Block H & R — Financial Results
Assisted Tax Preparation Revenue Grew Solidly, Driven by Higher Prices and Volume
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Assisted tax prep revenue | $2.41B | $2.27B | +6.1% |
| Net average charge growth | — | — | +5.1% |
| Company-owned return volume | — | — | +1.0% |
| Total assisted return volume (incl. franchises) | — | — | -0.9% |
H&R Block's core in-person tax business, which is its largest revenue line, grew because the company is charging more per return and serving slightly more customers at company-owned offices. The overall assisted return count (including franchise offices) actually dipped 0.9%, but that partly reflects the company buying up franchise locations and converting them to company-owned — a deliberate strategy rather than a sign of lost customers.
DIY Online Tax Preparation Is Gaining Momentum
DIY tax preparation revenues rose $33.9 million, or 9.7%, to $383.7 million, powered almost entirely by a 9.8% increase in what paying customers are charged per filing. This suggests H&R Block is successfully nudging self-service filers toward paid tiers rather than free ones, which is a meaningful shift given how competitive the DIY market is.
Profitability Grew Modestly as Costs Rose in Step with Revenue
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Total revenues | $3.76B | $3.61B | +4.2% |
| Total operating expenses | $2.93B | $2.81B | +4.6% |
| Net income (continuing ops) | $609.5M | $598.0M | +1.9% |
| Diluted EPS (continuing ops) | $4.42 | $4.14 | +6.8% |
Revenue and costs moved almost in lockstep, so the bottom line grew only modestly in dollar terms. The standout figure is diluted earnings per share (EPS), which rose a more impressive 6.8% — better than net income growth — because the company has been buying back its own shares, meaning each remaining share represents a larger slice of the profits.
Aggressive Share Buybacks Are Returning Cash to Investors
| Year | Shares Repurchased | Avg. Price | Dividends Per Share |
|---|---|---|---|
| FY2025 | 6.55M shares | $61.10 | $1.50 |
| FY2024 | 8.02M shares | $43.66 | $1.28 |
H&R Block spent $400.1 million repurchasing stock this year at notably higher prices than the prior year, and raised its annual dividend from $1.28 to $1.50 per share. The share count has fallen from 146 million to 134 million over two years. A fresh $1.5 billion share repurchase authorization was approved in August 2024, with $1.1 billion still remaining.
Wave Small Business Platform Is a Growing Bright Spot
Wave, the company's small business accounting and payments platform, grew revenue 13.2% to $109.2 million, driven by more subscribers and higher payment processing volumes. While still a small piece of total revenue, this consistent double-digit growth makes it worth watching as H&R Block's avenue into year-round, non-seasonal business.
Legal and Compliance Costs Are Climbing
Legal fees and settlements jumped $9.3 million, or 32.5%, to $37.8 million. The filing also notes ongoing government inquiries related to the IRS Free File Program and DIY tax services. While management says currently estimated losses beyond what's already set aside are not material, this is an area worth monitoring given the regulatory scrutiny on tax preparation companies in recent years.