H&R Block (HRB)
Market Price (8/12/2026): $54.08 | Market Cap: $6.9 BilSector: Consumer Discretionary | Industry: Specialized Consumer Services
H&R Block (HRB)
Market Price (8/12/2026): $54.08Market Cap: $6.9 BilSector: Consumer DiscretionaryIndustry: Specialized Consumer Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 16%, Dividend Yield is 3.5%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 12%, FCF Yield is 13% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 23% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 21%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 19% Stock buyback supportStock Buyback 3Y Total is 1.4 Bil Low stock price volatilityVol 12M is 43% Megatrend and thematic driversMegatrends include Automation & Robotics, Fintech & Digital Payments, and Cloud Computing. Themes include Process / Warehouse Automation, Show more. | Weak multi-year price returns2Y Excs Rtn is -56%, 3Y Excs Rtn is -20% Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 14% | Key risksHRB key risks include [1] intense competition from digital and free-file rivals eroding its high-margin, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 16%, Dividend Yield is 3.5%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 12%, FCF Yield is 13% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 23% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 21%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 19% |
| Stock buyback supportStock Buyback 3Y Total is 1.4 Bil |
| Low stock price volatilityVol 12M is 43% |
| Megatrend and thematic driversMegatrends include Automation & Robotics, Fintech & Digital Payments, and Cloud Computing. Themes include Process / Warehouse Automation, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -56%, 3Y Excs Rtn is -20% |
| Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 14% |
| Key risksHRB key risks include [1] intense competition from digital and free-file rivals eroding its high-margin, Show more. |
Qualitative Assessment
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H&R Block (HRB) stock has gained about 50% since 4/30/2026 because of the following key factors:
1. H&R Block's fiscal 2026 financial results, released on August 11, 2026, significantly surpassed expectations, demonstrating robust growth and operational strength. The company reported total revenue of $3.95 billion, marking a 4.9% increase over the prior fiscal year ended June 30, 2025. Adjusted diluted earnings per share (EPS) from continuing operations rose 13.9% to $5.31, exceeding previous performance. Additionally, operating cash flow strengthened considerably, increasing 23% to $838.7 million. This strong performance was primarily driven by higher net average charges and increased company-owned volume in U.S. assisted tax preparation, alongside growth in international revenue and Wave subscription services.
2. The company issued an optimistic outlook for fiscal year 2027, projecting revenue and adjusted EPS figures that exceeded analyst consensus estimates. H&R Block anticipates fiscal 2027 revenue to be in the range of $4.11 billion to $4.16 billion, surpassing the consensus estimate of $4.05 billion. Furthermore, adjusted diluted EPS for fiscal 2027 is projected to be between $6.04 and $6.24, which is notably higher than the FactSet consensus estimate of $5.86. This forward-looking guidance signaled management's confidence in sustained growth and profitability.
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H&R Block (HRB) stock has gained about 50% since 4/30/2026 because of the following key factors:
1. H&R Block's fiscal 2026 financial results, released on August 11, 2026, significantly surpassed expectations, demonstrating robust growth and operational strength. The company reported total revenue of $3.95 billion, marking a 4.9% increase over the prior fiscal year ended June 30, 2025. Adjusted diluted earnings per share (EPS) from continuing operations rose 13.9% to $5.31, exceeding previous performance. Additionally, operating cash flow strengthened considerably, increasing 23% to $838.7 million. This strong performance was primarily driven by higher net average charges and increased company-owned volume in U.S. assisted tax preparation, alongside growth in international revenue and Wave subscription services.
2. The company issued an optimistic outlook for fiscal year 2027, projecting revenue and adjusted EPS figures that exceeded analyst consensus estimates. H&R Block anticipates fiscal 2027 revenue to be in the range of $4.11 billion to $4.16 billion, surpassing the consensus estimate of $4.05 billion. Furthermore, adjusted diluted EPS for fiscal 2027 is projected to be between $6.04 and $6.24, which is notably higher than the FactSet consensus estimate of $5.86. This forward-looking guidance signaled management's confidence in sustained growth and profitability.
3. Enhanced shareholder returns through significant share repurchases and a boosted dividend contributed to investor confidence. In fiscal 2026 (ended June 30, 2026), H&R Block repurchased and retired approximately 10.5 million shares, representing 7.9% of its outstanding shares, at an aggregate cost of $500.3 million. Concurrently, the Board of Directors approved a 10% increase in the quarterly dividend, raising it to $0.46 per share, marking the ninth consecutive annual increase. These actions underscored the company's commitment to returning capital to shareholders.
4. Strategic transformation and successful adoption of AI technologies positively impacted client engagement and market perception. H&R Block highlighted the effectiveness of its "expert-led, technology-enabled strategy," which led to improved business quality and client retention. Specifically, the introduction of "Sidekick," an AI tax pro assistant, and "AI Tax Assist" for paid DIY filers facilitated millions of client interactions, nearly doubling engagement levels compared to the previous year. This demonstrated the company's ability to innovate and adapt to an evolving tax industry, enhancing its competitive position.
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Stock Movement Drivers
Fundamental Drivers
The 48.7% change in HRB stock from 4/30/2026 to 8/11/2026 was primarily driven by a 23.6% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 31.38 | 46.67 | 48.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,791 | 3,912 | 3.2% |
| Net Income Margin (%) | 16.2% | 18.9% | 16.7% |
| P/E Multiple | 6.5 | 8.0 | 23.6% |
| Shares Outstanding (Mil) | 127 | 127 | -0.2% |
| Cumulative Contribution | 48.7% |
Market Drivers
4/30/2026 to 8/11/2026| Return | Correlation | |
|---|---|---|
| HRB | 48.7% | |
| Market (SPY) | 7.2% | -24.6% |
| Sector (XLY) | 0.8% | -1.9% |
Fundamental Drivers
The 21.2% change in HRB stock from 1/31/2026 to 8/11/2026 was primarily driven by a 16.4% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 38.50 | 46.67 | 21.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,771 | 3,912 | 3.7% |
| Net Income Margin (%) | 16.2% | 18.9% | 16.4% |
| P/E Multiple | 8.3 | 8.0 | -3.1% |
| Shares Outstanding (Mil) | 131 | 127 | 3.7% |
| Cumulative Contribution | 21.2% |
Market Drivers
1/31/2026 to 8/11/2026| Return | Correlation | |
|---|---|---|
| HRB | 21.2% | |
| Market (SPY) | 11.7% | -11.6% |
| Sector (XLY) | -1.4% | 2.9% |
Fundamental Drivers
The -10.4% change in HRB stock from 7/31/2025 to 8/11/2026 was primarily driven by a -35.2% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 52.08 | 46.67 | -10.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,713 | 3,912 | 5.4% |
| Net Income Margin (%) | 15.2% | 18.9% | 24.4% |
| P/E Multiple | 12.4 | 8.0 | -35.2% |
| Shares Outstanding (Mil) | 134 | 127 | 5.6% |
| Cumulative Contribution | -10.4% |
Market Drivers
7/31/2025 to 8/11/2026| Return | Correlation | |
|---|---|---|
| HRB | -10.4% | |
| Market (SPY) | 22.9% | -9.4% |
| Sector (XLY) | 8.3% | 5.1% |
Fundamental Drivers
The 52.9% change in HRB stock from 7/31/2023 to 8/11/2026 was primarily driven by a 39.1% change in the company's Net Income Margin (%).| (LTM values as of) | 7312023 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 30.53 | 46.67 | 52.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,490 | 3,912 | 12.1% |
| Net Income Margin (%) | 13.6% | 18.9% | 39.1% |
| P/E Multiple | 9.8 | 8.0 | -18.4% |
| Shares Outstanding (Mil) | 152 | 127 | 20.1% |
| Cumulative Contribution | 52.9% |
Market Drivers
7/31/2023 to 8/11/2026| Return | Correlation | |
|---|---|---|
| HRB | 52.9% | |
| Market (SPY) | 74.3% | 9.9% |
| Sector (XLY) | 40.4% | 12.8% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| HRB Return | 55% | 60% | 37% | 12% | -15% | 8% | 250% |
| Peers Return | 29% | -12% | 36% | 29% | -19% | -16% | 36% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| HRB Win Rate | 75% | 67% | 58% | 58% | 42% | 62% | |
| Peers Win Rate | 55% | 42% | 57% | 60% | 45% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| HRB Max Drawdown | -12% | -24% | -27% | -21% | -33% | -37% | |
| Peers Max Drawdown | -21% | -31% | -17% | -13% | -33% | -37% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: INTU, ADP, PAYX, VERX, FCN. See HRB Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/11/2026 (YTD)
How Low Can It Go
| Event | HRB | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -26.8% | -6.7% |
| % Gain to Breakeven | 36.6% | 7.1% |
| Time to Breakeven | 87 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -12.2% | -24.5% |
| % Gain to Breakeven | 13.9% | 32.4% |
| Time to Breakeven | 18 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -47.5% | -33.7% |
| % Gain to Breakeven | 90.6% | 50.9% |
| Time to Breakeven | 361 days | 140 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -11.6% | -3.7% |
| % Gain to Breakeven | 13.2% | 3.9% |
| Time to Breakeven | 13 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.1% | -12.2% |
| % Gain to Breakeven | 30.0% | 13.9% |
| Time to Breakeven | 2217 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -17.1% | -6.8% |
| % Gain to Breakeven | 20.6% | 7.3% |
| Time to Breakeven | 42 days | 15 days |
In The Past
H&R Block's stock fell -4.1% during the 2025 US Tariff Shock. Such a loss loss requires a 4.2% gain to breakeven.
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| Event | HRB | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -26.8% | -6.7% |
| % Gain to Breakeven | 36.6% | 7.1% |
| Time to Breakeven | 87 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -47.5% | -33.7% |
| % Gain to Breakeven | 90.6% | 50.9% |
| Time to Breakeven | 361 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.1% | -12.2% |
| % Gain to Breakeven | 30.0% | 13.9% |
| Time to Breakeven | 2217 days | 62 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -20.5% | -15.4% |
| % Gain to Breakeven | 25.8% | 18.2% |
| Time to Breakeven | 259 days | 125 days |
In The Past
H&R Block's stock fell -4.1% during the 2025 US Tariff Shock. Such a loss loss requires a 4.2% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About H&R Block (HRB)
H&R Block (HRB) is a prominent provider of income tax preparation services and related financial products, serving individuals primarily in the United States, Canada, and Australia. The company offers two main approaches for tax filing: assisted services delivered through a vast network of company-owned and franchised retail offices, where clients receive expert help; and do-it-yourself (DIY) options, which include online software and software sold through third-party retail stores, enabling users to prepare and e-file their own returns with features like tax tips, calculators, and error checking.
Beyond core tax preparation, H&R Block provides a range of financial products and services, many designed to facilitate access to tax refunds. These offerings include Refund Transfers, the H&R Block Emerald Prepaid Mastercard for receiving refunds, H&R Block Emerald Advance lines of credit, and various refund advance loan options such as H&R Block Instant Refund and Pay With Refund. Additionally, the company offers Peace of Mind extended service plans for audit support, Tax Identity Shield to help protect against tax identity theft, and financial solutions tailored for small businesses through its offices and online platforms.
H&R Block's primary customers are individuals seeking convenient and reliable ways to prepare and file their annual income taxes, whether they prefer professional assistance or a self-service approach. The company also extends its services to small businesses, aiming to simplify financial management and tax compliance. Its comprehensive suite of offerings positions it as a key resource for tax-related needs and associated financial services for a broad consumer base.
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Here are 1-3 brief analogies to describe H&R Block:
- H&R Block is **Intuit (makers of TurboTax) for both online DIY and traditional in-person tax filing services**.
- The **Starbucks of tax preparation**, providing ubiquitous, accessible services for individual and small business tax filing.
- The **UPS Store for personal and small business tax services**, offering both DIY tools and expert assistance at thousands of locations.
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- Assisted Income Tax Preparation: Professional preparation of income tax returns through a network of retail offices.
- Do-It-Yourself (DIY) Tax Preparation: Software and online platforms enabling individuals to prepare their own tax returns.
- Refund Transfer Services: Facilitates the receipt of tax refunds for clients, often via direct deposit or other electronic means.
- H&R Block Emerald Prepaid Mastercard: A reloadable prepaid debit card that allows clients to access and manage their tax refunds.
- Peace of Mind Extended Service Plans: Supplemental plans offering additional support and protection for filed tax returns.
- H&R Block Emerald Advance Lines of Credit: Short-term lines of credit offered to eligible clients.
- Tax Identity Shield: A service designed to help protect clients' tax identities and assist with restoration in case of compromise.
- Refund Advance Loans: Short-term loans provided to clients based on their anticipated tax refunds.
- H&R Block Instant Refund: A service allowing clients to quickly access a portion of their tax refund.
- H&R Block Pay With Refund: A payment option where clients can pay for tax preparation services directly from their tax refund.
- Small Business Financial Solutions: A range of financial services and support tailored for small business clients.
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H&R Block (HRB)
H&R Block primarily sells its services and products directly to individuals and small businesses. Its major customer categories include:
- Individual Tax Filers: This category encompasses the vast majority of H&R Block's clientele, including individuals seeking assistance with their annual income tax returns through assisted services in retail offices or those using do-it-yourself (DIY) tax software and online platforms. This segment also includes individuals utilizing H&R Block's related financial products such as Refund Transfers, the H&R Block Emerald Prepaid Mastercard, Emerald Advance lines of credit, various refund advance loans, Peace of Mind extended service plans, and Tax Identity Shield.
- Small Business Owners: H&R Block provides specialized financial solutions and tax preparation services tailored for small businesses. These customers utilize the company's offerings to manage their business tax obligations and related financial needs, accessible through both company-owned or franchise offices and online platforms.
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Pathward Financial, Inc. (symbol: CASH)
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Curtis Campbell
President and CEO
Appointed President and CEO in January 2026. Previously, he served as President, Global Consumer Tax and Chief Product Officer at H&R Block since May 2024. His career includes executive roles as President and CEO of TaxAct, multiple executive roles in strategy, product management, and innovation at Intuit, and Head of Product Management for Amazon Web Services at Amazon. Campbell also spent a decade at Dell in engineering and product leadership roles. He serves on the board of directors of Jack Henry & Associates, a publicly traded fintech company.
Tiffany Mason
Chief Financial Officer
Appointed Executive Vice President, Finance effective August 5, 2024, and became Chief Financial Officer effective September 13, 2024. Prior to H&R Block, she served as Executive Vice President and Chief Financial Officer at Driven Brands Holdings Inc., where she led a successful Initial Public Offering (IPO). Before Driven Brands, Mason held senior finance positions at Lowe's Companies, Inc. She also has experience with PwC, Bank of America, and McCormick & Company. Mason serves on the Board of Directors and as the Audit Committee Chair of Leaf Home, a private company backed by Gridiron Capital.
Scott Manuel
Chief Strategy & Operations Officer
Joined H&R Block in the newly created role of Chief Strategy and Operations Officer, effective August 7, 2024. He is responsible for driving the strategic agenda for H&R Block and building capabilities in AI, productivity, client support, and real estate. Manuel most recently served as President of Tribute Technology, a B2B SaaS company owned by The Carlyle Group and Vista Equity Partners, where he led the consolidation and transformation of acquired software companies. Previously, he was Chief Product Officer and General Manager at McClatchy, leading business transformation and digital product transformation. He also held various leadership roles at Thomson Reuters, where he expanded product capabilities in emerging technologies and co-invented five patents in digital identity.
Dara Redler
Chief Legal & Administrative Officer
Joined H&R Block in 2022 as Chief Legal Officer. Prior to H&R Block, Redler served as general counsel and corporate secretary for Tilray, Inc., a global cannabis business, where she led legal negotiations for a transformative merger transaction. Before Tilray, she held various legal roles of increasing responsibility over 17 years at The Coca-Cola Company.
Alicia Chrapaty
Chief Marketing Officer
Prior to joining H&R Block, she served as Chief Marketing Officer at Pluralsight, where she led a comprehensive marketing transformation focused on returning the business to growth. Earlier in her career, Chrapaty held executive roles at leading brands across industries, including Chief Marketing Officer at TaxAct, Vice President of Marketing at Pier 1 Imports, and senior leadership positions at Verizon Media and AOL. She has more than 20 years of experience spanning digital, subscription, e-commerce, and retail industries.
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Key Risks to H&R Block (HRB)
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Intense Competition and Market Share Erosion, including Government Initiatives
H&R Block faces significant competition in the tax preparation industry from both established private-sector companies and emerging government initiatives. Intuit's TurboTax, for example, holds a dominant leadership position in the U.S. tax preparation software market, with an estimated 60% market share as of April 2025. The competitive landscape is further intensified by other commercial tax preparers and low-cost online entrants. A particularly notable development is the IRS Direct File program, which became permanent for the 2025 filing season, introducing a new element of government-provided tax filing and increasing competitive pressure. This intense competition could adversely affect H&R Block's market share and profitability across its assisted and do-it-yourself (DIY) segments.
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Regulatory and Legislative Changes
H&R Block's business operations are subject to various forms of government regulation, including U.S. federal requirements for tax preparers. Changes in tax laws, forms, or governmental processes (such as the acceptance of tax returns and issuance of refunds by the IRS or state tax agencies) are unpredictable and can significantly impact how the company provides its offerings to clients. Such regulatory shifts or delays in launching services due to new regulations could harm H&R Block's revenue, results of operations, and reputation.
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Failure to Adapt to Evolving Technology and Consumer Preferences
The tax preparation industry is rapidly evolving due to technological advancements and shifting customer preferences for digital solutions. While H&R Block is implementing a "human-plus-AI" strategy to enhance efficiency and client experience, there is a continuous need to innovate and integrate digital tools to remain competitive. A risk exists if the company fails to effectively adapt to these trends, potentially leading to clients migrating from higher-margin assisted services to lower-revenue DIY options, thereby impacting revenue and profitability. The increasing importance of digital tax solutions and online filing services means H&R Block must continuously evolve its digital platform to meet market demands and compete with digital-first solutions.
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One clear emerging threat for H&R Block is the introduction and expansion of the IRS Direct File program. This government-backed initiative allows eligible taxpayers to file their federal tax returns directly with the IRS for free, with plans to integrate state tax filing in the future. As the program expands in scope and availability, it presents a direct, free alternative to H&R Block's paid do-it-yourself (DIY) tax software and, for simpler returns, its assisted tax preparation services, potentially eroding a significant portion of its customer base.
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For H&R Block (symbol: HRB), the addressable markets for its main products and services are as follows:
Assisted Income Tax Return Preparation
- United States: The market size for Tax Preparation Services in the U.S. was approximately $14.2 billion in 2024. This market is projected to reach $14.3 billion in 2025.
- Canada: The market size for Tax Preparation Services in Canada was approximately C$1.9 billion in 2024. This market is projected to be C$1.8 billion in 2025.
- Australia: The market size for Tax Preparation Franchises in Australia was approximately A$375.5 million in 2024. This market is projected to reach A$400.5 million in 2025.
Do-It-Yourself (DIY) Tax Return Preparation Services and Products
- United States: The U.S. tax preparation software market size was approximately $6.4 billion in 2024.
- Canada: The Canada tax software market was valued at approximately US$775.27 million in 2022. This market is expected to grow to US$1,506.87 million by 2030.
- Australia: null
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H&R Block (HRB) is expected to drive future revenue growth over the next two to three years through several strategic initiatives:
- Engaging Clients with More Complex Tax Needs: H&R Block is intensifying its efforts to attract and serve clients with more intricate tax situations. This focus aims to capture a larger share of a valuable customer segment, leading to an increase in overall net average charge (NAC) and higher company-owned return volumes in the U.S.. The company notes a shift from do-it-yourself (DIY) to Assisted services, especially as tax law complexity increases, which plays into H&R Block's strength as a leader in the Assisted category.
- Expanding Small Business Services: The company is significantly increasing its focus on the small business sector by expanding its reach through platforms like Block Advisors and Wave. These offerings provide year-round bookkeeping, payroll, and advisory services, diversifying revenue and tapping into a growing market. Wave Financial, in particular, has consistently delivered double-digit revenue growth and is anticipated to become a more substantial revenue contributor for the company.
- Leveraging Technology and Artificial Intelligence (AI): H&R Block is actively integrating technology and AI to enhance both its Assisted and DIY offerings, aiming for greater business efficiencies and seamless, personalized client experiences. This includes the development and utilization of tools like AI Tax Assist and Tax Pro Review, which help differentiate H&R Block in the marketplace.
- Growth in Mobile Banking and Financial Products: The company is actively promoting and expanding its mobile banking app, Spruce, which offers features for enhanced financial management. Spruce has demonstrated strong cross-selling capabilities, with a significant portion of new Spruce clients also completing tax returns with H&R Block, including those new to the brand. This expansion of financial products helps diversify revenue streams and foster year-round client engagement.
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Share Repurchases
- H&R Block's board of directors approved a new $1.5 billion share repurchase authorization in August 2024, replacing a prior authorization.
- In fiscal year 2025, the company repurchased approximately 6.5 million shares for $400.1 million, or 4.7% of its outstanding shares.
- As of August 2025, approximately $1.1 billion remained authorized on the $1.5 billion share repurchase program.
Outbound Investments
- H&R Block has focused on expanding its tax preparation services through the acquisition of franchise offices.
- Payments for business acquisitions, net of cash acquired, were $35.518 million in fiscal 2025 and $43.358 million in fiscal 2024.
- The company continues to enhance its small business solutions through its Wave platform, which was acquired in June 2019 for $405 million and has shown significant growth.
Capital Expenditures
- Capital expenditures increased to $82.0 million in fiscal year 2025, with a primary focus on retail office improvements and technology investments.
- For the nine months ended March 31, 2025, capital expenditures totaled $71.8 million, following $53.8 million for the same period in 2024.
- The company is making ongoing investments in AI and digital tools to enhance the tax professional and client experience, aiming to automate workflows and support blended service options.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 137.06 |
| Mkt Cap | 24.6 |
| Rev LTM | 5,218 |
| Op Inc LTM | 1,706 |
| FCF LTM | 1,541 |
| FCF 3Y Avg | 1,309 |
| CFO LTM | 1,697 |
| CFO 3Y Avg | 1,445 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.0% |
| Rev Chg 3Y Avg | 8.1% |
| Rev Chg Q | 8.6% |
| QoQ Delta Rev Chg LTM | 2.7% |
| Op Inc Chg LTM | 9.4% |
| Op Inc Chg 3Y Avg | 8.0% |
| Op Mgn LTM | 24.7% |
| Op Mgn 3Y Avg | 24.2% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 23.4% |
| CFO/Rev 3Y Avg | 23.0% |
| FCF/Rev LTM | 20.6% |
| FCF/Rev 3Y Avg | 19.6% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 24.6 |
| P/S | 3.5 |
| P/Op Inc | 13.9 |
| P/EBIT | 13.4 |
| P/E | 22.4 |
| P/CFO | 11.6 |
| Total Yield | 6.4% |
| Dividend Yield | 1.9% |
| FCF Yield 3Y Avg | 4.6% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 13.0% |
| 3M Rtn | 14.4% |
| 6M Rtn | 5.1% |
| 12M Rtn | -9.7% |
| 3Y Rtn | -5.7% |
| 1M Excs Rtn | 6.5% |
| 3M Excs Rtn | 8.3% |
| 6M Excs Rtn | -6.9% |
| 12M Excs Rtn | -32.1% |
| 3Y Excs Rtn | -76.1% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| United States (U.S.) assisted tax preparation | 2,413 | 2,275 | 2,167 | 2,095 | 260 |
| United States (U.S.) do-it-yourself (DIY) tax preparation | 384 | 350 | 315 | 319 | 76 |
| International | 247 | 247 | 235 | 231 | 22 |
| United States (U.S.) royalties | 193 | 205 | 211 | 225 | 30 |
| Refund Transfers | 138 | 142 | 143 | 163 | 14 |
| Wave | 109 | 96 | 90 | 81 | 12 |
| Peace of Mind® Extended Service Plan | 87 | 93 | 95 | 95 | 20 |
| Emerald Card® and Spruce SM | 73 | 76 | 85 | 125 | 19 |
| Other | 58 | 52 | 45 | 46 | 8 |
| Tax Identity Shield® | 30 | 33 | 38 | 39 | 4 |
| Interest and fee income on Emerald Advance® | 29 | 41 | 48 | 44 | 0 |
| Total | 3,761 | 3,610 | 3,472 | 3,463 | 466 |
| $ Mil | 2006 | 2005 | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|
| Tax Services | 587 | 664 | |||
| Mortgage Operations | 322 | 496 | 678 | 694 | 339 |
| Business Services | 53 | 30 | 19 | -14 | 23 |
| Investment Services | -33 | -75 | -64 | -128 | |
| Corporate | -105 | -96 | -108 | -122 | |
| International Tax Operations | 11 | 10 | 7 | ||
| U.S. Tax Operations | 628 | 547 | 533 | ||
| Corporate Operations | -56 | ||||
| Investment services | -55 | ||||
| Total | 824 | 1,018 | 1,164 | 987 | 792 |
| $ Mil | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|
| Tax Services | 2,979 | 2,945 | 3,013 | 2,298 | 2,267 |
| Corporate | 1,537 | 1,748 | 1,525 | 2,089 | |
| Business Services | 2,351 | 852 | |||
| Total | 4,515 | 4,694 | 4,538 | 4,650 | 5,208 |
Price Behavior
| Market Price | $46.67 | |
| Market Cap ($ Bil) | 5.9 | |
| First Trading Date | 11/12/1986 | |
| Distance from 52W High | -10.6% | |
| 50 Days | 200 Days | |
| DMA Price | $40.07 | $37.82 |
| DMA Trend | down | up |
| Distance from DMA | 16.5% | 23.4% |
| 3M | 1YR | |
| Volatility | 39.5% | 43.4% |
| Downside Capture | -155.93 | -32.54 |
| Upside Capture | -16.15 | -37.60 |
| Correlation (SPY) | -28.3% | -9.8% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -2.16 | -1.04 | -1.31 | -0.53 | -0.36 | 0.21 |
| Up Beta | -6.44 | -2.28 | -1.60 | -1.27 | -0.73 | 0.19 |
| Down Beta | -2.31 | -0.59 | 0.22 | -0.17 | -0.02 | 0.19 |
| Up Capture | 23% | -35% | -61% | -11% | -22% | 8% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 14 | 23 | 32 | 62 | 119 | 381 |
| Down Capture | -222% | -151% | -384% | -75% | -41% | 38% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 8 | 20 | 31 | 64 | 130 | 366 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HRB | |
|---|---|---|---|---|
| HRB | -12.1% | 43.3% | -0.19 | - |
| Sector ETF (XLY) | 7.2% | 19.4% | 0.24 | 5.0% |
| Equity (SPY) | 22.1% | 12.8% | 1.28 | -9.9% |
| Gold (GLD) | 28.2% | 28.4% | 0.86 | -14.9% |
| Commodities (DBC) | 37.4% | 20.1% | 1.47 | -1.6% |
| Real Estate (VNQ) | 12.5% | 13.8% | 0.61 | 9.7% |
| Bitcoin (BTCUSD) | -45.3% | 42.9% | -1.28 | -1.0% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HRB | |
|---|---|---|---|---|
| HRB | 17.5% | 33.5% | 0.53 | - |
| Sector ETF (XLY) | 6.4% | 24.0% | 0.22 | 23.4% |
| Equity (SPY) | 13.3% | 17.2% | 0.60 | 24.0% |
| Gold (GLD) | 18.8% | 18.6% | 0.82 | -3.8% |
| Commodities (DBC) | 9.3% | 19.6% | 0.36 | 5.4% |
| Real Estate (VNQ) | 1.9% | 18.9% | -0.00 | 30.1% |
| Bitcoin (BTCUSD) | 10.9% | 52.8% | 0.39 | 8.9% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HRB | |
|---|---|---|---|---|
| HRB | 11.2% | 36.0% | 0.39 | - |
| Sector ETF (XLY) | 12.4% | 22.2% | 0.51 | 34.7% |
| Equity (SPY) | 15.3% | 17.9% | 0.73 | 37.8% |
| Gold (GLD) | 12.0% | 16.2% | 0.61 | -3.2% |
| Commodities (DBC) | 7.9% | 18.0% | 0.35 | 10.6% |
| Real Estate (VNQ) | 4.5% | 20.7% | 0.18 | 40.4% |
| Bitcoin (BTCUSD) | 59.4% | 66.1% | 0.99 | 9.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/11/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/6/2026 | 23.8% | 22.9% | 31.3% |
| 2/3/2026 | -7.1% | -12.3% | -13.7% |
| 11/6/2025 | -3.5% | -12.8% | -17.8% |
| 8/12/2025 | -3.1% | -0.6% | 2.1% |
| 5/7/2025 | -5.3% | -8.6% | -4.9% |
| 2/4/2025 | -0.1% | -3.7% | -1.8% |
| 11/7/2024 | -6.6% | -6.7% | -11.0% |
| 8/15/2024 | 12.1% | 10.7% | 12.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 13 | 15 |
| # Negative | 12 | 11 | 9 |
| Median Positive | 7.6% | 9.1% | 12.0% |
| Median Negative | -5.0% | -6.7% | -7.6% |
| Max Positive | 23.8% | 43.2% | 51.6% |
| Max Negative | -7.9% | -12.8% | -17.8% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/6/2026 | 23.8% | 22.9% | 31.3% |
| 2/3/2026 | -7.1% | -12.3% | -13.7% |
| 11/6/2025 | -3.5% | -12.8% | -17.8% |
| 8/12/2025 | -3.1% | -0.6% | 2.1% |
| 5/7/2025 | -5.3% | -8.6% | -4.9% |
| 2/4/2025 | -0.1% | -3.7% | -1.8% |
| 11/7/2024 | -6.6% | -6.7% | -11.0% |
| 8/15/2024 | 12.1% | 10.7% | 12.7% |
| 5/9/2024 | 8.8% | 7.8% | 2.5% |
| 2/6/2024 | -1.9% | -0.7% | 2.8% |
| 11/7/2023 | 0.7% | 10.3% | 11.1% |
| 8/15/2023 | 9.7% | 11.3% | 12.4% |
| 5/9/2023 | -4.7% | -7.9% | -2.4% |
| 2/7/2023 | -0.3% | 0.3% | -7.6% |
| 11/1/2022 | -6.9% | -1.8% | 5.0% |
| 8/9/2022 | 15.3% | 20.5% | 15.5% |
| 5/10/2022 | 19.5% | 43.2% | 51.6% |
| 2/1/2022 | 3.5% | 5.6% | 12.0% |
| 11/2/2021 | 6.3% | 9.1% | 4.0% |
| 8/9/2021 | 0.7% | 3.0% | 5.2% |
| 6/15/2021 | -6.5% | -4.0% | -4.2% |
| 3/9/2021 | 4.3% | 5.9% | 15.4% |
| 12/8/2020 | -7.9% | -11.1% | -10.1% |
| 9/1/2020 | 1.1% | 4.8% | 15.8% |
| SUMMARY STATS | |||
| # Positive | 12 | 13 | 15 |
| # Negative | 12 | 11 | 9 |
| Median Positive | 7.6% | 9.1% | 12.0% |
| Median Negative | -5.0% | -6.7% | -7.6% |
| Max Positive | 23.8% | 43.2% | 51.6% |
| Max Negative | -7.9% | -12.8% | -17.8% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/05/2026 | 10-Q |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/15/2025 | 10-K |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-Q |
| 09/30/2024 | 11/07/2024 | 10-Q |
| 06/30/2024 | 08/15/2024 | 10-K |
| 03/31/2024 | 05/09/2024 | 10-Q |
| 12/31/2023 | 02/06/2024 | 10-Q |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/17/2023 | 10-K |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/07/2023 | 10-Q |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/16/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/05/2026 | 10-Q |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/15/2025 | 10-K |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-Q |
| 09/30/2024 | 11/07/2024 | 10-Q |
| 06/30/2024 | 08/15/2024 | 10-K |
| 03/31/2024 | 05/09/2024 | 10-Q |
| 12/31/2023 | 02/06/2024 | 10-Q |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/17/2023 | 10-K |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/07/2023 | 10-Q |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/16/2022 | 10-K |
| 03/31/2022 | 05/10/2022 | 10-Q |
| 12/31/2021 | 02/04/2022 | 10-Q |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/09/2021 | 10-QT |
| 04/30/2021 | 06/15/2021 | 10-K |
| 01/31/2021 | 03/09/2021 | 10-Q |
| 10/31/2020 | 12/08/2020 | 10-Q |
| 07/31/2020 | 09/03/2020 | 10-Q |
| 04/30/2020 | 06/17/2020 | 10-K |
| 01/31/2020 | 03/09/2020 | 10-Q |
| 10/31/2019 | 12/06/2019 | 10-Q |
| 07/31/2019 | 09/06/2019 | 10-Q |
Recent Forward Guidance
Updated 8/11/2026Latest: Q4 2026 Earnings Reported 8/11/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2027 Revenue | 4.11 Bil | 4.13 Bil | 4.16 Bil | 5.6% | Higher New | Guidance: 3.92 Bil for 2026 | |
| 2027 Adjusted EBITDA | 1.11 Bil | 1.12 Bil | 1.14 Bil | ||||
| 2027 Effective Tax Rate | 23.0% | 9.0% | Higher New | Guidance: 14.0% for 2026 | |||
| 2027 Adjusted Diluted Earnings Per Share | 6.04 | 6.14 | 6.24 | 19.2% | Higher New | Guidance: 5.15 for 2026 | |
Prior: Q3 2026 Earnings Reported 5/6/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 3.91 Bil | 3.92 Bil | 3.92 Bil | 0.8% | Raised | Guidance: 3.88 Bil for 2026 | |
| 2026 EBITDA | 1.02 Bil | 1.03 Bil | 1.03 Bil | 0.5% | Raised | Guidance: 1.02 Bil for 2026 | |
| 2026 Effective Tax Rate | 14.0% | -11.0% | Lowered | Guidance: 25.0% for 2026 | |||
| 2026 Adjusted Diluted Earnings Per Share | 5.1 | 5.15 | 5.2 | 4.6% | Raised | Guidance: 4.92 for 2026 | |
Q2 2026 Earnings Reported 2/3/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 3.88 Bil | 3.88 Bil | 3.90 Bil | 0 | Affirmed | Guidance: 3.88 Bil for 2026 | |
| 2026 EBITDA | 1.01 Bil | 1.02 Bil | 1.03 Bil | 0 | Affirmed | Guidance: 1.02 Bil for 2026 | |
| 2026 Effective tax rate | 25.0% | 0 | Affirmed | Guidance: 25.0% for 2026 | |||
| 2026 Adjusted Diluted Earnings Per Share | 4.85 | 4.92 | 5 | 0 | Affirmed | Guidance: 4.92 for 2026 | |
Q1 2026 Earnings Reported 11/6/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 3.88 Bil | 3.88 Bil | 3.90 Bil | 0 | Affirmed | Guidance: 3.88 Bil for 2026 | |
| 2026 EBITDA | 1.01 Bil | 1.02 Bil | 1.03 Bil | 0 | Affirmed | Guidance: 1.02 Bil for 2026 | |
| 2026 Effective Tax Rate | 25.0% | 0 | Affirmed | Guidance: 25.0% for 2026 | |||
| 2026 Adjusted Diluted Earnings Per Share | 4.85 | 4.92 | 5 | 0 | Affirmed | Guidance: 4.92 for 2026 | |
Investor Activity (13F)
Updated Aug 12, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
HRB Trade Sentinel
Constructive
CONVICTION RATIONALE
The investment case is constructive, centered on a pivotal turnaround in the core assisted tax business, which has now stabilized market share. This is amplified by excellent management execution, demonstrated by raised guidance and a massive 19.6% shareholder yield. The primary debate is whether this stabilization can withstand intense competitive pressure.
STOCK ARCHETYPE
Service Provider (Transactional)(Number of Tax Returns) x (Net Average Charge per Return) + (Financial Product & Small Business Service Fees) Mix shift to higher-complexity, higher-net-average-charge clients, and operating leverage achieved by using technology to improve tax professional productivity.
INVESTMENT THESIS
Evidence suggests a successful strategic pivot, with the company stabilizing market share in its most profitable segment after years of declines.
- Company maintained assisted market share in tax season '26, a 'meaningful inflection'.
- U.S. assisted net average charge increased 3.8% in Q3 FY26.
- FY26 adjusted EPS guidance was raised to a range of $5.10 to $5.20.
- The total shareholder yield is 19.6%, funded by free cash flow.
- Operating expenses declined 1.8% while revenue grew 5.4%, showing leverage.
PRIMARY RISK
Primary competitor Intuit is aggressively targeting the assisted tax market. Its a recently discussed product offering is expected to grow customers by 38% and revenue by 36% this year, representing a significant threat to H&R Block's newly stabilized market share in its core, high-value segment.
- Competitor Intuit expects TurboTax Live revenue to grow 36% this year.
- Intuit expects TurboTax Live customers to grow 38% this year.
- Intuit's gross margin is 80% versus H&R Block's 44.3%.
- The company faces governmental inquiries related to its DIY services.
- Accrued litigation liabilities increased to $13.3 million from $6.2 million.
| KPI | Status | Rationale |
|---|---|---|
| Assisted Channel Market Share Trend | Maintained market share in the 2026 tax season - Turning around | Management highlighted the stabilization of Assisted market share as a significant achievement. After two consecutive years of improving trends where share was still declining, the business held its position flat relative to the industry in the 2026 tax season. This marks a key turning point for the company's core, higher-value segment. |
| DIY Online Paid Volume Growth | A 4.2% decrease for the tax season through April 30, 2026 - Decelerating | The company's DIY online paid volume declined, which management attributes to a strategic choice to prioritize lifetime value over raw volume, particularly among lower-value, price-sensitive filers. This suggests a focus on profitability and customer quality over chasing market share at the low end. |
| U.S. Assisted Tax Return Volume (Company-owned) | 2.6% increase (Q3 FY2026 (ended 3/31/2026)) | Market rewards Management highlighted that maintaining flat assisted market share for the full tax season was a key achievement and a meaningful inflection.. Indicates the volume of tax returns prepared by company employees, a primary driver of assisted revenue. Growth signals market share stabilization or gains in the core business. |
| U.S. DIY Online Paid Volume | 3.0% decrease (Q3 FY2026 (ended 3/31/2026)) | Measures the volume of paid DIY tax returns. This metric reflects performance in the competitive online tax software market. A decrease reflects a strategic choice to prioritize higher-lifetime-value clients over price-sensitive filers. |
| Net Average Charge (NAC) Growth (U.S. Assisted) | 3.8% increase (Q3 FY2026 (ended 3/31/2026)) | Represents the average fee per return, reflecting both price increases and the mix of return complexity. Positive growth is a key driver of revenue and margin expansion. |
Stabilized Incumbent vs. Tech Disruptor
BULL VIEW
Bulls believe the recent stabilization of assisted market share is a durable inflection, proving the value of H&R Block's human-led, omnichannel model for complex filers and justifying the strategic retreat from low-value DIY clients.
CORE TENSION
Can H&R Block's defensive success in maintaining assisted share withstand the offensive momentum of Intuit's a recently discussed product, which is growing customers at 38%?
PREVAILING SENTIMENT
The latest data favors the bulls. H&R Block delivered on its promise to maintain assisted share, a key inflection that the market rewarded with a 21% stock reaction.
BEAR VIEW
Bears argue the stabilization is temporary and that Intuit's a recently discussed product, with 36% revenue growth, is the true structural winner that will ultimately capture the high-value assisted market, rendering H&R Block's model obsolete.
| Timeline | Event & Metric To Watch |
|---|---|
9/28/2026 | Peer Paychex Earnings Report Watch: Peer Paychex (PAYX) is scheduled to report earnings. |
10/21/2026 | Peer FTI Consulting Earnings Watch: Peer FTI Consulting (FCN) is scheduled to report earnings. |
11/4/2026 | DIY Volume Weakness Watch: Reported DIY client volumes and management commentary on the trade-off between volume and lifetime value. |
11/18/2026 | Competitor Results Signal Share Pressure Watch: Intuit's reported growth in TurboTax Live customers and revenue, and any commentary on share gains in assisted tax. |
No set date | Adverse Legal or Regulatory Developments Watch: Announcements of settlements, fines, or rulings related to the IRS Free File Program or data pixel litigation. |
| Date | Event | Stock Impact |
|---|---|---|
2026-06-25 | Key Business Drivers Highlighted Details: A news report noted that HRB's Q3 results were aided by a rise in net average charges and the incorporation of AI Tax Assist into its DIY tax preparation services. | +2.4% $36.33 -> $37.22 |
2026-06-11 | Stock Upgraded to Strong Buy Details: | -1.9% $37.21 -> $36.52 |
2026-05-06 | Strong Q3 Results and Guidance Raise Details: On May 6, 2026, the company raised its 2026 guidance for revenue, EBITDA, and adjusted diluted EPS. The two-day stock reaction around the earnings call was +21.0%. | +20.9% $29.69 -> $35.89 |
2026-03-30 | Analyst Consensus Price Target Reported Details: Press reports noted a consensus rating of "Hold" from five analysts covering the firm, with a price target of $41.00. | +1.7% $30.87 -> $31.39 |
2026-02-03 | Negative Reaction to Q2 Earnings Details: The company reported Q2 fiscal 2026 earnings on February 3, 2026. The two-day stock reaction around the earnings call was -11.0%. | -10.7% $37.79 -> $33.73 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: HRB trades at roughly 39% annualized options-implied volatility versus about 15% for the S&P 500 (2.6x the market), around the 67th percentile of its own trailing year. A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
INTU - Intuit
High-Growth Tech LeaderIntuit offers exposure to a faster-growing, software-centric business model with superior 80% gross margins and a powerful consumer finance ecosystem between TurboTax and Credit Karma.
ADP - Automatic Data Processing
Stable CompounderAutomatic Data Processing provides exposure to the less seasonal, more recurring-revenue business of payroll and HR services, with a slightly higher operating margin of 26.5%.
H&R Block is a 'confidence-as-a-service' provider for high-stakes financial events, leveraging its trusted brand and human expertise, enhanced by AI, to capture higher-value clients.
The company is successfully executing a strategic pivot away from chasing low-value, price-sensitive filers, particularly in the DIY segment. Instead, it is focusing on stabilizing its core assisted-tax business and attracting more complex clients who value expert judgment. By using AI to make its tax professionals more efficient rather than replacing them, H&R Block is reinforcing its moat of trust and accountability in a market where accuracy is paramount.
Continued stabilization or gains in assisted market share, sustained growth in net average charge (NAC), and positive client retention metrics, especially from initiatives like 'Second Look'.
Market share losses in the assisted channel to independents or Intuit, an inability to drive NAC growth, or evidence that AI-only DIY solutions are successfully handling complex returns and eroding the value of human experts.
Fluctuations in quarterly DIY volume, which management has indicated is not the primary focus, as they prioritize lifetime value over raw unit counts.
Repricing Catalyst
The market's recognition that the company has stabilized its core assisted business and is successfully shifting its mix to more profitable, durable client segments, as evidenced by the recent quarter's results and raised full-year guidance.
Industry Resources
| Consumer Discretionary Resources |
| Retail Dive |
| Business of Fashion (BoF) |
| WWD (Women's Wear Daily) |
| National Retail Federation (NRF) |
| McKinsey & Company - Consumer |
| Mintel Consumer Trends |
| Specialized Consumer Services Resources |
| Consumer Reports |
| Better Business Bureau (BBB) |
| TrendWatching |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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