H&R Block Q1 continuing-operations loss widens to $188M
H&R Block reaffirmed its fiscal 2027 revenue, adjusted EBITDA, tax-rate and adjusted diluted EPS ranges.
Sentiment and the balance of points
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Form Type
8-K
Rhea-AI Filing Summary
H&R Block reported fiscal 2027 first-quarter revenue of $224.3 million, up 10.2% year over year, for the three months ended September 30, 2026. Total operating expenses rose 11.1% to $456.2 million. Net loss from continuing operations increased 13.8% to ($188.1 million), and diluted loss per share from continuing operations increased 21.4% to ($1.53), versus ($1.26) a year earlier. The company says first-quarter results are seasonal and typically include a net loss.
Adjusted net loss from continuing operations, a non-GAAP measure, increased 9.5% to ($172.1 million); adjusted diluted loss per share was ($1.40), versus ($1.20). H&R Block reaffirmed fiscal 2027 outlook: revenue of $4.11 to $4.16 billion, adjusted EBITDA of $1.11 to $1.14 billion, an effective tax rate of approximately 23%, and adjusted diluted EPS of $6.04 to $6.24.
It repurchased and retired 2.2 million shares for an aggregate $100.3 million, or $45.68 per share, with approximately $500 million remaining on its $1.5 billion repurchase program. The board declared a $0.46-per-share quarterly dividend, payable January 6, 2027, to shareholders of record December 3, 2026.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointFirst-quarter revenue rose 10.2% to $224.3 million.
Negative
- Moderate pointContinuing-operations net loss increased 13.8% to $188.1 million.
Filing Explained
At September 30, 2026, H&R Block reported
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $224.3 million
Net loss from continuing operations: ($188.1 million)
Diluted loss per share from continuing operations: ($1.53)
+5 more
8 metrics
Revenue
$224.3 million
Fiscal 2027 first quarter; up 10.2% year over year
Net loss from continuing operations
($188.1 million)
Fiscal 2027 first quarter; increased 13.8% year over year
Diluted loss per share from continuing operations
($1.53)
Fiscal 2027 first quarter; increased 21.4% year over year
Shares repurchased and retired
2.2 million shares for $100.3 million
First quarter; aggregate repurchase price
Quarterly cash dividend
$0.46 per share
Payable January 6, 2027, to shareholders of record December 3, 2026
Fiscal 2027 revenue outlook
$4.11 to $4.16 billion
Reaffirmed full-year outlook
Fiscal 2027 adjusted EBITDA outlook
$1.11 to $1.14 billion
Reaffirmed full-year outlook
Fiscal 2027 adjusted diluted EPS outlook
$6.04 to $6.24
Reaffirmed full-year outlook
Key Terms
Adjusted EBITDA, Adjusted Diluted Earnings Per Share, Effective tax rate, non-GAAP financial measures
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA to be in the range of $1.11 to $1.14 billion"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Effective tax rate financial
"Effective tax rate to be approximately 23%"
The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.
non-GAAP financial measures financial
"This press release and the accompanying tables include non-GAAP financial information"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $224.3 million · Guidance included
Fiscal 2027 first quarter ended September 30, 2026
Revenue
$224.3 million
+10.2% year over year
Net loss from continuing operations
($188.1 million)
increased 13.8% year over year
Diluted loss per share from continuing operations
($1.53)
increased 21.4% year over year
Adjusted net loss from continuing operations
($172.1 million)
increased 9.5% year over year
Guidance
Revenue of $4.11 to $4.16 billion; adjusted EBITDA of $1.11 to $1.14 billion; effective tax rate of approximately 23%; adjusted diluted EPS of $6.04 to $6.24.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did HRB report in fiscal 2027 Q1?
H&R Block reported $224.3 million in revenue, up 10.2% from the prior-year quarter. The quarter ended September 30, 2026.
What is HRB's fiscal 2027 outlook?
H&R Block reaffirmed expected revenue of $4.11 to $4.16 billion, adjusted EBITDA of $1.11 to $1.14 billion, an effective tax rate of approximately 23%, and adjusted diluted EPS of $6.04 to $6.24.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 9, 2026
(Exact name of registrant as specified in charter)
| (State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer | ||||||
| incorporation or organization) | Identification No.) | |||||||
(Address of Principal Executive Offices) (Zip Code)
(816 ) 854-3000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 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. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 9, 2026, H&R Block, Inc. (the "Company") issued a press release regarding the Company’s results of operations for the fiscal quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7.01. Regulation FD Disclosure
On November 9, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.46 per share, payable on January 6, 2027 to shareholders of record as of December 3, 2026.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number Description
99.1 Press Release Issued November 9, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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 hereunto duly authorized.
| H&R BLOCK, INC. | |||||||||||
| Date: | November 9, 2026 | By: | /s/ Katharine M. Haynes | ||||||||
| Katharine M. Haynes | |||||||||||
Vice President and Corporate Secretary | |||||||||||
Exhibit 99.1
News Release
For Immediate Release: November 9, 2026
H&R Block Reports Fiscal 2027 First Quarter Results and Reaffirms Fiscal 2027 Outlook
— Revenue Increased 10% —
— Repurchased $100 Million of Shares as Part of Full-Year Capital Return Strategy —
KANSAS CITY, Mo. - H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2027 first quarter ended September 30, 2026.
"We are pleased with our start to fiscal 2027, including revenue growth of more than 10%," said Curtis Campbell, president and chief executive officer. "At the same time, we continue advancing strategic initiatives designed to enhance the client experience and support future growth. Our focus remains on executing our strategy and positioning H&R Block for long-term success."
Fiscal 2027 First Quarter Results and Key Financial Metrics
"Our financial position remains strong, and we continue to execute our disciplined capital allocation priorities," said Tiffany Mason, chief financial officer. "During the first quarter, we invested in the business to support future growth while returning capital to shareholders through dividends and share repurchases. We remain confident in the assumptions underlying our fiscal 2027 outlook and are reaffirming our guidance."
The Company reminds readers that its business is highly seasonal, and first quarter results consistently reflect this pattern. Historically, this period contributes modestly to annual revenue and typically generates a net loss.
For the first quarter, the Company delivered total revenue of $224.3 million, an increase of $20.8 million, or 10.2%, versus the prior year. The increase was primarily the result of growth in international services, higher tax protection and identity services, an increase in small business services, and growth in U.S. tax preparation revenues.
Total operating expenses of $456.2 million increased by $45.6 million, or 11.1%, versus the prior year. The increase was primarily due to higher field compensation and benefits, increased general corporate expenses, and higher occupancy and equipment costs.
During the first quarter, the Company recognized $8.0 million of severance and related costs associated with the previously announced seasonal office leadership transition, which were recorded in field compensation and benefits. This charge has been excluded from adjusted results.
Net loss from continuing operations increased by $22.8 million, or 13.8%, to ($188.1) million, and loss per share from continuing operations2 increased 21.4% to ($1.53).
Adjusted net loss from continuing operations2 increased by $14.9 million, or 9.5%, to ($172.1) million, and adjusted loss per share from continuing operations2 increased 16.7% to ($1.40), due to a higher net loss and fewer shares outstanding as a result of share repurchases.
1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
2All share amounts are based on weighted average fully diluted shares over the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted net income, adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA), and adjusted EBITDA from continuing operations, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
Capital Allocation
The Company reported the following related to its capital structure:
•The Company announced today that its Board of Directors declared a quarterly cash dividend of $0.46 per share which will be paid on January 6, 2027, to shareholders of record as of December 3, 2026.
•The Company repurchased and retired 2.2 million shares at an aggregate price of $100.3 million, or $45.68 per share, in the first quarter. It has approximately $500 million remaining on its $1.5 billion share repurchase program.
•Year-to-date, the Company has returned $156.9 million to shareholders in the form of dividends and share repurchases.
H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. Since 2016, the Company has returned more than $5.3 billion to shareholders in the form of dividends and share repurchases, buying back over 49% of its shares outstanding3.
Fiscal Year 2027 Outlook Reaffirmed
The Company continues to expect:
•Revenue to be in the range of $4.11 to $4.16 billion.
•Adjusted EBITDA4 to be in the range of $1.11 to $1.14 billion.
•Effective tax rate to be approximately 23%.
•Adjusted Diluted Earnings Per Share4 to be in the range of $6.04 to $6.24.
Conference Call
The Company will host a conference call for analysts and investors to discuss first quarter 2027 results at 4:30 p.m. ET on Monday, November 9, 2026. To join live, participants must register at https://register-conf.media-server.com/register/BI46c1c99bcb2d4f8a8a49d697da287d8d. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.
The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/b3k2w7ce/lan/en and will be available for replay 2 hours after the call is concluded and continuing for 90 days.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small business solutions. Named CNET's Best Overall online tax service for 2026, the company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and manage their money better using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.
About Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each
3Shares outstanding calculated as of April 30, 2016.
4Adjusted EBITDA and Adjusted Diluted Earnings Per Share from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.
measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
| For Further Information | ||||||||
| Investor Relations: | Jessica Hazel, jessica.hazel@hrblock.com | |||||||
| Media Relations: | Media Desk, mediadesk@hrblock.com | |||||||
TABLES FOLLOW
| FINANCIAL RESULTS | (unaudited, in 000s - except per share amounts) | ||||||||||||||||
| Three months ended September 30, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| REVENUES | |||||||||||||||||
| Service revenues | |||||||||||||||||
| U.S. services | |||||||||||||||||
| Tax preparation | $ | 54,467 | $ | 51,867 | |||||||||||||
| Small business services | 34,896 | 31,047 | |||||||||||||||
| Refund transfers | 844 | 843 | |||||||||||||||
| Tax protection and identity services | 34,320 | 29,180 | |||||||||||||||
| Card and related services | 7,679 | 7,852 | |||||||||||||||
| Other services | 6,469 | 4,828 | |||||||||||||||
| Total U.S. services | 138,675 | 125,617 | |||||||||||||||
| International services | 74,813 | 66,494 | |||||||||||||||
| Total service revenues | 213,488 | 192,111 | |||||||||||||||
| Royalties and other revenues | |||||||||||||||||
| U.S. royalties | 5,683 | 5,849 | |||||||||||||||
| Interest and fee income on Emerald Advance® | — | — | |||||||||||||||
| Other | 5,165 | 5,591 | |||||||||||||||
| Total royalties and other revenues | 10,848 | 11,440 | |||||||||||||||
| Total revenues | 224,336 | 203,551 | |||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||
| Costs of revenues | |||||||||||||||||
| Field compensation and benefits | 102,060 | 82,791 | |||||||||||||||
| Occupancy and equipment | 132,267 | 124,474 | |||||||||||||||
| Technology and related expenses | 32,806 | 29,924 | |||||||||||||||
| General operations expenses | 43,141 | 36,828 | |||||||||||||||
| Total costs of revenues | 310,274 | 274,017 | |||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||
| Corporate compensation and benefits | 99,959 | 102,865 | |||||||||||||||
| Marketing and advertising | 11,560 | 8,342 | |||||||||||||||
| General corporate expenses | 34,436 | 25,358 | |||||||||||||||
| Total selling, general and administrative expenses | 145,955 | 136,565 | |||||||||||||||
| Total operating expenses | 456,229 | 410,582 | |||||||||||||||
| Other income (expense), net | 6,576 | 8,102 | |||||||||||||||
| Interest expense on borrowings | 15,538 | 17,402 | |||||||||||||||
| Loss from continuing operations before income tax benefit | (240,855) | (216,331) | |||||||||||||||
| Income tax benefit | (52,728) | (50,963) | |||||||||||||||
| Net loss from continuing operations | (188,127) | (165,368) | |||||||||||||||
| Net loss from discontinued operations, net | (351) | (451) | |||||||||||||||
| Net loss | $ | (188,478) | $ | (165,819) | |||||||||||||
| BASIC AND DILUTED LOSS PER SHARE: | |||||||||||||||||
| Continuing operations | $ | (1.53) | $ | (1.26) | |||||||||||||
| Discontinued operations | — | — | |||||||||||||||
| Consolidated | $ | (1.53) | $ | (1.26) | |||||||||||||
| WEIGHTED AVERAGE DILUTED SHARES | 123,077 | 131,387 | |||||||||||||||
Adjusted diluted EPS (1) | $ | (1.40) | $ | (1.20) | |||||||||||||
EBITDA (1) | $ | (193,126) | $ | (170,007) | |||||||||||||
Adjusted EBITDA (1) | $ | (185,175) | $ | (170,007) | |||||||||||||
| CONSOLIDATED BALANCE SHEETS | (unaudited, in 000s - except per share data) | |||||||||||||
| As of | September 30, 2026 | June 30, 2026 | ||||||||||||
| ASSETS | ||||||||||||||
| Cash and cash equivalents | $ | 390,498 | $ | 958,706 | ||||||||||
| Cash and cash equivalents - restricted | 21,248 | 19,195 | ||||||||||||
| Receivables, net | 63,606 | 58,248 | ||||||||||||
| Prepaid expenses and other current assets | 102,934 | 89,408 | ||||||||||||
| Total current assets | 578,286 | 1,125,557 | ||||||||||||
| Property and equipment, net | 146,258 | 141,456 | ||||||||||||
| Operating lease right of use assets | 588,526 | 597,641 | ||||||||||||
| Intangible assets, net | 263,019 | 266,986 | ||||||||||||
| Goodwill | 817,318 | 812,543 | ||||||||||||
| Deferred tax assets and income taxes receivable | 220,960 | 239,745 | ||||||||||||
| Other noncurrent assets, net | 71,598 | 72,423 | ||||||||||||
| Total assets | $ | 2,685,965 | $ | 3,256,351 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| LIABILITIES: | ||||||||||||||
| Accounts payable and accrued expenses | $ | 151,627 | $ | 156,330 | ||||||||||
| Accrued salaries, wages and payroll taxes | 75,045 | 121,878 | ||||||||||||
| Accrued income taxes and reserves for uncertain tax positions | 163,420 | 266,184 | ||||||||||||
| Operating lease liabilities | 221,832 | 228,760 | ||||||||||||
| Deferred revenue and other current liabilities | 194,906 | 220,273 | ||||||||||||
| Total current liabilities | 806,830 | 993,425 | ||||||||||||
| Long-term debt | 1,492,058 | 1,491,493 | ||||||||||||
| Deferred tax liabilities and reserves for uncertain tax positions | 166,253 | 163,660 | ||||||||||||
| Operating lease liabilities | 380,448 | 382,100 | ||||||||||||
| Deferred revenue and other noncurrent liabilities | 82,710 | 108,185 | ||||||||||||
| Total liabilities | 2,928,299 | 3,138,863 | ||||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||||||||
| Common stock, no par, stated value $.01 per share | 1,516 | 1,538 | ||||||||||||
| Additional paid-in capital | 775,027 | 784,363 | ||||||||||||
| Accumulated other comprehensive loss | (65,289) | (64,088) | ||||||||||||
| Retained earnings (deficit) | (318,300) | 30,782 | ||||||||||||
| Less treasury shares, at cost | (635,288) | (635,107) | ||||||||||||
| Total stockholders' equity (deficiency) | (242,334) | 117,488 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 2,685,965 | $ | 3,256,351 | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | (unaudited, in 000s) | |||||||||||||
| Three months ended September 30, | 2026 | 2025 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
| Net loss | $ | (188,478) | $ | (165,819) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||
| Depreciation and amortization | 32,191 | 28,922 | ||||||||||||
| Provision for credit losses | 2,114 | 975 | ||||||||||||
| Deferred taxes | 21,608 | 17,800 | ||||||||||||
| Stock-based compensation | 4,878 | 6,173 | ||||||||||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||||||||
| Receivables | (4,557) | 262 | ||||||||||||
| Prepaid expenses, other current and noncurrent assets | (8,846) | 7,530 | ||||||||||||
| Accounts payable, accrued expenses, salaries, wages and payroll taxes | (59,392) | (59,094) | ||||||||||||
| Deferred revenue, other current and noncurrent liabilities | (53,914) | (46,118) | ||||||||||||
| Income tax receivables, accrued income taxes and income tax reserves | (104,586) | (147,233) | ||||||||||||
| Other, net | 526 | (236) | ||||||||||||
| Net cash used in operating activities | (358,456) | (356,838) | ||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
| Capital expenditures | (20,777) | (13,188) | ||||||||||||
| Payments made for business acquisitions, net of cash acquired | (10,261) | (5,069) | ||||||||||||
| Franchise loans funded | (5,218) | (3,667) | ||||||||||||
| Payments from franchisees | 310 | 731 | ||||||||||||
| Other, net | 281 | 267 | ||||||||||||
| Net cash used in investing activities | (35,665) | (20,926) | ||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
| Proceeds from line of credit borrowings | — | 245,000 | ||||||||||||
| Repayments of long-term debt | — | (350,000) | ||||||||||||
| Proceeds from issuance of long-term debt | — | 346,980 | ||||||||||||
| Dividends paid | (52,627) | (50,208) | ||||||||||||
| Repurchase of common stock, including shares surrendered | (117,286) | (412,415) | ||||||||||||
| Other, net | (1,498) | (4,382) | ||||||||||||
| Net cash used in financing activities | (171,411) | (225,025) | ||||||||||||
| Effects of exchange rate changes on cash | (623) | (2,949) | ||||||||||||
| Net decrease in cash and cash equivalents, including restricted balances | (566,155) | (605,738) | ||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 977,901 | 1,003,139 | ||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 411,746 | $ | 397,401 | ||||||||||
| SUPPLEMENTARY CASH FLOW DATA: | ||||||||||||||
| Income taxes paid | $ | 30,109 | $ | 78,339 | ||||||||||
| Interest paid on borrowings | 28,914 | 28,471 | ||||||||||||
| Accrued additions to property and equipment | 3,637 | 7,734 | ||||||||||||
| New operating right of use assets and related lease liabilities | 53,227 | 37,885 | ||||||||||||
| Accrued dividends payable to common shareholders | 56,550 | 54,343 | ||||||||||||
| (in 000s) | ||||||||||||||
| Three months ended September 30, | ||||||||||||||
| NON-GAAP FINANCIAL MEASURES - EBITDA AND ADJUSTED EBITDA | 2026 | 2025 | ||||||||||||
| Net loss - as reported | $ | (188,478) | $ | (165,819) | ||||||||||
| Discontinued operations, net | 351 | 451 | ||||||||||||
| Net loss from continuing operations - as reported | (188,127) | (165,368) | ||||||||||||
| Add back: | ||||||||||||||
| Income tax benefit | (52,728) | (50,963) | ||||||||||||
| Interest expense | 15,538 | 17,402 | ||||||||||||
| Depreciation and amortization | 32,191 | 28,922 | ||||||||||||
| (4,999) | (4,639) | |||||||||||||
| EBITDA from continuing operations | $ | (193,126) | $ | (170,007) | ||||||||||
| Severance and related costs of discrete strategic initiatives | 7,951 | — | ||||||||||||
| Adjusted EBITDA from continuing operations | $ | (185,175) | $ | (170,007) | ||||||||||
| (in 000s, except per share amounts) | ||||||||||||||
| Three months ended September 30, | ||||||||||||||
| NON-GAAP FINANCIAL MEASURES - ADJUSTED NET LOSS AND ADJUSTED EPS | 2026 | 2025 | ||||||||||||
| Net loss from continuing operations - as reported | $ | (188,127) | $ | (165,368) | ||||||||||
| Adjustments: | ||||||||||||||
| Amortization of intangibles related to acquisitions (pretax) | 12,250 | 10,979 | ||||||||||||
| Severance and related costs of discrete strategic initiatives (pretax) | 7,951 | — | ||||||||||||
Tax effect of pretax adjustments (1) | (4,190) | (2,792) | ||||||||||||
| Adjusted net loss from continuing operations | $ | (172,116) | $ | (157,181) | ||||||||||
| Diluted loss per share from continuing operations - as reported | $ | (1.53) | $ | (1.26) | ||||||||||
| Adjustments, net of tax | 0.13 | 0.06 | ||||||||||||
| Adjusted diluted loss per share from continuing operations | $ | (1.40) | $ | (1.20) | ||||||||||
(1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.
Non-GAAP Financial Information
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.
We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions, goodwill impairments, severance and related costs of discrete strategic initiatives, and material discrete tax impacts of IRS examination settlements. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures, such as future organizational restructuring initiatives and legal settlements, when such items are not indicative of our ongoing operating performance.
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 net income from continuing operations, and adjusted diluted earnings per share from continuing operations. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.
Supplemental Revenue Table
| U.S. Tax Preparation and Software Revenues | (unaudited, in 000s) | ||||||||||||||||
| Three months ended September 30, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| U.S. consumer assisted tax preparation | $ | 30,742 | $ | 29,796 | |||||||||||||
| U.S. consumer DIY tax preparation and software | 2,994 | 2,945 | |||||||||||||||
| Total U.S. consumer tax preparation and software | 33,736 | 32,741 | |||||||||||||||
| U.S. small business assisted tax preparation | 20,628 | 18,848 | |||||||||||||||
| U.S. small business DIY tax preparation | 694 | 800 | |||||||||||||||
| Total U.S. small business tax preparation | 21,322 | 19,648 | |||||||||||||||
| Total U.S. tax preparation and software | $ | 55,058 | $ | 52,389 | |||||||||||||