A Business at a Glance
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H&R BLOCK INC
HRB
$5.6B
Mkt Cap
$40.83
+2.20%
H&R BLOCK INC (HRB) has a current P/E ratio of 9.6, compared to its historical median P/E of 10.4. The stock is currently considered Fair based on its historical valuation range.
H&R BLOCK INC (HRB) has a 5-year average return on invested capital (ROIC) of 82.0%. This indicates strong capital allocation and a potential competitive advantage.
H&R BLOCK INC (HRB) has a market capitalization of $6.4B. It is classified as a mid-cap stock.
Yes, H&R BLOCK INC (HRB) pays a dividend with a trailing twelve-month yield of 3.67%.
Based on historical P/E analysis, H&R BLOCK INC (HRB) appears fair. The current P/E of 9.6 is 8% below its historical median of 10.4. The estimated fair value CAGR (P/E method) is 24.6%.
H&R BLOCK INC (HRB) operates in the Services-Personal Services industry, within the Consumer Cyclical sector.
H&R BLOCK INC (HRB) reported annual revenue of $3.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
H&R Block provides tax preparation services, financial products, and small business solutions globally, blending digital innovation with human expertise to serve consumers and small-business owners. The company operates through assisted tax return preparation delivered by tax professionals in company-owned and franchise offices (in-person, virtual, and online), do-it-yourself (DIY) online and desktop tax software, and small business solutions including bookkeeping, payroll, and payment processing through Block Advisors and Wave. Revenue is generated through assisted tax return preparation fees, DIY software sales, franchise royalties (approximately 30% of gross tax return preparation revenues), and ancillary financial products including refund transfers, prepaid cards, term loans, identity protection, and banking services via the Spruce mobile app. The business model combines recurring seasonal tax-filing demand with year-round small business advisory and financial services, supported by a 100% accuracy guarantee on both assisted and DIY returns. H&R Block operates primarily in the United States, Canada, and Australia, serving individual taxpayers and small-business owners through an omni-channel distribution model that allows clients to engage digitally or in person, with technology including generative AI-powered tools (AI Tax Assist) integrated into both professional and DIY offerings to enhance service quality and efficiency.
【Expert-led technology integration】 Management emphasizes that H&R Block's strategy of combining expert judgment with AI-enabled technology is delivering measurable results in client engagement, conversion, and retention. The company is focused on deepening relationships with more complex clients through personalized guidance that extends beyond tax filing, leveraging real-time AI assistance for tax professionals and enhanced DIY experiences. Management expects continued momentum in small business services as a meaningful revenue driver, with Wave demonstrating strong growth through paid product offerings and expanded capabilities in bookkeeping, payroll, and payments. The company anticipates industry tax-filing growth of approximately 1% with a shift toward assisted services from DIY, driven by tax complexity, and is investing in experience improvements and operational efficiency to capture market share while maintaining disciplined capital allocation through dividends and share repurchases.
| Metric | Target | Period |
|---|---|---|
| Revenue | $3.91 billion–$3.92 billion | FY2026 |
| EBITDA | $1.025 billion–$1.035 billion | FY2026 |
| Adjusted diluted earnings per share | $5.10–$5.20 | FY2026 |
| Effective tax rate | approximately 14% | FY2026 |
Revenue (FY2026): “we now expect revenue in the range of $3.91 billion-$3.92 billion”
EBITDA (FY2026): “EBITDA in the range of $1.025 billion-$1.035 billion”
Adjusted diluted earnings per share (FY2026): “adjusted diluted earnings per share in the range of $5.10-$5.20”
Effective tax rate (FY2026): “an effective tax rate of approximately 14%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 3.8B | 3.6B | 3.5B | 3.5B | 3.4B |
| Net Income | 0 | 607M | 596M | 560M | 558M | 588M |
| EPS | $0.00 | $4.39 | $4.12 | $3.51 | $3.22 | $3.08 |
| Free Cash Flow | 0 | 599M | 657M | 752M | 747M | 573M |
| ROIC | 0.0% | 118.6% | 123.9% | 91.7% | 34.1% | 41.7% |
| Gross Margin | - | 44.5% | 44.8% | 44.6% | 45.7% | 46.0% |
| Debt/Equity | 0.00 | 16.80 | 16.46 | 46.44 | 7.03 | 3.84 |
| Dividends/Share | $0.00 | $1.50 | $1.28 | $1.16 | $1.08 | $1.02 |
| Operating Income | 0 | 857M | 839M | 782M | 745M | 844M |
| Operating Margin | 0.0% | 22.8% | 23.2% | 22.5% | 21.5% | 24.7% |
| ROE | 0.0% | 682.5% | 657.4% | 459.2% | 197.9% | 256.1% |
| Shares Outstanding | 157M | 138M | 145M | 159M | 173M | 191M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.0B | 3.1B | 3.0B | 3.0B | 3.2B | 3.1B | 2.6B | 3.4B | 3.5B | 3.5B | 3.6B | 3.8B | 0 |
| Gross Margin | 48.0% | 47.0% | 44.5% | 45.8% | 44.9% | 43.2% | 35.1% | 46.0% | 45.7% | 44.6% | 44.8% | 44.5% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 633M | 654M | 719M | 676M | 668M | 722M | 744M | 802M | 837M | 800M | 814M | 847M | 847M |
| EBIT | 763M | 788M | 638M | 721M | 757M | 631M | 92M | 844M | 745M | 782M | 839M | 857M | 0 |
| Op. Margin | 25.2% | 25.6% | 21.0% | 23.8% | 23.9% | 20.4% | 3.5% | 24.7% | 21.5% | 22.5% | 23.2% | 22.8% | 0.0% |
| Net Income | 499M | 486M | 383M | 420M | 625M | 444M | 5.5M | 588M | 558M | 560M | 596M | 607M | 0 |
| Net Margin | 16.5% | 15.8% | 12.6% | 13.8% | 19.8% | 14.4% | 0.2% | 17.2% | 16.1% | 16.1% | 16.5% | 16.1% | 0.0% |
| Non-Recurring | 5.2M | 6.7M | 12M | 5.6M | 4.0M | 5.0M | 109M | 2.6M | 2.6M | 6.9M | 2.6M | 8.4M | 8.4M |
| Returns on Capital | |||||||||||||
| ROIC | 10.6% | 29.1% | 84.9% | 83.8% | 182.4% | 116.5% | 5.5% | 41.7% | 34.1% | 91.7% | 123.9% | 118.6% | 0.0% |
| ROE | 35.4% | 28.7% | 41.3% | N/A | 375.8% | 95.0% | 1.8% | 256.1% | 197.9% | 459.2% | 657.4% | 682.5% | 0.0% |
| ROA | 10.8% | 10.6% | 10.4% | 15.2% | 21.4% | 13.8% | 0.1% | 13.4% | 16.1% | 17.6% | 18.9% | 18.7% | 0.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 810M | 627M | 545M | 552M | 850M | 607M | 109M | 626M | 809M | 822M | 721M | 681M | 0 |
| Free Cash Flow | 663M | 503M | 445M | 463M | 751M | 511M | 27M | 573M | 747M | 752M | 657M | 599M | 0 |
| Owner Earnings | 674M | 441M | 347M | 351M | 645M | 416M | -89M | 441M | 632M | 660M | 565M | 532M | -149M |
| CapEx | 147M | 123M | 100M | 89M | 99M | 95M | 82M | 53M | 62M | 70M | 64M | 82M | 0 |
| Maint. CapEx | 116M | 160M | 174M | 182M | 183M | 167M | 170M | 157M | 142M | 131M | 122M | 117M | 117M |
| Growth CapEx | 31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 116M | 160M | 174M | 182M | 183M | 167M | 170M | 157M | 142M | 131M | 122M | 117M | 117M |
| CapEx/OCF | 18.2% | 19.7% | 18.8% | 16.2% | 11.6% | 15.7% | 75.0% | 8.4% | 7.7% | 8.5% | 8.8% | 12.0% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 219M | 220M | 202M | 187M | 200M | 205M | 205M | 195M | 186M | 178M | 180M | 197M | 0 |
| Dividend Yield | 4.0% | 3.6% | 3.7% | 5.1% | 4.7% | 4.8% | N/A | 6.5% | 4.7% | 3.2% | 3.0% | 2.6% | N/A |
| Share Buybacks | 0 | 0 | 2.0B | 317M | 0 | 185M | 247M | 188M | 550M | 552M | 354M | 0 | 0 |
| Buyback Yield | 0.1% | 0.2% | 50.7% | 6.6% | 0.3% | 4.0% | 12.3% | 5.0% | 10.5% | 12.1% | 5.1% | 5.9% | 0.0% |
| Stock-Based Comp | 20M | 26M | 24M | 19M | 22M | 24M | 28M | 28M | 34M | 31M | 34M | 33M | 33M |
| Debt Repayment | 0 | 400M | 0 | 0 | 830M | 720M | 1.3B | 3.3B | 500M | 0 | 0 | 1.9B | 1.9B |
| Balance Sheet | |||||||||||||
| Net Debt | -1.7B | -1.9B | 605M | 484M | -49M | -80M | 2.8B | 556M | 602M | 502M | 438M | 510M | 624M |
| Cash & Equiv. | 2.2B | 2.0B | 897M | 1.0B | 1.5B | 1.6B | 2.7B | 934M | 885M | 987M | 1.1B | 983M | 867M |
| Long-Term Debt | 506M | 505M | 1.5B | 1.5B | 1.5B | 1.5B | 2.8B | 1.5B | 1.5B | 1.5B | 1.5B | 1.1B | 1.5B |
| Debt/Equity | 0.58 | 0.28 | 65.05 | -24.55 | 3.80 | 2.76 | 77.35 | 3.84 | 7.03 | 46.44 | 16.46 | 16.80 | 0.00 |
| Interest Coverage | 13.3 | 17.2 | 9.2 | 7.8 | 8.5 | 7.3 | 1.0 | 7.9 | 8.4 | 10.7 | 10.6 | 11.0 | 11.0 |
| Equity | 1.6B | 1.8B | 23M | -61M | 394M | 542M | 71M | 388M | 212M | 32M | 91M | 89M | -24M |
| Total Assets | 4.7B | 4.5B | 2.8B | 2.7B | 3.1B | 3.3B | 5.1B | 3.7B | 3.3B | 3.1B | 3.2B | 3.3B | 3.4B |
| Total Liabilities | 3.1B | 2.7B | 2.8B | 2.8B | 2.7B | 2.8B | 5.0B | 3.3B | 3.1B | 3.0B | 3.1B | 3.2B | 3.4B |
| Intangibles | 356M | 432M | 434M | 409M | 374M | 342M | 415M | 360M | 310M | 277M | 264M | 259M | 276M |
| Retained Earnings | 1.6B | 1.8B | 40M | -48M | 363M | 499M | 43M | 249M | 120M | -49M | 13M | 12M | -110M |
| Working Capital | 801M | 1.1B | 181M | 407M | 1.0B | 1.1B | 1.5B | 537M | 386M | 249M | 262M | -136M | -5.9M |
| Current Assets | 3.1B | 3.0B | 1.2B | 1.3B | 1.9B | 2.0B | 3.1B | 1.7B | 1.4B | 1.2B | 1.2B | 1.2B | 1.3B |
| Current Liabilities | 2.3B | 1.9B | 1.0B | 939M | 844M | 923M | 1.6B | 1.2B | 999M | 939M | 977M | 1.3B | 1.3B |
| Per Share Data | |||||||||||||
| EPS | 1.72 | 1.71 | 1.49 | 1.91 | 2.91 | 2.04 | -0.04 | 3.08 | 3.22 | 3.51 | 4.12 | 4.39 | 0.00 |
| Owner EPS | 2.32 | 1.55 | 1.35 | 1.60 | 3.00 | 1.91 | N/A | 2.31 | 3.65 | 4.14 | 3.91 | 3.85 | -0.95 |
| Book Value | 5.36 | 6.45 | 0.09 | -0.28 | 1.83 | 2.49 | N/A | 2.03 | 1.22 | 0.20 | 0.63 | 0.64 | -0.16 |
| Cash Flow/Share | 2.79 | 2.20 | 2.12 | 2.51 | 3.95 | 2.79 | N/A | 3.28 | 4.66 | 5.16 | 4.99 | 4.93 | 0.75 |
| Dividends/Share | 0.80 | 0.80 | 0.80 | 0.88 | 0.96 | 1.00 | 1.04 | 1.02 | 1.08 | 1.16 | 1.28 | 1.50 | 0.00 |
| Shares Out. | 290.4M | 284.2M | 256.9M | 219.8M | 214.9M | 217.8M | N/A | 190.8M | 173.3M | 159.4M | 144.6M | 138.2M | 156.5M |
| Valuation | |||||||||||||
| P/E Ratio | 12.8 | 12.1 | 10.4 | 11.6 | 5.8 | 11.2 | N/A | 6.5 | 9.7 | 8.5 | 12.6 | 12.2 | N/A |
| P/FCF | 9.7 | 11.7 | 9.0 | 10.5 | 4.9 | 9.7 | N/A | 6.7 | 7.2 | 6.3 | 11.4 | 12.4 | N/A |
| EV/EBIT | 131.7 | 4.9 | 5.8 | 6.0 | 2.7 | 5.0 | 57.9 | 3.8 | 6.9 | 118.9 | 190.6 | 231.1 | N/A |
| Price/Book | 3.9 | 3.1 | 172.2 | N/A | 9.1 | 8.7 | 29.3 | 9.8 | 25.3 | 146.7 | 82.8 | 83.4 | N/A |
| Price/Sales | 1.7 | 1.9 | 1.8 | 1.2 | 1.3 | 1.3 | 1.2 | 0.9 | 1.1 | 1.6 | 1.7 | 2.0 | N/A |
| FCF Yield | 10.9% | 8.8% | 11.2% | 9.5% | 21.0% | 10.8% | 1.3% | 15.0% | 13.9% | 16.0% | 8.8% | 8.1% | N/A |
| Market Cap | 6.1B | 5.7B | 4.0B | 4.9B | 3.6B | 4.7B | 2.1B | 3.8B | 5.4B | 4.7B | 7.5B | 7.4B | 6.4B |
| Avg. Price | 19.00 | 21.55 | 20.99 | 16.70 | 19.77 | 19.67 | 17.30 | 15.65 | 22.94 | 34.79 | 42.07 | 55.59 | 40.83 |
| Year-End Price | 22.03 | 20.64 | 15.49 | 22.15 | 17.00 | 22.77 | 11.08 | 20.12 | 31.15 | 29.82 | 51.90 | 53.72 | 40.83 |
H&R BLOCK INC passes 7 of 9 quality checks, indicating strong fundamentals.
H&R BLOCK INC trades at 9.6x trailing earnings, compared to its 15-year median P/E of 10.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 9.9x vs a median of 9.0x. The company's 5-year average ROIC is 82.0% with a gross margin of 45.1%. Total shareholder yield (dividends) is 3.7%. At current prices, the estimated annualized return to fair value is +24.3%.
H&R BLOCK INC (HRB) has a net profit margin of 16.1%. This is a healthy margin.
H&R BLOCK INC (HRB) generated $599 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
H&R BLOCK INC (HRB) has a debt-to-equity ratio of 16.80. This indicates higher leverage, which may increase financial risk.
H&R BLOCK INC (HRB) reported earnings per share (EPS) of $4.39 in its most recent fiscal year.
H&R BLOCK INC (HRB) has a return on equity (ROE) of 682.5%. This indicates the company generates strong returns for shareholders.
H&R BLOCK INC (HRB) has a 5-year average gross margin of 45.1%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for H&R BLOCK INC (HRB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
H&R BLOCK INC (HRB) has a book value per share of $0.64, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management emphasizes that H&R Block's strategy of combining expert judgment with AI-enabled technology is delivering measurable results in client engagement, conversion, and retention. The company is focused on deepening relationships with more complex clients through personalized guidance that extends beyond tax filing, leveraging real-time AI assistance for tax professionals and enhanced DIY experiences. Management expects continued momentum in small business services as a meaningful revenue driver, with Wave demonstrating strong growth through paid product offerings and expanded capabilities in bookkeeping, payroll, and payments. The company anticipates industry tax-filing growth of approximately 1% with a shift toward assisted services from DIY, driven by tax complexity, and is investing in experience improvements and operational efficiency to capture market share while maintaining disciplined capital allocation through dividends and share repurchases.
Based on recent SEC filings and earnings calls, H&R BLOCK INC (HRB) has provided the following forward guidance: Revenue: $3.91 billion–$3.92 billion (FY2026); EBITDA: $1.025 billion–$1.035 billion (FY2026); Adjusted diluted earnings per share: $5.10–$5.20 (FY2026); Effective tax rate: approximately 14% (FY2026).