H&R Block Reports 5.3% Revenue Growth to $2.4 Billion in Latest Quarter

H&R Block, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $2.4 billion for the three months ended March 31, 2026, a 5.3% increase from $2.3 billion in the same period last year. The company's net income from continuing operations also rose to $848.8 million, up 17.4% from $722.9 million in the prior year. This resulted in diluted earnings per share of $6.60, compared to $5.31 in the previous year, reflecting a 24.3% increase.

The increase in revenue was primarily driven by a 6.5% rise in U.S. assisted tax preparation revenues, which amounted to $1.74 billion, attributed to a 3.8% increase in net average charge and a 2.6% increase in company-owned tax return volumes. However, U.S. royalties revenue decreased by 4.3% to $128.2 million, largely due to lower franchise tax return volumes following franchise acquisitions. The company also reported a 16% increase in international tax preparation revenues, benefiting from favorable foreign currency exchange rates.

In terms of operational developments, H&R Block's total assisted tax return volume increased by 0.4% year-over-year, while DIY tax preparation revenues saw a slight increase of 0.3%. The company continues to expand its footprint, operating 6,802 company-owned and 1,814 franchise offices as of March 31, 2026. The filing also noted a strategic focus on enhancing customer engagement through various service offerings, including the Peace of Mind® Extended Service Plan and Tax Identity Shield®, which saw revenue increases of 12.7% and 20.8%, respectively.

H&R Block's total operating expenses increased by 4.8% to $1.36 billion, driven by higher field wages and benefits, which rose due to increased tax professional wages. The company reported a decrease in marketing and advertising expenses, reflecting a strategic shift in its promotional efforts. The effective tax rate for the quarter was 16.5%, down from 24.6% in the prior year, primarily due to a discrete income tax benefit resulting from the settlement of an IRS examination.

Looking ahead, H&R Block remains optimistic about its growth trajectory, supported by its strong financial position and strategic initiatives. The company anticipates continued revenue growth driven by its core tax preparation services and ongoing investments in technology and customer service enhancements. With a robust cash position of $867 million as of March 31, 2026, H&R Block is well-positioned to meet its operational and strategic needs while returning capital to shareholders through dividends and share repurchases.