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H & R BLOCK FY26 Financial Results Conference Call August 11 , 2026
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H&R BLOCKH&R BLOCK Jessica Hazel Vice President, Investor Relations FY26 FINANCIAL RESULTS CONFERENCE CALL
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H&R BLOCK FY26 FINANCIAL RESULTS CONFERENCE CALL This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties. Forward-Looking Statements 3 Safe Harbor Statement
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H&R BLOCK FY26 FINANCIAL RESULTS CONFERENCE CALL We refer to certain Non-GAAP financial measures in this presentation, including adjusted earnings per share (EPS), adjusted net income, free cash flow, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, and EBITDA margin, which management believes provide additional meaningful information regarding the Company’s performance and financial strength. All non-GAAP financial measures in this presentation are from continuing operations. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with accounting principles generally accepted in the United States (GAAP). Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please refer to the tables accompanying this presentation and previously filed press releases posted on our investor relations website at https://investors.hrblock.com. Non-GAAP Measures The data included in this presentation regarding the tax preparation services industry, including trends in the market and the Company's position and the position of its competitors within this industry, are based on the Company's estimates, which have been derived from management’s knowledge and experience in the industry, and information obtained from customers, trade and business organizations, internal research, publicly available information, industry publications and surveys and other contacts in the industry. The Company has also cited information compiled by industry publications, governmental agencies and publicly available sources. Although the Company believes these third-party sources to be reliable, it has not independently verified the data obtained from these sources and it cannot assure you of the accuracy or completeness of the data. Estimates of market size and relative positions in a market are difficult to develop and inherently uncertain and the Company cannot assure you that it is accurate. Accordingly, you should not place undue weight on the industry and market share data presented in this presentation. Unless otherwise noted, year-over-year comparisons of operational tax season performance reflect the period from January 1, 2026 – April 30, 2026 versus the corresponding prior-year period and financial reporting metrics are presented for the fiscal year ended June 30, 2026. H&R Block is not a bank. Bank products and services are offered by Pathward, N.A. Market, Industry, and Operational Tax Data 4 Safe Harbor Statement
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H&R BLOCKH&R BLOCK Curtis Campbell President and Chief Executive Officer FY26 FINANCIAL RESULTS CONFERENCE CALL
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H&R BLOCK FY26 FINANCIAL RESULTS CONFERENCE CALL 6 Improved client economics and business quality Progress against long- term strategic priorities Strong growth in Revenue, EBITDA 1 , and Adjusted EPS 1 Fiscal 2026: Strong Results, Greater Confidence 1. EBITDA and Adjusted EPS are non-GAAP financial measures. Please see the safe harbor statement at the beginning of this presentation for information on non-GAAP financial measures.
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H&R BLOCK 7 01 Assisted category market share maintained Held share after two consecutive years of improving trends, strengthening our position in our largest business 02 Clients are responding through improved conversion Responding to deliberate changes we've made to improve the experience across the client journey 03 Deliberate refinements across the client journey Supported by automation and product enhancements that created a more personalized experience with fewer friction points Expert-led, technology-enabled strategy translating to stronger client outcomes and stronger business performance FY26 FINANCIAL RESULTS CONFERENCE CALL One Year In: The Strategy is Working +200 bps Conversion Improvement
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H&R BLOCK 8 +190 bps Improvement in Overall Client Retention Rate +600 bps Higher retention rate among clients receiving Second Look Taken together, these results reinforce our confidence that our strategy is working 4.2M client interactions AI Tax Assist Engagement Nearly 2x engagement Vs. FY25 in AI Tax Assist FY26 FINANCIAL RESULTS CONFERENCE CALL Translating into better performance while strengthening business durability and building a stronger foundation for future growth Technology-Enabled Expertise
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H&R BLOCK 9 Complex clients: strengthen both the durability and economics of the business Target household AGI mix increased from 38% to 50% of clients Serving more clients with investment income, small business and sole proprietor needs, and increasingly diverse income streams Clients with more complex needs value the expertise, assistance, and trusted advice that H&R Block provides Our brand, tax expertise, omnichannel model, and growing technology capabilities position us to serve clients' evolving needs FY26 FINANCIAL RESULTS CONFERENCE CALL Winning with More Complex, Higher Lifetime Value Clients
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H&R BLOCK 10 An even greater competitive advantage, and a growing source of durability Clients access the level of assistance that fits their needs and move across experiences as those needs evolve Clients don’t all need the same level of assistance, and their needs change over time 01 Flexibility that matters more Flexibility is becoming increasingly important as client needs shift 02 Meet clients where they are Provide the right level of assistance across DIY , virtual, and in-person experiences 04 +550 bps attachment rate Increase in product attachment supported by Client Experience Monitors Building on an integrated omnichannel model that operates at scale 03 Technology enhances expertise AI Tax Assist supports clients while Sidekick helps tax pros navigate complex tax questions FY26 FINANCIAL RESULTS CONFERENCE CALL The Power of Our Omnichannel Model
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H&R BLOCK 11 FY26 FINANCIAL RESULTS CONFERENCE CALL Experimenting more → learning faster → scaling what works We expect the pace of learning, experimentation, and innovation to continue accelerating Opportunities Ahead Real-world conditions tested to give us confidence in our choices Real World Testing Exponentially more tests during Tax Season ’26 150+ Experiments Improving the client experience, strengthening execution, and focusing resources behind potential Increasing Velocity Building a More Durable Growth Engine
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H&R BLOCK 12 FY26 FINANCIAL RESULTS CONFERENCE CALL A More Consultative Experience • Testing a more consultative, expert-led, technology-enabled experience that creates value during and beyond tax season • Findings included higher client satisfaction, stronger beliefs in our expertise and value, and increased engagement beyond tax season • Expanding to a full designated market area for Tax Season ’27 to refine the operating model, technology, talent, and workflows consistently and at scale • Using AI and automation to reduce mechanical work and create more capacity for personalized assistance Strengthening Year-Round Field Leadership • Transitioning from a seasonal office leadership model to a year-round office leadership model supported by Area Experience Leaders who manage a small number of offices • Developing talent, coaching associates, and driving greater consistency throughout the field • Streamlining supporting functions to better enable field teams and accelerate our ability to scale what is working across the organization Moving Faster Where the Evidence is Strongest
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H&R BLOCK 13 FY26 FINANCIAL RESULTS CONFERENCE CALL Evidence our strategy is working Strong positioning for our future Becoming a faster learning organization Looking Ahead
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H&R BLOCKH&R BLOCK Tiffany Mason Chief Financial Officer FY26 FINANCIAL RESULTS CONFERENCE CALL
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H&R BLOCK FY26 FINANCIAL RESULTS CONFERENCE CALL $3.95B FY26 Revenue 4.9% YoY Growth 2 Progress on Strategy Moving towards a healthier balance of volume, price, and mix 3 Small Business Momentum Wave’s second consecutive year of double-digit revenue growth 1 3rd Consecutive Y ear of Improved Assisted Category Market Share Trends Supported by higher conversion, better retention, and more complex clients Revenue increases driven by higher net average charge, increased company-owned volume in U.S. Assisted tax preparation, growth in international revenue, and another year of small business momentum at Wave 15 Accelerating Performance Through Execution
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H&R BLOCK 16 Note: All amounts are unaudited and represent results from continuing operations. 1 All share amounts are based on weighted average fully diluted shares over the corresponding period. EBITDA and adjusted EPS are non-GAAP financial measures. Please see the safe harbor statement at the beginning of this presentation for information on non-GAAP financial measures. A reconciliation of EBITDA and adjusted EPS to the most comparable GAAP measures can be found in the Appendix. In millions, except per share amounts FY26 FY25 Change Revenue $3,945.4 $3,761.0 4.9% Operating Expenses $3,037.7 $2,933.0 (3.6%) Net Income $736.3 $609.5 20.8% EBITDA 1 $1,056.9 $976.3 8.3% Earnings (Loss) Per Share 1 $5.69 $4.42 28.7% Adjusted Earnings (Loss) Per Share 1 $5.31 $4.66 13.9% Effective Tax Rate 13.8% 22.0% Weighted Avg. Diluted Shares 128.9 137.3 FY26 FINANCIAL RESULTS CONFERENCE CALL Fiscal 2026 was a Meaningful Year for H&R Block
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H&R BLOCK 17 Invest in the Business In Fiscal 2026 Grow the Dividend FY26 FINANCIAL RESULTS CONFERENCE CALL Return Excess Capital to Shareholders Generated $756M of Free Cash Flow 1 Returned $714M to shareholders in the form of dividends and share repurchases Repurchased and retired ~10.5M shares, representing 7.9% of shares outstanding Capital Structure and Disciplined Capital Allocation Practices 1 Free Cash Flow (FCF) is a non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less capital expenditures. The Company believes Free Cash Flow is useful to investors as an indication of the strength of the Company and its ability to generate cash and to evaluate the Company’s cash generation ability relative to competitors. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. A reconciliation of FCF to the most comparable GAAP measure can be found in the Appendix.
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H&R BLOCK 18 FY26 FINANCIAL RESULTS CONFERENCE CALL FY27 Outlook Revenue $4.11B – $4.16B Adjusted EBITDA 1 $1.11B – $1.14B Effective Tax Rate ~23% Adjusted EPS 1 $6.04 – $6.24 Assumptions: 1 Adjusted EBITDA and adjusted EPS from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the Appendix. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures. Please see the safe harbor statement at the beginning of this presentation for information on non-GAAP financial measures. Entering Fiscal 2027 with Confidence • Industry growth below historic norm • Confidence in our 2027 market position • Healthier balance of volume, price, and mix • Opportunistic franchise acquisitions • Growth in small business services • Continued discipline in managing cost structure • Increased level of investments to support strategic initiatives
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H&R BLOCK 19 FY26 FINANCIAL RESULTS CONFERENCE CALL Durable Cash Flow Supports Long-Term Value Creation Disciplined approach to capital allocation continues to drive long-term shareholder value We expect Fiscal 2027 to be another strong year of free cash flow generation Invest in the Business Grow the Dividend Return Excess Capital to Shareholders 1 3 Continue investing to drive growth, enhance the client experience, and enable greater automation of tax preparation and related workflows Board approved 10% increase in quarterly dividend to $0.46 per share Outlook contemplates ~$400 million of share repurchases ~$600 million remaining under our current $1.5 billion share repurchase authorization Proudly paid dividends consecutively since becoming public in 1962 2 1 Free Cash Flow (FCF) is a non-GAAP financial measure. Please see the safe harbor statement at the beginning of this presentation for information on non-GAAP financial measures.
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H&R BLOCKH&R BLOCK Curtis Campbell President and Chief Executive Officer FY26 FINANCIAL RESULTS CONFERENCE CALL
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H&R BLOCKH&R BLOCK Q&A 21 FY26 FINANCIAL RESULTS CONFERENCE CALL
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H&R BLOCKH&R BLOCK Thank you for joining 22 FY26 FINANCIAL RESULTS CONFERENCE CALL
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H&R BLOCKH&R BLOCK Appendix 23 FY26 FINANCIAL RESULTS CONFERENCE CALL
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Non-GAAP Measures: EBITDA and EBITDA Margin (in 000s) EBITDA and EBITDA Margin Year ended June 30, 2026 Year ended June 30, 2025 Net income - as reported $ 733,596 $ 605,773 Discontinued operations, net 2,722 3,677 Net income from continuing operations - as reported 736,318 609,450 Add back: Income taxes 117,570 171,953 Interest expense 80,611 78,113 Depreciation and amortization 122,440 116,827 320,621 366,893 EBITDA from continuing operations $ 1,056,939 $ 976,343 Total Revenue $ 3,945,392 $ 3,760,995 EBITDA Margin 26.8 % 26.0 % The following is a reconciliation of EBITDA and EBITDA Margin, which are non-GAAP financial measures:
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(in 000s, except per share amounts) ADJUSTED EPS Year ended June 30, 2026 Year ended June 30, 2025 Net income from continuing operations - as reported $ 736,318 $ 609,450 Adjustments: Amortization of intangibles related to acquisitions (pretax) 46,870 44,673 Discrete tax impact of IRS examination settlements (84,113) — Tax effect of adjustments(1) (11,119) (10,865) Adjusted net income from continuing operations $ 687,956 $ 643,258 Diluted earnings per share from continuing operations - as reported $ 5.69 $ 4.42 Adjustments, net of tax (0.38) 0.24 Adjusted diluted earnings per share from continuing operations $ 5.31 $ 4.66 The following is a reconciliation of Adjusted Net Income and Adjusted EPS, which is a non-GAAP financial measure: (1) Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis. Non-GAAP Measure: Adjusted Net Income and EPS
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(in 000s, except per share amounts) FREE CASH FLOW YIELD Year ended June 30, 2026 Operating cash flow - as reported $ 838,695 Less: capital expenditures (82,614) Free cash flow $ 756,081 The following is a reconciliation of Free Cash Flow, which is a non-GAAP financial measure: Non-GAAP Measure: Free Cash Flow
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H&R Block Operating Statistics OPERATING STATISTICS July 1, 2025 - June 30, 2026 July 1, 2024 - June 30, 2025 % Change TAX RETURNS PREPARED (U.S. only, in 000s)(1): Company-owned operations 9,053 8,874 2.0 % Franchise operations(2) 2,227 2,417 (7.9) % Total Assisted 11,280 11,291 (0.1) % Desktop 1,741 1,737 0.2 % Online paid(3) 3,631 3,795 (4.3) % Online free(3) 2,516 2,828 (11.0) % Total DIY 7,888 8,360 (5.6) % Total H&R Block U.S. returns 19,168 19,651 (2.5) % NET AVERAGE CHARGE (U.S. only)(4): Company-owned operations $ 282.89 $ 271.94 4.0 % Franchise operations (5) $ 226.17 $ 258.50 (12.5) % DIY online paid(3) $ 85.80 $ 82.38 4.2 % (1) An Assisted tax return is defined as a current or prior year individual or business tax return signed by a tax professional and accepted by the client. A DIY desktop return is defined as a current year individual or business tax return that is prepared by the client with our DIY desktop software and electronically submitted to the IRS. A DIY online paid return is defined as a current year individual or business tax return that is prepared by the client on our DIY online platform using a paid product and accepted by the client. A DIY online free return is defined as a current year individual tax return prepared by the client on our DIY online platform generally utilizing our free product and accepted by the IRS. (2) Franchise operations returns include Assisted returns prepared in a franchise office in the reported year. Following the Company’s acquisition of a franchise office, returns from such office are included in the Company-owned line for that year; prior years are not reclassified. (3) Certain prior year amounts were reclassified from Online Paid to Online Free due to a corrected immaterial system error. Net Average Charge was also updated. (4) Net average charge is calculated as total tax preparation fees divided by tax returns prepared. (5) Net average charge related to H&R Block Franchise operations represents tax preparation fees collected by H&R Block franchisees divided by returns prepared in franchise offices. H&R Block will recognize a portion of franchise revenues as franchise royalties based on the terms of franchise agreements.