H&R Block Q1 revenue rises 10% on international, tax protection growth
H&R Block reported fiscal 2027 first-quarter revenue of $224.3 million, up 10.2% from a year earlier, and a net loss from continuing operations of $188.1 million. It reaffirmed its full-year outlook.
Key takeaways
- H&R Block (HRB) reported fiscal 2027 first-quarter revenue of $224.3 million, up 10.2% from a year earlier. Adjusted net loss from continuing operations was $172.1 million, or $1.40 per share. The company reaffirmed its fiscal 2027 outlook and declared a quarterly dividend of 46 cents per share.
H&R Block (HRB) reported first-quarter revenue of $224.3 million, up 10.2% from a year earlier.
Shares fell 1.9% at 11:16 a.m. ET, from a $50.98 close.
Here's how the company did:
- Revenue: $224.3 million, up $20.8 million, or 10.2%, from a year earlier
- Net loss from continuing operations: $188.1 million, up 13.8% from a year earlier
- Adjusted diluted loss per share from continuing operations: $1.40, vs. $1.20 a year earlier
Revenue growth came mainly from international services, higher tax protection and identity services, an increase in small business services, and growth in U.S. tax preparation revenues.
Total operating expenses rose $45.6 million, or 11.1%, to $456.2 million, primarily on higher field compensation and benefits, increased general corporate expenses, and higher occupancy and equipment costs.
Severance and related costs of $8.0 million, tied to a previously announced seasonal office leadership transition, are excluded from adjusted results.
The business is highly seasonal, and first-quarter results typically show a net loss.
H&R Block reaffirmed its fiscal 2027 guidance. It expects revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, and adjusted diluted earnings per share of $6.04 to $6.24. The effective tax rate is expected to be about 23%.
Chief Financial Officer Tiffany Mason said, "We remain confident in the assumptions underlying our fiscal 2027 outlook."
The company repurchased and retired 2.2 million shares for $100.3 million, or $45.68 per share, leaving about $500 million on its $1.5 billion program. Year to date, it has returned $156.9 million to shareholders through dividends and buybacks.
The board declared a quarterly cash dividend of 46 cents per share, payable Jan. 6, 2027, to shareholders of record as of Dec. 3, 2026.
Net income moved from a loss of $242.2 million in the second quarter of fiscal 2026 to a profit of $847.9 million in the third quarter of fiscal 2026.