H&R Block Reports 4.2% Revenue Growth to $2.18 Billion for Quarter Ending March 31, 2025

H&R Block, Inc. reported a revenue increase of $92.3 million, or 4.2%, for the three months ending March 31, 2025, totaling $2.18 billion compared to $2.09 billion in the same period last year. The growth was primarily driven by a 6.6% rise in U.S. assisted tax preparation revenues, which reached $1.53 billion, attributed to a 5.0% increase in net average charges and a 1.5% rise in company-owned tax return volumes. However, U.S. royalty revenues decreased by 5.6% to $141.9 million, reflecting lower franchise tax return volumes due to recent franchise acquisitions. For the nine months ended March 31, 2025, total revenues also increased by $102.3 million, or 4.0%, to $2.55 billion.

Operating expenses for the quarter rose by $42.2 million, or 3.4%, totaling $1.29 billion, with field wages increasing by 4.4% due to higher tax professional wages. The company reported a net income from continuing operations of $722.9 million for the three months ended March 31, 2025, compared to $691.6 million in the prior year, resulting in diluted earnings per share of $5.32, up from $4.87. For the nine-month period, net income from continuing operations was $309.0 million, down from $339.6 million in the previous year.

In terms of strategic developments, H&R Block has continued to expand its service offerings and geographic reach. As of March 31, 2025, the company operated 6,701 company-owned and 2,013 franchise offices, maintaining a strong presence in the U.S., Canada, and Australia. The company also reported a 12.8% increase in revenues from its Wave small business solutions, indicating a growing adoption of its services in this segment. Additionally, H&R Block has been actively repurchasing shares, with $400.1 million spent on buybacks during the nine months ended March 31, 2025, as part of a $1.5 billion share repurchase program approved in August 2024.

Looking ahead, H&R Block anticipates continued growth in its assisted tax preparation services, although it acknowledges the seasonal nature of its business, with peak revenues typically occurring from February to April. The company expects to leverage its recent acquisitions and product enhancements to drive customer engagement and revenue growth. However, it also notes potential challenges, including fluctuating tax return volumes and market conditions that could impact future performance. The effective tax rate for the nine months ended March 31, 2025, was reported at 25.3%, up from 17.6% in the prior year, reflecting changes in tax positions and discrete items.