H&R Block (HRB)
Market Price (8/21/2026): $52.56 | Market Cap: $6.6 BilSector: Consumer Discretionary | Industry: Specialized Consumer Services
H&R Block (HRB)
Market Price (8/21/2026): $52.56Market Cap: $6.6 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 14%, Dividend Yield is 3.2%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 9.7%, FCF Yield is 11% 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 1.3 Bil Low stock price volatilityVol 12M is 46% Megatrend and thematic driversMegatrends include Automation & Robotics, Fintech & Digital Payments, and Cloud Computing. Themes include Process / Warehouse Automation, Show more. | Trading close to highsDist 52W High is -2.1% Weak multi-year price returns2Y Excs Rtn is -39%, 3Y Excs Rtn is -7.0% 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% | Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 64% 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 14%, Dividend Yield is 3.2%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 9.7%, FCF Yield is 11% |
| 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 1.3 Bil |
| Low stock price volatilityVol 12M is 46% |
| Megatrend and thematic driversMegatrends include Automation & Robotics, Fintech & Digital Payments, and Cloud Computing. Themes include Process / Warehouse Automation, Show more. |
| Trading close to highsDist 52W High is -2.1% |
| Weak multi-year price returns2Y Excs Rtn is -39%, 3Y Excs Rtn is -7.0% |
| 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% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 64% |
| 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 70% since 4/30/2026 because of the following key factors:
1. Robust Fiscal Q4 2026 Earnings and Strong Full-Year Fiscal 2026 Performance. H&R Block (whose fiscal year ends June 30) reported fiscal Q4 2026 adjusted earnings per share (EPS) of $2.38, significantly surpassing analysts' consensus estimate of $2.21 by $0.17. Quarterly revenue also rose to $1.14 billion, exceeding expectations. For the full fiscal year 2026, the company achieved a 4.9% increase in total revenue to $3.95 billion and a 13.9% growth in adjusted EPS to $5.31, indicating strong operational execution.
2. Optimistic Fiscal 2027 Guidance. The company provided an encouraging outlook for fiscal year 2027, projecting revenue in the range of $4.11 billion to $4.16 billion and adjusted diluted EPS between $6.04 and $6.24. This guidance exceeded Wall Street's expectations, signaling management's confidence in continued growth and positively influencing investor sentiment.
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H&R Block (HRB) stock has gained about 70% since 4/30/2026 because of the following key factors:
1. Robust Fiscal Q4 2026 Earnings and Strong Full-Year Fiscal 2026 Performance. H&R Block (whose fiscal year ends June 30) reported fiscal Q4 2026 adjusted earnings per share (EPS) of $2.38, significantly surpassing analysts' consensus estimate of $2.21 by $0.17. Quarterly revenue also rose to $1.14 billion, exceeding expectations. For the full fiscal year 2026, the company achieved a 4.9% increase in total revenue to $3.95 billion and a 13.9% growth in adjusted EPS to $5.31, indicating strong operational execution.
2. Optimistic Fiscal 2027 Guidance. The company provided an encouraging outlook for fiscal year 2027, projecting revenue in the range of $4.11 billion to $4.16 billion and adjusted diluted EPS between $6.04 and $6.24. This guidance exceeded Wall Street's expectations, signaling management's confidence in continued growth and positively influencing investor sentiment.
3. Enhanced Shareholder Returns. H&R Block demonstrated a strong commitment to returning capital to shareholders by increasing its quarterly dividend by 10% to $0.46 per share, marking its ninth consecutive annual dividend increase. Additionally, the company repurchased approximately 10.5 million shares for $500.3 million in fiscal 2026 as part of its ongoing $1.5 billion share repurchase program, further boosting shareholder value.
4. Successful Integration of AI-Powered Tax Solutions. The company's strategic integration of "AI Tax Assist," a GenAI-powered technology, into its do-it-yourself (DIY) tax preparation services significantly enhanced customer experience. During the fiscal 2026 tax season, this AI tool handled 4.1 million client messages and responses, an 88% year-over-year increase, contributing to improved revenue and market positioning by strengthening H&R Block's digital offerings.
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Stock Movement Drivers
Fundamental Drivers
The 69.0% change in HRB stock from 4/30/2026 to 8/20/2026 was primarily driven by a 40.6% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 31.38 | 53.04 | 69.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,791 | 3,945 | 4.1% |
| Net Income Margin (%) | 16.2% | 18.6% | 14.8% |
| P/E Multiple | 6.5 | 9.1 | 40.6% |
| Shares Outstanding (Mil) | 127 | 126 | 0.6% |
| Cumulative Contribution | 69.0% |
Market Drivers
4/30/2026 to 8/20/2026| Return | Correlation | |
|---|---|---|
| HRB | 69.0% | |
| Market (SPY) | 6.1% | -19.4% |
| Sector (XLY) | -1.4% | -3.3% |
Fundamental Drivers
The 37.8% change in HRB stock from 1/31/2026 to 8/20/2026 was primarily driven by a 14.5% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 38.50 | 53.04 | 37.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,771 | 3,945 | 4.6% |
| Net Income Margin (%) | 16.2% | 18.6% | 14.5% |
| P/E Multiple | 8.3 | 9.1 | 10.2% |
| Shares Outstanding (Mil) | 131 | 126 | 4.4% |
| Cumulative Contribution | 37.8% |
Market Drivers
1/31/2026 to 8/20/2026| Return | Correlation | |
|---|---|---|
| HRB | 37.8% | |
| Market (SPY) | 10.5% | -9.6% |
| Sector (XLY) | -3.5% | 1.4% |
Fundamental Drivers
The 1.8% change in HRB stock from 7/31/2025 to 8/20/2026 was primarily driven by a 22.4% change in the company's Net Income Margin (%).| (LTM values as of) | 7312025 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 52.08 | 53.04 | 1.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,713 | 3,945 | 6.3% |
| Net Income Margin (%) | 15.2% | 18.6% | 22.4% |
| P/E Multiple | 12.4 | 9.1 | -26.4% |
| Shares Outstanding (Mil) | 134 | 126 | 6.4% |
| Cumulative Contribution | 1.8% |
Market Drivers
7/31/2025 to 8/20/2026| Return | Correlation | |
|---|---|---|
| HRB | 1.8% | |
| Market (SPY) | 21.7% | -8.1% |
| Sector (XLY) | 6.0% | 3.7% |
Fundamental Drivers
The 73.8% change in HRB stock from 7/31/2023 to 8/20/2026 was primarily driven by a 36.9% change in the company's Net Income Margin (%).| (LTM values as of) | 7312023 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 30.53 | 53.04 | 73.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,490 | 3,945 | 13.0% |
| Net Income Margin (%) | 13.6% | 18.6% | 36.9% |
| P/E Multiple | 9.8 | 9.1 | -7.2% |
| Shares Outstanding (Mil) | 152 | 126 | 21.0% |
| Cumulative Contribution | 73.8% |
Market Drivers
7/31/2023 to 8/20/2026| Return | Correlation | |
|---|---|---|
| HRB | 73.8% | |
| Market (SPY) | 72.5% | 9.6% |
| Sector (XLY) | 37.4% | 11.7% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| HRB Return | 55% | 60% | 37% | 12% | -15% | 23% | 299% |
| Peers Return | 29% | -12% | 36% | 29% | -19% | -13% | 41% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 105% |
Monthly Win Rates [3] | |||||||
| HRB Win Rate | 75% | 67% | 58% | 58% | 42% | 62% | |
| Peers Win Rate | 55% | 42% | 57% | 60% | 45% | 52% | |
| 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 8/20/2026 (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.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
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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.
Peer Outperformance in Specialized Consumer Services
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Education Services | 14 | -14.8% | 105.2% | 68.8% | LINC 330% · CVSA 256% · UTI 254% |
| Homebuilding | 18 | -0.5% | 29.9% | 53.4% | GRBK 182% · TOL 157% · PHM 154% |
| Hotels, Resorts & Cruise Lines | 22 | 21.0% | 55.3% | 18.4% | RCL 278% · MAR 184% · HLT 174% |
| Automotive Retail | 18 | -11.8% | 3.1% | 16.0% | MUSA 273% · PAG 187% · ORLY 120% |
| Home Improvement Retail | 5 | -14.5% | 2.5% | 9.4% | HD 15% · LOW 15% · HVT 9% |
| Specialty Stores | 7 | 2.5% | 22.4% | 7.0% | DKS 91% · ASO 28% · SIG 23% |
| Casinos & Gaming | 20 | -7.5% | -24.0% | 3.6% | BRAG 963% · MCRI 118% · RSI 112% |
| Specialized Consumer Services ← | 10 | -8.8% | 18.3% | -3.2% | HRB 146% · FTDR 97% · SCI 42% |
| Distributors | 4 | -5.4% | -23.9% | -8.7% | ARMK 163% · GPC 24% · LKQ -41% |
| Restaurants | 34 | -6.5% | -8.6% | -8.9% | EAT 363% · CAKE 183% · RAVE 167% |
| Home Furnishings | 4 | 1.7% | 27.7% | -13.2% | SGI 59% · LZB 7% · MHK -34% |
| Footwear | 9 | 67.2% | 42.8% | -13.3% | WEYS 152% · SHOO 27% · DECK 23% |
| Leisure Products | 13 | -0.7% | -20.5% | -30.7% | GOLF 86% · HAS 19% · MCFT 4% |
| Automotive Parts & Equipment | 38 | -7.0% | -5.2% | -32.8% | MOD 1392% · GTX 293% · STRT 100% |
| Apparel, Accessories & Luxury Goods | 27 | 4.7% | -5.1% | -36.0% | TPR 264% · RL 254% · ELA 236% |
| Household Appliances | 17 | 10.1% | 37.5% | -38.1% | KEQU 173% · FLXS 147% · HBB 126% |
| Leisure Facilities | 12 | -10.1% | -9.1% | -40.8% | OSW 184% · JAKK 115% · ESCA 10% |
| Apparel Retail | 25 | 1.0% | 1.9% | -42.1% | DXLG 192% · ANF 176% · TJX 104% |
| Broadline Retail | 15 | 6.9% | 10.5% | -49.2% | DDS 284% · AMZN 63% · EBAY 56% |
| Computer & Electronics Retail | 3 | -16.4% | -2.4% | -54.7% | BBY -4% · GME -55% · UPBD -61% |
| Automobile Manufacturers | 8 | -68.7% | -67.6% | -68.7% | GM 84% · TSLA 52% · F 52% |
| Consumer Electronics | 11 | -21.9% | -28.3% | -74.5% | AXIL 2037% · GRMN 90% · TBCH -55% |
| Other Specialty Retail | 18 | -28.4% | -44.9% | -77.6% | BBW 209% · TLF 107% · WINA 92% |
Latest Trefis Analyses
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 138.20 |
| Mkt Cap | 25.3 |
| Rev LTM | 5,229 |
| Op Inc LTM | 1,709 |
| FCF LTM | 1,539 |
| FCF 3Y Avg | 1,297 |
| CFO LTM | 1,698 |
| CFO 3Y Avg | 1,433 |
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 | 2.1% |
| Op Inc Chg LTM | 8.3% |
| Op Inc Chg 3Y Avg | 7.3% |
| Op Mgn LTM | 24.7% |
| Op Mgn 3Y Avg | 24.1% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 23.4% |
| CFO/Rev 3Y Avg | 23.0% |
| FCF/Rev LTM | 20.5% |
| FCF/Rev 3Y Avg | 19.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 25.3 |
| P/S | 3.8 |
| P/Op Inc | 14.5 |
| P/EBIT | 14.0 |
| P/E | 23.4 |
| P/CFO | 12.6 |
| Total Yield | 6.1% |
| Dividend Yield | 1.8% |
| FCF Yield 3Y Avg | 4.6% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 12.2% |
| 3M Rtn | 23.1% |
| 6M Rtn | 18.7% |
| 12M Rtn | -8.2% |
| 3Y Rtn | -1.9% |
| 1M Excs Rtn | 17.0% |
| 3M Excs Rtn | 11.2% |
| 6M Excs Rtn | 7.3% |
| 12M Excs Rtn | -27.6% |
| 3Y Excs Rtn | -77.2% |
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 | $53.04 | |
| Market Cap ($ Bil) | 6.7 | |
| First Trading Date | 11/12/1986 | |
| Distance from 52W High | -2.1% | |
| 50 Days | 200 Days | |
| DMA Price | $42.10 | $37.92 |
| DMA Trend | down | up |
| Distance from DMA | 26.0% | 39.9% |
| 3M | 1YR | |
| Volatility | 50.7% | 46.5% |
| Downside Capture | -92.94 | -21.40 |
| Upside Capture | 79.67 | -8.31 |
| Correlation (SPY) | -16.4% | -7.2% |
| 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 | 8.1% | 46.4% | 0.30 | - |
| Sector ETF (XLY) | 2.1% | 19.6% | -0.01 | 4.8% |
| Equity (SPY) | 20.3% | 12.9% | 1.16 | -7.5% |
| Gold (GLD) | 36.2% | 28.7% | 1.07 | -12.7% |
| Commodities (DBC) | 44.1% | 20.2% | 1.69 | -1.8% |
| Real Estate (VNQ) | 13.3% | 13.8% | 0.66 | 12.5% |
| Bitcoin (BTCUSD) | -38.8% | 43.2% | -1.01 | 0.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HRB | |
|---|---|---|---|---|
| HRB | 19.5% | 34.4% | 0.58 | - |
| Sector ETF (XLY) | 5.9% | 24.1% | 0.20 | 22.5% |
| Equity (SPY) | 12.8% | 17.2% | 0.57 | 23.4% |
| Gold (GLD) | 20.4% | 18.6% | 0.89 | -3.2% |
| Commodities (DBC) | 10.2% | 19.6% | 0.40 | 5.1% |
| Real Estate (VNQ) | 2.4% | 18.9% | 0.02 | 29.9% |
| Bitcoin (BTCUSD) | 9.3% | 52.7% | 0.36 | 8.6% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HRB | |
|---|---|---|---|---|
| HRB | 12.6% | 36.5% | 0.43 | - |
| Sector ETF (XLY) | 12.3% | 22.2% | 0.51 | 34.1% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 37.4% |
| Gold (GLD) | 12.4% | 16.2% | 0.63 | -2.8% |
| Commodities (DBC) | 8.1% | 18.1% | 0.37 | 10.4% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 40.2% |
| Bitcoin (BTCUSD) | 61.0% | 66.1% | 1.01 | 8.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/20/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/11/2026 | 16.1% | 9.1% | |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 14 | 15 |
| # Negative | 12 | 11 | 9 |
| Median Positive | 8.8% | 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 |
| 8/11/2026 | 16.1% | 9.1% | |
| 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 | 13 | 14 | 15 |
| # Negative | 12 | 11 | 9 |
| Median Positive | 8.8% | 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 |
|---|---|---|
| 06/30/2026 | 08/14/2026 | 10-K |
| 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 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/14/2026 | 10-K |
| 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 |
Recent Forward Guidance
Updated 8/12/2026Latest: 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 21, 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
Conviction is constructive, centered on a successful strategic pivot toward higher-value clients. This is driving strong pricing power, with Net Average Charge up 4.0%, and expanding operating margins. While competitive pressure is significant, management's excellent execution and disciplined capital returns provide a clear path for shareholder value creation.
STOCK ARCHETYPE
Transactional & Recurring Service(Number of Tax & Service Clients) x (Net Average Charge per Client) Operating leverage from technology investments, pricing power, and a mix shift toward higher-margin, complex client services.
INVESTMENT THESIS
Yes, the strategy is working, delivering strong operating leverage and margin expansion despite flat overall client volumes.
- U.S. assisted Net Average Charge increased 4.0% in fiscal 2026.
- Client retention improved 190 basis points, and conversion also improved.
- FY27 adjusted EPS is guided to a range of $6.14 to $6.24.
- The quarterly dividend was increased by 10% to $0.46 per share.
PRIMARY RISK
A key competitor is growing its assisted offering revenue at 36%, indicating it is rapidly gaining traction and could erode H&R Block's core business faster than the company can pivot.
- A primary competitor expects its assisted tax offering revenue to grow 36% this year.
- That competitor's new customer growth in the category is 29%.
- H&R Block's total assisted tax return volume decreased 0.1% in fiscal 2026.
- The company maintained, but did not grow, its share in the assisted category in 2026.
| KPI | Status | Rationale |
|---|---|---|
| Assisted Tax Return Volume | -0.1% YoY for total assisted tax return volume in fiscal 2026 - Turning around | The flat year-over-year performance in total assisted volume marks a stabilization after previous market share declines. Management highlights that company-owned volume grew 2.0%, offset by declines in franchise volume, partly due to the company's strategy of acquiring franchisee locations. |
| Assisted Net Average Charge (NAC) | +4.1% YoY in fiscal 2026 - Stable | The growth in Net Average Charge is driven by a combination of direct price increases (approximately 3%) and a favorable client mix shift (approximately 1%) toward more complex returns, which aligns with the company's stated strategy. |
| U.S. Assisted Tax Returns Prepared | 11.3 million (Fiscal Year 2026) | Market rewards Maintaining or growing market share in the assisted category, which the company achieved in fiscal 2026.. Measures the volume of the company's core business segment, indicating market penetration and demand for expert-led services. |
| U.S. DIY Online Paid Tax Returns Filed | 3.6 million (Fiscal Year 2026) | Indicates the volume and monetization success of the company's do-it-yourself digital tax products. |
| Client Conversion Improvement | 200 basis points (Fiscal Year 2026) | Shows the effectiveness of operational and client experience improvements in turning potential clients into paying customers. Management believes this was the largest single-year improvement in company history. |
Profitability Focus vs. Competitive Encroachment
BULL VIEW
Bulls believe the focus on profitable, complex clients is a winning strategy, evidenced by a 4.0% rise in net average charge and a 13.9% increase in adjusted EPS.
CORE TENSION
Can H&R Block's pricing and mix strength offset a competitor's rapid volume growth in the tech-enabled assisted tax market?
PREVAILING SENTIMENT
Current evidence favors the bull case. The company is delivering strong profit growth and the market has rewarded this strategy with an 18.0% post-earnings stock move.
BEAR VIEW
Bears see the company's flat volume as a sign of weakness against a competitor whose assisted offering revenue is growing 36%, suggesting long-term share loss is inevitable.
| Timeline | Event & Metric To Watch |
|---|---|
9/28/2026 | Paychex Earnings Report Watch: Peer Paychex (PAYX) is scheduled to report earnings. |
10/21/2026 | FTI Consulting Earnings Watch: Peer FTI Consulting (FCN) is scheduled to report earnings. |
11/4/2026 | Slowing Industry Growth Watch: Company's Q1 results and any revision to the full-year industry growth outlook. Commentary from peers ADP/PAYX. |
11/18/2026 | Peer Competitive Encroachment Watch: INTU's earnings report for commentary on TurboTax Live's market share gains in the assisted tax category. |
No set date | Adverse Legal Developments Watch: Disclosures of settlements, fines, or increased accruals in the next 10-Q filing or other public announcements. |
in December | Investor Day Event Watch: Company will hold an Investor Day to provide a deeper look at strategy and execution priorities. |
| Date | Event | Stock Impact |
|---|---|---|
2026-08-11 | Raises FY27 Guidance Details: Alongside Q4 results, the company issued higher guidance for fiscal 2027 revenue and adjusted diluted earnings per share. | +18.0% $45.93 -> $54.18 |
2026-08-11 | Reports Strong Q4 Results Details: The company reported strong Q4 and full-year fiscal 2026 results, with a positive two-day stock reaction of 18.0%. | +18.0% $45.93 -> $54.18 |
2026-08-05 | Workforce Restructuring Announced Details: The company initiated a workforce and field organization restructuring program intended to transition to a year-round office leadership model, eliminating approximately 200 positions. | -0.3% $46.07 -> $45.95 |
2026-05-06 | Strong Q3 Earnings Reaction Details: The stock reacted positively to third quarter results, with a two-day stock reaction of 21.0% versus 1.0% for the S&P 500. | +20.9% $29.69 -> $35.89 |
2026-03-30 | Analyst Price Target Set Details: Press reports indicated that analysts covering the company had set a consensus price target of $41.00. | +1.7% $30.87 -> $31.39 |
2026-02-03 | Negative Q2 Earnings Reaction Details: The stock reacted negatively to the company's second quarter earnings report, with a two-day stock reaction of -11.0%. | -10.7% $37.79 -> $33.73 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: HRB trades at roughly 36% annualized options-implied volatility versus about 13% for the S&P 500 (2.8x the market), around the 50th 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
Technology-Led GrowthIntuit offers exposure to a faster-growing, software-driven business model with higher gross margins (80%) and a much larger R&D budget of $3.3 billion.
ADP - Automatic Data Processing
A mature, high-cash-flow tax preparer leveraging its trusted brand and physical footprint to pivot into a tech-enabled, consultative service for higher-value clients.
H&R Block is transitioning from a transactional tax filer to a year-round financial partner. By integrating AI and automation, it aims to free up its tax professionals to provide higher-value, consultative advice, thereby attracting and retaining more complex clients. This strategy is designed to defend its core assisted business against digital disruption while improving margins and driving durable growth.
Sustained improvement in client retention and conversion metrics, continued growth in the mix of complex clients, and evidence of operating leverage as technology investments scale.
Market share loss in the core assisted category to either AI-driven DIY competitors or independents, or a failure to translate technology investments into improved client satisfaction and margins.
Short-term fluctuations in quarterly DIY volumes, particularly in the free-filer segment, which the company is de-emphasizing in favor of higher lifetime value clients.
Repricing Catalyst
Strong execution in fiscal 2026, evidenced by accelerated growth and margin expansion, has led to significant positive stock reactions around recent earnings reports and a guidance raise for fiscal 2027, suggesting the market is beginning to price in the success of the company's strategic pivot.
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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