H&R Block Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>H&R Block Inc. has filed its Q2 2024 10-Q report, detailing financial performance for the period ending December 31, 2023.</b>

AI Summary

H&R BLOCK INC (HRB) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. H&R Block Inc. filed its quarterly report (10-Q) for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on June 30th. H&R Block Inc. is incorporated in Missouri. The company's principal business address is One H&R Block Way, Kansas City, MO 64105.

Why It Matters

For investors and stakeholders tracking H&R BLOCK INC, this filing contains several important signals. This filing provides investors with an update on H&R Block's financial health and operational performance during a key tax season period. Understanding the details within this 10-Q is crucial for assessing the company's current financial standing and future prospects in the tax preparation industry.

Risk Assessment

Risk Level: — H&R BLOCK INC shows moderate risk based on this filing. The filing is a standard quarterly report and does not contain immediate red flags, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue drivers and cost structures for the current tax season.

Key Numbers

• 2023-12-31 — Period End Date (Fiscal period end date)
• 2024-02-06 — Filing Date (Date the report was filed)
• 0630 — Fiscal Year End (Company's fiscal year end month and day)

Key Players & Entities

• H&R BLOCK INC (company) — Filer name
• 2023-12-31 (date) — Period of report
• 2024-02-06 (date) — Filed as of date
• 0001838862-24-000013 (other) — Accession number
• MO (location) — State of incorporation
• KANSAS CITY (location) — Business address city

FAQ

Industry Context

H&R Block operates in the personal services sector, specifically focusing on tax preparation and related financial services.

Regulatory Implications

The company is subject to various financial reporting regulations by the SEC, including the requirement to file quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the financial statements for revenue and net income trends.
2. Examine any disclosed risk factors for potential business impacts.
3. Compare key financial metrics to previous periods if available in the full filing.

Year-Over-Year Comparison

This is the initial filing data extracted; a comparison to a prior filing would require additional data.

Filing Documents

• hrb-20231231.htm (10-Q) — 1341KB
• hrbq2fy24exhibit311.htm (EX-31.1) — 8KB
• hrbq2fy24exhibit312.htm (EX-31.2) — 8KB
• hrbq2fy24exhibit321.htm (EX-32.1) — 4KB
• hrbq2fy24exhibit322.htm (EX-32.2) — 4KB
• 0001838862-24-000013.txt (&nbsp;) — 5331KB
• hrb-20231231.xsd (EX-101.SCH) — 37KB
• hrb-20231231_cal.xml (EX-101.CAL) — 58KB
• hrb-20231231_def.xml (EX-101.DEF) — 153KB
• hrb-20231231_lab.xml (EX-101.LAB) — 419KB
• hrb-20231231_pre.xml (EX-101.PRE) — 268KB
• hrb-20231231_htm.xml (XML) — 740KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

Signatures

Signatures 28 Table of Contents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS: (unaudited, in 000s, except per share amounts) Three months ended December 31, Six months ended December 31, 2023 2022 2023 2022 REVENUES: Service revenues $ 149,081 $ 139,565 $ 320,807 $ 306,759 Royalty, product and other revenues 30,002 26,840 42,076 39,631 179,083 166,405 362,883 346,390 OPERATING EXPENSES: Costs of revenues 299,827 298,345 559,185 559,007 Selling, general and administrative 146,688 151,263 277,456 279,697 Total operating expenses 446,515 449,608 836,641 838,704 Other income (expense), net 5,922 4,185 15,758 7,796 Interest expense on borrowings ( 21,364 ) ( 18,985 ) ( 37,234 ) ( 34,809 ) Loss from continuing operations before income tax benefit ( 282,874 ) ( 298,003 ) ( 495,234 ) ( 519,327 ) Income tax benefit ( 93,758 ) ( 77,140 ) ( 143,245 ) ( 131,097 ) Net loss from continuing operations ( 189,116 ) ( 220,863 ) ( 351,989 ) ( 388,230 ) Net loss from discontinued operations, net of tax benefits of $ 191 , $ 812 , $ 373 and $ 1,128 ( 639 ) ( 2,716 ) ( 1,248 ) ( 3,770 ) NET LOSS $ ( 189,755 ) $ ( 223,579 ) $ ( 353,237 ) $ ( 392,000 ) BASIC AND DILUTED LOSS PER SHARE: Continuing operations $ ( 1.33 ) $ ( 1.43 ) $ ( 2.44 ) $ ( 2.48 ) Discontinued operations — ( 0.02 ) ( 0.01 ) ( 0.02 ) Consolidated $ ( 1.33 ) $ ( 1.45 ) $ ( 2.45 ) $ ( 2.50 ) DIVIDENDS DECLARED PER SHARE $ 0.32 $ 0.29 $ 0.64 $ 0.58 COMPREHENSIVE LOSS: Net loss $ ( 189,755 ) $ ( 223,579 ) $ ( 353,237 ) $ ( 392,000 ) Change in foreign currency translation adjustments 11,559 9,307 645 ( 23,038 ) Other comprehensive income (loss) 11,559 9,307 645 ( 23,038 ) Comprehensive loss $ ( 178,196 ) $ ( 214,272 ) $ ( 352,592 ) $ ( 415,038 ) See accompanying notes to consolidated financial statements. H&R Block, Inc. |Q2 FY2024 Form 10-Q 1 Table of Contents CONSOLIDATED BALANCE SHEETS (unaudited, in 000s, except share and per share amounts) As of December 31, 2023

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION – The consolidated balance sheets as of December 31, 2023 and June 30, 2023, the consolidated statements of operations and comprehensive loss for the three and six months ended December 31, 2023 and 2022, the consolidated statements of cash flows for the six months ended December 31, 2023 and 2022, and the consolidated statements of stockholders' equity for the three and six months ended December 31, 2023 and 2022 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations, and cash flows as of December 31, 2023 and 2022 and for all periods presented, have been made. "H&R Block," "the Company," "we," "our," and "us" are used interchangeably to refer to H&R Block, Inc., to H&R Block, Inc. and its subsidiaries, or to H&R Block, Inc.'s operating subsidiaries, as appropriate to the context. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our June 30, 2023 Annual Report on Form 10-K. All amounts presented herein as of June 30, 2023 or for the year then ended are derived from our Annual Report on Form 10-K. MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimat

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