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what it is
H&R Block helps you file taxes, in person or online, then sells related financial tools to keep you around all year.
how it gets paid
Last year Hrb made $3.8B in revenue. Assisted tax preparation was the main engine at $2.50B, or 66% of sales.
why it's growing
Revenue grew 4.2% last year. Q3 EPS was $5.32 in fiscal 2025. That one quarter was larger than the full-year EPS of $4.42.
what just happened
The latest report was a miss versus estimates, but H&R Block still posted $402M in revenue in the quarter.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
35/100 earnings predictability — expect surprises
9.5x trailing p/e — the market's not buying it — or you found a deal
4.0% dividend yield — cash in your pocket every quarter
38.0% return on capital — every dollar works hard here
xvary composite: 59/100 — below average
What they do
H&R Block helps you file taxes, in person or online, then sells related financial tools to keep you around all year.
Taxes are recurring pain. You deal with them every year, and H&R Block has thousands of offices plus online filing to catch you either way. That reach helps it keep a 27.5% operating margin (money left after running the business), so what: this is not a fragile middleman.
How they make money
$3.8B
annual revenue · their business grew +4.2% last year
Assisted tax preparation
$2.50B
+4.2%
DIY tax software
$0.70B
+11.1%
Small-business software and payments
$0.30B
+11.1%
Emerald Card and refund products
$0.20B
+4.2%
International tax operations
$0.10B
+4.2%
The products that matter
in-person and pro-assisted filing
Assisted Tax Preparation
~$2.7B · 71% of revenue
it's still the center of gravity, generating roughly $2.7B of a $3.8B–$4.0B revenue base through the office network. This is where trust still monetizes.
the cash engine
self-service digital tax software
DIY Online Filing
~$0.8B · +9% growth
this roughly $0.8B segment grew 9% last year. It is the clearest growth pocket, and the one most exposed to free alternatives and customer-acquisition pressure.
growth battleground
refund-linked financial products
Emerald Card & Refund Services
part of ~8% other revenue
this sits inside the smaller royalty and other bucket, roughly 8% of revenue. It matters because it keeps more of tax season inside H&R Block's own flow instead of ending at filing.
retention tool
Key numbers
9.5x
trailing p/e
P/E ratio → how many dollars you pay for each dollar of profit → so what: at 9.5x, you are paying a bargain-bin price for a business with positive projected growth.
38.0%
return on capital
Return on capital → profit made from the money already invested in the business → so what: 38% says H&R Block does not need much new money to keep producing earnings.
27.5%
operating margin
Operating margin → the share of revenue left after running the business → so what: keeping 27.5 cents of every dollar is strong for a service company.
4.0%
dividend yield
Dividend yield → the cash payout you get at today's stock price → so what: you are being paid 4.0% a year while you wait for the market to notice the low valuation.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $2.0B (28% of capital)
- net profit margin 16.7% — keeps 17 cents of every dollar in revenue
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HRB 3 years ago → it's now worth $12,140.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
The latest report was a miss versus estimates, but H&R Block still posted $402M in revenue in the quarter.
Consensus shows the last earnings report at -$1.92 versus a -$1.65 estimate, a 16.36% miss. Separately, SEC-backed data shows the latest quarter delivered $402M of revenue and EPS of $2.21, which is the weirdness of a highly seasonal business in one sentence.
$402M
revenue
$2.21
eps
+102%
revenue growth
the number that mattered
Q3 EPS was $5.32 in fiscal 2025. That one quarter was larger than the full-year EPS of $4.42, which tells you where the real risk sits.
-
h&r block just appointed a new ceo.
-
jeff jones retired on december 31st after holding that position for eight years.his successor, curtis campbell, had served as president, global consumer tax and chief product officer since joining the team in may, 2024.
-
before that, he had executive roles at such established firms as taxact, intuit, and capital one.all told, we think that the company is in capable hands. Improved profits appear likely in fiscal 2026 (ends june 30th). this should be made possible partly by higher revenues, aided by an increase in such categories as u.s. assisted tax preparation, u.s.
-
diy (do-it-yourself) tax preparation, and wave.expense-containment measures and a reduced number of diluted shares outstanding should help, as well. also, the trump administration's elimination of the irs ``direct file'' option, a free e-filing service launched initially as a pilot program for the 2024 tax season, ought to benefit h&r block somewhat. so, at this juncture, earnings per share will rise in the upper-single-digit percentage range, to $4.80, relative to fiscal 2025's $4.42 figure. concerning the following year, the bottom line stands to advance at a similar rate, to $5.20 a share, assuming that the business climate is generally favorable. Prospects out to the start of the next decade look decent.
-
the missouri-headquartered company is a leading provider of income-tax preparation services in the united states.
source: company earnings report, 2026
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What could go wrong
the top risk is IRS Direct File and cheaper digital tax prep putting pressure on HRB's online pricing.
high
IRS Direct File expansion
DIY Online grew 9% last year and is one of the few obvious growth pockets. A broader free IRS filing option goes straight at that segment's pricing power.
Direct exposure: roughly 21% of revenue sits in DIY online, and the strategic damage is larger because that is the growth lane.
high
FTC complaint on “free” filing marketing
The FTC issue does not just raise legal noise. It threatens how H&R Block acquires digital customers if marketing language, product flow, or disclosures have to change.
If customer acquisition gets harder, the fastest-growing segment can slow even if tax demand stays intact.
med
10,000 offices turn from asset into cost drag
The storefront footprint helps when clients want human help. It becomes overhead if filing moves online faster than H&R Block can adapt.
A 16.1% net margin looks solid today. Fixed infrastructure cuts both ways when volume shifts.
med
capital returns mask a low-growth core
Dividends and buybacks help per-share optics, but they do not fix a business that stalls. If revenue growth cools too far, the low multiple stops looking cheap and starts looking fair.
At 9.5x earnings, the market already assumes limits. There is not much room for disappointment.
Roughly 21% of revenue is in the digital segment facing free alternatives, while the 71% assisted business carries the office footprint that funds the dividend but also locks in cost.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
IRS Direct File expansion
If the IRS broadens free filing, the roughly 21% of revenue tied to DIY online gets harder to defend. That is the strategic pressure point.
calendar
full tax season results
This is the business. Watch whether management keeps the $4.85–$5.00 EPS and $3.875B–$3.895B revenue ranges after the heavy filing months.
metric
DIY growth versus assisted growth
Last year it was 9% for DIY versus 4% for assisted. If that gap narrows because digital slows, the growth story weakens fast.
trend
institutional selling streak
Three straight quarters of net selling does not settle the thesis, but it tells you big money has not been treating HRB like a new idea.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts do not see a strong near-term edge either way.
risk profile
average
stability score 3 means typical stock risk — not a bunker stock, not a disaster setup.
chart momentum
average
technical score 3 says the chart is not giving you much. For this name, the business case matters more than the tape.
earnings predictability
35 / 100
Low predictability means seasonality distorts the picture. You need the full year, not one quarter.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 244 buyers vs. 279 sellers in 3q2025. total institutional holdings: 0.1B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$37
$79
$42
current price
$58
target midpoint · +38% from current · 3-5yr high: $75 (+80% · 19% ann'l return)
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