0000012659false00000126592024-11-072024-11-07


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 7, 2024

H&R BLOCK, INC.
(Exact name of registrant as specified in charter)
Missouri1-0608944-0607856
(State or other jurisdiction of(Commission File Number)(I.R.S. Employer
incorporation or organization)Identification No.)

One H&R Block Way, Kansas City, MO 64105
(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):
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, without par valueHRBNew York Stock Exchange
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 7, 2024, H&R Block, Inc. (the "Company") issued a press release regarding the Company’s results of operations for the fiscal quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number    Description
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 7, 2024By:/s/ Katharine M. Haynes
Katharine M. Haynes
Vice President and Corporate Secretary



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Exhibit 99.1

News Release
For Immediate Release: November 7, 2024
H&R Block Reports Fiscal 2025 First Quarter Results
— Revenue Increased 5% —
— Repurchased $210 Million of Shares —
— Reaffirms Full Year Outlook —
KANSAS CITY, Mo. - H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2025 first quarter ended September 30, 2024.
"We had a good start to the year and I am pleased with our performance in the quarter," said Jeff Jones, president and chief executive officer. "We are reaffirming our fiscal 2025 outlook and our team is focused on operational and technical enhancements to improve the client experience in office and online."
Fiscal 2025 First Quarter Results and Key Financial Metrics
"We delivered revenue growth of 5% and continued our share repurchase program, buying approximately $210 million in the quarter," said Tiffany Mason, chief financial officer. "We are on track for the year and believe we are well positioned to deliver results."
For the first quarter, the Company delivered total revenue of $193.8 million, an increase of $10.0 million, or 5%, versus the prior year. The increase was primarily due to higher company office volumes and a higher net average charge in the Assisted category combined with higher international tax preparation revenues.
Total operating expenses of $422.1 million increased by $32.0 million, primarily due to higher tax professional wages in the U.S. and international as a result of higher tax return volume, higher corporate wages, and an increase in legal expenses in the current year.
Pretax loss increased by $19.9 million to $232.3 million.
Loss per share from continuing operations2 increased to $(1.23) from $(1.11) and adjusted loss per share from continuing operations2 increased to $(1.17) from $(1.05), due to a higher pretax loss and fewer shares outstanding as a result of share repurchases.
Capital Allocation
The Company reported the following related to its capital structure:
As previously announced, a quarterly cash dividend of $0.375 per share is payable on January 6, 2025 to shareholders of record as of December 5, 2024. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962.
Repurchased and retired 3.3 million shares at an aggregate price of $209.6 million, or $63.51 per share in the first quarter.
1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
2All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, free cash flow, and free cash flow yield, 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).




The Company has approximately $1.3 billion remaining on its $1.5 billion share repurchase program. The repurchase program does not have an expiration date.
Since 2016, the Company has returned more than $4.1 billion to shareholders in the form of dividends and share repurchases, buying back over 41% of its shares outstanding3.
Fiscal Year 2025 Outlook Reaffirmed
The Company continues to expect:
Revenue to be in the range of $3.69 to $3.75 billion.
EBITDA4 to be in the range of $975 million to $1.02 billion.
Effective tax rate to be approximately 13%, resulting in a one-time benefit to EPS of approximately 50 cents.
Adjusted Diluted Earnings Per Share4 to be in the range of $5.15 to $5.35.
Conference Call
The Company will host a conference call for analysts and investors to discuss first quarter 2025 results at 4:30 p.m. ET on Thursday, November 7, 2024. To join live, participants must register at https://register.vevent.com/register/BI46d8067507a543a1803367b08bae03f8. 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/qdeqpgfd and will be available for replay 2 hours after the call is concluded and continuing for 90 days.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time, and be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.
About Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the
3Shares outstanding calculated as of April 30, 2016.
4Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.


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:Michaella Gallina, (816) 854-3022, michaella.gallina@hrblock.com
Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
Media Relations:Teri Daley, (816) 854-3787, teri.daley@hrblock.com
Media Desk, mediadesk@hrblock.com

TABLES FOLLOW




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FINANCIAL RESULTS(unaudited, in 000s - except per share amounts)
Three months ended September 30,
20242023
REVENUES:
U.S. tax preparation and related services:
Assisted tax preparation$42,963 $39,263 
Royalties5,852 5,701 
DIY tax preparation3,236 3,848 
Refund Transfers860 1,142 
Peace of Mind® Extended Service Plan23,097 24,847 
Tax Identity Shield®3,909 4,580 
Other13,809 10,980 
Total U.S. tax preparation and related services93,726 90,361 
Financial services:
Emerald Card® and SpruceSM
8,826 8,633 
Interest and fee income on Emerald Advance® 298 
Total financial services8,826 8,931 
International64,855 60,565 
Wave26,403 23,943 
Total revenues$193,810 $183,800 
Compensation and benefits:
Field wages68,094 62,435 
Other wages77,335 72,098 
Benefits and other compensation38,754 35,248 
184,183 169,781 
Occupancy101,318 99,285 
Marketing and advertising9,972 5,481 
Depreciation and amortization28,831 30,225 
Bad debt2,730 4,798 
Other95,107 80,556 
Total operating expenses422,141 390,126 
Other income (expense), net11,917 9,836 
Interest expense on borrowings(15,847)(15,870)
Pretax loss(232,261)(212,360)
Income tax benefit(60,840)(49,487)
Net loss from continuing operations(171,421)(162,873)
Net loss from discontinued operations(1,155)(609)
Net loss$(172,576)$(163,482)
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations$(1.23)$(1.11)
Discontinued operations(0.01)(0.01)
Consolidated$(1.24)$(1.12)
WEIGHTED AVERAGE DILUTED SHARES139,154 146,273 
Adjusted diluted EPS (1)
$(1.17)$(1.05)
EBITDA (1)
$(187,583)$(166,265)
(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures.



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CONSOLIDATED BALANCE SHEETS(unaudited, in 000s - except per share data)
As ofSeptember 30, 2024June 30, 2024
ASSETS
Cash and cash equivalents$415,860 $1,053,326 
Cash and cash equivalents - restricted23,157 21,867 
Receivables, net69,929 69,075 
Prepaid expenses and other current assets102,657 95,208 
Total current assets611,603 1,239,476 
Property and equipment, net135,533 131,319 
Operating lease right of use assets426,990 461,986 
Intangible assets, net256,053 264,102 
Goodwill792,195 785,226 
Deferred tax assets and income taxes receivable261,384 271,658 
Other noncurrent assets66,209 65,043 
Total assets$2,549,967 $3,218,810 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Accounts payable and accrued expenses$161,620 $155,830 
Accrued salaries, wages and payroll taxes58,294 105,548 
Accrued income taxes and reserves for uncertain tax positions205,470 318,830 
Operating lease liabilities189,432 206,070 
Deferred revenue and other current liabilities181,069 191,050 
Total current liabilities795,885 977,328 
Long-term debt1,491,621 1,491,095 
Deferred tax liabilities and reserves for uncertain tax positions296,370 291,063 
Operating lease liabilities247,062 265,373 
Deferred revenue and other noncurrent liabilities87,094 103,357 
Total liabilities2,918,032 3,128,216 
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock, no par, stated value $.01 per share1,676 1,709 
Additional paid-in capital744,076 762,583 
Accumulated other comprehensive loss(42,728)(48,845)
Retained earnings (deficit)(424,548)12,654 
Less treasury shares, at cost(646,541)(637,507)
Total stockholders' equity (deficiency)(368,065)90,594 
Total liabilities and stockholders' equity$2,549,967 $3,218,810 



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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited, in 000s)
Three months ended September 30,20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$(172,576)$(163,482)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization28,831 30,225 
Provision for credit losses1,024 1,098 
Deferred taxes19,006 (37,757)
Stock-based compensation8,727 7,550 
Changes in assets and liabilities, net of acquisitions:
Receivables1,029 4,981 
Prepaid expenses, other current and noncurrent assets8,836 6,396 
Accounts payable, accrued expenses, salaries, wages and payroll taxes(66,017)(71,202)
Deferred revenue, other current and noncurrent liabilities(27,025)(42,657)
Income tax receivables, accrued income taxes and income tax reserves(129,397)(70,301)
Other, net(1,019)160 
Net cash used in operating activities(328,581)(334,989)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(18,735)(12,916)
Payments made for business acquisitions, net of cash acquired(5,901)(6,919)
Franchise loans funded(7,109)(5,380)
Payments from franchisees211 937 
Other, net5,140 388 
Net cash used in investing activities(26,394)(23,890)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid(44,653)(42,953)
Repurchase of common stock, including shares surrendered(238,376)(150,442)
Other, net(1,421)(1,803)
Net cash used in financing activities(284,450)(195,198)
Effects of exchange rate changes on cash3,249 (3,679)
Net decrease in cash and cash equivalents, including restricted balances(636,176)(557,756)
Cash, cash equivalents and restricted cash, beginning of period1,075,193 1,015,316 
Cash, cash equivalents and restricted cash, end of period$439,017 $457,560 
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net (includes payments for purchased investment tax credits)$48,343 $58,337 
Interest paid on borrowings19,792 19,792 
Accrued additions to property and equipment6,341 3,316 
New operating right of use assets and related lease liabilities21,861 38,468 
Accrued dividends payable to common shareholders52,307 46,901 
Accrued purchase of common stock7,131 10,003 



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(in 000s)
Three months ended September 30,
NON-GAAP FINANCIAL MEASURE - EBITDA20242023
Net loss - as reported$(172,576)$(163,482)
Discontinued operations, net1,155 609 
Net loss from continuing operations - as reported(171,421)(162,873)
Add back:
Income tax benefit(60,840)(49,487)
Interest expense15,847 15,870 
Depreciation and amortization28,831 30,225 
(16,162)(3,392)
EBITDA from continuing operations$(187,583)$(166,265)
(in 000s, except per share amounts)
Three months ended September 30,
NON-GAAP FINANCIAL MEASURE - ADJUSTED EPS20242023
Net loss from continuing operations - as reported$(171,421)$(162,873)
Adjustments:
Amortization of intangibles related to acquisitions (pretax)11,128 12,555 
Tax effect of adjustments (1)
(2,645)(2,936)
Adjusted net loss from continuing operations$(162,938)$(153,254)
Diluted loss per share from continuing operations - as reported$(1.23)$(1.11)
Adjustments, net of tax0.06 0.06 
Adjusted diluted loss per share from continuing operations$(1.17)$(1.05)
(1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.
Non-GAAP Financial Information
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.
We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and free cash flow yield. 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.

v3.24.3
Cover Page
Nov. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 07, 2024
Entity Registrant Name H&R BLOCK, INC.
Entity Incorporation, State or Country Code MO
Entity File Number 1-06089
Entity Tax Identification Number 44-0607856
Entity Address, Address Line One One H&R Block Way
Entity Address, City or Town Kansas City
Entity Address, State or Province MO
Entity Address, Postal Zip Code 64105
City Area Code 816
Local Phone Number 854-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, without par value
Trading Symbol HRB
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000012659
Amendment Flag false

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