H&R Block (HRB) AI Stock Analysis

• Market Cap: $6.64B
• Dividend Yield: 2.95%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.32
• Revenue Growth: 4.17%
• EPS Growth: 5.56%
• Country: US
• Employees: 4,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 2.27
• Shares Outstanding: 127,867,920
• 10 Day Avg. Volume: 1,033,899
• 30 Day Avg. Volume: 1,218,282
• PEG Ratio: 1.49
• Price to Book (P/B): 82.71
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 12.28
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 8.65
• 1Y Price Target: $55.00
• Price Target Upside: 5.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $57.00 ▲(9.05% Upside)

H&R Block's overall score is driven by strong earnings call performance and attractive valuation. Financial performance is solid but tempered by high leverage and cash flow concerns. Technical indicators suggest a neutral trend.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective service offerings, supporting long-term business stability and expansion.

Dividend Increase

Increasing dividends reflect strong cash flow and a commitment to returning value to shareholders, enhancing investor confidence and long-term appeal.

Small Business Segment Performance

Strong growth in the Small Business segment highlights diversification and potential for sustained revenue streams, bolstering overall business resilience.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase vulnerability to economic downturns, potentially impacting long-term financial health.

Declining Free Cash Flow Growth

Declining free cash flow growth may hinder the company's ability to invest in growth opportunities and maintain dividend payouts, affecting future prospects.

Operating Expense Increase

Rising operating expenses can pressure profit margins and reduce operational efficiency, challenging the company's ability to sustain profitability.

H&R Block Business Overview & Revenue Model

Company Description

H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation and do-it-yourself (DIY) tax return preparation services and products to the general public primarily in the United States, Canada, and Australia. The company offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or its franchisees. It also provides Refund Transfers and H&R Block Emerald Prepaid Mastercard, which enables clients to receive their tax refunds; Peace of Mind extended service plans; H&R Block Emerald Advance lines of credit; Tax Identity Shield that provides clients assistance in helping protect their tax identity and access to services to help restore their tax identity; refund advance loans; H&R Block Instant Refund; and H&R Block Pay With Refund services. In addition, the company offers small business financial solutions through its company-owned or franchise offices, and online. H&R Block, Inc. was founded in 1955 and is headquartered in Kansas City, Missouri.

How the Company Makes Money

H&R Block primarily generates revenue through its Tax Services segment, which accounts for the majority of its income. The company earns money by charging clients for tax preparation services, with pricing varying based on the complexity of the tax return and the services provided. Additionally, H&R Block generates revenue from its online tax filing software subscriptions and service fees for financial products like refund anticipation loans and other financial solutions. Seasonal demand during tax season significantly influences revenue, with most earnings concentrated in the first quarter of the calendar year. The company also benefits from strategic partnerships and collaborations with financial institutions and software providers, enhancing its service offerings and driving customer engagement.

H&R Block Financial Statement Overview

Summary

H&R Block shows strong revenue growth and profitability margins, but high leverage and declining free cash flow growth pose potential risks. The company is operationally efficient but needs to manage its debt levels carefully.

Income Statement

H&R Block has demonstrated consistent revenue growth over the years, with a notable increase in the latest year. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin shows slight fluctuations, suggesting some variability in profitability. Overall, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which poses a leverage risk. Despite this, the company has managed to maintain a positive return on equity, although it has decreased over time. The equity ratio is relatively low, indicating a reliance on debt financing. These factors suggest potential financial risk but also highlight the company's ability to generate returns.

Cash Flow

H&R Block's cash flow statement shows a decline in free cash flow growth, which could be a concern for future liquidity. However, the operating cash flow to net income ratio is stable, indicating that the company effectively converts its earnings into cash. The free cash flow to net income ratio remains strong, suggesting good cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.76B	3.76B	3.61B	3.47B	3.46B	3.41B
Gross Profit	1.67B	1.67B	1.62B	1.55B	1.58B	1.57B
EBITDA	976.34M	976.34M	963.19M	914.69M	889.53M	932.46M
Net Income	605.77M	605.77M	595.32M	553.70M	553.67M	583.79M
Balance Sheet
Total Assets	3.26B	3.26B	3.22B	3.07B	3.27B	4.01B
Cash, Cash Equivalents and Short-Term Investments	983.28M	983.28M	1.08B	1.02B	1.05B	1.43B
Total Debt	2.03B	2.03B	1.96B	1.93B	1.92B	2.44B
Total Liabilities	3.18B	3.18B	3.13B	3.04B	3.06B	3.63B
Stockholders Equity	88.90M	88.90M	90.59M	32.06M	211.63M	388.06M
Cash Flow
Free Cash Flow	598.85M	598.85M	657.18M	752.14M	746.58M	573.14M
Operating Cash Flow	680.88M	680.88M	720.86M	821.84M	808.54M	625.93M
Investing Cash Flow	-105.37M	-105.37M	-93.86M	-101.39M	-76.54M	-45.52M
Financing Cash Flow	-647.44M	-647.44M	-564.31M	-750.99M	-1.26B	-2.41B

H&R Block Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRB, the sentiment is Positive. The current price of 52.27 is above the 20-day moving average (MA) of 51.15, above the 50-day MA of 50.78, and below the 200-day MA of 53.79, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 77.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRB.

H&R Block Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTDR	78 Outperform	$4.94B	20.48	109.83%	―	8.56%	31.87%
SCI	75 Outperform	$11.53B	22.07	34.52%	1.55%	2.65%	7.42%
BFAM	71 Outperform	$5.83B	33.55	13.19%	―	9.25%	74.86%
HRB	71 Outperform	$6.64B	11.83	673.21%	2.95%	4.17%	5.56%
CSV	67 Neutral	$710.51M	13.58	24.38%	1.00%	3.55%	73.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MCW	61 Neutral	$1.73B	19.60	8.62%	―	7.21%	20.31%

H&R Block Corporate Events

H&R Block’s Subsidiary Issues $350M Notes

On August 26, 2025, Block Financial LLC, a subsidiary of H&R Block, Inc., successfully issued and sold $350 million in principal amount of 5.375% Notes due in 2032. These notes are fully guaranteed by H&R Block, Inc. and were registered under the Securities Act of 1933. The issuance is part of a strategic financial maneuver to strengthen the company’s financial position, with provisions for redemption and repurchase under certain conditions, which may impact the company’s operations and stakeholder interests.

The most recent analyst rating on (HRB) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on H&R Block stock, see the HRB Stock Forecast page.

H&R Block Enters $350 Million Notes Agreement

On August 19, 2025, H&R Block, Inc. and Block Financial LLC entered into an Underwriting Agreement with several underwriters for the issuance and sale of $350 million in Notes due 2032. The sale, expected to close on August 26, 2025, is part of a registered offering under the Securities Act of 1933, indicating a strategic financial move that could impact the company’s market positioning and stakeholder interests.

The most recent analyst rating on (HRB) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on H&R Block stock, see the HRB Stock Forecast page.

H&R Block Announces Upcoming Leadership Change

On August 13, 2025, H&R Block announced that Kellie J. Logerwell will retire as Vice President and Chief Accounting Officer on October 24, 2025, with April M. Wasleski set to succeed her. Ms. Wasleski, who has been with the company for over 13 years, will assume the role with a background in accounting and finance, having previously worked at Ernst & Young LLP.

The most recent analyst rating on (HRB) stock is a Sell with a $44.00 price target. To see the full list of analyst forecasts on H&R Block stock, see the HRB Stock Forecast page.

H&R Block’s Optimistic Earnings Call Highlights Growth

H&R Block’s latest earnings call conveyed a generally positive sentiment, driven by notable revenue growth, increased EBITDA, and expanding market segments. The company also emphasized increased shareholder returns. However, challenges such as rising operating expenses, unexpected legal and healthcare costs, and market share losses were acknowledged. Despite these hurdles, the overall tone of the call leaned towards optimism for future growth and strategic success.

H&R Block Reports Strong Fiscal 2025 Results

H&R Block, Inc. is a company that provides global tax preparation services, financial products, and small-business solutions, blending digital innovation with human expertise to assist clients during tax time and beyond. In its fiscal 2025 earnings report, H&R Block announced a 4% increase in revenue and a 7% rise in earnings per share, highlighting its ongoing transformation and innovation efforts. The company also returned $600 million to shareholders through dividends and share repurchases, and increased its quarterly dividend by 12%. Key financial metrics for fiscal 2025 include a total revenue of $3.8 billion, a net income of $609.5 million, and an earnings per share of $4.42. The company also repurchased 6.5 million shares and has $1.1 billion remaining in its share repurchase program. Looking ahead to fiscal 2026, H&R Block expects revenue to range between $3.875 billion and $3.895 billion, with adjusted diluted earnings per share projected between $4.85 and $5.00. The company remains focused on engaging clients with complex needs and leveraging technology for business efficiencies.

H&R Block Boosts Dividend Amid Revenue Growth

H&R Block reported a 4% revenue growth and a 7% increase in earnings per share for fiscal 2025, ending June 30, 2025, highlighting its transformation journey and focus on client engagement and technology. The company announced a 12% increase in its quarterly dividend to $0.42 per share, payable on October 6, 2025, and returned $600 million to shareholders through dividends and share repurchases, with a continued commitment to delivering long-term value.

The most recent analyst rating on (HRB) stock is a Sell with a $44.00 price target. To see the full list of analyst forecasts on H&R Block stock, see the HRB Stock Forecast page.

H&R Block CEO Retirement Announced

On August 11, 2025, H&R Block announced that CEO Jeffrey J. Jones II will retire on December 31, 2025, after eight years of leadership. He will continue as a Strategic Advisor until September 2026. Curtis Campbell, currently the President of Global Consumer Tax and Chief Product Officer, will succeed Jones as CEO starting January 1, 2026. Under Jones’ leadership, H&R Block saw significant growth, including a 123% increase in stock price and a rise in market capitalization from $5.5 billion to $7.4 billion. His tenure was marked by innovation and shareholder value creation, with initiatives like Upfront Transparent Pricing and AI Tax Assist. The transition to Campbell, who has extensive experience in the tax industry, follows a comprehensive succession-planning process, and he is expected to continue driving the company’s transformation and growth.

The most recent analyst rating on (HRB) stock is a Sell with a $44.00 price target. To see the full list of analyst forecasts on H&R Block stock, see the HRB Stock Forecast page.