H&R Block, Inc. reported a revenue increase of 11% in the fiscal 2026 second quarter, with total revenue reaching $198.9 million. The company reaffirmed its full-year outlook, expecting revenue to range between $3.875 to $3.895 billion. The net loss from continuing operations improved slightly to ($241.6) million.
The company’s total operating expenses increased by $25.4 million to $497.7 million, primarily due to higher field wages and consulting costs. Loss per share from continuing operations rose by 6.7% to ($1.91), and adjusted loss per share increased 6.4% to ($1.84). H&R Block also returned $507.7 million to shareholders year to date.
H&R Block remains optimistic about its fiscal year 2026 outlook, expecting EBITDA to range between $1.015 to $1.035 billion, with an effective tax rate of approximately 25%. Adjusted Diluted Earnings Per Share are projected to be in the range of $4.85 to $5.00. The company will host a conference call to discuss second quarter results on February 3, 2026, at 4:30 p.m. ET.
H&R Block continues to provide tax preparation services, financial products, and small-business solutions worldwide. The company utilizes digital innovation and human expertise to assist clients in achieving the best outcomes at tax time and better financial management using its mobile banking app, Spruce. Through Block Advisors and Wave, H&R Block supports small-business owners with year-round solutions. H&R Block released its financial results for the three and six months ending December 31, 2025. Total revenues reached $198,865, a significant increase from $179,070 in the same period last year. The company reported a net loss of $242,166, compared to a net loss of $243,420 in the previous year. Adjusted diluted EPS was $(1.84), down from $(1.73) in the prior year. EBITDA was negative at $(265,844), a slight decrease from $(261,352) in the same period last year.
The company’s U.S. tax preparation and related services revenue saw a substantial increase, reaching $111,792 for the quarter, up from $98,242 in the previous year. International revenue also grew to $34,718 from $31,811. Financial services revenue remained stable at $22,570. Compensation and benefits expenses totaled $207,171, up from $198,698 in the same period last year. Operating expenses reached $497,744, a slight increase from $472,361 in the previous year.
H&R Block’s financial performance reflects growth in its core tax preparation services and international revenue. The company reported a net loss of $242,166 for the quarter, with adjusted diluted EPS at $(1.84). Despite challenges in the current economic environment, H&R Block remains focused on delivering value to customers and maintaining financial stability. The consolidated balance sheets for December 31, 2025, show total assets of $2,930,010, including cash, receivables, property, and equipment. Liabilities amount to $3,753,088, with stockholders’ equity at a deficiency of $823,078. The company reported a net loss of $407,985 for the six months ended December 31, 2025, with cash used in operating activities totaling $970,788.
Cash flows from financing activities for the period included proceeds from line of credit borrowings amounting to $975,000 and repayments of long-term debt totaling $350,000. The net decrease in cash and cash equivalents, including restricted balances, was $634,283. Supplementary cash flow data shows income taxes paid at $129,250 and interest paid on borrowings at $35,135.
Non-GAAP financial information includes EBITDA from continuing operations of $(265,844) for the quarter ended December 31, 2025, and adjusted EPS of $(1.84) for the same period. Adjustments for amortization of intangibles related to acquisitions and tax effects were made to calculate adjusted net loss and adjusted diluted loss per share from continuing operations. The company considers these non-GAAP measures as useful metrics for evaluating ongoing performance.
Read more at GlobeNewswire: H&R Block Reports Fiscal 2026 Second Quarter Results