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What changed in H&R BLOCK INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of H&R BLOCK INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+188 added−178 removedSource: 10-K (2025-08-15) vs 10-K (2024-08-15)

Top changes in H&R BLOCK INC's 2025 10-K

188 paragraphs added · 178 removed · 160 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeH&R Block Emerald Advance® Term Loans. EA term loans are offered by our bank partner to clients in our offices, in November and December, in amounts of $350 to $1,300. EA term loans are interest bearing with principal and interest due in full on March 31, and there are no annual fees or required monthly payments. Tax Identity Shield®.
Biggest changeEA term loans are interest bearing with principal and interest due in full on March 31, and there are no annual fees or required monthly payments. Tax Identity Shield®. Our TIS program offers clients assistance in helping protect their tax identity and access to services to help restore thei r tax identity, if necessary.
RTs are available to U.S. clients and are frequently obtained by those who: (1) do not have bank accounts into which the Internal Revenue Service (IRS) can direct deposit their refunds; (2) like the convenience and benefits of a temporary account for receipt of their refund; and/or (3) prefer to have their tax preparation fees paid directly out of their refunds.
RTs are available to U.S. clients and are frequently obtained by those who: (1) do not have bank accounts into which the Internal Revenue Service (IRS) can direct deposit their refunds; (2) like the convenience and benefits of a temporary bank account for receipt of their refund; and/or (3) prefer to have their tax preparation fees paid directly out of their refunds.
We administer an annual survey to all associates to better understand their levels of engagement and identify areas where we can improve. We compare our scores to the top 25th percentile of the global benchmark to challenge our associates and leaders and to yield reports that are easier for leaders to identify opportunities to take action.
We administer an annual survey to all associates to better understand their levels of engagement and identify areas where we can improve. We compare our scores to the top 25th and 10th percentile of the global benchmark to challenge our associates and leaders and to yield reports that are easier for leaders to identify opportunities to take action.
H&R Block, Inc. | 2024 Form 10-K 3 OTHER OFFERINGS During fiscal year 2024, we also offered U.S. clients a number of additional services, including Refund Transfers (RT), our Peace of Mind® Extended Service Plan (POM), H&R Block Emerald Prepaid Mastercard® (Emerald Card ® ), Spruce SM , H&R Block Emerald Advance® (EA) term loans, Tax Identity Shield® (TIS), Refund Advances (RA), and small business financial solutions.
H&R Block, Inc. | 2025 Form 10-K 3 OTHER OFFERINGS During fiscal year 2025, we also offered U.S. clients a number of additional services, including Refund Transfers (RT), our Peace of Mind® Extended Service Plan (POM), H&R Block Emerald Prepaid Mastercard® (Emerald Card ® ), Spruce SM , H&R Block Emerald Advance® (EA) term loans, Tax Identity Shield® (TIS), Refund Advances (RA), and small business financial solutions.
Through Block Advisors and Wave, we help small-business owners thrive with year-round bookkeeping, payroll, advisory and payment processing solutions. H&R Block, Inc. was organized as a corporation in 1955 under the laws of the State of Missouri. A complete list of our subsidiaries as of June 30, 2024 can be found in Exhibit 21 .
Through Block Advisors and Wave, we help small-business owners thrive with year-round bookkeeping, payroll, advisory and payment processing solutions. H&R Block, Inc. was organized as a corporation in 1955 under the laws of the State of Missouri. A complete list of our subsidiaries as of June 30, 2025 can be found in Exhibit 21 .
DIY tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client up to a maximum of $10,000 if our software makes an arithmetic error that results in payment of penalties and/or interest to the respective taxing authority that the client would otherwise not have been required to pay.
DIY tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client (up to a maximum of $10,000 in the U.S.) if our software makes an arithmetic error that results in payment of penalties and/or interest to the respective taxing authority that the client would otherwise not have been required to pay.
Our Block Advisors small business certified tax professionals provide small businesses with financial expertise in taxes, bookkeeping and payroll through our office network (including in-person, online and virtual). Wave provides small business owners with an online solution to manage their finances, including payment processing, payroll and bookkeeping services. 4 2024 Form 10-K | H&R Block, Inc.
Our Block Advisors small business certified tax professionals provide small businesses with financial expertise in taxes, bookkeeping and payroll through our office network (including in-person, online and virtual). Wave provides small business owners with an online solution to manage their finances, including payment processing, payroll and bookkeeping services. 4 2025 Form 10-K | H&R Block, Inc.
Most U.S. federal registrations can be renewed perpetually at 10-year intervals and remain enforceable so long as the marks continue to be used. 6 2024 Form 10-K | H&R Block, Inc. INFORMATION ABOUT OUR EXECUTIVE OFFICERS (as of June 30, 2024) Jeffrey J.
Most U.S. federal registrations can be renewed perpetually at 10-year intervals and remain enforceable so long as the marks continue to be used. 6 2025 Form 10-K | H&R Block, Inc. INFORMATION ABOUT OUR EXECUTIVE OFFICERS (as of June 30, 2025) Jeffrey J.
Jones II , 56, became our President and Chief Executive Officer in October 2017 and was our President and Chief Executive Officer-Designate from August 2017 to October 2017. Before joining the Company, he served as the President of Ridesharing at Uber Technologies, Inc. from October 2016 until March 2017.
Jones II , 57, became our President and Chief Executive Officer in October 2017 and was our President and Chief Executive Officer-Designate from August 2017 to October 2017. Before joining the Company, he served as the President of Ridesharing at Uber Technologies, Inc. from October 2016 until March 2017.
For our Canadian clients, we also offer POM, H&R Block's Instant Refund ® , H&R Block Pay With Refund®, and small business financial solutions. Refund Transfers. RTs enable clients to receive their tax refunds by their chosen method of disbursement and include a feature enabling clients to deduct tax preparation and related fees from their tax refunds.
For our Canadian clients, we also offer POM, H&R Block's Instant Refund ® , H&R Block Pay With Refund®, and small business financial solutions. Refund Transfers. RTs enable clients to receive their tax refunds by their chosen method of disbursement and include a feature enabling clients to authorize payment of their tax preparation and related fees from their tax refunds.
We are one of the largest providers of tax return preparation solutions and electronic filing services in the U.S., Canada, and Australia with 23.8 million returns filed by or through H&R Block in fiscal year 2024. GOVERNMENT REGULATION Our business is subject to various forms of government regulation, including U.S.
We are one of the largest providers of tax return preparation solutions and electronic filing services in the U.S., Canada, and Australia with 22.8 million returns filed by or through H&R Block in fiscal year 2025. GOVERNMENT REGULATION Our business is subject to various forms of government regulation, including U.S.
(2) See " Non-GAAP Financial Information " in Item 7 for a reconciliation of non-GAAP measures. 2 2024 Form 10-K | H&R Block, Inc.
(2) See " Non-GAAP Financial Information " in Item 7 for a reconciliation of non-GAAP measures. 2 2025 Form 10-K | H&R Block, Inc.
Our business is dependent on the availability of a seasonal workforce, including tax professionals, and our ability to hire, train, and supervise these associates. The highest number of persons we employed during the fiscal year ended June 30, 2024, including seasonal associates, was approximately 70,900. Associate Engagement.
Our business is dependent on the availability of a seasonal workforce, including tax professionals, and our ability to hire, train, and supervise these associates. The highest number of persons we employed during the fiscal year ended June 30, 2025, including seasonal associates, was approximately 70,100. Associate Engagement.
Depending on circumstances, clients may choose to receive their RT proceeds by a load to their Emerald Card®, a deposit to their Spruce Spending Account, by receiving a check or by direct deposit to an existing account.
Depending on circumstances, clients may choose to receive their RT funds by a load to their Emerald Card®, a deposit to their Spruce SM spending account, by receiving a check or by direct deposit to an existing account.
If you would like a printed copy of any of these corporate governance documents, please send your request to H&R Block, Inc., One H&R Block Way, Kansas City, Missouri 64105, Attention: Corporate Secretary. Information contained on our website does not constitute any part of this report. H&R Block, Inc. | 2024 Form 10-K 7
If you would like a printed copy of any of these corporate governance documents, please send your request to H&R Block, Inc., One H&R Block Way, Kansas City, Missouri 64105, Attention: Corporate Secretary. Information contained on our website does not constitute any part of this report.
RAs are interest-free loans offered by our bank partner, which are available to eligible U.S. assisted clients in company-owned and participating franchise locations, including virtual clients. In tax season 2024, RAs were offered in amounts of $250, $500, $750, $1,250 and $3,500, based on client eligibility as determined by our bank partner. H&R Block's Instant Refund®.
RAs are interest-free loans offered by our bank partner, which are available to eligible U.S. assisted clients in company-owned and participating franchise locations, including virtual clients, in January and February. In tax season 2025, RAs were offered in amounts of $250, $500, $750, $1,250 and $4,000, based on client eligibility as determined by our bank partner. H&R Block's Instant Refund®.
In the workplace we are committed to creating an environment where everyone feels they belong, and we believe that our commitment to diversity and inclusion makes us a stronger, more successful company.
In the workplace we are committed to creating an environment where everyone feels they belong, and we believe that this commitment makes us a stronger, more successful company.
These resources ultimately enable us to continue enhancing our services and better our client experience. Belonging. At H&R Block, we foster a culture of belonging, where every voice is heard and our associates feel safe, included, and inspired.
These resources ultimately enable us to continue enhancing our services and impressing our clients. Belonging. At H&R Block, we foster a culture of belonging, where every voice is heard and our associates feel safe, included, and inspired.
Our online software may be accessed through our website at www.hrblock.com or in a mobile application, while our desktop software may be purchased online and through third-party retail stores. Our generative AI powered technology, AI Tax Assist, and human help was offered to clients who prepared a paid DIY online return in the current year at no additional charge.
Our online software may be accessed through our website at www.hrblock.com or in a mobile application, while our desktop software may be purchased online and through third-party retail stores. Our generative AI powered technology, AI Tax Assist, and human help is offered to clients who prepare a paid DIY online return at no additional charge.
We remain committed to our associates’ total well-being — physical, mental, financial, career, team, and community. Together, when we balance these components, we achieve personal, team, and organizational strength. Associates. We had approxima tely 4,200 regular full-time associates as of June 30, 2024.
We remain committed to our associates’ total well-being — physical, mental, financial, career, team, and community. Together, when we balance these components, we achieve personal, team, and organizational strength. Associates. We had approximately 4,300 regular full-time associates as of June 30, 2025.
During fiscal year 2024, we prepared 11.4 million U.S. assisted tax returns (1) and our clients filed 3.8 million DIY online paid tax returns (1) which contributed to our consolidated revenues of $3.6 billion, net income from continuing operations of $598.0 million, EBITDA (2) from continuing operations of $963.2 million, and diluted EPS from continuing operations of $4.14 per share.
During fiscal year 2025, we prepared 11.3 million U.S. assisted tax returns (1) and our clients filed 3.8 million DIY online paid tax returns (1) which contributed to our consolidated revenues of $3.8 billion, net income from continuing operations of $609.5 million, EBITDA (2) from continuing operations of $976.3 million, and diluted EPS from continuing operations of $4.42 per share.
Board of Directors Independence Standards; ▪ The H&R Block, Inc. Audit Committee Charter; ▪ The H&R Block, Inc. Compensation Committee Charter; ▪ The H&R Block, Inc. Finance Committee Charter; and ▪ The H&R Block, Inc. Governance and Nominating Committee Charter.
Board of Directors Independence Standards; ▪ The H&R Block, Inc. Audit Committee Charter; ▪ The H&R Block, Inc. Compensation Committee Charter; H&R Block, Inc. | 2025 Form 10-K 7 ▪ The H&R Block, Inc. Finance Committee Charter; and ▪ The H&R Block, Inc. Governance and Nominating Committee Charter.
Redler , 57, became our Chief Legal Officer in January 2022. Prior to joining the Company, she served as General Counsel and Corporate Secretary for Tilray, Inc. from January 2019 until September 2021. She also held various legal roles of increasing responsibility with The Coca-Cola Company from September 2001 until December 2018. Curtis A.
Prior to joining the Company, she served as General Counsel and Corporate Secretary for Tilray, Inc. from January 2019 until September 2021. She also held various legal roles of increasing responsibility with The Coca-Cola Company from September 2001 until December 2018. Curtis A. Campbell , 52, became our President, Global Consumer Tax and Chief Product Officer in June 2024.
We repurchased 8.0 million shares of our common stock, and declared dividends of $1.28 per share, which was an increase of $0.12, or 10.3%, per share from the prior year. (1) U.S. assisted tax returns prepared includes tax returns prepared in U.S. company-owned and franchise operations, including virtual returns.
We repurchased 6.5 million shares of our common stock, and declared dividends of $1.50 per share, which was an increase of $0.22, or 17.2%, per share from the prior year. (1) U.S. assisted tax returns prepared includes tax returns prepared in U.S. company-owned and franchise operations, including virtual returns.
One of the many ways we work to foster a Connected Culture across the organization for all associates to connect, support, motivate, and inspire is through our associate-led Belonging Groups focusing on LGBTQ+, neurodiversity, young professionals, veterans, women, Black, and Hispanic/Latino/a/x associates.
One of the many ways we work to foster a Connected Culture across the organization for all associates to connect, support, motivate, and inspire is through our associate-led Belonging Groups.
H&R Block offers comprehensive mental and behavioral health support through robust well-being programs, ensuring regular associates and their families have access to therapists, coaching, and holistic mental health services.
Our equitable and comprehensive benefits offerings provide access to benefits to help both regular and seasonal associates plan for the health and security of their families. H&R Block offers comprehensive mental and behavioral health support through robust well-being programs, ensuring regular associates and their families have access to therapists, coaching, and holistic mental health services.
Campbell , 51, became our President, Global Consumer Tax and Chief Product Officer in June 2024. Prior to that, he served as the Chief Executive Officer of TaxAct where he ran TaxAct from 2018 until it was sold by Blucora, Inc. in 2022. He continued to lead TaxAct after the sale until 2023. Prior to TaxAct, Mr.
Prior to that, he served as the Chief Executive Officer of TaxAct where he ran TaxAct from 2018 until it was sold by Blucora, Inc. in 2022. He continued to lead TaxAct after the sale until 2023. Prior to TaxAct, Mr. Campbell served Capital One Financial Corporation as Managing Vice President from 2017 to 2018.
Our goal is to provide continuous development opportunities to our associates in order to help them grow both personally and professionally. We do this through a robust offering of programs, educational courses, and learning journeys offered virtually and in person. Our expertise is delivered each year through our tax professional network.
We do this through a robust offering of programs, educational courses, and learning journeys offered virtually and in person. Our expertise is delivered each year through our tax professional network.
H&R Block also provides comprehensive medical insurance to our associates and extends the opportunity for medical insurance to our seasonal workforce who satisfy the eligibility guidelines of the Affordable Care Act. Subject to meeting eligibility requirements, associates can also choose to participate in the H&R Block Retirement Savings Plan 401(k) and Employee Stock Purchase Plan.
H&R Block also provides comprehensive medical insurance to our associates and extends the opportunity for medical insurance to our seasonal workforce who satisfy the eligibility guidelines of the Affordable Care Act.
He will be retiring effective September 13, 2024. Kellie J. Logerwell , 54, became our Chief Accounting Officer in July 2016. Prior to that, she served as our Vice President of Corporate and Field Accounting from December 2014 until July 2016 and as our Assistant Controller from December 2010 until December 2014. Dara S.
Prior to that, she served as our Vice President of Corporate and Field Accounting from December 2014 until July 2016 and as our Assistant Controller from December 2010 until December 2014. Dara S. Redler , 58, became our Chief Legal Officer in January 2022 and our Chief Legal and Administrative Officer in April 2025.
The Emerald Card ® and Spruce SM debit card can be used for everyday purchases, bill payments and ATM withdrawals anywhere Debit Mastercard ® (Mastercard is a registered trademark of Mastercard International Incorporated) is accepted. Clients can receive their tax refunds and direct RT, EA or RA proceeds directly onto an Emerald Card ® or into their Spruce SM account.
The Emerald Card ® and Spruce SM debit cards can be used for everyday purchases and ATM withdrawals anywhere Debit Mastercard ® (Mastercard is a registered trademark of Mastercard International Incorporated) is accepted.
Additional funds can be added to the Emerald Card ® and to Spruce SM year-round, such as through direct deposit or at participating retail reload providers. The Emerald Card® and Spruce SM debit card can be added to clients' mobile wallets. We distribute the Emerald Card ® and the Spruce SM debit card issued by our bank partner.
Clients can receive their tax refunds and RT funds and direct EA or RA proceeds directly onto an Emerald Card ® or into their Spruce SM spending account offered through our bank partner. Additional funds can be added to the Emerald Card ® and to Spruce SM year-round, such as through direct deposit or at participating retail reload providers.
He also served as the Executive Vice President and Chief Marketing Officer of Target Corporation from April 2012 until September 2016. Tony G. Bowen , 49, became our Chief Financial Officer in May 2016. Prior to that, he served as our Vice President, U.S. Tax Services Finance from May 2013 through April 2016.
He also served as the Executive Vice President and Chief Marketing Officer of Target Corporation from April 2012 until September 2016. He will be retiring as President and Chief Executive Officer effective December 31, 2025. Tiffany L. Mason , 50, became our Chief Financial Officer in September 2024.
Across the company, over 40% of culture and engagement questions measured were at or above the top 25th percentile of the global benchmark. We are pleased with our overall employee satisfaction score which currently meets the Top 25 benchmark. Individual leaders at all levels create and monitor culture and engagement-related goals. Compensation and Benefits.
We are also pleased with our overall employee satisfaction score which currently exceeds the Top 10 benchmark by 2 points. Individual leaders at all levels create and monitor culture and engagement-related goals. Compensation and Benefits. Our total rewards programs are designed to attract and retain top talent by supporting what associates need to be their authentic selves.
Collectively, these programs promote and support the physical, mental, financial, and community well-being of our associates. H&R Block, Inc. | 2024 Form 10-K 5 Training and Development. Our people are the number one enabler for living our Purpose, and we recognize the importance of attracting, developing, and retaining top talent.
Subject to meeting eligibility requirements, associates can also choose to participate in the H&R Block Retirement H&R Block, Inc. | 2025 Form 10-K 5 Savings Plan 401(k) and Employee Stock Purchase Plan. Collectively, these programs promote and support the physical, mental, financial, and community well-being of our associates. Training and Development.
Campbell served Capital One Financial Corporation as Managing Vice President of Consumer Auto from 2017 to 2018. He also served in Vice President roles at Intuit Inc, leading Product Management and Strategy from 2014 to 2017.
He also served in Vice President roles at Intuit Inc, leading Product Management and Strategy from 2014 to 2017. Scott R. Manuel , 50, became our Chief Strategy and Operations Officer in August 2024. Prior to that, he served as President, General Manager of Tribute Technology from 2022 until 2024. Mr.
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Our TIS program offers clients assistance in helping protect their tax identity and access to services to help restore thei r tax identity, if necessary.
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RECENT DEVELOPMENTS On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement, which amended and restated the existing unsecured committed line of credit (CLOC), extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table.
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Our total rewards programs are designed to attract and retain top talent by supporting what associates need to be their authentic selves. Our equitable and comprehensive benefits offerings provide access to benefits to help both regular and seasonal associates plan for the health and security of their families.
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Other material terms remain substantially unchanged from our existing CLOC. See our Current Report on Form 8-K filed on July 15, 2025 for additional information. On August 7, 2025, Jeffrey J.
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Jones II notified the Board of Directors of the Company of his intention to retire as President and Chief Executive Officer of the Company, effective as of December 31, 2025. Mr. Jones will also retire from the Board of Directors, effective on December 31, 2025. On August 8, 2025, the Board appointed Curtis A.
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Campbell, currently the Company's President, Global Consumer Tax and Chief Product Officer, to succeed Mr. Jones as President and Chief Executive Officer, effective immediately upon Mr. Jones’ retirement. See our Current Report on Form 8-K filed on August 11, 2025 for more information.
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The Emerald Card® and Spruce SM debit card can be added to clients' mobile wallets. We distribute the Emerald Card ® and the Spruce SM debit card issued by our bank partner. H&R Block Emerald Advance® Term Loans. EA term loans are offered by our bank partner to clients, in November and December, in amounts of $350 to $1,300.
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Across the company, 89% of culture and engagement questions measured were at or above the top 25th percentile of the global benchmark, which is two times the amount of questions that were over benchmark in the previous year. When looking at the top 10th percentile, 61% of questions were at or above the benchmark.
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Our people are the number one enabler for living our Purpose, and we recognize the importance of attracting, developing, and retaining top talent. Our goal is to provide continuous development opportunities to our associates in order to help them grow both personally and professionally.
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Prior to that, she served as Executive Vice President and Chief Financial Officer of Driven Brands Holdings Inc. from March 2020 until May 2023.
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She also held various roles of increasing responsibility at Lowe's Companies, Inc. from February 2006 until October 2019, including as interim Chief Financial Officer in 2018 and Senior Vice President, Corporate Finance and Treasurer from 2015 to 2019. Kellie J. Logerwell , 55, became our Chief Accounting Officer in July 2016.
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Manuel served as Chief Product Officer, General Manager of McClatchy Media Company from 2017 until 2020, and he also served in various Vice President roles at Thomson Reuters from 2010 to 2017.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn addition, state or local jurisdictions in which we operate have passed, and may in the future pass, new laws related to banking and the offering of financial products. These laws may contain different requirements or may be interpreted and applied inconsistently from 16 2024 Form 10-K | H&R Block, Inc. jurisdiction to jurisdiction.
Biggest changeFederal and state regulators have broad powers to administer, investigate compliance with, and enforce laws governing financial services and products. In addition, state or local jurisdictions in which we operate have passed, and may in the future pass, new laws related to banking and the offering of financial products.
However, we may not be able to execute on our growth strategy due to a number of factors, including an inability to identify sufficient suitable acquisition candidates, an unwillingness of businesses to sell to us, an inability to generate the funds necessary to fully execute desired acquisitions, or our inability to successfully integrate acquired businesses into our business model and operate them effectively.
However, we may not be able to execute on our acquisition growth strategy due to a number of factors, including an inability to identify sufficient suitable acquisition candidates, an unwillingness of businesses to sell to us, an inability to generate the funds necessary to fully execute desired acquisitions, or an inability to successfully integrate acquired businesses into our business model and operate them effectively.
Furthermore, as fraudulent activity continues to become more pervasive and sophisticated, we may implement fraud detection and prevention measures that could make it less convenient for legitimate clients to obtain and use our services and products, which may adversely affect the demand for our services and products, our reputation, and our financial performance.
Furthermore, as fraudulent activity continues to become more pervasive and sophisticated, fraud detection and prevention measures that we implement could make it less convenient for legitimate clients to obtain and use our services and products, which may adversely affect the demand for our services and products, our reputation, and our financial performance.
Other consequences could include reduced client demand for our services and products, loss of valuable intellectual property, reduced growth and profitability and negative impacts to future financial results, loss of our ability to deliver one or more services or products (e.g., inability to provide financial services and products or to accept and process client credit card transactions or tax returns), modifying or stopping existing business practices, legal actions, harm to our reputation and brands, fines, penalties, and other damages, and further regulation and oversight by U.S. federal, state, or foreign governmental authorities.
Other consequences could include reduced client demand for our services and products, loss of valuable intellectual property, reduced growth and profitability and negative impacts to future financial results, loss of our ability to deliver one or more services or products (e.g., inability to provide financial services or products or to accept and process client credit card transactions or tax returns), modifying or stopping existing business practices, legal actions, harm to our reputation and brands, fines, penalties, and other damages, and further regulation and oversight by U.S. federal, state, or foreign governmental authorities.
Cybersecurity risks may result from fraud or malice from external or internal actors (a cyberattack), human error, or accidental technological failure. Cyberattacks are designed to electronically circumvent network security for malicious purposes such as unlawfully obtaining personal information, disrupting our ability to offer services, damaging our brand and reputation, stealing our intellectual property, or advancing social or political agendas.
Cybersecurity risks may result from fraud or malice from external or internal actors (a cyberattack), human error, or accidental technological failure. Cyberattacks are designed to electronically circumvent network security for malicious purposes such as unlawfully obtaining personal information, extortion, disrupting our ability to offer services, damaging our brand and reputation, stealing our intellectual property, or advancing social or political agendas.
The precautionary measures that we, or third parties on whom we rely, have implemented to avoid systems outages and to minimize the effects of any data or communication systems interruptions or failures may not be adequate, and we and such third parties may not have anticipated or addressed all of the potential events that could threaten or undermine our or such third parties information systems or other critical business capabilities.
The precautionary measures that we, or third parties on whom we rely, have implemented to avoid systems outages and to minimize the effects of any data or communication systems interruptions or failures may not be adequate, and we and such third parties may not have anticipated or addressed all of the potential events that could threaten or undermine our or such third parties' information systems or other critical business capabilities.
Additionally, our offering of consumer financial products and services are subject to various rules and regulations, including potential limitations or restrictions on the amount of interchange fees. There can be no assurance that future regulation or changes by the payment networks will not impact interchange revenues substantially.
Additionally, our offering of consumer financial services and products are subject to various rules and regulations, including potential limitations or restrictions on the amount of interchange fees. There can be no assurance that future government regulation or changes by the payment networks will not impact interchange revenues substantially.
The occurrence of any systems or internet failure, or business interruption could negatively impact our ability to serve our clients, which in turn could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
The occurrence of any systems or internet failure, or other business interruption, could negatively impact our ability to serve our clients, which in turn could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
These risks inherent in international operations and expansion could prevent us from expanding into other international markets or increase our costs of doing business internationally and could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
These risks inherent in international operations could prevent us from expanding into other international markets or increase our costs of doing business internationally and could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
The adoption or expansion of any measures that significantly simplify tax return preparation, or otherwise reduce the need for third-party tax return preparation services or financial products, including governmental encroachment at the U.S. federal and state levels, as well as in foreign jurisdictions, could reduce demand for our services and products and could have a material adverse effect on our business and our consolidated financial position, results of operations and cash flows. 8 2024 Form 10-K | H&R Block, Inc.
The adoption or expansion of any measures that significantly simplify tax return preparation, or otherwise reduce the need for third-party tax return preparation services or financial products, including governmental encroachment at the U.S. federal and state levels, as well as in foreign jurisdictions, could reduce demand for our 8 2025 Form 10-K | H&R Block, Inc. services and products and could have a material adverse effect on our business and our consolidated financial position, results of operations and cash flows.
If interchange rates decline, whether due to actions by the payment networks or future regulation, it could impact the profitability of our consumer financial products and services or our ability to offer such products or services.
If interchange rates decline, whether due to actions by the payment networks or future government regulation, it could impact the profitability of our consumer financial services and products or our ability to offer such services or products.
If our vendors are unable to meet our needs and we are not able to develop alternative sources for these services and products quickly and cost-effectively, or if a key vendor were to commit a major error or suffer a material adverse event, it could result in a material and adverse impact on our business and our consolidated financial position, results of operations, and cash flows. 12 2024 Form 10-K | H&R Block, Inc.
If our vendors are unable to 12 2025 Form 10-K | H&R Block, Inc. meet our needs and we are not able to develop alternative sources for these services and products quickly and cost-effectively, or if a key vendor were to commit a major error or suffer a material adverse event, it could result in a material and adverse impact on our business and our consolidated financial position, results of operations, and cash flows.
While we believe that we have identified and will identify strategic objectives that are appropriate and achievable, it is possible that our objectives may not deliver projected long-term growth in revenue and profitability due to competition, inadequate execution, incorrect assumptions, sub-optimal resource allocation, or other reasons, including any of the other risks described in this “Risk Factors” section.
While we believe that we have identified and will continue to identify strategic objectives that are appropriate, it is possible that our objectives may not deliver projected long-term growth in revenue and profitability due to competition, inadequate execution, incorrect assumptions, sub-optimal resource allocation, or other reasons, including any of the other risks described in this “Risk Factors” section.
Given the nature of our businesses, we are subject to various additional federal, state, local, and foreign laws and regulations, including, without limitation, in the areas of labor, immigration, marketing and advertising, consumer protection, financial services and products, payment processing, privacy and data security, anti-competition, environmental, health and safety, insurance, and healthcare.
Given the nature of our businesses, we are subject to various additional federal, state, local, and foreign laws and regulations, including, without limitation, in the areas of labor, immigration, marketing and advertising, consumer protection, financial services and products, payment processing, privacy and data security, artificial intelligence, anti-competition, environmental, health and safety, insurance, and healthcare.
Historically, we have contracted, and in the future we will likely continue to contract, with a single vendor or a limited number of vendors to provide certain key services or products for our tax, financial, and other services and products. A few examples of this type of reliance are our relationships with Fidelity National Information Services, Inc.
Historically, we have contracted, and in the future we will likely continue to contract, with a single vendor or a limited number of vendors to provide certain key services or products for our tax, financial, and other services and products. A few examples of this type of reliance include: our relationships with Fidelity National Information Services, Inc.
As the global labor market continues to evolve, our current and prospective key personnel may seek new or different opportunities based on pay levels, benefits, or remote work flexibility that are different from what we offer, or may determine to leave the workforce, making it difficult to attract and retain them.
As the global labor market continues to evolve, our current and prospective key personnel may seek new or different opportunities based on pay levels, benefits, or remote work policies that are different from what we offer, or may determine to leave the workforce, making it difficult to attract and retain them.
The concentration of our revenue-generating activity during this relatively short period presents a number of challenges for us, including (1) cash and resource management during the remainder of our fiscal year, when we generally operate at a loss and incur fixed costs and costs of preparing for the upcoming tax season, (2) responding to changes in competitive conditions, including marketing, pricing, and new product offerings, which could affect our position during the tax season, (3) disruptions, delays, or extensions in a tax season, including those caused by pandemics, or severe weather, (4) client dissatisfaction issues or negative social media campaigns, which may not be timely discovered or satisfactorily addressed, and (5) ensuring optimal uninterrupted operations and service delivery during the tax season, which may be disrupted by natural or manmade disasters, extreme weather conditions, pandemics or endemics, catastrophes, or a wide variety of events within or outside of our control.
The concentration of our revenue-generating activity during this relatively short period presents a number of challenges for us, including (1) cash and resource management during the remainder of our fiscal year, when we generally operate at a loss and incur fixed costs and costs of preparing for the upcoming tax season, (2) responding to changes in competitive conditions, including marketing, pricing, and new product offerings, which could affect our position during the tax season, (3) disruptions, delays, or extensions in a tax season, including those caused by reduced governmental resources (including workforce reductions), pandemics, or severe weather, (4) client dissatisfaction issues or negative social media campaigns, which may not be timely discovered or satisfactorily addressed, and (5) ensuring optimal uninterrupted operations and service delivery during the tax season, which may be disrupted by natural or manmade disasters, extreme weather conditions, pandemics or endemics, catastrophes, or a wide variety of events within or outside of our control.
Therefore, any failure or interruption in our information systems, or information systems of our franchisees or a private or government third party on which we rely, or an interruption in the internet or other critical business capability during our busiest periods, could negatively impact our business operations and reputation, and increase our risk of loss.
Therefore, any failure or interruption in our information systems, or information systems of our franchisees or a private or government third party on which we rely, or an interruption in our access to the internet or other critical business capability during our busiest periods, could negatively impact our business operations and reputation, and increase our risk of loss.
An interruption in our information systems, or those of our franchisees or a third party on which we rely, or an interruption in the internet, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
An interruption in our information systems, or those of our franchisees or a third party on which we rely, or an interruption in our access to the internet, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
Although we use security and business controls to limit access to and use of personal information and expend significant resources to maintain multiple levels of protection to address or otherwise mitigate the risk of a security breach, such measures cannot provide absolute security.
Although we use security and business controls to limit access to and use of personal information and expend significant resources to maintain multiple levels of protection to address or otherwise mitigate the risk of a security breach, such measures do not and cannot provide absolute security.
Unfavorable changes in economic conditions, which are typically beyond our control, including without limitation, inflation, slowing growth, rising interest rates, recession, changes in the political climate, significant armed conflicts, acts of war or terrorism, supply chain or labor market disruptions, banking or financial market disruptions, pandemics or endemics, or other adverse changes, could negatively affect our business and financial condition.
Unfavorable changes in economic conditions, which are typically beyond our control, including without limitation, inflation, slowing growth, rising interest rates, recession, changes in the political climate, significant armed conflicts, acts of war or terrorism, supply chain or labor market disruptions, tariffs or trade wars, banking or financial market disruptions, pandemics or endemics, or other adverse changes, could negatively affect our business and financial condition.
Our risk and exposure to these matters remain heightened due to a variety of factors including, among other things, (1) the evolving nature of these threats and related regulation, (2) the increased activity and sophistication of hostile foreign governments, organized crime, cyber criminals, and hackers that may initiate cyberattacks against us or third-party systems on which we rely using technology and other strategies that continue to evolve, including artificial intelligence and social engineering, (3) the prominence of our brand, (4) our and our franchisees' extensive office footprint, (5) our plans to continue to implement strategies for our online and mobile applications and our desktop software, (6) our use of third-party vendors, (7) our use of certain new technologies, such as artificial intelligence H&R Block, Inc. | 2024 Form 10-K 15 and machine learning, and (8) the usage of remote working arrangements by our associates, franchisees, and third-party vendors, which has significantly expanded in recent years.
Our risk and exposure to these matters remain heightened due to a variety of factors including, among other things, (1) the evolving nature of these threats and related regulation, (2) the increased activity and sophistication of hostile foreign governments, organized crime, cyber criminals, and hackers that may initiate cyberattacks against us or third-party systems on which we rely using technology and other strategies that continue to evolve, including artificial intelligence and social engineering, (3) the prominence of our brand, (4) our and our franchisees' extensive office footprint, (5) our plans to continue to implement strategies for our online and mobile applications and our desktop software, (6) our use of third-party vendors, (7) our use of certain new technologies, such as artificial intelligence and machine learning, and (8) the usage of remote working arrangements by our associates, franchisees, and third-party vendors, which has significantly expanded in recent years.
If we are slow to enhance our services, products, or technologies, if our competitors are able to achieve results more quickly than us, if there are new and unexpected entrants into the industry, or if there are new technologies available that provide products or services that compete with ours, we may fail to capture, or lose, a significant share of the market.
If: (1) we are slow to enhance our services, products, or technologies; (2) our competitors are able to achieve results more quickly than us; (3) there are new and unexpected entrants into the industry; or (4) there are new technologies available that provide products or services that compete with ours, we may lose, or fail to capture a significant share of the market.
The CFPB and other federal or state regulators may examine, investigate, and take enforcement actions against our subsidiaries that offer consumer financial services and products, as well as financial institutions and other third parties upon which our subsidiaries rely to provide consumer financial services and products. State regulators also have certain authority in enforcing and promulgating financial consumer protection laws.
Federal or state regulators may examine, investigate, and take enforcement actions against our subsidiaries that offer consumer financial services and products, as well as financial institutions and other third parties upon which our subsidiaries rely to provide consumer financial services and products. Federal and state regulators also have certain authority in enforcing and promulgating laws governing financial services and products.
Though we do not believe this fraud is uniquely targeted at our offerings, our failure to effectively address any such fraud may adversely impact our business and our consolidated financial position, results of operations, and cash flows.
Though this fraud is not uniquely targeted at our offerings, our failure to effectively address any such fraud may adversely impact our business and our consolidated financial position, results of operations, and cash flows.
In addition, certain states have adopted comprehensive privacy laws, and other jurisdictions have adopted or may in the future adopt their own, different privacy laws. These laws may contain different requirements or may be interpreted and applied inconsistently from jurisdiction to jurisdiction.
In addition, other jurisdictions have adopted or may in the future adopt their own different privacy laws These laws may contain different requirements or may be interpreted and applied inconsistently from jurisdiction to jurisdiction.
New technologies, such as those related to artificial intelligence, machine learning, automation, and algorithms, may have unexpected consequences, which may be due to their limitations, potential manipulation or unintended uses, or our failure to use or implement them effectively.
New technologies we utilize, such as those related to artificial intelligence, machine learning, automation, and algorithms, involve risks and may have unexpected consequences, which may be due to their limitations, potential manipulation or unintended uses, or our failure to use or implement them effectively.
(FIS), Galileo Financial Technologies, LLC, or similar vendors, for data processing and card production services; Pathward TM , N.A. (Pathward), a wholly-owned subsidiary of Pathward Financial, Inc., for the issuance of RTs, EAs, RAs, Emerald Cards, and Spruce accounts; and Microsoft Corporation, for cloud computing services and artificial intelligence technology.
(FIS), Galileo Financial Technologies, LLC, or similar vendors, for data processing and card production services; Pathward®, N.A. (Pathward), a wholly-owned subsidiary of Pathward Financial, Inc., for the issuance of RTs, EAs, RAs, Emerald Cards, and Spruce accounts; and Microsoft Corporation, for technology.
Wave’s revenues may be negatively impacted in the event of a sustained economic slowdown or recession. Difficult economic conditions, including an economic recession or high inflationary period, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
In addition, difficult economic conditions may disproportionately impact small business owners. Our small business revenues may be negatively impacted in the event of a sustained economic slowdown or recession. Difficult economic conditions, including an economic recession or high inflationary period, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
Numerous jurisdictions have passed, and may in the future pass, new laws related to the collection, use, and retention of consumer or employee information and this area continues to be an area of interest for U.S. federal, state, and foreign governmental authorities.
Numerous jurisdictions have passed, and may in the future pass, new laws related to the collection, use, and retention of consumer or employee information and this area continues to be an area of interest for U.S. federal, state, and foreign governmental authorities. For example, several states have adopted comprehensive privacy laws.
OPERATIONAL AND EXECUTION RISKS Our failure to effectively address fraud by third parties using our offerings could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
OPERATIONAL AND EXECUTION RISKS Our failure to effectively address fraud within our offerings could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
Any significant delays in launching our tax service and product offerings, changes in government regulations or processes (including the acceptance of tax returns and the issuance of refunds and other amounts to clients by the IRS or state tax agencies) that affect how we provide such offerings to our clients, or significant problems with such offerings or the manner in which we provide them to our clients may harm our revenue, results of operations, and reputation.
Any significant delays in launching our tax service and product offerings, changes in government regulations or processes (including the acceptance of tax returns and the issuance of refunds and other amounts to clients by the IRS or state tax agencies) that affect how we provide such offerings to our clients, or significant problems H&R Block, Inc. | 2025 Form 10-K 11 with such offerings or the manner in which we provide them to our clients may harm our revenue, results of operations, and reputation.
In addition to losses directly from such fraud, which could occur in some cases, we may also suffer a loss of confidence by our clients or by governmental agencies in our ability to detect and mitigate fraudulent activity, and such governmental authorities may refuse to allow us to continue to offer such services or products.
In addition to losses directly from such fraud, which could occur in some cases, we may also suffer a loss of confidence by our clients or by governmental agencies in our ability to detect and mitigate fraudulent activity, and 10 2025 Form 10-K | H&R Block, Inc. such governmental authorities may refuse to allow us to continue to offer such services or products.
The amount of tax due in various jurisdictions may change significantly as a result of political or economic factors beyond our control, including changes to tax laws or new interpretations of existing laws that are inconsistent with previous H&R Block, Inc. | 2024 Form 10-K 19 interpretations or positions taken by taxing authorities on which we have relied.
The amount of tax due in various jurisdictions may change significantly as a result of political or economic factors beyond our control, including changes to tax laws or new interpretations of existing laws that are inconsistent with previous interpretations or positions taken by taxing authorities on which we have relied.
Our repurchase program may be suspended or terminated at any time, and there can be no assurance that our repurchase program will enhance long-term shareholder value. The payment of future dividends and future repurchases will depend upon our earnings, economic conditions, liquidity and capital requirements, and other factors, including our debt leverage.
Our repurchase H&R Block, Inc. | 2025 Form 10-K 19 program may be suspended or terminated at any time, and there can be no assurance that our repurchase program will enhance long-term shareholder value. The payment of future dividends and future repurchases will depend upon our earnings, economic conditions, liquidity and capital requirements, and other factors, including our debt leverage.
Any such changes to our services or products or any failure to continue offering such services and products could negatively impact our financial results and ability to compete. Intense competition could result in a reduction of our market share, lower revenues, lower margins, and lower profitability. In addition, we face intense competition with our small business solutions.
Any such changes to our services or products or any failure to continue offering such services and products could negatively impact our financial results and ability to compete. Intense competition could result in a reduction of our market share, lower revenues, lower margins, and lower profitability.
ITEM 1A. RISK FACTORS Our business activities expose us to a variety of risks. Identification, monitoring, and management of these risks are essential to the success of our operations and the financial soundness of H&R Block.
ITEM 1A. RISK FACTORS Our business activities expose us to a variety of risks. Identifying, monitoring, and managing these risks is essential to the success of our operations and the financial soundness of H&R Block.
We may not be successful in defending against any such challenges or in obtaining licenses to avoid or resolve any intellectual property disputes and, in that event, we could lose significant revenues, incur significant royalty or technology development expenses, suffer harm to our reputation, or pay significant monetary damages. 18 2024 Form 10-K | H&R Block, Inc.
We may not be successful in defending against any such challenges or in obtaining licenses to avoid or resolve any intellectual property disputes and, in that event, we could lose significant revenues, incur significant royalty or technology development expenses, suffer harm to our reputation, or pay significant monetary damages.
If we are unable to realize the desired benefits from our business strategy, our ability to compete across our business and our consolidated financial position, results of operations, and cash flows could be adversely affected. Offers of free services or products could adversely affect our revenues and profitability.
If we are unable to realize the desired benefits from our business strategy, our ability to compete across our business and our consolidated financial position, results of operations, and cash flows could be adversely affected. H&R Block, Inc. | 2025 Form 10-K 9 Offers of free services or products could adversely affect our revenues and profitability.
For example, a person with malicious intent may unlawfully create a new account with stolen information or take existing user account and password information from our clients to electronically file fraudulent federal and state tax returns, which could impede their ability to file their tax returns and receive refunds (or other amounts due) and diminish consumers' perceptions of the security and reliability of our services and products, despite no breach in the security of our systems. 10 2024 Form 10-K | H&R Block, Inc.
For example, a person with malicious intent may create a new account with stolen information or unlawfully take existing user account and password information from our clients to electronically file fraudulent federal and state tax returns, which could impede our clients' ability to file their tax returns and receive refunds (or other amounts due) and diminish public perception of the security and reliability of our services and products, despite no breach in the security of our systems.
Subject to certain exceptions, these laws impose new requirements on how businesses collect, process, manage, and retain certain personal information of California residents and provide California residents with various rights regarding personal information collected by a business.
Subject to certain exceptions, many of these laws impose requirements on how businesses collect, process, manage, and retain certain personal information, and they often provide individuals with various rights regarding personal information collected by a business.
In addition, many of our competitors offer certain tax preparation services and products, and other financial services and products, H&R Block, Inc. | 2024 Form 10-K 9 at no charge. Government tax authorities, volunteer organizations, our competitors, and potential new market entrants have implemented, and may expand free offerings in the future.
In addition, many of our competitors offer certain tax preparation services and products, and other financial services and products, at no charge. Government tax authorities, volunteer organizations, our competitors, and potential new market entrants have implemented, and may expand free offerings in the future.
Damage to our reputation and loss of brand equity may reduce demand for our services and products and H&R Block, Inc. | 2024 Form 10-K 13 thus have an adverse effect on our future financial results, as well as require additional resources to rebuild our reputation and restore the value of our brands.
Damage to our reputation and loss of brand equity may reduce demand for our services and products and thus have an adverse effect on our future financial results, as well as require additional resources to rebuild our reputation and restore the value of our brands.
LEGAL AND REGULATORY RISKS Regulations promulgated by state and federal regulators, including the Consumer Financial Protection Bureau (CFPB), may affect our financial services businesses in new or unexpected ways, which may impact our ability to offer certain financial products or require changes to the financial products we offer, our services, and contracts.
LEGAL AND REGULATORY RISKS Regulations promulgated by federal and state regulators may affect our financial services and products businesses in new or unexpected ways, which may impact our ability to offer certain financial services or products or require changes to certain financial services or products.
As a result, some states have issued new and broader financial consumer protection laws and others may in the future, which are more comprehensive than existing U.S. federal regulations. In addition, state attorneys general may in some cases bring actions to enforce federal consumer protection laws.
As a result, some regulators have issued new and broader laws and others may in the future, including certain state regulations that are more comprehensive than existing U.S. federal regulations. In addition, state attorneys general may in some cases bring actions to enforce federal laws.
Costs for us to comply with such laws, regulations, and policies that are applicable to us could be significant. We may also face audits or investigations by one or more foreign government agencies relating to these laws, regulations, and policies that could result in the imposition of penalties or fines.
Costs for us to comply with such laws, regulations, and policies that are applicable to us could be significant. We may also face audits or investigations by one or more foreign governmental agencies relating to these laws, regulations, and policies that could result in the imposition of penalties or fines. 14 2025 Form 10-K | H&R Block, Inc.
A security breach or other unauthorized access to our systems, or third-party systems on which we rely, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
A security breach or other unauthorized access to our systems, or third-party systems on which we rely, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows. 16 2025 Form 10-K | H&R Block, Inc.
In addition, as we continue to H&R Block, Inc. | 2024 Form 10-K 17 incorporate additional or emerging technologies into our business, such as in the areas of artificial intelligence and machine learning, we may become subject to increased government regulation or regulatory scrutiny.
In addition, as we continue to incorporate additional or emerging technologies into our business, such as in the areas of artificial intelligence and machine learning, we may become subject to increased government regulation or regulatory scrutiny.
We face a variety of cyberattack threats including computer viruses, malicious codes, worms, phishing attacks, social engineering, denial of service attacks, ransomware, and other sophisticated attacks.
We face a variety of cyberattack threats including malware, phishing attacks, social engineering, denial of service attacks, ransomware, and other sophisticated attacks.
Regulators are interpreting existing laws, regulations, and rules in new and different ways as they attempt to apply them more broadly. For example, bank partnership arrangements are increasingly subject to heightened scrutiny at the federal and state level.
These laws may contain different requirements or may be interpreted and applied inconsistently from jurisdiction to jurisdiction. Regulators may interpret existing laws, regulations, and rules in new and different ways as they attempt to apply them more broadly. For example, bank partnership arrangements are increasingly subject to heightened scrutiny at the federal and state level.
H&R Block, Inc. | 2024 Form 10-K 11 Further, changes in governmental administrations or regulations could result in a delay of the start of the tax season, create uncertainty, or result in further and unanticipated changes in requirements or processes, which may require us to make corresponding changes to our client service systems and procedures immediately prior to, or during, a tax season.
Further, changes in governmental regulations or a significant reduction in governmental resources could result in a delay of the start of the tax season or in processing returns, create uncertainty, or result in further and unanticipated changes in requirements or processes, which may require us to make corresponding changes to our client service systems and procedures immediately prior to, or during, a tax season.
Unauthorized access to personal information as a result of a security breach could cause us to determine that it is required or advisable for us to notify affected individuals, regulators, or others under applicable privacy laws and regulations or otherwise.
Unauthorized access to personal information has in the past, and may in the future, cause us to determine that it is required or advisable for us to notify affected individuals, regulators, or others under applicable privacy laws and regulations or otherwise.
Due to the nature of our business, we collect, use, and retain large amounts of personal information and data pertaining to clients, including tax return information, financial product and service information, and social security 14 2024 Form 10-K | H&R Block, Inc. numbers.
Due to the nature of our business, we collect, use, and retain large amounts of personal information and data pertaining to clients, including tax return information, financial product and service information, and social security numbers. In addition, we collect, use, and retain personal information and data of our employees in the ordinary course of our business.
To the extent that our intellectual property is not protected effectively by trademarks, copyrights, patents, or other means, other parties with knowledge of our intellectual property, including former employees, may seek to exploit our intellectual property for their own or others' advantage. Competitors may also misappropriate our trademarks, copyrights or other intellectual property rights or duplicate our technology and products.
To the extent that our intellectual property is not 18 2025 Form 10-K | H&R Block, Inc. protected effectively by trademarks, copyrights, patents, or other means, other parties with knowledge of our intellectual property, including former employees, may seek to exploit our intellectual property for their own or others' advantage.
These inquiries and other matters include, among other things, requests for information and subpoenas from various regulators and state attorneys general and private legal actions, including class actions and mass arbitrations.
These inquiries and other matters include, among other things, requests for information and subpoenas from various regulators and state attorneys general and private legal actions, including class actions and mass arbitrations. The fees and legal expenses incurred in connection with such matters may be significant irrespective of the merits.
As a result of these or other programs, the government has, and could further, become our direct competitor, which could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows. In order to compete, we have offered certain, and may in the future offer, additional services and products at no charge.
Taxpayer adoption of these or similar programs could expand in the future, including in the event of increased awareness and support. As a result of these or other programs, the government has, and could further, become our direct competitor, which could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows.
Certain third parties and vendors have access to personal information to help deliver client benefits, services, and products, or may host certain of our and our clients’ sensitive and personal information and data. Information security risks continue to increase due in part to the increased adoption of and reliance upon digital technologies by companies and consumers.
Certain third parties and vendors have access to personal information to help deliver client benefits, services, and products, or may host certain of our and our clients’ sensitive and personal information and data.
We may be unsuccessful in competing with other providers, which may diminish our revenue and profitability, and harm our ability to acquire and retain clients. We may not be effective in achieving our strategic and operating objectives. Our strategy is focused on small business, financial products and the tax client experience.
In addition, our small business solutions face intense competition, and we may be unsuccessful in competing with other providers, which may diminish our revenue and profitability, and harm our ability to acquire and retain clients. We may not be effective in achieving our strategic and operating objectives. Beginning in fiscal year 2026, we are launching a new growth strategy.
Difficult economic conditions are frequently characterized by high unemployment levels and declining consumer and business spending. These poor economic conditions may negatively affect demand and pricing for our services and products.
Difficult economic conditions are frequently characterized by high unemployment levels and declining consumer and business spending. These poor economic conditions may negatively affect demand and pricing for our services and products. In the event of difficult economic conditions that include high unemployment levels, clients may elect not to file tax returns or utilize lower cost preparation and filing alternatives.
In tax season 2024, the IRS launched a limited free direct tax filing system, which it has announced it will expand for the 2025 filing season.
For example, in tax seasons 2024 and 2025, the IRS offered a limited free direct tax filing system, which it may continue or expand in the future.
Any significant impairment or misappropriation of our intellectual property or proprietary information could harm our business and our brand, and may adversely affect our ability to compete. In addition, third parties may allege we are infringing their intellectual property rights, and we may face intellectual property challenges from other parties.
Competitors may also misappropriate our trademarks, copyrights or other intellectual property rights or duplicate our technology and products. Any significant impairment or misappropriation of our intellectual property or proprietary information could harm our business and our brand, and may adversely affect our ability to compete.
Our current privacy and data protection policies and practices may not be consistent with all of those requirements, interpretations, or applications.
Furthermore, various jurisdictions are considering regulatory frameworks for artificial intelligence and have passed, or may in the future pass, laws and regulations that impact existing privacy and data protection requirements. Our current privacy and data protection policies and practices may not be consistent with all of those requirements, interpretations, or applications.
Removed
In the event of difficult economic conditions that include high unemployment levels, especially within the client segments we serve, clients may elect not to file tax returns or utilize lower cost preparation and filing alternatives. In addition, difficult economic conditions may disproportionately impact small business owners.
Added
There can be no assurance that we or our clients will realize the expected benefits from our investments in these new technologies.
Removed
In addition, we collect, use, and retain personal information and data of our employees in the ordinary course of our business.
Added
In order to compete, we have offered certain, and may in the future offer, additional services and products at no charge.
Removed
For example, the State of California adopted the California Consumer Privacy Act (CCPA), which became effective January 1, 2020, as amended by the California Privacy Rights Act (CPRA) on January 1, 2023.
Added
We have also experienced, and may in the future continue to experience, first party fraud, whereby an individual uses their own identity or account to engage in fraudulent activities.
Removed
The CFPB has broad powers to administer, investigate compliance with, and, in some cases, enforce U.S. federal financial consumer protection laws. The CFPB has broad rule-making authority for a wide range of financial consumer protection laws that apply to certain of the financial products we offer, including the authority to prohibit or allege "unfair, deceptive, or abusive" acts and practices.
Added
Our reputation also may be damaged by negative perceptions that our clients, employees, franchisees, and H&R Block, Inc. | 2025 Form 10-K 13 shareholders may have about our action or inaction on social or political issues. In addition, steps have been taken to reduce government spending, including with respect to the IRS.
Removed
The current administration previously committed to increasing the corporate income tax rate from 21 percent to 28 percent, and to increasing the tax rate applied to profits earned outside the United States. If enacted, the impact of these potential new rules could be material to our tax provision and value of deferred tax assets and liabilities.
Added
A significant reduction in IRS resources may increase the likelihood of governmental delays or errors in processing returns or refunds, as well as poor customer service experiences, and clients may mistakenly attribute such delays, errors, or experiences to our services or products.
Added
Information security risks continue to increase due in part to the H&R Block, Inc. | 2025 Form 10-K 15 increased adoption of and reliance upon digital technologies by companies and consumers, as well as the advancements of technologies like artificial intelligence, which malicious third parties are using to create new, sophisticated approaches and more frequent attacks.
Added
H&R Block, Inc. | 2025 Form 10-K 17 Furthermore, certain of our services and product offerings may require licenses to operate, and if we fail or are unable to comply with existing or new license requirements, we may be subject to fines or penalties and our ability to operate in certain jurisdictions may be materially restricted or prohibited entirely.
Added
Any perceived or actual failure to comply with applicable laws, rules, and regulations could damage our reputation and result in fines, penalties, and other legal actions or require us to modify our business practices, which could have a material adverse effect on our financial position, results of operations, and cash flows.
Added
In addition, third parties may allege we are infringing their intellectual property rights, and we may face intellectual property challenges from other parties.
Added
In the U.S, on July 4, 2025, H.R. 1 was signed into law and includes significant changes to U.S. federal income tax law. The legislation will require additional clarifying guidance which could change interpretations or assumptions we may make.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

6 edited+1 added−0 removed9 unchanged
Biggest changeIn addition, the Audit Committee receives regular reports on cybersecurity matters from the Chief Information Officer (CIO) and the CISO. The Board of Directors is also updated by the CIO and CISO on a periodic basis. Our CIO, who reports directly to the President and CEO, has over 30 years of leadership experience in technology-based roles across multiple industries.
Biggest changeIn addition, the Audit Committee receives regular reports on cybersecurity matters from the Chief Legal and Administrative Officer (CLAO) and the CISO. The Board of Directors is also updated by the CLAO and CISO on a periodic basis.
In addition, we engage in a broad range of activities to secure and protect the data that we obtain through our business operations including, but not limited to: • continued development and enhancement of our controls, processes, and practices designed to protect our systems, computers, software, data, and networks from attack, damage, or unauthorized access; • security and business controls to appropriately limit access to and use of personal information, including adaptive and multifactor authentication; 20 2024 Form 10-K | H&R Block, Inc. • comprehensive data protections, including encryption, to facilitate the secure storage, use, and transmission of sensitive data; • annual privacy/data security training to all employees and contractors and regular awareness and testing activities year-round regarding social engineering threats, such as phishing, for employees; • background checks on our employees, as permitted; • due diligence requirements and controls for third parties (e.g., service providers) with access to sensitive data throughout the lifecycle of the relationship; and • a dedicated global information security team that partners with all technology groups to monitor, prioritize, and remediate risks to the enterprise.
In addition, we engage in a broad range of activities to secure and protect the data that we obtain through our business operations including, but not limited to: • continued development and enhancement of our controls, processes, and practices designed to protect our systems, computers, software, data, and networks from attack, damage, or unauthorized access; • security and business controls to appropriately limit access to and use of personal information, including adaptive and multifactor authentication; • comprehensive data protections, including encryption, to facilitate the secure storage, use, and transmission of sensitive data; • annual privacy/data security training to all employees and contractors and regular awareness and testing activities year-round regarding social engineering threats, such as phishing, for employees; • background checks on our employees, as permitted; • due diligence requirements and controls for third parties (e.g., service providers) with access to sensitive data throughout the lifecycle of the relationship; and • a dedicated global information security team that partners with all technology groups to monitor, prioritize, and remediate risks to the enterprise.
Our Chief Risk Officer oversees the activities of the Enterprise Risk Committee and, together with the Chief Information Security Officer (CISO), briefs the Audit Committee and the Board of Directors on information security risk matters as a part of regular ERM reports, with a deep dive focused on information security at least annually (or more frequently if appropriate).
Our Vice President, Legal and Corporate Secretary, oversees the activities of the Enterprise Risk Committee and, together with the Chief Information Security Officer (CISO), briefs the Audit Committee and the Board of Directors on information security risk matters as a part of regular ERM reports, with a deep dive focused on information security at least annually (or more frequently if appropriate).
We maintain multiple levels of protection to mitigate data security risks, and we regularly test our systems to discover and address potential vulnerabilities, including without limitation: • using a multi-layered, zero-trust principled approach to secure systems; • systematic monitoring of our sites and services to detect and respond to unauthorized activity; and • regular security audits and vulnerability assessments conducted by our dedicated internal information security team, our internal auditors, and by external third parties.
We maintain multiple levels of protection to mitigate data security risks, and we regularly test our systems to discover and address potential vulnerabilities, including without limitation: 20 2025 Form 10-K | H&R Block, Inc. • using a multi-layered, zero-trust principled approach to secure systems; • systematic monitoring of our sites and services to detect and respond to unauthorized activity; and • regular security audits and vulnerability assessments conducted by our dedicated internal information security team, our internal auditors, and by external third parties.
Material Cybersecurity Risks, Threats, and Incidents We have been, and continue to be, the subject of cybersecurity threats, and we describe how risks from these threats, if realized, are reasonably likely to materially affect us. See further discussion of these items in our Item 1 A. Risk Factors of this Form 10-K.
H&R Block, Inc. | 2025 Form 10-K 21 Material Cybersecurity Risks, Threats, and Incidents We have been, and continue to be, the subject of cybersecurity threats, and we describe how risks from these threats, if realized, are reasonably likely to materially affect us. See further discussion of these items in our Item 1A. Risk Factors of this Form 10-K.
Our CISO, who reports directly to the CIO, has extensive cybersecurity knowledge and skills gained from over 25 years of information technology experience, with more than 15 years of Information Security specialization.
Our CISO, who reports directly to the CLAO, has extensive cybersecurity knowledge and skills gained from over 30 years of experience in consulting and technology roles, with more than 18 years of Information Security specialization.
Added
Our CLAO, who reports directly to the President and CEO, has over 30 years of leadership experience across multiple industries in roles responsible for overseeing and managing risk.

Item 2. Properties

Properties — owned and leased real estate

1 edited+1 added−1 removed1 unchanged
Biggest changeWave's headquarters are located in leased offices in Toronto, Ontario. H&R Block, Inc. | 2024 Form 10-K 21 All current leased and owned facilities are in reasonably good repair and adequate to meet our needs. ITEM 3. LEGAL PROCEEDINGS For a description of our material pending legal proceedings, see discussion in Item 8, note 12 to the consolidated financial statements.
Biggest changeWave's headquarters are located in leased offices in Toronto, Ontario. We also lease shared services centers in Hyderabad and Trivandrum, India. All current leased and owned facilities are in reasonably good repair and adequate to meet our needs. ITEM 3.
Removed
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II
Added
LEGAL PROCEEDINGS For a description of our material pending legal proceedings, see discussion in Item 8, note 12 to the consolidated financial statements. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−1 removed2 unchanged
Biggest change(2) In August 2022, we announced that our Board of Directors approved a $1.25 billion share repurchase program, effective through June 2025. (3) On August 15, 2024, we announced that our Board of Directors authorized a new $1.5 billion share repurchase program.
Biggest change(2) On August 15, 2024, we announced that our Board of Directors approved a new $1.5 billion share repurchase program. The repurchase program does not have an expiration date. 22 2025 Form 10-K | H&R Block, Inc.
An investment of $100, with reinvestment of all dividends, is assumed to have been made in our common stock and in each of the indexes on June 30, 2019, and its relative performance is tracked through June 30, 2024.
An investment of $100, with reinvestment of all dividends, is assumed to have been made in our common stock and in each of the indexes on June 30, 2020, and its relative performance is tracked through June 30, 2025.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET INFORMATION AND HOLDERS – H&R Block's common stock is traded on the New York Stock Exchange (NYSE) under the symbol HRB. On July 31, 2024, there were 12,147 shareholders of record and the closing stock price on the NYSE was $57.94 per share.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET INFORMATION AND HOLDERS – H&R Block's common stock is traded on the New York Stock Exchange (NYSE) under the symbol HRB. On July 31, 2025, there were 11,433 shareholders of record and the closing stock price on the NYSE was $54.34 per share.
PURCHASES OF EQUITY SECURITIES BY THE ISSUER – A summary of our purchases of H&R Block common stock during the fourth quarter of fiscal year 2024 is as follows: (in 000s, except per share amounts) Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Maximum Dollar Value of Shares that May be Purchased Under the Plans or Programs (2)(3) April 1 – April 30 1 $ 47.02 — $ 350,000 May 1 - May 31 9 $ 47.96 — $ 350,000 June 1 - June 30 1 $ 49.64 — $ 350,000 11 $ 47.98 — (1) We purchased approximately 11 thousand shares in connection with funding employee income tax withholding obligations arising upon the lapse of restrictions on restricted share units.
PURCHASES OF EQUITY SECURITIES BY THE ISSUER – A summary of our purchases of H&R Block common stock during the fourth quarter of fiscal year 2025 is as follows: (in 000s, except per share amounts) Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Maximum Dollar Value of Shares that May be Purchased Under the Plans or Programs (2) April 1 – April 30 — $ 56.73 — $ 1,100,000 May 1 - May 31 9 $ 62.46 — $ 1,100,000 June 1 - June 30 1 $ 58.91 — $ 1,100,000 10 $ 61.90 — (1) We purchased approximately 10 thousand shares in connection with funding employee income tax withholding obligations arising upon the lapse of restrictions on restricted share units.
Removed
This repurchase program does not have an expiration date and replaced the previously existing share repurchase program. 22 2024 Form 10-K | H&R Block, Inc.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

46 edited+6 added−9 removed41 unchanged
Biggest changeConsolidated – Financial Results (in 000s, except per share amounts) Year ended June 30, 2024 2023 $ Change % Change Revenues: U.S. tax preparation and related services: Assisted tax preparation $ 2,274,835 $ 2,167,138 $ 107,697 5.0 % Royalties 204,802 210,631 (5,829) (2.8) % DIY tax preparation 349,812 314,758 35,054 11.1 % Refund Transfers 142,249 143,310 (1,061) (0.7) % Peace of Mind® Extended Service Plan 93,087 95,181 (2,094) (2.2) % Tax Identity Shield® 33,386 38,265 (4,879) (12.8) % Other 51,555 45,252 6,303 13.9 % Total U.S. tax preparation and related services 3,149,726 3,014,535 135,191 4.5 % Financial services: Emerald Card® and Spruce SM 76,093 84,651 (8,558) (10.1) % Interest and fee income on Emerald Advance® 40,933 47,554 (6,621) (13.9) % Total financial services 117,026 132,205 (15,179) (11.5) % International 247,123 235,131 11,992 5.1 % Wave 96,472 90,314 6,158 6.8 % Total revenues $ 3,610,347 $ 3,472,185 $ 138,162 4.0 % Compensation and benefits: Field wages 869,002 841,742 (27,260) (3.2) % Other wages 298,819 273,850 (24,969) (9.1) % Benefits and other compensation 228,723 220,530 (8,193) (3.7) % 1,396,544 1,336,122 (60,422) (4.5) % Occupancy 432,461 428,167 (4,294) (1.0) % Marketing and advertising 277,747 286,255 8,508 3.0 % Depreciation and amortization 121,784 130,501 8,717 6.7 % Bad debt 91,523 60,401 (31,122) (51.5) % Other 485,011 482,041 (2,970) (0.6) % Total operating expenses 2,805,070 2,723,487 (81,583) (3.0) % Other income (expense), net 36,125 35,492 633 1.8 % Interest expense on borrowings (79,080) (72,978) (6,102) (8.4) % Income from continuing operations before income taxes 762,322 711,212 51,110 7.2 % Income taxes 164,359 149,412 (14,947) (10.0) % Net income from continuing operations 597,963 561,800 36,163 6.4 % Net loss from discontinued operations (2,646) (8,100) 5,454 67.3 % Net income $ 595,317 $ 553,700 $ 41,617 7.5 % DILUTED EARNINGS PER SHARE: Continuing operations $ 4.14 $ 3.56 $ 0.58 16.3 % Discontinued operations (0.02) (0.05) 0.03 60.0 % Consolidated $ 4.12 $ 3.51 $ 0.61 17.4 % Adjusted diluted EPS (1) $ 4.41 $ 3.82 $ 0.59 15.4 % EBITDA (1) $ 963,186 $ 914,691 $ 48,495 5.3 % (1) All non-GAAP measures are results from continuing operations.
Biggest changeConsolidated – Financial Results (in 000s, except per share amounts) Year ended June 30, 2025 2024 $ Change % Change Revenues: U.S. tax preparation and related services: Assisted tax preparation $ 2,413,229 $ 2,274,835 $ 138,394 6.1 % Royalties 192,877 204,802 (11,925) (5.8) % DIY tax preparation 383,738 349,812 33,926 9.7 % Refund Transfers 137,526 142,249 (4,723) (3.3) % Peace of Mind® Extended Service Plan 87,326 93,087 (5,761) (6.2) % Tax Identity Shield® 29,920 33,386 (3,466) (10.4) % Other 58,318 51,555 6,763 13.1 % Total U.S. tax preparation and related services 3,302,934 3,149,726 153,208 4.9 % Financial services: Emerald Card® and Spruce SM 72,888 76,093 (3,205) (4.2) % Interest and fee income on Emerald Advance® 28,958 40,933 (11,975) (29.3) % Total financial services 101,846 117,026 (15,180) (13.0) % International 246,993 247,123 (130) (0.1) % Wave 109,222 96,472 12,750 13.2 % Total revenues $ 3,760,995 $ 3,610,347 $ 150,648 4.2 % Compensation and benefits: Field wages 927,360 869,002 (58,358) (6.7) % Other wages 306,999 298,819 (8,180) (2.7) % Benefits and other compensation 250,729 228,723 (22,006) (9.6) % 1,485,088 1,396,544 (88,544) (6.3) % Occupancy 438,868 432,461 (6,407) (1.5) % Marketing and advertising 285,800 277,747 (8,053) (2.9) % Depreciation and amortization 116,827 121,784 4,957 4.1 % Bad debt 74,584 91,523 16,939 18.5 % Other 531,858 485,011 (46,847) (9.7) % Total operating expenses 2,933,025 2,805,070 (127,955) (4.6) % Other income (expense), net 31,546 36,125 (4,579) (12.7) % Interest expense on borrowings (78,113) (79,080) 967 1.2 % Income from continuing operations before income taxes 781,403 762,322 19,081 2.5 % Income taxes 171,953 164,359 (7,594) (4.6) % Net income from continuing operations 609,450 597,963 11,487 1.9 % Net loss from discontinued operations (3,677) (2,646) (1,031) (39.0) % Net income $ 605,773 $ 595,317 $ 10,456 1.8 % DILUTED EARNINGS PER SHARE: Continuing operations $ 4.42 $ 4.14 $ 0.28 6.8 % Discontinued operations (0.03) (0.02) (0.01) (50.0) % Consolidated $ 4.39 $ 4.12 $ 0.27 6.6 % Adjusted diluted EPS (1) $ 4.66 $ 4.41 $ 0.25 5.7 % EBITDA (1) $ 976,343 $ 963,186 $ 13,157 1.4 % (1) All non-GAAP measures are results from continuing operations.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Our subsidiaries provide assisted and DIY tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded products and services, including those of our bank partners, to the general public primarily in the U.S., Canada and Australia.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Our subsidiaries provide assisted and DIY tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded services and products, including those of our bank partners, to the general public primarily in the U.S., Canada and Australia.
H&R Block, Inc. | 2024 Form 10-K 29 CRITICAL ACCOUNTING ESTIMATES We consider the estimates discussed below to be critical to understanding our financial statements, as they require the use of significant judgment and estimation in order to measure, at a specific point in time, matters that are inherently uncertain.
H&R Block, Inc. | 2025 Form 10-K 29 CRITICAL ACCOUNTING ESTIMATES We consider the estimates discussed below to be critical to understanding our financial statements, as they require the use of significant judgment and estimation in order to measure, at a specific point in time, matters that are inherently uncertain.
Our uncertain tax positions arise from items such as apportionment of income for state purposes, transfer pricing, and the deductibility of intercompany transactions. We evaluate each uncertain tax position based 30 2024 Form 10-K | H&R Block, Inc. on its technical merits.
Our uncertain tax positions arise from items such as apportionment of income for state purposes, transfer pricing, and the deductibility of intercompany transactions. We evaluate each uncertain tax position based 30 2025 Form 10-K | H&R Block, Inc. on its technical merits.
These aspects include, but are not limited to, commercial income tax return preparation, income tax courses, the electronic filing of income tax returns, the offering of RTs and RAs, privacy and data security, consumer protection, marketing and advertising, franchising, antitrust and competition, sales methods, and financial services and products.
These aspects include, but are not limited to, commercial income tax return preparation, income tax courses, the electronic filing of income tax returns, the offering of RTs and RAs, privacy and data security, consumer protection, marketing and advertising, artificial intelligence, franchising, antitrust and competition, sales methods, and financial services and products.
Given the likely availability of a number of liquidity options discussed herein, we believe that in the absence of any unexpected developments, our existing sources of capital as of June 30, 2024 are sufficient to meet our future operating and financing needs.
Given the likely availability of a number of liquidity options discussed herein, we believe that in the absence of any unexpected developments, our existing sources of capital as of June 30, 2025 are sufficient to meet our future operating and financing needs.
Foreign Operations. Seasonal borrowing needs of our Canadian operations are typically funded by our U.S. operations. To mitigate foreign currency risk, we sometimes enter into foreign exchange forward contracts. There were no forward contracts outstanding as of June 30, 2024.
Foreign Operations. Seasonal borrowing needs of our Canadian operations are typically funded by our U.S. operations. To mitigate foreign currency risk, we sometimes enter into foreign exchange forward contracts. There were no forward contracts outstanding as of June 30, 2025.
DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS – The following table summarizes our statements of cash flows for fiscal year 2024 and 2023. See Item 8 for the complete consolidated statements of cash flows for these periods.
DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS – The following table summarizes our statements of cash flows for fiscal year 2025 and 2024. See Item 8 for the complete consolidated statements of cash flows for these periods.
We do not currently intend to repatriate non-borrowed funds held by our foreign subsidiaries in a manner that would trigger a tax liability. The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $2.8 million and $4.9 million during the years ended June 30, 2024 and 2023, respectively.
We do not currently intend to repatriate non-borrowed funds held by our foreign subsidiaries in a manner that would trigger a tax liability. The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $0.1 million and $2.8 million during the years ended June 30, 2025 and 2024, respectively.
Capital expenditures totaled $63.7 million and $69.7 million for the years ended June 30, 2024 and 2023, respectively . Our capital expenditures relate primarily to recurring improvements to retail offices, as well as investments in computers, software and related assets. In addition to our capital expenditures, we also made payments to acquire businesses.
Capital expenditures totaled $82.0 million and $63.7 million for the years ended June 30, 2025 and 2024, respectively . Our capital expenditures relate primarily to recurring improvements to retail offices, as well as investments in computers, software and related assets. In addition to our capital expenditures, we also made payments to acquire businesses.
During the year we purchased franchise offices which results in increasing tax preparation revenues and decreasing royalties as the revenues and returns become company-owned after the acquisition. During the year ended June 30, 2024 our total assisted tax return volume, which includes both company-owned and franchise offices, decreased 1.3% from the prior year. U.S.
During the year we purchased franchise offices, which results in increasing tax preparation revenues and decreasing royalties as the revenues and returns become company-owned after the acquisition. During the year ended June 30, 2025 our total assisted tax return volume, which includes both company-owned and franchise offices, decreased 0.9% from the prior year. U.S.
Returning capital to shareholders in the form of dividends and the repurchase of outstanding shares has historically been a significant component of our capital allocation plan. We have consistently paid quarterly dividends. Dividends paid totaled $179.8 million and $177.9 million in the years ended June 30, 2024 and 2023, respectively.
Returning capital to shareholders in the form of dividends and the repurchase of outstanding shares has historically been a significant component of our capital allocation plan. We have consistently paid quarterly dividends. Dividends paid totaled $197.3 million and $179.8 million in the years ended June 30, 2025 and 2024, respectively.
See " Non-GAAP Financial Information " at the end of this item for a reconciliation of non-GAAP measures. H&R Block, Inc. | 2024 Form 10-K 25 FISCAL YEAR 2024 COMPARED TO FISCAL YEAR 2023 Revenues increased $138.2 million, or 4.0%, from the prior year.
See " Non-GAAP Financial Information " at the end of this item for a reconciliation of non-GAAP measures. H&R Block, Inc. | 2025 Form 10-K 25 FISCAL YEAR 2025 COMPARED TO FISCAL YEAR 2024 Revenues increased $150.6 million, or 4.2%, from the prior year.
As of June 30, 2024, we believe the estimate of the aggregate range of reasonably possible losses in excess of amounts accrued, where the range of loss can be estimated, was not material.
As of June 30, 2025, we believe the estimate of the aggregate range of reasonably possible losses in excess of amounts accrued, where the range of loss can be estimated, is not material.
Tax returns are either prepared by H&R Block tax professionals in one of our 6,643 company-owned or 2,168 franchise offices (as of March 31, 2024), virtually or via an online review or prepared and filed by our clients through our DIY tax solutions.
Tax returns are either prepared by H&R Block tax professionals in one of our 6,701 company-owned or 2,013 franchise offices (as of March 31, 2025), virtually or via an online review or prepared and filed by our clients through our DIY tax solutions.
We acquired franchise and competitor businesses totaling $43.4 million and $48.2 million during the years ended Ju ne 30, 2024 and 2023, respectively. See Item 8, note 6 for additional information on our acquisitions. Contractual Obligations and Commercial Commitments.
We acquired franchise and competitor businesses totaling $35.5 million and $43.4 million during the years ended Ju ne 30, 2025 and 2024, respectively. See Item 8, note 6 for additional information on our acquisitions. Contractual Obligations and Commercial Commitments.
We were in compliance with our CLOC covenants as of June 30, 2024. As of June 30, 2024, amounts available to borrow under the CLOC were not limited by the debt-to-EBITDA covenant. We had no balance outstanding under our CLOC as of June 30, 2024.
As of June 30, 2025, amounts available to borrow under the CLOC were not limited by the debt-to-EBITDA covenant. We had no balance outstanding under our CLOC as of June 30, 2025.
The following table summarizes our shares outstanding, shares repurchased, and annual dividends per share: (in 000s, except per share amounts) Year ended June 30, 2024 2023 2022 Shares outstanding 139,591 146,150 159,930 Shares repurchased 8,020 14,635 23,085 Dividends declared per share $ 1.28 $ 1.16 $ 1.08 Capital Investment.
The following table summarizes our shares outstanding, shares repurchased, and annual dividends per share: (in 000s, except per share amounts) Year ended June 30, 2025 2024 2023 Shares outstanding 133,947 139,591 146,150 Shares repurchased 6,549 8,020 14,635 Dividends declared per share $ 1.50 $ 1.28 $ 1.16 Capital Investment.
FISCAL YEAR 2023 COMPARED TO FISCAL YEAR 2022 The comparison of fiscal year 2023 to 2022 has been omitted from this Form 10-K, but can be found in our Form 10-K for the fiscal year ended June 30, 2023, filed on August 17, 2023.
FISCAL YEAR 2024 COMPARED TO FISCAL YEAR 2023 The comparison of fiscal year 2024 to 2023 has been omitted from this Form 10-K, but can be found in our Form 10-K for the fiscal year ended June 30, 2024, filed on August 15, 2024. 26 2025 Form 10-K | H&R Block, Inc.
The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure: (in 000s, except per share amounts) Year ended June 30, 2024 June 30, 2023 Net income from continuing operations - as reported $ 597,963 $ 561,800 Adjustments: Amortization of intangibles related to acquisitions (pretax) 50,835 51,411 Tax effect of adjustments (1) (11,751) (10,797) Adjusted net income from continuing operations $ 637,047 $ 602,414 Diluted earnings per share from continuing operations - as reported $ 4.14 $ 3.56 Adjustments, net of tax 0.27 0.26 Adjusted diluted earnings per share from continuing operations $ 4.41 $ 3.82 (1) The tax effect of adjustments is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis.
The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure: (in 000s, except per share amounts) Year ended June 30, 2025 June 30, 2024 Net income from continuing operations - as reported $ 609,450 $ 597,963 Adjustments: Amortization of intangibles related to acquisitions (pretax) 44,673 50,835 Tax effect of adjustments (1) (10,865) (11,751) Adjusted net income from continuing operations $ 643,258 $ 637,047 Diluted earnings per share from continuing operations - as reported $ 4.42 $ 4.14 Adjustments, net of tax 0.24 0.27 Adjusted diluted earnings per share from continuing operations $ 4.66 $ 4.41 (1) The tax effect of adjustments is the difference between the tax provision calculation on a GAAP basis and on an adjusted non-GAAP basis.
Although we have historically paid dividends and plan to H&R Block, Inc. | 2024 Form 10-K 27 continue to do so, there can be no assurances that circumstances will not change in the future that could affect our ability or decisions to pay dividends.
Although we have historically paid dividends and plan to continue to do so, there can be no assurances that circumstances will not change in the future that could affect our ability or decisions to pay dividends. H&R Block, Inc. | 2025 Form 10-K 27 On August 15, 2024, the Board of Directors approved a $1.5 billion share repurchase program.
The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of June 30, 2024 and 2023: As of June 30, 2024 June 30, 2023 Short-term Long-term Outlook Short-term Long-term Outlook Moody's P-3 Baa3 Stable P-3 Baa3 Positive S&P A-2 BBB Stable A-2 BBB Stable CASH AND OTHER ASSETS – As of June 30, 2024, we held cash and cash equivalents, excluding restricted amounts, of $1.1 billion, including $170.8 million held by our foreign subsidiaries. 28 2024 Form 10-K | H&R Block, Inc.
The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of June 30, 2025 and 2024: As of June 30, 2025 June 30, 2024 Short-term Long-term Outlook Short-term Long-term Outlook Moody's P-3 Baa3 Stable P-3 Baa3 Stable S&P A-2 BBB Stable A-2 BBB Stable CASH AND OTHER ASSETS – As of June 30, 2025, we held cash and cash equivalents, excluding restricted amounts, of $983.3 million, including $205.9 million held by our foreign subsidiaries.
We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report a single segment that includes all of our continuing operations. In fiscal year 2024, revenue increased $138.2 million over the prior year.
We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report a single segment that includes all of our continuing operations.
U.S. assisted tax preparation revenues increased $107.7 million, or 5.0%, due to a 4.0% increase in net average charge combined with higher company-owned tax return volumes in the current year. U.S. royalties revenue decreased $5.8 million, or 2.8%, due to lower franchise tax return volumes.
U.S. assisted tax preparation revenues increased $138.4 million, or 6.1%, due to a 5.1% increase in net average charge combined with a 1.0% increase in company-owned tax return volumes in the current year. U.S. royalties revenue decreased $11.9 million, or 5.8%, due to lower franchise tax return volumes, which was primarily driven by franchise acquisitions.
Cash used in financing activities totaled $564.3 million for the year ended June 30, 2024 compared to $751.0 million for the prior year period. The change is primarily due to lower share repurchases in the current year. CASH REQUIREMENTS – Dividends and Share Repurchase.
Cash used in financing activities totaled $647.4 million for the year ended June 30, 2025 compared to $564.3 million for the prior year period. The increase is primarily due to higher repurchases of common stock and dividends in the current year. CASH REQUIREMENTS – Dividends and Share Repurchase.
Risk Factors under "Legal and Regulatory Risks" of this Form 10-K. From time to time, we receive inquiries from governmental authorities regarding the applicability of laws to our services and products and other matters relating to our business.
From time to time, we receive inquiries from governmental authorities regarding the applicability of laws to our services and products and other matters relating to our business.
Investing Activities. Cash used in investing activities totaled $93.9 million for the year ended June 30, 2024 compared to $101.4 million for the prior year period. The decrease is primarily due to lower capital expenditures and payments to acquire businesses in the current year. Financing Activities.
Cash used in investing activities totaled $105.4 million for the year ended June 30, 2025 compared to $93.9 million for the prior year period. The increase is primarily due to higher capital expenditures, partially offset by lower payments made for business acquisitions in the current year. Financing Activities.
(in 000s) Year ended June 30, 2024 2023 Net cash provided by (used in): Operating activities $ 720,860 $ 821,841 Investing activities (93,858) (101,389) Financing activities (564,311) (750,992) Effects of exchange rates on cash (2,814) (4,857) Net increase (decrease) in cash and cash equivalents, including restricted balances $ 59,877 $ (35,397) Operating Activities.
(in 000s) Year ended June 30, 2025 2024 Net cash provided by (used in): Operating activities $ 680,883 $ 720,860 Investing activities (105,373) (93,858) Financing activities (647,443) (564,311) Effects of exchange rates on cash (121) (2,814) Net increase (decrease) in cash and cash equivalents, including restricted balances $ (72,054) $ 59,877 Operating Activities.
The following is a reconciliation of net income to EBITDA from continuing operations, which is a non-GAAP financial measure: (in 000s) Year ended June 30, 2024 June 30, 2023 Net income - as reported $ 595,317 $ 553,700 Discontinued operations, net 2,646 8,100 Net income from continuing operations - as reported 597,963 561,800 Add back: Income taxes 164,359 149,412 Interest expense 79,080 72,978 Depreciation and amortization 121,784 130,501 365,223 352,891 EBITDA from continuing operations $ 963,186 $ 914,691 32 2024 Form 10-K | H&R Block, Inc.
The following is a reconciliation of net income to EBITDA from continuing operations, which is a non-GAAP financial measure: (in 000s) Year ended June 30, 2025 June 30, 2024 Net income - as reported $ 605,773 $ 595,317 Discontinued operations, net 3,677 2,646 Net income from continuing operations - as reported 609,450 597,963 Add back: Income taxes 171,953 164,359 Interest expense 78,113 79,080 Depreciation and amortization 116,827 121,784 366,893 365,223 EBITDA from continuing operations $ 976,343 $ 963,186 32 2025 Form 10-K | H&R Block, Inc.
The effective tax rate for the year ended June 30, 2024, and 2023 was 21.6% and 21.0%, respectively. See Item 8, note 9 to the consolidated financial statements for additional discussion. 26 2024 Form 10-K | H&R Block, Inc.
The increase is due to higher pretax income and effective tax rate in the current year. The effective tax rate for the year ended June 30, 2025, and 2024 was 22.0% and 21.6%, respectively. See Item 8, note 9 to the consolidated financial statements for additional discussion.
H&R Block, Inc. | 2024 Form 10-K 31 There has been recent increased regulatory focus in the area of financial services and products, which has impacted or may in the future impact our program, our contractual arrangements with our bank partner or other partners, or the offering of financial products and services to our clients.
Regulatory attention in the area of financial services and products may in the future impact our program, our contractual arrangements with our bank partner or other partners, or the offering of financial services and products to our clients.
See Item 8, note 7 to the consolidated financial statements for discussion of our CLOC and Senior Notes.
See Item 8, note 7 to the consolidated financial statements for discussion of our CLOC and Senior Notes, including discussion of the amendment and restatement of our CLOC effective July 11, 2025. 28 2025 Form 10-K | H&R Block, Inc.
SUMMARIZED BALANCE SHEET (in 000s) As of June 30, 2024 GUARANTOR AND ISSUER Current assets $ 44,423 Noncurrent assets 1,778,832 Current liabilities 77,848 Noncurrent liabilities 1,492,211 SUMMARIZED STATEMENTS OF OPERATIONS (in 000s) Year ended June 30, 2024 GUARANTOR AND ISSUER Total revenues $ 144,206 Income from continuing operations before income taxes 75,819 Net income from continuing operations 57,441 Net income 54,795 The table above reflects $1.7 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries.
SUMMARIZED BALANCE SHEET (in 000s) As of June 30, 2025 GUARANTOR AND ISSUER Current assets $ 38,254 Noncurrent assets 1,836,847 Current liabilities 432,139 Noncurrent liabilities 1,148,806 SUMMARIZED STATEMENTS OF OPERATIONS (in 000s) Year ended June 30, 2025 GUARANTOR AND ISSUER Total revenues $ 126,240 Income from continuing operations before income taxes 58,596 Net income from continuing operations 45,120 Net income 41,443 The table above reflects $1.8 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries.
We work to comply with those laws that are applicable to us or our services or products, and we continue to monitor developments in the regulatory environment in which we operate.
We work to comply with those laws that are H&R Block, Inc. | 2025 Form 10-K 31 applicable to us or our services or products, and we continue to monitor developments in the regulatory environment in which we operate. See further discussion of these items in our Item 1A. Risk Factors under "Legal and Regulatory Risks" of this Form 10-K.
Cash provided by operating activities totaled $720.9 million for the year ended June 30, 2024 compared to $821.8 million in the prior year period. The change is primarily due to deferred taxes, the receipt of income tax receivables in the prior year, and higher receivables in the current year, partially offset by lower bonus payments in the current year.
Cash provided by operating activities totaled $680.9 million for the year ended June 30, 2025 compared to $720.9 million in the prior year period. The decrease is primarily due to changes in income tax reserves and accounts payable. Investing Activities.
Legal fees and settlements expense increased $16.5 million in the current year. We recorded income tax expense of $164.4 million in the current year compared to $149.4 million in the prior year. The increase is due to higher pretax income and effective tax rate in the current year.
Technology-related expenses increased by $10.5 million, or 9.7%, due to higher cloud-related technology spend. Legal fees and settlements expense increased $9.3 million, primarily due to higher outside counsel spend in the current year. We recorded income tax expense of $172.0 million in the current year compared to $164.4 million in the prior year.
International revenues increased $12.0 million, or 5.1%, due to higher tax returns prepared by our Canadian and Australian operations, partially offset by unfavorable foreign currency exchange rates. Wave revenues increased $6.2 million, or 6.8%, due to higher small business payments processing volumes. Total operating expenses increased $81.6 million, or 3.0%, from the prior year.
Wave revenues increased $12.8 million, or 13.2%, due to higher accounting, invoicing and receipts subscriptions and small business payments processing volumes. Total operating expenses increased $128.0 million, or 4.6%, from the prior year.
The components of other expenses are as follows: (in 000s) Year ended June 30, 2024 2023 $ Change % Change Consulting and outsourced services $ 92,737 $ 109,120 $ 16,383 15.0 % Bank partner fees 28,856 24,108 (4,748) (19.7) % Client claims and refunds 25,623 29,484 3,861 13.1 % Employee and travel expenses 33,473 39,262 5,789 14.7 % Technology-related expenses 108,694 102,753 (5,941) (5.8) % Credit card/bank charges 102,377 96,074 (6,303) (6.6) % Insurance 12,075 8,806 (3,269) (37.1) % Legal fees and settlements 28,536 12,058 (16,478) (136.7) % Supplies 23,090 29,278 6,188 21.1 % Other 29,550 31,098 1,548 5.0 % $ 485,011 $ 482,041 $ (2,970) (0.6) % Consulting and outsourced services expense decreased $16.4 million, or 15.0%, due to lower contract labor, Emerald Card® data processing and call center expenses in the current year.
The components of other expenses are as follows: (in 000s) Year ended June 30, 2025 2024 $ Change % Change Consulting and outsourced services $ 104,003 $ 92,737 $ (11,266) (12.1) % Bank partner fees 32,152 28,856 (3,296) (11.4) % Client claims and refunds 27,422 25,623 (1,799) (7.0) % Employee and travel expenses 35,646 33,473 (2,173) (6.5) % Technology-related expenses 119,241 108,694 (10,547) (9.7) % Credit card/bank charges 109,202 102,377 (6,825) (6.7) % Insurance 17,225 12,075 (5,150) (42.7) % Legal fees and settlements 37,819 28,536 (9,283) (32.5) % Supplies 20,777 23,090 2,313 10.0 % Other 28,371 29,550 1,179 4.0 % $ 531,858 $ 485,011 $ (46,847) (9.7) % Consulting and outsourced services expense increased $11.3 million, or 12.1%, due to higher Emerald Card® data processing and spend related to various strategic projects.
Field wages increased $27.3 million, or 3.2%, due to higher wages in the current year primarily resulting from an increase in company-owned volumes. Other wages increased $25.0 million, or 9.1%, due to higher corporate bonuses and wages in the current year. Benefits and other compensation increased $8.2 million, or 3.7%, due to higher payroll taxes.
Field wages increased $58.4 million, or 6.7%, due to higher tax professional wages in the current year primarily resulting from an increase in U.S. assisted tax preparation revenues. Other wages increased $8.2 million, or 2.7%, due to higher corporate wages due to salary increases in the current year.
During the year ended June 30, 2024, we repurchased $350.1 million of our common stock at an average price of $43.66 per share under the previously existing share repurchase authorization. In the prior year, we repurchased $550.2 million of our common stock at an average price of $37.59 per share.
The repurchase program does not have an expiration date and replaced the previously existing share repurchase program. During the year ended June 30, 2025, we repurchased $400.1 million of our common stock at an average price of $61.10 per share, excluding excise taxes in connection with such repurchases.
We are party to many contractual obligations involving commitments to make payments to third parties, which impact our short-term and long-term liquidity and capital resource needs. Our contractual obligations primarily consist of operating leases, contingent acquisition payments, and long-term debt and related interest payments.
Effective October 18, 2024, we amended our Program Management Agreement (PMA) with Pathward®, N.A to extend the term of the PMA for two years until June 30, 2027. We are party to many contractual obligations involving commitments to make payments to third parties, which may impact our short-term and long-term liquidity and capital resource needs.
Fiscal Year 2024 Compared to Fiscal Year 2023 Revenues Operating Expenses Net Income from Continuing Operations $3.61B 4.0% $2.81B 3.0% $598.0M 6.4% Diluted EPS from Continuing Operations EBITDA (1) from Continuing Operations $4.14 Reported: 16.3% $963.2M 5.3% $4.41 Adjusted (1) : 15.4% (1) See " Non-GAAP Financial Information " at the end of this item for a reconciliation of non-GAAP measures. 24 2024 Form 10-K | H&R Block, Inc.
(1) All non-GAAP measures are results from continuing operations. See " Non-GAAP Financial Information " at the end of this item for a reconciliation of non-GAAP measures. 24 2025 Form 10-K | H&R Block, Inc.
Bad debt expense increased $31.1 million, or 51.5%, due to higher EA bad debt rates coupled with an increase in EAs and RTs compared to the prior year. Other operating expenses increased $3.0 million, or 0.6%.
Bad debt expense decreased $16.9 million, or 18.5%, due to lower EA bad debt rates coupled with a decrease in EA loans originated during the current year. Other operating expenses increased $46.8 million, or 9.7%.
Operating expenses increased $81.6 million due to higher labor costs and bad debt expense, which was partially offset by lower consulting and outsourced services expenses. This resulted in an increase in pretax income of $51.1 million, or 7.2%. Net income from continuing operations of $598.0 million increased $36.2 million from the prior year.
These increases were partially offset by lower interest and fee income on Emerald Advance® due to a decrease in EA loans originated. • Operating expenses increased $128.0 million, or 4.6%, due to higher compensation and benefits, marketing, consulting, technology, and legal costs, partially offset by lower bad debt. • Pretax income increased $19.1 million, or 2.5%. • Net income from continuing operations of $609.5 million increased 1.9% from the prior year. • EBITDA (1) of $976.3 million increased $13.2 million, or 1.4%. • Diluted earnings per share from continuing operations increased $0.28, or 6.8%, and adjusted diluted earnings per share from continuing operations (1) increased $0.25, or 5.7%.
DIY tax preparation revenues increased $35.1 million, or 11.1%, due to a 5.4% increase in online paid returns combined with a 6.8% increase in paid net average charge compared to the prior year.
DIY tax preparation revenues increased $33.9 million, or 9.7%, due to a 9.8% increase in paid net average charge and higher desktop software revenues compared to the prior year. Interest and fee income on Emerald Advance® decreased $12.0 million, or 29.3%, due to a decrease in EA loans originated during the current year.
U.S. assisted tax preparation revenues were higher $107.7 million due to an increase in net average charge and company-owned tax return volumes. U.S. DIY tax preparation revenues increased $35.1 million due to increases in online paid returns and paid net average charge.
A summary of our fiscal year 2025 results is as follows: • Revenue increased $150.6 million, or 4.2%, largely due to increases in U.S. company-owned net average charge and tax return volume coupled with increases in DIY online paid net average charge.
Removed
Emerald Card® and Spruce SM revenues decreased $8.6 million, or 10.1%, due to lower Emerald Card® activity in the current year as a result of less funds being loaded on the cards.
Added
Benefits and other compensation increased $22.0 million, or 9.6%, due to higher employee insurance, severance pay and payroll taxes in the current year. Marketing and advertising expense increased $8.1 million, or 2.9%, primarily due to higher advertising agency and customer incentive expenses.
Removed
Interest and fee income on Emerald Advance® decreased $6.6 million, or 13.9%, due to lower customer fees under the new EA term loans, partially offset by higher interest income due to the increase in EA term loans and a longer loan term in the current year.
Added
In the prior year, we repurchased $350.1 million of our common stock at an average price of $43.66 per share, excluding excise taxes in connection with such repurchases. Our current share repurchase program has remaining authorization of $1.1 billion and does not have an expiration date.
Removed
Marketing and advertising expense decreased $8.5 million, or 3.0%, due to vendor refunds for expired customer incentives and lower agency fees. Depreciation and amortization decreased $8.7 million, or 6.7%, due to lower amortization of capitalized software.
Added
Our contractual obligations primarily consist of operating leases, contingent acquisition payments, and long-term debt and related interest payments. See Item 8, note 7 , 10 , and 11 to the consolidated financial statements for additional information.
Removed
On August 15, 2024, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $1.5 billion of our outstanding common stock. This repurchase program does not have an expiration date and replaced the previously existing share repurchase program.
Added
FINANCING RESOURCES – During fiscal year 2025, our existing CLOC had capacity of up to $1.5 billion and was scheduled to expire in June 2026.
Removed
Effective October 20, 2023, we amended the Program Management Agreement (PMA) with Pathward and entered into a new participation agreement related to EAs. Additionally, on April 1, 2024, we further amended the PMA to facilitate an interest-bearing feature for Spruce savings accounts.
Added
On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement, which amended and restated our existing CLOC, extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table.
Removed
See Ite m 8, note 7 , 10 , and 11 to the consolidated financial statements for additional information. FINANCING RESOURCES – Our CLOC has capacity up to $1.5 billion and is scheduled to expire in June 2026. Proceeds under the CLOC may be used for working capital needs or for other general corporate purposes.
Added
Other material terms remain substantially unchanged from the Fourth Amended and Restated Credit and Guarantee Agreement. Proceeds under the CLOC may be used for working capital needs or for other general corporate purposes. We were in compliance with our CLOC covenants as of June 30, 2025.
Removed
For example, as previously disclosed, in 2017 the CFPB published a final rule regulating certain consumer credit products (Payday Rule). The Payday Rule was challenged through litigation, which stayed the compliance deadline. On May 16, 2024, the U.S.
Removed
Supreme Court upheld the constitutionality of the CFPB, and the new effective date of the Payday Rule is currently set for March 30, 2025, though further developments are possible.
Removed
Though we do not expect the Payday Rule to have a material adverse impact on us, we will continue to monitor and analyze the potential impact of this and other current and future regulatory developments related to financial services and products. See further discussion of these items in our Item 1A.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−0 removed5 unchanged
Biggest changeWe estimate a 10% change in foreign exchange rates by itself would impact consolidated pretax income for the years ended June 30, 2024 and 2023 by $4.3 million and $3.8 million, respectively, and cash balances, excluding restricted balances, as of June 30, 2024 and 2023 by $16.7 million and $13.0 million, respectively.
Biggest changeWe estimate a 10% change in foreign exchange rates by itself would impact consolidated pretax income for the years ended June 30, 2025 and 2024 by $4.5 million and $4.3 million, respectively, and cash balances, excluding restricted balances, as of June 30, 2025 and 2024 by $19.7 million and $16.7 million, respectively.
Our long-term debt as of June 30, 2024, consists of fixed-rate Senior Notes; therefore, a change in interest rates would have no impact on consolidated pretax earnings until these notes mature or are refinanced. The interest we pay on our Senior Notes is fixed and is subject to adjustment based upon our credit ratings.
Our long-term debt as of June 30, 2025, consists of fixed-rate Senior Notes; therefore, a change in interest rates would have no impact on consolidated pretax earnings until these notes mature or are refinanced. The interest we pay on our Senior Notes is fixed and is subject to adjustment based upon our credit ratings.
We generally use foreign exchange forward contracts to mitigate foreign currency exchange rate risk for loans we advance to our Canadian operations. We had no forward contracts outstanding at June 30, 2024 or 2023 . H&R Block, Inc. | 2024 Form 10-K 33
We generally use foreign exchange forward contracts to mitigate foreign currency exchange rate risk for loans we advance to our Canadian operations. We had no forward contracts outstanding at June 30, 2025 or 2024 . H&R Block, Inc. | 2025 Form 10-K 33
As our CLOC borrowings are generally seasonal, interest rate risk typically increases during the months of November through March. We had no outstanding balance on our CLOC as of June 30, 2024.
As our CLOC borrowings are generally seasonal, interest rate risk typically increases during the months of November through March. We had no outstanding balance on our CLOC as of June 30, 2025.
The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $2.8 million and $4.9 million during the years ended June 30, 2024 and 2023, respectively.
The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $0.1 million and $2.8 million during the years ended June 30, 2025 and 2024, respectively.

Other HRB 10-K year-over-year comparisons