H&R Block (HRB) AI Stock Analysis

• Market Cap: $6.71B
• Dividend Yield: 3.01%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.25
• 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: 133,947,450
• 10 Day Avg. Volume: 1,864,577
• 30 Day Avg. Volume: 2,055,735
• 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: 1.26
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 8.80
• 1Y Price Target: $55.00
• Price Target Upside: 7.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $56.00 ▲(9.08% Upside)

H&R Block's overall stock score reflects a mixed outlook. Strong financial performance and strategic corporate events are offset by technical weaknesses and leverage risks. The company's valuation and earnings call sentiment are positive, but technical indicators suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Dividend Increase

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

Leadership Transition

The planned CEO transition ensures continuity in leadership, with a focus on sustained growth and strategic initiatives.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Operating Expense Increase

Rising operating expenses, driven by higher wages and benefits, could pressure margins and reduce profitability over time.

Declining Free Cash Flow

Declining free cash flow growth may hinder the company's ability to fund operations and strategic initiatives, affecting long-term growth.

H&R Block Business Overview & Revenue Model

Company Description

H&R Block, Inc. (HRB) is a leading provider of tax preparation and related services in the United States and internationally. Founded in 1955, the company operates through two primary segments: Tax Services and Financial Services. H&R Block offers a range of services, including in-person tax preparation, online tax filing software, and various financial products such as refund anticipation loans and tax-related identity theft protection. The company serves millions of clients annually, making it one of the most recognized brands in tax preparation.

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 to ensure long-term stability.

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	3.71B	3.76B	3.61B	3.47B	3.46B	3.41B
Gross Profit	1.65B	1.67B	1.62B	1.55B	1.58B	1.57B
EBITDA	959.91M	976.34M	963.19M	914.69M	889.53M	932.46M
Net Income	564.15M	605.77M	595.32M	553.70M	553.67M	583.79M
Balance Sheet
Total Assets	3.25B	3.26B	3.22B	3.07B	3.27B	4.01B
Cash, Cash Equivalents and Short-Term Investments	772.95M	983.28M	1.08B	1.02B	1.05B	1.43B
Total Debt	1.92B	2.03B	1.96B	1.93B	1.92B	2.44B
Total Liabilities	3.44B	3.18B	3.13B	3.04B	3.06B	3.63B
Stockholders Equity	-192.84M	88.90M	90.59M	32.06M	211.63M	388.06M
Cash Flow
Free Cash Flow	648.29M	598.85M	657.18M	752.14M	746.58M	573.14M
Operating Cash Flow	729.92M	680.88M	720.86M	821.84M	808.54M	625.93M
Investing Cash Flow	-105.11M	-105.37M	-93.86M	-101.39M	-76.54M	-45.52M
Financing Cash Flow	-639.31M	-647.44M	-564.31M	-750.99M	-1.26B	-2.41B

H&R Block Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 51.34
• 50DMA: Negative
• 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 Neutral. The current price of 51.34 is above the 20-day moving average (MA) of 50.84, below the 50-day MA of 52.72, and below the 200-day MA of 54.22, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 28.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HRB.

H&R Block Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCI	75 Outperform	11.18B	21.64	34.29%	1.56%	2.65%	7.42%
FTDR	75 Outperform	4.85B	19.80	101.58%	―	8.56%	31.87%
BFAM	74 Outperform	6.21B	36.54	12.64%	―	9.25%	74.86%
HRB	67 Neutral	$6.71B	11.42	673.21%	3.01%	4.17%	5.56%
CSV	65 Neutral	677.08M	12.96	22.25%	1.01%	3.55%	73.06%
MCW	61 Neutral	1.78B	20.67	8.13%	―	7.21%	20.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.

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.

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.

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.

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.

H&R Block Extends Credit Facility to 2030

On July 11, 2025, Block Financial LLC, a subsidiary of H&R Block, Inc., entered into the Fifth Amended and Restated Credit and Guarantee Agreement, extending the maturity date of its credit facility to July 11, 2030, while maintaining a principal amount of $1.5 billion. This amendment reflects H&R Block’s strategic financial management, potentially enhancing its financial stability and operational flexibility, with no significant changes to the material terms of the previous agreement.