H&R Block shares fall as Q4 earnings miss offsets revenue beat

Published 12/08/2025, 21:20
H&R Block shares fall as Q4 earnings miss offsets revenue beat

Investing.com -- H&R Block Inc. (NYSE:HRB) reported fourth quarter earnings that fell short of analyst expectations, despite slightly beating revenue forecasts. The tax preparation company’s shares dropped 2.4% following the release as investors reacted to the earnings miss and weaker-than-expected guidance for the coming fiscal year.

The company posted adjusted earnings per share of $2.27 for the fourth quarter, significantly below the analyst estimate of $2.98. Revenue came in at $1.11 billion, marginally above the consensus estimate of $1.1 billion. For the full fiscal year 2025, H&R Block reported total revenue of $3.8 billion, representing a 4.2% increase YoY, driven by higher net average charge and increased company-owned return volumes.

"Fiscal 2025 marked another year of meaningful progress in our transformation journey, with strong revenue growth, disciplined capital allocation, and continued innovation across our client offerings," said Jeff Jones, president and chief executive officer of H&R Block.

The company’s operating expenses rose 4.6% to $2.9 billion, primarily due to higher compensation, benefits, marketing, consulting, technology and legal costs. Net income from continuing operations increased by 1.9% to $609.5 million, while adjusted earnings per share from continuing operations grew 5.7% to $4.66.

Looking ahead, H&R Block provided fiscal 2026 guidance with revenue projected between $3.875 billion and $3.895 billion, above analyst expectations of $3.83 billion. However, the company’s earnings forecast of $4.85 to $5.00 per share fell short of the $5.14 consensus estimate.

The Board of Directors approved a 12% increase in the quarterly dividend to $0.42 per share, marking the eighth consecutive annual increase. During fiscal 2025, the company repurchased approximately 6.5 million shares, representing 4.7% of shares outstanding, at an average price of $61.10 per share.

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