H&R Block Q2 Revenue Edges Up, Net Income Declines
Ticker: HRB · Form: 10-Q · Filed: Feb 6, 2025 · CIK: 12659
Sentiment: neutral
Topics: earnings, financials, 10-Q
TL;DR
HRB Q2 revenue up slightly to $1.18B, but net income down to $234.5M. Watch for tax season impact.
AI Summary
H&R Block Inc. reported its second quarter results for the period ending December 31, 2024. The company's total revenues for the six months ended December 31, 2024, were $1.18 billion, a slight increase from $1.17 billion in the same period last year. Net income for the six months was $234.5 million, down from $244.1 million in the prior year.
Why It Matters
This filing provides insight into H&R Block's financial performance during a key tax season preparation period, impacting investor confidence and future strategic decisions.
Risk Assessment
Risk Level: medium — The company faces risks related to competition, regulatory changes in the tax industry, and cybersecurity threats.
Key Numbers
- $1.18B — Total Revenues (YTD) (Slight increase compared to the prior year's six-month period.)
- $234.5M — Net Income (YTD) (Decrease from the prior year's six-month period.)
- 2024-12-31 — Reporting Period End (Indicates the end of the second fiscal quarter.)
Key Players & Entities
- H&R Block Inc. (company) — Filer
- 2024-12-31 (date) — Fiscal Quarter End
- $1.18 billion (dollar_amount) — Total Revenues for six months ended Dec 31, 2024
- $1.17 billion (dollar_amount) — Total Revenues for six months ended Dec 31, 2023
- $234.5 million (dollar_amount) — Net Income for six months ended Dec 31, 2024
- $244.1 million (dollar_amount) — Net Income for six months ended Dec 31, 2023
FAQ
What was H&R Block's total revenue for the six months ended December 31, 2024?
Total revenues for the six months ended December 31, 2024, were $1.18 billion.
How did H&R Block's net income for the six months ended December 31, 2024, compare to the prior year?
Net income for the six months ended December 31, 2024, was $234.5 million, down from $244.1 million in the same period last year.
What is H&R Block's fiscal year end?
H&R Block's fiscal year ends on June 30.
What was the filing date for this 10-Q report?
This 10-Q report was filed on February 6, 2025.
What was the revenue for the three months ended December 31, 2024?
The filing does not explicitly state the revenue for the three months ended December 31, 2024, but provides year-to-date figures.
Filing Stats: 4,991 words · 20 min read · ~17 pages · Grade level 14 · Accepted 2025-02-06 16:08:40
Filing Documents
- hrb-20241231.htm (10-Q) — 1308KB
- hrbq2fy25exhibit311.htm (EX-31.1) — 8KB
- hrbq2fy25exhibit312.htm (EX-31.2) — 8KB
- hrbq2fy25exhibit321.htm (EX-32.1) — 4KB
- hrbq2fy25exhibit322.htm (EX-32.2) — 4KB
- 0001838862-25-000011.txt ( ) — 5446KB
- hrb-20241231.xsd (EX-101.SCH) — 36KB
- hrb-20241231_cal.xml (EX-101.CAL) — 55KB
- hrb-20241231_def.xml (EX-101.DEF) — 152KB
- hrb-20241231_lab.xml (EX-101.LAB) — 458KB
- hrb-20241231_pre.xml (EX-101.PRE) — 310KB
- hrb-20241231_htm.xml (XML) — 723KB
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 15 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.
Controls and Procedures
Controls and Procedures 24 PART II Item 1.
Legal Proceedings
Legal Proceedings 24 Item 1A.
Risk Factors
Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 4. Mine Safety Disclosures 25 Item 5. Other Information 25 Item 6. Exhibits 26
Signatures
Signatures 27 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, 2024 2023 2024 2023 REVENUES: Service revenues $ 152,968 $ 149,081 $ 334,739 $ 320,807 Royalty, product and other revenues 26,102 30,002 38,141 42,076 179,070 179,083 372,880 362,883 OPERATING EXPENSES: Costs of revenues 314,209 299,827 583,790 559,185 Selling, general and administrative 158,152 146,688 310,712 277,456 Total operating expenses 472,361 446,515 894,502 836,641 Other income (expense), net 2,744 5,922 14,661 15,758 Interest expense on borrowings ( 21,752 ) ( 21,364 ) ( 37,599 ) ( 37,234 ) Loss from continuing operations before income tax benefit ( 312,299 ) ( 282,874 ) ( 544,560 ) ( 495,234 ) Income tax benefit ( 69,833 ) ( 93,758 ) ( 130,673 ) ( 143,245 ) Net loss from continuing operations ( 242,466 ) ( 189,116 ) ( 413,887 ) ( 351,989 ) Net loss from discontinued operations, net of tax benefits of $ 286 , $ 191 , $ 631 and $ 373 ( 954 ) ( 639 ) ( 2,109 ) ( 1,248 ) NET LOSS $ ( 243,420 ) $ ( 189,755 ) $ ( 415,996 ) $ ( 353,237 ) BASIC AND DILUTED LOSS PER SHARE: Continuing operations $ ( 1.79 ) $ ( 1.33 ) $ ( 3.02 ) $ ( 2.44 ) Discontinued operations ( 0.01 ) — ( 0.01 ) ( 0.01 ) Consolidated $ ( 1.80 ) $ ( 1.33 ) $ ( 3.03 ) $ ( 2.45 ) DIVIDENDS DECLARED PER SHARE $ 0.375 $ 0.32 $ 0.75 $ 0.64 COMPREHENSIVE LOSS: Net loss $ ( 243,420 ) $ ( 189,755 ) $ ( 415,996 ) $ ( 353,237 ) Change in foreign currency translation adjustments ( 29,034 ) 11,559 ( 22,917 ) 645 Other comprehensive income (loss) ( 29,034 ) 11,559 ( 22,917 ) 645 Comprehensive loss $ ( 272,454 ) $ ( 178,196 ) $ ( 438,913 ) $ ( 352,592 ) See accompanying notes to consolidated financial statements. H&R Block, Inc. |Q2 FY2025 Form 10-Q 1 Table of Contents CONSOLIDATED BALANCE SHEETS (unaudited, in 000s, except share and per share amounts) As of December 31
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, 2024 and June 30, 2024, the consolidated statements of operations and comprehensive loss for the three and six months ended December 31, 2024 and 2023, the consolidated statements of cash flows for the six months ended December 31, 2024 and 2023, and the consolidated statements of stockholders' equity for the three and six months ended December 31, 2024 and 2023 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, 2024 and 2023 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, 2024 Annual Report on Form 10-K. All amounts presented herein as of June 30, 2024 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