| H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2025 first quarter ended September 30, 2024. |
| "We had a good start to the year and I am pleased with our performance in the quarter," said Jeff Jones, president and chief executive officer. "We are reaffirming our fiscal 2025 outlook and our team is focused on operational and technical enhancements to improve the client experience in office and online." |
| Fiscal 2025 First Quarter Results and Key Financial Metrics |
| "We delivered revenue growth of 5% and continued our share repurchase program, buying approximately $210 million in the quarter," said Tiffany Mason, chief financial officer. "We are on track for the year and believe we are well-positioned to deliver results." |
| For the first quarter, the Company delivered total revenue of $193.8 million, an increase of $10.0 million, or 5%, versus the prior year. The increase was primarily due to higher company office volumes and a higher net average charge in the Assisted category combined with higher international tax preparation revenues. |
| Total operating expenses of $422.1 million increased by $32.0 million, primarily due to higher tax professional wages in the U.S. and internationally as a result of higher tax return volume, higher corporate wages, and an increase in legal expenses in the current year. |
| Pretax loss increased by $19.9 million to $232.3 million. |
| Loss per share from continuing operations2 increased to $(1.23) from $(1.11) and adjusted loss per share from continuing operations2 increased to $(1.17) from $(1.05), due to a higher pretax loss and fewer shares outstanding as a result of share repurchases. |
| Capital Allocation |
| The Company reported the following related to its capital structure: |
- As previously announced, a quarterly cash dividend of $0.375 per share is payable on January 6, 2025, to shareholders of record as of December 5, 2024. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962.
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- Repurchased and retired 3.3 million shares at an aggregate price of $209.6 million, or $63.51 per share in the first quarter.
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- The Company has approximately $1.3 billion remaining on its $1.5 billion share repurchase program. The repurchase program does not have an expiration date.
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| Since 2016, the Company has returned more than $4.1 billion to shareholders in the form of dividends and share repurchases, buying back over 41% of its shares outstanding3. |
| Fiscal Year 2025 Outlook Reaffirmed |
| The Company continues to expect: |
- Revenue to be in the range of $3.69 to $3.75 billion.
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- EBITDA4 to be in the range of $975 million to $1.02 billion.
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- Effective tax rate to be approximately 13%, resulting in a one-time benefit to EPS of approximately 50 cents.
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- Adjusted Diluted Earnings Per Share4 to be in the range of $5.15 to $5.35.
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| About H&R Block |
| H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time, and be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News. |
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| H&R Block |
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