H&R Block (HRB)
NYSE:HRB
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H&R Block
(NYSE:HRB)
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Rating:63Neutral
Price Target:
$32.00
▲(4.85% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by mixed fundamentals: strong profitability and cash generation are offset by elevated balance-sheet risk (high leverage and negative equity). Valuation is a clear positive (low P/E and high dividend yield), while technical signals remain bearish with the stock in a pronounced downtrend despite oversold readings. Earnings call commentary supports the outlook via reaffirmed guidance and continued capital returns, but execution and early-season uncertainty temper confidence.
Positive Factors
Consistent Profitability and Margins
H&R Block has delivered consistently strong margins (~16% net margin historically and in TTM), indicating durable earnings power from its mix of assisted, DIY and recurring tax services. Stable margins support long-term cash generation and resilience through modest demand swings.
Negative Factors
Elevated Balance-Sheet Risk
Leverage is elevated and equity moved to negative in TTM, producing negative debt-to-equity and weakening financial flexibility. Persistent high debt reduces headroom for cyclical stress or opportunistic investment, increasing structural downside risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Profitability and Margins
H&R Block has delivered consistently strong margins (~16% net margin historically and in TTM), indicating durable earnings power from its mix of assisted, DIY and recurring tax services. Stable margins support long-term cash generation and resilience through modest demand swings.
Read all positive factors
H&R Block (HRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.95B
Dividend Yield3.67%
Average Volume (3M)2.09M
Price to Earnings (P/E)―
Beta (1Y)0.15
Revenue Growth4.15%
EPS Growth8.13%
CountryUS
Employees4,200
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)-1.84
Shares Outstanding126,759,735
10 Day Avg. Volume1,724,105
30 Day Avg. Volume2,090,238
Financial Highlights & Ratios
PEG Ratio1.49
Price to Book (P/B)82.71
Price to Sales (P/S)1.95
P/FCF Ratio12.28
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit3.25
Enterprise Value/Ebitda6.81
Forecast
1Y Price Target
$41.00Price Target Upside34.34% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5
Revenue Forecast (FY)$3.89B
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 compa...
How the Company Makes Money
H&R Block primarily makes money by charging fees for tax preparation and related services, generated through multiple channels. (1) Assisted tax preparation (retail and virtual): The company earns revenue from preparing and filing tax returns for ...
H&R Block Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
Overall the call leans positive: management reaffirmed guidance, delivered strong shareholder returns ($508M in H1 and $700M remaining repurchase capacity), and outlined clear investments in AI and operations expected to improve client and tax-pro experiences. However, there are notable execution risks in the assisted channel (manual processes and mid/lower-funnel losses), a modest increase in adjusted loss per share ($0.11 YoY), and early-season data limitations that introduce near-term uncertainty. The positives around cash returns, disciplined capital allocation, and technology-led remediation outweigh the highlighted operational challenges.Positive Updates
Reaffirmed Full-Year Financial Outlook
Management reaffirmed fiscal 2026 guidance: revenue $3.875B–$3.895B, EBITDA $1.015B–$1.035B, adjusted EPS $4.85–$5.00, and an effective tax rate of ~25%.
Negative Updates
Adjusted Loss Per Share Increased Year-over-Year
Adjusted loss per share rose by $0.11 year-over-year despite an improvement in net loss, indicating margin or non-operational pressures that affected per-share results.
Read all updates
Q2-2026 Updates
Positive
Negative
Reaffirmed Full-Year Financial Outlook
Management reaffirmed fiscal 2026 guidance: revenue $3.875B–$3.895B, EBITDA $1.015B–$1.035B, adjusted EPS $4.85–$5.00, and an effective tax rate of ~25%.
Read all positive updates
Company Guidance
Management reaffirmed fiscal 2026 guidance of revenue $3.875–$3.895 billion, EBITDA $1.015–$1.035 billion, adjusted EPS $4.85–$5.00 and an effective tax rate of ~25%, anchored on industry growth of about 1%; they also noted a $0.11 year‑over‑year increase in adjusted loss per share even as net loss improved, expect low single‑digit price increases across assisted and DIY, foresee assisted gaining roughly 20 basis points of share (with ~55% of clients historically seeking assistance), and reported returning $508 million to shareholders in the first half with approximately $700 million remaining on the current repurchase program.H&R Block Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
32
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.79B | 3.76B | 3.61B | 3.47B | 3.46B | 3.46B |
| Gross Profit | 2.07B | 1.67B | 1.62B | 1.55B | 1.58B | 1.58B |
| EBITDA | 989.43M | 976.34M | 963.19M | 914.69M | 889.53M | 889.53M |
| Net Income | 613.78M | 605.77M | 595.32M | 553.70M | 553.67M | 553.67M |
Balance Sheet | ||||||
| Total Assets | 2.93B | 3.26B | 3.22B | 3.07B | 3.27B | 3.65B |
| Cash, Cash Equivalents and Short-Term Investments | 368.86M | 1.00B | 1.08B | 1.02B | 1.05B | 1.06B |
| Total Debt | 3.23B | 2.35B | 2.23B | 2.18B | 2.15B | 2.18B |
| Total Liabilities | 3.75B | 3.18B | 3.13B | 3.04B | 3.06B | 3.30B |
| Stockholders Equity | -823.08M | 88.90M | 90.59M | 32.06M | 211.63M | 352.40M |
Cash Flow | ||||||
| Free Cash Flow | 524.08M | 598.85M | 657.18M | 752.14M | 746.58M | 573.14M |
| Operating Cash Flow | 605.73M | 680.88M | 720.86M | 821.84M | 808.54M | 625.93M |
| Investing Cash Flow | -109.81M | -105.37M | -93.86M | -101.39M | -76.54M | -45.52M |
| Financing Cash Flow | -476.50M | -647.44M | -564.31M | -750.99M | -1.26B | -2.41B |
H&R Block Technical Analysis
Negative
30.52
Price Trends
31.29
Negative
36.55
Negative
43.55
Negative
Market Momentum
-0.22
Positive
44.09
Neutral
20.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRB, the sentiment is Negative. The current price of 30.52 is below the 20-day moving average (MA) of 31.34, below the 50-day MA of 31.29, and below the 200-day MA of 43.55, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRB.
H&R Block Risk Analysis
H&R Block disclosed 23 risk factors in its most recent earnings report. H&R Block reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
H&R Block Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.10B | 16.54 | 101.49% | ― | 11.88% | 18.08% | |
63 Neutral | $3.95B | -5.69 | -166.12% | 3.67% | 4.15% | 8.13% | |
63 Neutral | $4.57B | 29.90 | 14.07% | ― | 9.38% | 74.27% | |
63 Neutral | $2.30B | 17.60 | 9.49% | ― | 6.98% | 22.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $762.28M | 12.67 | 21.53% | 1.06% | 0.99% | 37.55% | |
59 Neutral | $11.42B | 20.35 | 33.83% | 1.66% | 3.41% | 7.94% |
* Consumer Cyclical Sector Average
HRB
H&R Block
30.52
-28.62
-48.40%
CSV
Carriage Services
47.61
9.18
23.90%
SCI
Service International
82.10
5.36
6.98%
BFAM
Bright Horizons
83.89
-34.27
-29.00%
FTDR
frontdoor
59.56
19.51
48.71%
MCW
Mister Car Wash
7.00
-0.24
-3.31%
H&R Block Corporate Events
Business Operations and StrategyExecutive/Board Changes
H&R Block Expands Board With Three New Independent Directors
Positive
Jan 22, 2026
On January 20, 2026, HR Block expanded its Board of Directors from eight to eleven members and appointed three new independent directors, Geralyn R. Breig, Christian H. Charnaux, and Stephanie C. Plaines, with the company formally announcing the m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.