H&R Block (HRB) AI Stock Analysis

• Market Cap: $5.27B
• Dividend Yield: 3.09%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.26
• Revenue Growth: 4.15%
• EPS Growth: 8.13%
• Country: US
• Employees: 4,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -1.20
• Shares Outstanding: 126,425,310
• 10 Day Avg. Volume: 1,955,591
• 30 Day Avg. Volume: 1,475,659
• 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: 1.61
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 8.54
• 1Y Price Target: $62.00
• Price Target Upside: 48.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.96
• Revenue Forecast (FY): $3.88B

• Rating: 63 Neutral
• Price Target: $49.00 ▲(17.45% Upside)

H&R Block's overall stock score is driven by strong financial performance and positive earnings call sentiment. However, the high leverage and negative equity on the balance sheet pose significant risks. The technical analysis indicates a bearish trend, but the stock's valuation suggests it may be undervalued, offering potential upside for investors.

Positive Factors

Revenue Growth

Consistent revenue growth and improved EBITDA indicate robust business expansion and effective cost management, enhancing long-term profitability.

Capital Return to Shareholders

Strong capital return strategy reflects solid cash generation and management's commitment to shareholder value, supporting long-term investor confidence.

Small Business and Wave Growth

Growth in small business services and high-margin products like Wave enhances revenue diversification and strengthens competitive positioning.

Negative Factors

High Leverage and Negative Equity

High leverage and negative equity pose financial stability risks, potentially limiting future investment and growth opportunities.

Net Loss from Continuing Operations

Persistent net losses highlight challenges in achieving profitability, which could impact long-term financial health and strategic initiatives.

Seasonal Business Impact

The seasonal nature of revenue generation leads to volatility in financial performance, complicating cash flow management and planning.

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. However, 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	3.77B	3.76B	3.61B	3.47B	3.46B	3.41B
Gross Profit	1.77B	1.67B	1.62B	1.55B	1.58B	1.57B
EBITDA	993.92M	976.34M	963.19M	914.69M	889.53M	932.46M
Net Income	612.53M	605.77M	595.32M	553.70M	553.67M	583.79M
Balance Sheet
Total Assets	2.62B	3.26B	3.22B	3.07B	3.27B	4.01B
Cash, Cash Equivalents and Short-Term Investments	376.41M	983.28M	1.05B	986.98M	885.01M	1.43B
Total Debt	2.25B	2.03B	1.96B	1.93B	1.92B	2.44B
Total Liabilities	3.17B	3.18B	3.13B	3.04B	3.06B	3.63B
Stockholders Equity	-550.91M	88.90M	90.59M	32.06M	211.63M	388.06M
Cash Flow
Free Cash Flow	576.14M	598.85M	657.18M	752.14M	746.58M	573.14M
Operating Cash Flow	652.63M	680.88M	720.86M	821.84M	808.54M	625.93M
Investing Cash Flow	-99.91M	-105.37M	-93.86M	-101.39M	-76.54M	-45.52M
Financing Cash Flow	-588.02M	-647.44M	-564.31M	-750.99M	-1.26B	-2.41B

H&R Block Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 41.72 is below the 20-day moving average (MA) of 46.34, below the 50-day MA of 49.12, and below the 200-day MA of 53.09, indicating a bearish trend. The MACD of -2.28 indicates Positive momentum. The RSI at 26.41 is Positive, neither overbought nor oversold. The STOCH value of 6.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRB.

H&R Block Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCI	71 Outperform	$11.08B	21.31	33.48%	1.54%	3.41%	7.94%
FTDR	68 Neutral	$3.88B	15.32	91.16%	―	11.88%	18.08%
BFAM	67 Neutral	$5.79B	29.50	14.19%	―	9.38%	74.27%
HRB	63 Neutral	$5.27B	9.37	―	3.09%	4.15%	8.13%
MCW	63 Neutral	$1.74B	19.15	8.84%	―	6.98%	22.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CSV	54 Neutral	$676.10M	13.80	21.96%	1.05%	0.99%	37.55%

H&R Block Corporate Events

H&R Block Shareholders Elect Directors at Annual Meeting

The 2025 annual meeting of H&R Block shareholders took place on November 5, 2025, where all nominated directors were elected to serve until the next annual meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2026, was ratified, and the advisory proposal on executive compensation was approved.

The most recent analyst rating on (HRB) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on H&R Block stock, see the HRB Stock Forecast page.

H&R Block Reports Strong Q1 Growth Amid Challenges

The recent earnings call for H&R Block showcased a generally positive sentiment, highlighting significant revenue growth, improved EBITDA, and substantial returns to shareholders. Despite reporting a net loss, the company demonstrated strong performance in key areas such as small business and Wave, while maintaining a disciplined capital allocation strategy.

H&R Block Reports Strong Start to Fiscal 2026

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 help clients achieve optimal outcomes during tax season and manage their finances effectively through its mobile banking app, Spruce.

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.