					$	0.375					$	0.84					$	0.75
COMPREHENSIVE LOSS:
Net loss						$	(242,166)					$	(243,420)					$	(407,985)					$	(415,996)
Change in foreign currency translation adjustments						5,725						(29,034)						(3,583)						(22,917)
Other comprehensive income (loss)						5,725						(29,034)						(3,583)						(22,917)
Comprehensive loss						$	(236,441)					$	(272,454)					$	(411,568)					$	(438,913)

See accompanying notes to consolidated financial statements.

H&R Block, Inc. |Q2 FY2026 Form 10-Q 1

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CONSOLIDATED BALANCE SHEETS						(unaudited, in 000s, except  share and per share amounts)
As of						December 31, 2025						June 30, 2025
ASSETS
Cash and cash equivalents						$	349,194					$	983,277
Cash and cash equivalents - restricted						19,662						19,862
Receivables, less allowance for credit losses of $21,173 and $55,775						352,480						63,621
Prepaid expenses and other current assets						120,442						95,788
Total current assets						841,778						1,162,548
Property and equipment, at cost, less accumulated depreciation and amortization of $864,506 and $828,744						149,554						135,068
Operating lease right of use assets						488,082						521,215
Intangible assets, net						271,054						259,412
Goodwill						815,618						802,053
Deferred tax assets and income taxes receivable						300,074						317,691
Other noncurrent assets						63,850						65,911
Total assets						$	2,930,010					$	3,263,898
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and accrued expenses						$	145,801					$	144,046
Accrued salaries, wages and payroll taxes						74,262						107,375
Accrued income taxes and reserves for uncertain tax positions						44,897						296,244
Current portion of long-term debt						—						349,893
Operating lease liabilities						200,653						209,203
Deferred revenue and other current liabilities						189,216						191,849
Total current liabilities						654,829						1,298,610
Long-term debt and line of credit borrowings						2,435,379						1,143,305
Deferred tax liabilities and reserves for uncertain tax positions						298,986						306,134
Operating lease liabilities						299,003						322,847
Deferred revenue and other noncurrent liabilities						64,891						104,106
Total liabilities						3,753,088						3,175,002
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par, stated value $0.01 per share, 800,000,000 shares authorized, shares issued of 156,506,438 and 164,367,434						1,565						1,644
Additional paid-in capital						768,531						766,998
Accumulated other comprehensive loss						(51,338)						(47,755)
Retained earnings (deficit)						(904,840)						12,061
Less treasury shares, at cost, of 29,747,783 and 30,420,033						(636,996)						(644,052)
Total stockholders' equity (deficiency)						(823,078)						88,896
Total liabilities and stockholders' equity						$	2,930,010					$	3,263,898

See accompanying notes to consolidated financial statements.

2 Q2 FY2026 Form 10-Q| H&R Block, Inc.

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CONSOLIDATED STATEMENTS OF CASH FLOWS						(unaudited, in 000s)
Six months ended December 31,						2025						2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss						$	(407,985)					$	(415,996)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization						58,923						58,026
Provision for credit losses						21,144						20,727
Deferred taxes						18,723						(1,531)
Stock-based compensation						13,799						17,945
Changes in assets and liabilities, net of acquisitions:
Receivables						(300,004)						(262,348)
Prepaid expenses, other current and noncurrent assets						(2,290)						2,588
Accounts payable, accrued expenses, salaries, wages and payroll taxes						(44,968)						(76,806)
Deferred revenue, other current and noncurrent liabilities						(49,863)						(45,170)
Income tax receivables, accrued income taxes and income tax reserves						(276,943)						(192,340)
Other, net						(1,324)						(733)
Net cash used in operating activities						(970,788)						(895,638)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures						(48,735)						(49,115)
Payments made for business acquisitions, net of cash acquired						(35,366)						(28,017)
Franchise loans funded						(15,051)						(17,442)
Payments from franchisees						6,016						971
Other, net						1,211						6,110
Net cash used in investing activities						(91,925)						(87,493)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of line of credit borrowings						(30,000)						(100,000)
Proceeds from line of credit borrowings						975,000						890,000
Repayments of long-term debt						(350,000)						—
Proceeds from issuance of long-term debt						346,980						—
Dividends paid						(104,551)						(96,960)
Repurchase of common stock, including shares surrendered						(412,645)						(436,233)
Other, net						4,752						1,791
Net cash provided by financing activities						429,536						258,598
Effects of exchange rate changes on cash						(1,106)						(9,136)
Net decrease in cash and cash equivalents, including restricted balances						(634,283)						(733,669)
Cash, cash equivalents and restricted cash, beginning of period						1,003,139						1,075,193
Cash, cash equivalents and restricted cash, end of period						$	368,856					$	341,524
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net (includes payments for purchased investment tax credits)						$	129,250					$	62,290
Interest paid on borrowings						35,135						33,412
Accrued additions to property and equipment						3,117						3,798
New operating right of use assets and related lease liabilities						85,455						47,135
Accrued dividends payable to common shareholders						53,215						50,176

See accompanying notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY																														(amounts in 000s, except per share amounts)
						Common Stock																		Additional Paid-in Capital						Accumulated Other Comprehensive Loss(1)						Retained Earnings (Deficit)						Treasury Stock												Total Stockholders’ Equity
						Shares						Amount																																				Shares									Amount
Balances as of July 1, 2025						164,367						$	1,644																	$	766,998					$	(47,755)					$	12,061					(30,420)						$	(644,052)					$	88,896
Net loss						—						—																		—						—						(165,819)						—						—						(165,819)
Other comprehensive loss						—						—																		—						(9,308)						—						—						—						(9,308)
Stock-based compensation						—						—																		6,172						—						—						—						—						6,172
Stock-based awards exercised or vested						—						—																		(10,551)						—						(1,797)						579						12,255						(93)
Acquisition of treasury shares(2)						—						—																		—						—						—						(244)						(12,297)						(12,297)
Repurchase and retirement of common shares						(7,861)						(79)																		(4,638)						—						(399,401)						—						—						(404,118)
Cash dividends declared - $0.42 per share						—						—																		—						—						(54,343)						—						—						(54,343)
Balances as of September 30, 2025						156,506						$	1,565																	$	757,981					$	(57,063)					$	(609,299)					(30,085)						$	(644,094)					$	(550,910)
Net loss						—						—																		—						—						(242,166)						—						—						(242,166)
Other comprehensive income						—						—																		—						5,725						—						—						—						5,725
Stock-based compensation						—						—																		7,625						—						—						—						—						7,625
Stock-based awards exercised or vested						—						—																		2,925						—						(160)						342						7,328						10,093
Acquisition of treasury shares(2)						—						—																		—						—						—						(5)						(230)						(230)
Cash dividends declared - $0.42 per share						—						—																		—						—						(53,215)						—						—						(53,215)
Balances as of December 31, 2025						156,506						$	1,565																	$	768,531					$	(51,338)					$	(904,840)					(29,748)						$	(636,996)					$	(823,078)

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																														(amounts in 000s, except per share amounts)
						Common Stock																		Additional Paid-in Capital						Accumulated Other Comprehensive Loss(1)						Retained Earnings (Deficit)						Treasury Stock												Total Stockholders’ Equity
						Shares						Amount																																				Shares									Amount
Balances as of July 1, 2024						170,916						$	1,709																	$	762,583					$	(48,845)					$	12,654					(31,325)						$	(637,507)					$	90,594
Net loss						—						—																		—						—						(172,576)						—						—						(172,576)
Other comprehensive income						—						—																		—						6,117						—						—						—						6,117
Stock-based compensation						—						—																		7,463						—						—						—						—						7,463
Stock-based awards exercised or vested						—						—																		(23,990)						—						(2,611)						1,319						26,848						247
Acquisition of treasury shares(2)						—						—																		—						—						—						(567)						(35,882)						(35,882)
Repurchase and retirement of common shares						(3,301)						(33)																		(1,980)						—						(209,708)						—						—						(211,721)
Cash dividends declared - $0.375 per share						—						—																		—						—						(52,307)						—						—						(52,307)
Balances as of September 30, 2024						167,615						$	1,676																	$	744,076					$	(42,728)					$	(424,548)					(30,573)						$	(646,541)					$	(368,065)
Net loss						—						—																		—						—						(243,420)						—						—						(243,420)
Other comprehensive loss						—						—																		—						(29,034)						—						—						—						(29,034)
Stock-based compensation						—						—																		9,156						—						—						—						—						9,156
Stock-based awards exercised or vested						—						—																		810						—						(245)						54						1,144						1,709
Acquisition of treasury shares(2)						—						—																		—						—						—						(4)						(253)						(253)
Repurchase and retirement of common shares						(3,248)						(32)																		(1,949)						—						(190,396)						—						—						(192,377)
Cash dividends declared - $0.375 per share						—						—																		—						—						(50,176)						—						—						(50,176)
Balances as of December 31, 2024						164,367						$	1,644																	$	752,093					$	(71,762)					$	(908,785)					(30,523)						$	(645,650)					$	(872,460)

(1) The balance of our accumulated other comprehensive loss consists of foreign currency translation adjustments.

(2) Represents shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards.

See accompanying notes to consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS             (unaudited)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION – The consolidated balance sheets as of December 31, 2025 and June 30, 2025, the consolidated statements of operations and comprehensive loss for the three and six months ended December 31, 2025 and 2024, the consolidated statements of cash flows for the six months ended December 31, 2025 and 2024, and the consolidated statements of stockholders' equity for the three and six months ended December 31, 2025 and 2024 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations, and cash flows as of December 31, 2025 and 2024 and for all periods presented, have been made.

"H&R Block," "the Company," "we," "our," and "us" are used interchangeably to refer to H&R Block, Inc., to H&R Block, Inc. and its subsidiaries, or to H&R Block, Inc.'s operating subsidiaries, as appropriate to the context.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our June 30, 2025 Annual Report on Form 10-K. All amounts presented herein as of June 30, 2025 or for the year then ended are derived from our Annual Report on Form 10-K.

MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses associated with pending claims and litigation, reserves for uncertain tax positions, and fair value of reporting units. Estimates have been prepared based on the best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.

SEASONALITY OF BUSINESS – Our operating revenues are seasonal in nature with peak revenues typically occurring in the months of February through April. Therefore, results for interim periods are not indicative of results to be expected for the full year.

DISCONTINUED OPERATIONS – Our discontinued operations include the results of operations of Sand Canyon Corporation, previously known as Option One Mortgage Corporation, which exited its mortgage business in fiscal year 2008.

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NOTE 2: REVENUE RECOGNITION

The majority of our revenues are from our United States (U.S.) tax services business. The following table disaggregates our U.S. revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:

																								(in 000s)
						Three months ended December 31,												Six months ended December 31,
						2025						2024						2025						2024
Revenues:
U.S. assisted tax preparation						$	55,919					$	48,380					$	104,563					$	91,343
U.S. royalties						5,108						3,499						10,957						9,351
U.S. DIY tax preparation						16,807						13,744						20,552						16,980
Refund Transfers						638						637						1,481						1,497
Peace of Mind® Extended Service Plan						16,231						16,145						39,740						39,242
Tax Identity Shield®						4,244						4,013						8,366						7,922
Emerald Card® and SpruceSM						9,124						10,148						16,976						18,974
Interest and fee income on Emerald Advance®						13,446						12,308						13,446						12,308
International						34,718						31,811						100,379						96,666
Wave						29,785						26,561						59,635						52,964
Other						12,845						11,824						26,321						25,633
Total revenues						$	198,865					$	179,070					$	402,416					$	372,880

Changes in the balances of deferred revenue and wages for our Peace of Mind® Extended Service Plan (POM) are as follows:

																								(in 000s)
POM						Deferred Revenue												Deferred Wages
Six months ended December 31,						2025						2024						2025						2024
Balance, beginning of the period						$	149,302					$	156,610					$	19,884					$	20,212
Amounts deferred						3,704						3,209						8						15
Amounts recognized on previous deferrals						(45,310)						(46,962)						(5,789)						(6,092)
Balance, end of the period						$	107,696					$	112,857					$	14,103					$	14,135

As of December 31, 2025, deferred revenue related to POM was $107.7 million. We expect that $80.2 million will be recognized over the next twelve months, while the remaining balance will be recognized over the following five years.

As of December 31, 2025 and 2024, Tax Identity Shield® (TIS) deferred revenue was $14.9 million and $14.1 million, respectively. Deferred revenue related to TIS was $22.6 million and $21.4 million as of June 30, 2025 and 2024, respectively. All deferred revenue related to TIS will be recognized by April 2026.

NOTE 3: EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS PER SHARE – Basic and diluted earnings (loss) per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 2.4 million shares for the three and six months ended December 31, 2025 and 2.7 million

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shares for the three and six months ended December 31, 2024, as the effect would be antidilutive due to the net loss from continuing operations during the periods.

The computations of basic and diluted earnings (loss) per share from continuing operations are as follows:

(in 000s, except per share amounts)
						Three months ended December 31,												Six months ended December 31,
						2025						2024						2025						2024
Net loss from continuing operations attributable to shareholders						$	(241,566)					$	(242,466)					$	(406,934)					$	(413,887)
Amounts allocated to participating securities						(278)						(240)						(540)						(469)
Net loss from continuing operations attributable to common shareholders						$	(241,844)					$	(242,706)					$	(407,474)					$	(414,356)
Basic weighted average common shares						126,566						135,563						128,976						137,359
Potential dilutive shares						—						—						—						—
Dilutive weighted average common shares						126,566						135,563						128,976						137,359
Loss per share from continuing operations attributable to common shareholders:
Basic						$	(1.91)					$	(1.79)					$	(3.16)					$	(3.02)
Diluted						(1.91)						(1.79)						(3.16)						(3.02)

The decrease in the weighted average shares outstanding is due to share repurchases completed in the current and prior fiscal years.

STOCK-BASED COMPENSATION – We granted 0.9 million and 1.1 million shares, including adjustments for performance achievement and dividend equivalents, under our stock-based compensation plans during the six months ended December 31, 2025 and 2024, respectively. Stock-based compensation expense of our continuing operations totaled $7.6 million and $13.8 million for the three and six months ended December 31, 2025, respectively, and $9.2 million and $17.9 million for the three and six months ended December 31, 2024, respectively. As of December 31, 2025, unrecognized compensation cost for nonvested shares and units totaled $62.9 million.

NOTE 4: RECEIVABLES

Receivables, net of their related allowance, consist of the following:

(in 000s)
As of						December 31, 2025												June 30, 2025
						Short-term						Long-term						Short-term						Long-term
Loans to franchisees						$	19,476					$	14,773					$	7,386					$	16,402
Receivables for U.S. assisted and DIY tax preparation and related fees						11,157						6,696						15,896						6,361
H&R Block's Instant Refund® receivables						442						1,097						2,243						939
Emerald Advance®						287,316						24,081						13,899						22,816
Software receivables from retailers						2,409						—						2,582						—
Royalties and other receivables from franchisees						6,658						—						4,414						—
Wave payment processing receivables						7,513						—						1,533						—
Other						17,509						633						15,668						498
Total						$	352,480					$	47,280					$	63,621					$	47,016

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Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets.

LOANS TO FRANCHISEES – Franchisee loan balances consist of term loans made primarily to finance the purchase of franchises and revolving lines of credit primarily for the purpose of funding working capital needs. Loans with a principal balance more than 90 days past due or on non-accrual status were $3.0 million and $3.1 million as of December 31, 2025 and June 30, 2025, respectively.

H&R BLOCK'S INSTANT REFUND® – H&R Block's Instant Refund® amounts are generally received from the Canada Revenue Agency within 60 days of filing the client's return, with the remaining balance collectible from the client.

We review the credit quality of our Instant Refund receivables based on pools, which are segregated by the tax return year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year, we charge-off the receivables and the related allowance to an amount we believe represents the net realizable value.

Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of December 31, 2025 are as follows:

												(in 000s)
Tax return year of origination						Balance						More Than 60 Days Past Due
2024						$	978					$	918
2023 and prior						561						561
						1,539						$	1,479
Allowance						—
Net balance						$	1,539

EMERALD ADVANCE® – We review the credit quality of our purchased participation interests in Emerald Advance® (EA) receivables based on pools, which are segregated by the fiscal year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. Typically, in December of each year, we charge-off the receivables and the related allowance for EAs to an amount we believe represents the net realizable value.

Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination, as of December 31, 2025 are as follows:

(in 000s)
Fiscal year of origination						Balance						Non-Accrual
2026						$	294,761					$	—
2025 and prior						36,529						36,529
						331,290						$	36,529
Allowance						(19,893)
Net balance						$	311,397

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ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the six months ended December 31, 2025 and 2024 is as follows:

(in 000s)
						EAs																								All Other						Total
Balances as of July 1, 2025						$	19,663																							$	45,156					$	64,819
Provision for credit losses						19,893																								1,251						21,144
Charge-offs, recoveries and other						(19,663)																								(44,627)						(64,290)
Balances as of December 31, 2025						$	19,893																							$	1,780					$	21,673
Balances as of July 1, 2024						$	33,536																							$	45,327					$	78,863
Provision for credit losses						19,109																								1,618						20,727
Charge-offs, recoveries and other						(33,536)																								(45,552)						(79,088)
Balances as of December 31, 2024						$	19,109																							$	1,393					$	20,502

For the six months ended December 31, 2025, there were $19.7 million of gross charge-offs related to EAs which were originated in fiscal year 2025.

NOTE 5: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the six months ended December 31, 2025 are as follows:

(in 000s)
						Goodwill						Accumulated Impairment Losses						Net
Balances as of July 1, 2025						$	940,350					$	(138,297)					$	802,053
Acquisitions(1)						15,720						—						15,720
Disposals and foreign currency changes, net						(2,155)						—						(2,155)
Impairments						—						—						—
Balances as of December 31, 2025						$	953,915					$	(138,297)					$	815,618

(1)    All goodwill added during the period is expected to be tax-deductible for federal income tax reporting.

We test goodwill for impairment annually as of February 1, or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

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Components of intangible assets are as follows:

(in 000s)
						Gross Carrying Amount						Accumulated Amortization						Net
As of December 31, 2025:
Reacquired franchise rights						$	429,290					$	(250,627)					$	178,663
Customer relationships						372,444						(298,667)						73,777
Internally-developed software						121,282						(117,768)						3,514
Noncompete agreements						23,774						(20,660)						3,114
Purchased technology						68,100						(58,144)						9,956
Trade name						5,800						(3,770)						2,030
						$	1,020,690					$	(749,636)					$	271,054
As of June 30, 2025:
Reacquired franchise rights						$	415,700					$	(243,330)					$	172,370
Customer relationships						354,107						(287,067)						67,040
Internally-developed software						119,959						(117,604)						2,355
Noncompete agreements						23,070						(20,188)						2,882
Purchased technology						68,100						(55,655)						12,445
Trade name						5,800						(3,480)						2,320
						$	986,736					$	(727,324)					$	259,412

We made payments to acquire businesses totaling $35.4 million and $28.0 million during the six months ended December 31, 2025 and 2024, respectively. The amounts and weighted-average lives of intangible assets acquired during the six months ended December 31, 2025, including amounts capitalized related to internally-developed software, are as follows:

(dollars in 000s)
						Amount						Weighted-Average Life (in years)
Customer relationships						$	18,426					5
Reacquired franchise rights						13,669						6
Internally-developed software						1,348						3
Noncompete agreements						712						5
Total						$	34,155					5

Amortization of intangible assets for the three and six months ended December 31, 2025 was $11.3 million and $22.4 million respectively, compared to $12.1 million and $25.0 million for the three and six months ended December 31, 2024. Estimated amortization of intangible assets for fiscal years ending June 30, 2026, 2027, 2028, 2029, and 2030 is $47.3 million, $45.0 million, $36.6 million, $27.7 million and $17.8 million, respectively.

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NOTE 6: LONG-TERM DEBT

The components of long-term debt are as follows:

												(in 000s)
As of						December 31, 2025						June 30, 2025
Senior Notes, 5.250%, due October 2025						$	—					$	350,000
Senior Notes, 2.500%, due July 2028						500,000						500,000
Senior Notes, 3.875%, due August 2030						650,000						650,000
Senior Notes, 5.375%, due September 2032						350,000						—
Committed line of credit borrowings						945,000						—
Debt issuance costs and discounts						(9,621)						(6,802)
Total long-term debt						2,435,379						1,493,198
Less: Current portion						—						(349,893)
Long-term portion						$	2,435,379					$	1,143,305
Estimated fair value of long-term debt						$	2,401,000					$	1,437,000

On August 26, 2025, we issued $350.0 million of 5.375% Senior Notes due September 15, 2032 (2032 Senior Notes). The 2032 Senior Notes are not redeemable by the bondholders prior to maturity, although we have the right to redeem some or all of these notes at any time, at specified redemption prices. The net proceeds from the 2032 Senior Notes were used for general corporate purposes, which includes, among other uses, the redemption of the $350.0 million in principal outstanding of our 5.250% notes due October 2025 (2025 Senior Notes). We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.

UNSECURED COMMITTED LINE OF CREDIT – On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement (2025 CLOC), which amended and restated our Fourth Amended and Restated Credit and Guarantee Agreement, extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table. All other material terms remain substantially unchanged from our previous CLOC.

The 2025 CLOC provides for an unsecured senior revolving credit facility in the aggregate principal amount of $1.5 billion, which includes a $175.0 million sublimit for swingline loans and a $50.0 million sublimit for standby letters of credit. We may request increases in the aggregate principal amount of the revolving credit facility of up to $500.0 million, subject to obtaining commitments from lenders and meeting certain other conditions. The 2025 CLOC will mature on July 11, 2030, unless extended pursuant to the terms of the 2025 CLOC, at which time all outstanding amounts thereunder will be due and payable. Our 2025 CLOC includes an annual facility fee, which will vary depending on our then current credit ratings.

The 2025 CLOC is subject to various conditions, triggers, events or occurrences that could result in earlier termination and contains customary representations, warranties, covenants and events of default, including, without limitation: (1) a covenant requiring the Company to maintain a debt-to-EBITDA ratio, as defined by the 2025 CLOC agreement, calculated on a consolidated basis of no greater than (a) 3.50 to 1.00 as of the last day of each fiscal quarter ending on March 31, June 30, and September 30 of each year and (b) 4.50 to 1.00 as of the last day of each fiscal quarter ending on December 31 of each year; (2) a covenant requiring us to maintain an interest coverage ratio (EBITDA-to-interest expense) calculated on a consolidated basis of not less than 2.50 to 1.00 as of the last date of any fiscal quarter; and (3) covenants restricting our ability to incur certain additional debt, incur liens, merge or consolidate with other companies, sell or dispose of assets (including equity interests), liquidate or dissolve, engage in certain transactions with affiliates or enter into certain restrictive agreements. The 2025 CLOC includes provisions for an equity cure which could potentially allow us to independently cure certain defaults. Proceeds under the 2025 CLOC may be used for working capital needs or for other general corporate purposes. We were in compliance with these requirements as of December 31, 2025.

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We had an outstanding balance of $945.0 million under our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of December 31, 2025.

NOTE 7: INCOME TAXES

We file a consolidated federal income tax return in the U.S. with the Internal Revenue Service (IRS) and file tax returns in various state, local, and foreign jurisdictions.

On July 4, 2025, H.R. 1 was signed into law. The legislation did not have a material impact on our tax benefit for the six months ended December 31, 2025, and we do not expect it to materially change our effective income tax rate for the fiscal year ending June 30, 2026.

Our effective tax rate for continuing operations, including the effects of discrete tax items, was 24.0% for both the six months ended December 31, 2025 and 2024.

Consistent with prior years, our pretax loss for the six months ended December 31, 2025 is expected to be offset by income in our third and fourth quarters due to the established pattern of seasonality in our primary business operations. As such, management has determined that it is more-likely-than-not that realization of tax benefits recorded in our financial statements will occur within our fiscal year. The amount of tax benefit recorded for the six months ended December 31, 2025 reflects management’s estimate of the annual effective tax rate applied to year-to-date loss from continuing operations adjusted for the tax impact of discrete items for the periods presented.

NOTE 8: COMMITMENTS AND CONTINGENCIES

Our U.S. and Canadian businesses offer our 100% accuracy guarantee. Assisted tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client for penalties and interest attributable to an H&R Block error on a return. Similarly, DIY tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client (up to a maximum of $10,000 in the U.S.) if our software makes an arithmetic error that results in payment of penalties and/or interest to the respective taxing authority that a client would otherwise not have been required to pay. Our liability related to estimated losses under the 100% accuracy guarantee was $10.9 million and $11.4 million as of December 31, 2025 and June 30, 2025, respectively. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets.

Liabilities related to acquisitions for (1) estimated contingent consideration based on expected financial performance of the acquired business and economic conditions at the time of acquisition and (2) estimated accrued compensation related to continued employment of key employees were $36.9 million and $29.6 million as of December 31, 2025 and June 30, 2025 respectively, with amounts recorded in deferred revenue and other liabilities. Should actual results differ from our estimates, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations.

We have contractual commitments to fund certain franchises with approved short-term lines of credit for the purpose of meeting their seasonal working capital needs. Our total obligation under these lines of credit was $21.9 million at December 31, 2025, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $5.9 million.

Emerald Advance® term loans are originated by Pathward® N.A. (Pathward). We purchase participation interests, at par, in all EAs originated by Pathward in accordance with our participation agreement. Our participation interest varies by jurisdiction. At December 31, 2025, the principal balance of purchased participation interests for the current year totaled $281.1 million, which represents 87% of total EA volume originated by Pathward.

NOTE 9: LITIGATION AND OTHER RELATED CONTINGENCIES

We are a defendant in numerous litigation and arbitration matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits or arbitrations to which we are subject. In some of the matters, very large or indeterminate amounts, including punitive damages, may be sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may

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permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in handling and resolving numerous claims over an extended period of time.

The outcome of a matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how courts and arbitrators will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will view the relevant evidence and applicable law.

In addition to litigation and arbitration matters, we are also subject to other loss contingencies arising out of our business activities, including as described below.

We accrue liabilities for litigation, arbitration and other related loss contingencies and any related settlements when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range.

For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated as of December 31, 2025. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows. Our accrued liabilities were $10.0 million and $6.2 million as of December 31, 2025 and June 30, 2025, respectively.

Our estimate of the aggregate range of reasonably possible losses includes (1) matters where a liability has been accrued and there is a reasonably possible loss in excess of the amount accrued for that liability, and (2) matters where a liability has not been accrued but we believe a loss is reasonably possible. This aggregate range only represents those losses as to which we are currently able to estimate a reasonably possible loss or range of loss. It does not represent our maximum loss exposure.

Matters for which we are not currently able to estimate the reasonably possible loss or range of loss are not included in this range. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as precise information about the amount of damages or other remedies being asserted, the defenses to the claims being asserted, discovery from other parties and investigation of factual allegations, rulings by courts or arbitrators on motions or appeals, analyses by experts, or the status or terms of any settlement negotiations.

The estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. As of December 31, 2025, we believe the estimate of the aggregate range of reasonably possible losses in excess of amounts accrued, where the range of loss can be estimated, is not material.

At the end of each reporting period, we review relevant information with respect to litigation, arbitration and other related loss contingencies and update our accruals, disclosures, and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there

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can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and our consolidated financial position, results of operations, and cash flows.

We have received and are responding to certain governmental inquiries, class actions and mass arbitrations relating to the IRS Free File Program and other aspects of our DIY tax preparation services, including the use of pixels. An accrual related to these matters is included in our loss contingency accrual.

We are from time to time a party to litigation, arbitration and other loss contingencies not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent others who may be similarly situated.

While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our business and our consolidated financial position, results of operations, and cash flows.

NOTE 10: SEGMENT INFORMATION

We provide assisted and DIY tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded services and products, including those of our bank partners, to the general public primarily in the U.S., Canada and Australia. Tax returns are prepared by H&R Block tax professionals in one of our company-owned or franchise offices, virtually or via an online review, or they are prepared and filed by our clients through our DIY tax solutions. We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report a single segment that includes all of our continuing operations. The majority of our revenues are from our U.S. tax services business.

The Company's Chief Operating Decision Maker (CODM) is our chief executive officer, who regularly reviews consolidated financial information to evaluate financial performance and allocate resources. Specifically, the CODM uses revenues, operating expenses, net income and EBITDA at a consolidated level, as key financial metrics in deciding how to reinvest to grow the business. These financial metrics are used by the CODM to make operating decisions and identify growth opportunities. The measure of segment assets is total consolidated assets as presented on the consolidated balance sheet.

The following table presents the significant revenue and expense categories included in the segment's net income from continuing operations as regularly provided to the CODM on a consolidated basis and then reconciled to net income for the three and six months ended December 31, 2025 and 2024.

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Consolidated – Financial Results																		(in 000s, except per share amounts)
						Three months ended December 31,												Six months ended December 31,
						2025						2024						2025						2024
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation						$	55,919					$	48,380					$	104,563					$	91,343
Royalties						5,108						3,499						10,957						9,351
DIY tax preparation						16,807						13,744						20,552						16,980
Refund Transfers						638						637						1,481						1,497
Peace of Mind® Extended Service Plan						16,231						16,145						39,740						39,242
Tax Identity Shield®						4,244						4,013						8,366						7,922
Emerald Card® and SpruceSM						9,124						10,148						16,976						18,974
Interest and fee income on Emerald Advance®						13,446						12,308						13,446						12,308
International						34,718						31,811						100,379						96,666
Wave						29,785						26,561						59,635						52,964
Other						12,845						11,824						26,321						25,633
Total revenues						$	198,865					$	179,070					$	402,416					$	372,880
Compensation and benefits:
Field wages						94,177						81,565						163,892						149,659
Other wages						73,005						78,731						152,284						156,066
Benefits and other compensation						39,989						38,402						76,651						77,156
						207,171						198,698						392,827						382,881
Occupancy						109,592						104,999						212,388						206,317
Marketing and advertising						14,995						14,863						23,337						24,835
Depreciation and amortization						30,001						29,195						58,923						58,026
Bad debt						21,816						19,416						24,021						22,146
Other						114,169						105,190						196,830						200,297
Total operating expenses						497,744						472,361						908,326						894,502
Other income (expense), net						3,034						2,744						11,136						14,661
Interest expense on borrowings						(23,378)						(21,752)						(40,780)						(37,599)
Loss from continuing operations before income taxes						(319,223)						(312,299)						(535,554)						(544,560)
Income tax benefit						(77,657)						(69,833)						(128,620)						(130,673)
Segment net loss from continuing operations						(241,566)						(242,466)						(406,934)						(413,887)
Reconciliation of segment profit:
Reconciling items:
Net loss from discontinued operations						(600)						(954)						(1,051)						(2,109)
Net loss						$	(242,166)					$	(243,420)					$	(407,985)					$	(415,996)

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ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RECENT DEVELOPMENTS

On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement (2025 CLOC), which amended and restated our Fourth Amended and Restated Credit and Guarantee Agreement, extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table. All other material terms remain substantially unchanged from the Fourth Amended and Restated Credit and Guarantee Agreement. See our Current Report on Form 8-K filed on July 15, 2025 for additional information.

On August 7, 2025, Jeffrey J. Jones II notified the Board of Directors of the Company of his intention to retire as President and Chief Executive Officer of the Company, effective as of December 31, 2025. Mr. Jones retired from the Board of Directors, effective on December 31, 2025. On August 8, 2025, the Board appointed Curtis A. Campbell, the Company's President, Global Consumer Tax and Chief Product Officer, to succeed Mr. Jones as President and Chief Executive Officer, effective immediately upon Mr. Jones’ retirement. See our Current Report on Form 8-K filed on August 11, 2025 for more information.

On August 13, 2025, Kellie J. Logerwell notified H&R Block, Inc. (the “Company”) of her intention to retire as the Company’s Vice President and Chief Accounting Officer, effective as of October 24, 2025. Ms. Logerwell was succeeded as principal accounting officer by April M. Wasleski, who most-recently served as the Company’s Director of Accounting and whose appointment as Vice President and Chief Accounting Officer became effective October 24, 2025. See our Current Report on Form 8-K filed on August 15, 2025 for more information.

On August 26, 2025, we issued $350.0 million of 5.375% Senior Notes due September 15, 2032 (2032 Senior Notes). The 2032 Senior Notes are not redeemable by the bondholders prior to maturity, although we have the right to redeem some or all of these notes at any time, at specified redemption prices. The net proceeds from the 2032 Senior Notes were used for general corporate purposes, which includes, among other uses, the redemption of the $350.0 million in principal outstanding of our 5.250% notes due October 2025 (2025 Senior Notes). We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.

RESULTS OF OPERATIONS

Our subsidiaries provide assisted and do-it-yourself (DIY) tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded products and services, including those of our bank partners, to the general public primarily in the United States (U.S.), Canada and Australia. Tax returns are prepared by H&R Block tax professionals in one of our company-owned or franchise offices, virtually or via an online review, or they are prepared and filed by our clients through our DIY tax solutions. We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report a single segment that includes all of our continuing operations.

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Consolidated – Financial Results												(in 000s, except per share amounts)
Three months ended December 31,						2025						2024						$ Change						% Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation						$	55,919					$	48,380					$	7,539					15.6		%
Royalties						5,108						3,499						1,609						46.0		%
DIY tax preparation						16,807						13,744						3,063						22.3		%
Refund Transfers						638						637						1						0.2		%
Peace of Mind® Extended Service Plan						16,231						16,145						86						0.5		%
Tax Identity Shield®						4,244						4,013						231						5.8		%
Other						12,845						11,824						1,021						8.6		%
Total U.S. tax preparation and related services						111,792						98,242						13,550						13.8		%
Financial services:
Emerald Card® and SpruceSM						9,124						10,148						(1,024)						(10.1)		%
Interest and fee income on Emerald Advance®						13,446						12,308						1,138						9.2		%
Total financial services						22,570						22,456						114						0.5		%
International						34,718						31,811						2,907						9.1		%
Wave						29,785						26,561						3,224						12.1		%
Total revenues						$	198,865					$	179,070					$	19,795					11.1		%
Compensation and benefits:
Field wages						94,177						81,565						(12,612)						(15.5)		%
Other wages						73,005						78,731						5,726						7.3		%
Benefits and other compensation						39,989						38,402						(1,587)						(4.1)		%
						207,171						198,698						(8,473)						(4.3)		%
Occupancy						109,592						104,999						(4,593)						(4.4)		%
Marketing and advertising						14,995						14,863						(132)						(0.9)		%
Depreciation and amortization						30,001						29,195						(806)						(2.8)		%
Bad debt						21,816						19,416						(2,400)						(12.4)		%
Other						114,169						105,190						(8,979)						(8.5)		%
Total operating expenses						497,744						472,361						(25,383)						(5.4)		%
Other income (expense), net						3,034						2,744						290						10.6		%
Interest expense on borrowings						(23,378)						(21,752)						(1,626)						(7.5)		%
Pretax loss						(319,223)						(312,299)						(6,924)						(2.2)		%
Income tax benefit						(77,657)						(69,833)						7,824						11.2		%
Net loss from continuing operations						(241,566)						(242,466)						900						0.4		%
Net loss from discontinued operations						(600)						(954)						354						37.1		%
Net loss						$	(242,166)					$	(243,420)					$	1,254					0.5		%
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations						$	(1.91)					$	(1.79)					$	(0.12)					(6.7)		%
Discontinued operations						(0.01)						(0.01)						—						—		%
Consolidated						$	(1.92)					$	(1.80)					$	(0.12)					(6.7)		%
Adjusted diluted EPS(1)						$	(1.84)					$	(1.73)					$	(0.11)					(6.4)		%
EBITDA (1)						$	(265,844)					$	(261,352)					$	(4,492)					(1.7)		%

(1)    All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.

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Three months ended December 31, 2025 compared to December 31, 2024

Revenues increased $19.8 million, or 11.1%, from the prior year. U.S. assisted tax preparation revenues increased $7.5 million, or 15.6%, primarily due to an increase in company-owned tax return volumes and net average charge in the current year.

U.S. DIY tax preparation revenues increased $3.1 million, or 22.3%, primarily due to higher software downloads.

Wave revenues increased $3.2 million, or 12.1%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.

Total operating expenses increased $25.4 million, or 5.4%, from the prior year. Compensation and benefits increased $8.5 million, or 4.3%, primarily due to higher tax professional wages as a result of higher assisted revenue and higher corporate wages primarily due to salary increases. Certain wage‑related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally. This change had no impact on total operating expenses, and prior period amounts have not been reclassified.

Other operating expenses increased $9.0 million, or 8.5%. The components of other expenses are as follows:

																								(in 000s)
Three months ended December 31,						2025						2024						$ Change						% Change
Consulting and outsourced services						$	24,333					$	18,439					$	(5,894)					(32.0)		%
Bank partner fees						(915)						1,316						2,231						**
Client claims and refunds						3,695						4,332						637						14.7		%
Employee and travel expenses						12,407						12,495						88						0.7		%
Technology-related expenses						29,772						28,062						(1,710)						(6.1)		%
Credit card/bank charges						19,547						18,546						(1,001)						(5.4)		%
Insurance						4,866						4,256						(610)						(14.3)		%
Legal fees and settlements						11,517						7,192						(4,325)						(60.1)		%
Supplies						4,558						3,570						(988)						(27.7)		%
Other						4,389						6,982						2,593						37.1		%
						$	114,169					$	105,190					$	(8,979)					(8.5)		%

Consulting and outsourced services expense increased $5.9 million, or 32.0%, due to increased spend on various strategic projects.

We recorded an income tax benefit of $77.7 million in the current year compared to $69.8 million in the prior year. The effective tax rate for the three months ended December 31, 2025, and 2024 was 24.3% and 22.4%, respectively.

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Consolidated - Financial Results												(in 000s, except per share amounts)
Six months ended December 31,						2025						2024						$ Change						% Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation						$	104,563					$	91,343					$	13,220					14.5		%
Royalties						10,957						9,351						1,606						17.2		%
DIY tax preparation						20,552						16,980						3,572						21.0		%
Refund Transfers						1,481						1,497						(16)						(1.1)		%
Peace of Mind® Extended Service Plan						39,740						39,242						498						1.3		%
Tax Identity Shield®						8,366						7,922						444						5.6		%
Other						26,321						25,633						688						2.7		%
Total U.S. tax preparation and related services						211,980						191,968						20,012						10.4		%
Financial services:
Emerald Card® and SpruceSM						16,976						18,974						(1,998)						(10.5)		%
Interest and fee income on Emerald Advance®						13,446						12,308						1,138						9.2		%
Total financial services						30,422						31,282						(860)						(2.7)		%
International						100,379						96,666						3,713						3.8		%
Wave						59,635						52,964						6,671						12.6		%
Total revenues						$	402,416					$	372,880					$	29,536					7.9		%
Compensation and benefits:
Field wages						163,892						149,659						(14,233)						(9.5)		%
Other wages						152,284						156,066						3,782						2.4		%
Benefits and other compensation						76,651						77,156						505						0.7		%
						392,827						382,881						(9,946)						(2.6)		%
Occupancy						212,388						206,317						(6,071)						(2.9)		%
Marketing and advertising						23,337						24,835						1,498						6.0		%
Depreciation and amortization						58,923						58,026						(897)						(1.5)		%
Bad debt						24,021						22,146						(1,875)						(8.5)		%
Other						196,830						200,297						3,467						1.7		%
Total operating expenses						908,326						894,502						(13,824)						(1.5)		%
Other income (expense), net						11,136						14,661						(3,525)						(24.0)		%
Interest expense on borrowings						(40,780)						(37,599)						(3,181)						(8.5)		%
Pretax loss						(535,554)						(544,560)						9,006						1.7		%
Income tax benefit						(128,620)						(130,673)						(2,053)						(1.6)		%
Net loss from continuing operations						(406,934)						(413,887)						6,953						1.7		%
Net loss from discontinued operations						(1,051)						(2,109)						1,058						50.2		%
Net loss						$	(407,985)					$	(415,996)					$	8,011					1.9		%
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations						$	(3.16)					$	(3.02)					$	(0.14)					4.6		%
Discontinued operations						(0.01)						(0.01)						—						—		%
Consolidated						$	(3.17)					$	(3.03)					$	(0.14)					4.6		%
Adjusted diluted EPS(1)						$	(3.03)					$	(2.89)					$	(0.14)					4.8		%
EBITDA (1)						$	(435,851)					$	(448,935)					$	13,084					2.9		%

(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.

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Six months ended December 31, 2025 compared to December 31, 2024

Revenues increased $29.5 million, or 7.9%, from the prior year. U.S. assisted tax preparation revenues increased $13.2 million, or 14.5%, primarily due to an increase in net average charge combined with an increase in company-owned tax return volumes in the current year.

U.S. DIY tax preparation revenues increased $3.6 million, or 21.0%, primarily due to higher software downloads and higher paid online volume.

Wave revenues increased $6.7 million, or 12.6%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.

Total operating expenses increased $13.8 million, or 1.5%, from the prior year period. Compensation and benefits increased $9.9 million, or 2.6%, primarily due to higher tax professional wages as a result of higher assisted revenue and higher corporate wages primarily due to salary increases. Certain wage‑related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally. This change had no impact on total operating expenses, and prior period amounts have not been reclassified. Occupancy expense increased $6.1 million, or 2.9%, primarily due to higher lease expenses.

Other operating expenses decreased $3.5 million, or 1.7%. The components of other expenses are as follows:

																								(in 000s)
Six months ended December 31,						2025						2024						$ Change						% Change
Consulting and outsourced services						$	37,490					$	33,883					$	(3,607)					(10.6)		%
Bank partner fees						(1,249)						1,363						2,612						**
Client claims and refunds						9,140						10,276						1,136						11.1		%
Employee and travel expenses						18,080						18,612						532						2.9		%
Technology-related expenses						56,121						52,563						(3,558)						(6.8)		%
Credit card/bank charges						38,924						36,695						(2,229)						(6.1)		%
Insurance						7,546						7,800						254						3.3		%
Legal fees and settlements						14,979						21,654						6,675						30.8		%
Supplies						7,657						6,477						(1,180)						(18.2)		%
Other						8,142						10,974						2,832						25.8		%
						$	196,830					$	200,297					$	3,467					1.7		%

Legal expense decreased $6.7 million, or 30.8%, primarily due to lower outside legal counsel spend.

We recorded income tax benefit of $128.6 million in the current year compared to $130.7 million in the prior year. The effective tax rate for both the six months ended December 31, 2025, and 2024 was 24.0%. See Item 1, note 7 to the consolidated financial statements for additional discussion.

FINANCIAL CONDITION

These comments should be read in conjunction with the consolidated balance sheets and consolidated statements of cash flows included in Part 1, Item 1.

CAPITAL RESOURCES AND LIQUIDITY –

OVERVIEW – Our primary sources of capital and liquidity include cash from operations (including changes in working capital), draws on our unsecured committed line of credit (CLOC), and issuances of debt. We use our sources of liquidity primarily to fund working capital, service and repay debt, pay dividends, repurchase shares of our common stock, and acquire businesses.

Our operations are highly seasonal and substantially all of our revenues and cash flow are generated during the period from February through April in a typical year. Therefore, we normally require the use of cash to fund losses and working capital needs, periodically resulting in a working capital deficit, during the months of May through

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January. We typically have relied on available cash balances from the prior tax season and borrowings to meet liquidity needs.

Given the likely availability of a number of liquidity options discussed herein, we believe that, in the absence of any unexpected developments, our existing sources of capital as of December 31, 2025 are sufficient to meet our operating, investing and financing needs.

DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS – The following table summarizes our statements of cash flows for the six months ended December 31, 2025 and 2024. See Item 1 for the complete consolidated statements of cash flows for these periods.

						(in 000s)
Six months ended December 31,						2025						2024
Net cash provided by (used in):
Operating activities						$	(970,788)					$	(895,638)
Investing activities						(91,925)						(87,493)
Financing activities						429,536						258,598
Effects of exchange rates on cash						(1,106)						(9,136)
Net decrease in cash and cash equivalents, including restricted balances						$	(634,283)					$	(733,669)

Operating Activities. Cash used in operations totaled $970.8 million for the six months ended December 31, 2025 compared to $895.6 million in the prior year period. The increase is primarily due to changes in accrued income taxes and receivables, partially offset by deferred income taxes and a lower net loss.

Investing Activities. Cash used in investing activities totaled $91.9 million for the six months ended December 31, 2025 compared to $87.5 million in the prior year period. The increase is primarily due to higher payments made for business acquisitions.

Financing Activities. Cash provided by financing activities totaled $429.5 million for the six months ended December 31, 2025 compared to $258.6 million in the prior year period. The change is primarily due to higher net proceeds from line of credit borrowings, lower share repurchases for payroll taxes on stock-based awards, partially offset by higher dividends.

CASH REQUIREMENTS –

Dividends and Share Repurchases. Returning capital to shareholders in the form of dividends and the repurchase of outstanding shares is, and has historically been, a significant component of our capital allocation plan.

We have consistently paid quarterly dividends. Dividends paid totaled $104.6 million and $97.0 million for the six months ended December 31, 2025 and 2024, respectively. Although we have historically paid dividends and plan to continue to do so, there can be no assurances that circumstances will not change in the future that could affect our ability or decisions to pay dividends.

During the six months ended December 31, 2025, we repurchased $400.1 million of our common stock at an average price of $50.90 per share, excluding excise taxes in connection with such repurchases. In the prior year period, we repurchased $400.1 million of our common stock at an average price of $61.10 per share, excluding excise taxes in connection with such repurchases. Our current share repurchase program has remaining authorization of $700.0 million and does not have an expiration date.

Share repurchases may be effectuated through open market transactions, some of which may be effectuated under SEC Rule 10b5-1. The Company may cancel, suspend, or extend the period for the purchase of shares at any time. Any repurchases will be funded primarily through available cash and cash from operations. Although we may continue to repurchase shares, there is no assurance that we will purchase up to the full Board authorization.

    Capital Investment. Capital expenditures totaled $48.7 million and $49.1 million for the six months ended December 31, 2025 and 2024, respectively. Our capital expenditures relate primarily to recurring improvements to retail offices, as well as investments in computers, software and related assets. In addition to our capital

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expenditures, we also made payments to acquire businesses. We acquired franchisee and competitor businesses totaling $35.4 million and $28.0 million during the six months ended December 31, 2025 and 2024, respectively. See Item 1, note 5 for additional information on our acquisitions.

FINANCING RESOURCES – The 2025 CLOC has capacity up to $1.5 billion and is scheduled to expire in July 2030. Proceeds under the 2025 CLOC may be used for working capital needs or for other general corporate purposes. We had an outstanding balance of $945.0 million under our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of December 31, 2025.

On August 26, 2025, we issued the 2032 Senior Notes. We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.

The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of December 31, 2025 and June 30, 2025:

As of

December 31, 2025

June 30, 2025

Short-term

Long-term

Outlook

Short-term

Long-term

Outlook

Moody's

P-3

Baa3

Stable

P-3

Baa3

Stable

S&P

A-2

BBB

Stable

A-2

BBB

Stable

Other than described above, there have been no material changes in our borrowings from those reported as of June 30, 2025 in our Annual Report on Form 10-K.

CASH AND OTHER ASSETS – As of December 31, 2025, we held cash and cash equivalents, excluding restricted amounts, of $349.2 million, including $199.7 million held by our foreign subsidiaries.

Foreign Operations. Seasonal borrowing needs of our Canadian operations are typically funded by our U.S. operations. To mitigate foreign currency risk, we sometimes enter into foreign exchange forward contracts. There were no forward contracts outstanding as of December 31, 2025.

We do not currently intend to repatriate non-borrowed funds held by our foreign subsidiaries in a manner that would trigger a tax liability.

The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $1.1 million and $9.1 million during the six months ended December 31, 2025 and 2024, respectively.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – EAs are originated by Pathward. We purchase participation interests, at par, in all EAs originated by Pathward in accordance with our participation agreement. Our participation interest varies by jurisdiction. We purchased participation interests of $281.1 million during the six months ended December 31, 2025.

Except as described in Recent Developments related to the 2025 CLOC, the 2032 Senior Notes issuance and the 2025 Senior Notes redemption, there have been no other material changes in our contractual obligations and commercial commitments from those reported in our June 30, 2025 Annual Report on Form 10-K.

SUMMARIZED GUARANTOR FINANCIAL STATEMENTS – Block Financial is a 100% owned subsidiary of H&R Block, Inc. Block Financial is the Issuer and H&R Block, Inc. is the full and unconditional Guarantor of our Senior Notes, CLOC and other indebtedness issued from time to time.

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The following table presents summarized financial information for H&R Block, Inc. (Guarantor) and Block Financial (Issuer) on a combined basis after intercompany eliminations and excludes investments in and equity earnings in non-guarantor subsidiaries.

SUMMARIZED BALANCE SHEET - GUARANTOR AND ISSUER												(in 000s)
As of						December 31, 2025						June 30, 2025
Current assets						$	330,038					$	38,254
Noncurrent assets						2,484,987						1,836,847
Current liabilities						92,043						432,139
Noncurrent liabilities						2,440,727						1,148,806

SUMMARIZED STATEMENTS OF OPERATIONS - GUARANTOR AND ISSUER												(in 000s)
						Six months ended December 31, 2025						Twelve months ended June 30, 2025
Total revenues						$	32,361					$	126,240
Income (loss) from continuing operations before income taxes						(7,472)						58,596
Net income (loss) from continuing operations						(5,753)						45,120
Net income (loss)						(6,804)						41,443

The table above reflects $2.4 billion and $1.8 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of December 31, 2025 and June 30, 2025, respectively.

REGULATORY ENVIRONMENT

There have been no material changes in our regulatory environment from what was reported in our June 30, 2025 Annual Report on Form 10-K.

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 U.S. generally accepted accounting principles (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, free cash flow and free cash flow yield. We also use EBITDA from continuing operations and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

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The following is a reconciliation of net loss to EBITDA from continuing operations, which is a non-GAAP financial measure:

																								(in 000s)
						Three months ended December 31,												Six months ended December 31,
						2025						2024						2025						2024
Net loss - as reported						$	(242,166)					$	(243,420)					$	(407,985)					$	(415,996)
Discontinued operations, net						600						954						1,051						2,109
Net loss from continuing operations - as reported						(241,566)						(242,466)						(406,934)						(413,887)
Add back:
Income tax benefit						(77,657)						(69,833)						(128,620)						(130,673)
Interest expense						23,378						21,752						40,780						37,599
Depreciation and amortization						30,001						29,195						58,923						58,026
						(24,278)						(18,886)						(28,917)						(35,048)
EBITDA from continuing operations						$	(265,844)					$	(261,352)					$	(435,851)					$	(448,935)

The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure:

(in 000s, except per share amounts)
						Three months ended December 31,												Six months ended December 31,
						2025						2024						2025						2024
Net loss from continuing operations - as reported						$	(241,566)					$	(242,466)					$	(406,934)					$	(413,887)
Adjustments:
Amortization of intangibles related to acquisitions (pretax)						11,252						10,910						22,231						22,038
Tax effect of adjustments (1)						(2,444)						(2,539)						(5,236)						(5,184)
Adjusted net loss from continuing operations						$	(232,758)					$	(234,095)					$	(389,939)					$	(397,033)
Diluted loss per share from continuing operations - as reported						$	(1.91)					$	(1.79)					$	(3.16)					$	(3.02)
Adjustments, net of tax						0.07						0.06						0.13						0.13
Adjusted diluted loss per share from continuing operations						$	(1.84)					$	(1.73)					$	(3.03)					$	(2.89)

(1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.

FORWARD-LOOKING INFORMATION

This report and other documents filed with the Securities and Exchange Commission (SEC) may contain forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. 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," "could," "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, services or products, 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

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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, operational and regulatory factors, many of which are beyond the Company's control. In addition, factors that may cause the Company’s actual 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, and increases in applicable tax rates in jurisdictions where the Company operates. Investors should understand that it is not possible to predict or identify all such factors and, consequently, should not consider any such list to be a complete set of all potential risks or uncertainties.

Details about risks, uncertainties and assumptions that could affect various aspects of our business are included throughout our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and are also described from time to time in other filings with the SEC. Investors should carefully consider all of these risks, and should pay particular attention to Item 1A, "Risk Factors," and Item 7 under "Critical Accounting Estimates" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risks from those reported in our June 30, 2025 Annual Report on Form 10-K.

ITEM 4.     CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES – As of the end of the period covered by this Form 10-Q, management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING – There were no changes during the three months ended December 31, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II    OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

For a description of our material pending legal proceedings, see discussion in Part I, Item 1, note 9 to the consolidated financial statements.

ITEM 1A.    RISK FACTORS

There have been no material changes in our risk factors from those reported in our June 30, 2025 Annual Report on Form 10-K.

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ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

A summary of our purchases of H&R Block common stock during the three months ended December 31, 2025 is as follows:

(in 000s, except per share amounts)
						Total Number of Shares Purchased (1)						Average Price Paid per Share						Total Number of Shares Purchased as Part of Publicly Announced Plans  or Programs (2)						Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans  or Programs (2)
October 1 - October 31						3						$	51.23					—						$	700,000
November 1 - November 30						1						$	50.46					—						$	700,000
December 1 - December 31						1						$	42.10					—						$	700,000
						5						$	48.80					—

(1)We purchased approximately 5 thousand shares in connection with funding employee income tax withholding obligations arising upon the lapse of restrictions on restricted share units.

(2)On August 15, 2024, we announced that our Board of Directors approved a $1.5 billion share repurchase program. The repurchase program does not have an expiration date.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

Director and Section 16 Officer Trading Arrangements

During the three months ended December 31, 2025, no director or Section 16 officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6.    EXHIBITS

The following exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K:

22			List of Guarantor and Issuer Subsidiaries, filed as Exhibit 22 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, file number 1-06089, is incorporated herein by reference.
31.1			Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2			Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certification by Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
32.2			Certification by Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH			Inline XBRL Taxonomy Extension Schema
101.CAL			Inline XBRL Extension Calculation Linkbase
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

H&R Block, Inc. |Q2 FY2026 Form 10-Q 27

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

H&R BLOCK, INC.

/s/ Curtis A. Campbell

Curtis A. Campbell

President and Chief Executive Officer

February 5, 2026

/s/ Tiffany L. Mason

Tiffany L. Mason

Chief Financial Officer

February 5, 2026

/s/ April M. Wasleski

April M. Wasleski

Chief Accounting Officer

February 5, 2026

28 Q2 FY2026 Form 10-Q| H&R Block, Inc.

FAQ

How did H&R Block (HRB) perform in the quarter ended December 31, 2025?

H&R Block posted a typical seasonal loss but higher revenue. Quarterly revenue rose 11.1% to $198.9 million, while net loss from continuing operations was $241.6 million, or $1.91 per diluted share, slightly better in dollar terms than the prior year’s $242.5 million loss.

What drove revenue growth for H&R Block (HRB) in this 10-Q period?

Growth came mainly from tax preparation and Wave services. U.S. assisted tax preparation revenue increased 15.6% to $55.9 million, DIY tax preparation rose 22.3% to $16.8 million, and Wave revenue grew 12.1% to $29.8 million, supported by higher volumes and pricing.

What were H&R Block’s (HRB) earnings per share and EBITDA for the period?

Losses widened per share due to fewer shares outstanding. Diluted loss per share from continuing operations was $1.91 for the quarter and $3.16 for six months. EBITDA from continuing operations was $(265.8) million for the quarter and $(435.9) million for the six‑month period.

How is H&R Block (HRB) managing debt and liquidity according to the 10-Q?

H&R Block refinanced debt and extended its credit facility. It issued $350.0 million of 5.375% Senior Notes due 2032 and redeemed $350.0 million of 2025 notes, extended a $1.5 billion unsecured credit line to 2030, carried $2.44 billion of long‑term debt, and held $349.2 million in cash.

How much capital did H&R Block (HRB) return to shareholders in the first half of fiscal 2026?

The company continued substantial buybacks and dividends. In six months it repurchased $400.1 million of common stock at an average $50.90 per share and paid $104.6 million in dividends, with $0.84 declared per share. About $700.0 million remains authorized under the current repurchase program.

What legal or regulatory matters did H&R Block (HRB) highlight in this filing?

H&R Block faces various lawsuits and regulatory matters. It disclosed inquiries, class actions and mass arbitrations related to the IRS Free File Program and DIY tax services, including pixel use. The company has accrued related loss contingencies but currently does not expect them to materially affect its consolidated financial position.

What does the 10-Q say about H&R Block’s (HRB) seasonal business pattern?

Results reflect heavy seasonality in tax preparation. Most revenue and cash flow occur from February through April, so the company typically reports losses and uses cash in quarters covering May through January, often relying on prior‑season cash and its credit facility for working capital.