On this page of StockholderLetter.com we present the latest annual shareholder letter from H&R BLOCK INC — ticker symbol HRB. Reading current and past HRB letters to shareholders can bring important insights into the investment thesis.
2025 Annual Report
Our Purpose Our Vision To provide help and inspire confidence in our clients and communities everywhere To empower financial freedom for our clients through trust and technology H&R Block Investment Thesis National Scale & Strong Brand Recognition Stable Industry Q Q Q Business model tied to essential tax prep services Consumer tax industry has grown at a ~1% CAGR for decades Compelling Financial Profile Q ~9,000 company and franchise offices Q Consistent, strong free cash flow1 Q ~60,000 expert tax pros and robust DIY offering Q Solid balance sheet and liquidity profile Q Strategic investments to support innovation and growth Q Disciplined capital allocation strategy Steadfast and resilient Proven Track Record Since 2016: Dividend Increase3 FY25 EBITDA2 >43% 12% Shares Outstanding Repurchased4 >$4.5B returned to shareholders Sh h as e s $976M >2X nds e d rc FY25 Total Revenue Growth Div i 4.2% a re R e p u Quarterly Dividend Increase 1 Free cash flow is a non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less capital expenditures. The Company believes free cash flow is useful to investors as an indication of the strength of the Company and its ability to generate cash and to evaluate the Company s cash generation ability relative to competitors. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. 2 EBITDA is a non-GAAP financial measure. A reconciliation of EBITDA to the most comparable GAAP measure can be found on page 32 of our Annual Report on Form 10-K filed with the SEC on August 15, 2025. 3 Dividend increase since 2016 is calculated as the percentage growth from our April 2016 dividend to our August 2025 dividend. 4 Shares outstanding calculated as of April 30, 2016.
2025 marked another year of meaningful progress in our transformation journey, with strong revenue growth, disciplined capital allocation, and continued innovation across our client offerings. Jeffrey J. Jones II President & CEO Dear Fellow Shareholders: At H&R Block, we believe that when people feel confident about their finances, they re empowered to move forward. As I reflect on fiscal 2025, I see that belief come to life through the meaningful progress we made on our transformation journey: from enhancing the client experience and investing in innovation, to strengthening our leadership team and aligning our associates around a shared commitment to Block s future. Our Vision is to empower financial freedom through trust and technology. Our Purpose is to provide help and inspire confidence in our clients and communities everywhere. These principles ground our work as we continue building a stronger foundation for H&R Block s next chapter. Our award-winning DIY product, the MyBlock mobile app, and our expert review service, Tax Pro Review, continue to position us as a leader in digital tax preparation. These tools, combined with our unmatched retail footprint, allow us to meet clients tax needs however they choose: fully virtual, fully in-person, or anywhere in between. Marketing remains a key driver of demand, and our team continues to focus on attracting more complex prospects and converting them into loyal clients. We re gaining more surgical precision for how we attract and acquire free DIY clients who have a greater propensity to become paying clients over time, increasing lifetime value and strengthening our financial mix. A Year of Progress Fiscal 2025 was a year of focused execution across consumer tax, small business, financial products, and the overall Block experience. Our Assisted business remains a strong foundation at H&R Block, as it has since day one. This year, revenue grew by 6.1%, and we saw client growth in every income segment above $80,000, with the fastest growth among clients earning more than $100,000. These results demonstrate the confidence more complex clients have in our ability to meet evolving needs, choosing H&R Block for the distinct value and trusted expertise we offer. We also made meaningful strides in client conversion. In Assisted, enhancements in how we welcome clients, match them with the right tax professional, and manage their expectations throughout the process led to higher conversion rates for the second consecutive year. In DIY, enhancements to AI Tax Assist led to a 13-point increase in conversion among new clients who utilized the tool. Meaningful outcomes like this reinforce our confidence that continued AI innovation will elevate the value we deliver and further strengthen our service across all channels. Beyond consumer tax, we ve seen strong performance in small business, Wave, and Spruce. In fiscal 2025: 6.1% Assisted Revenue Growth 9.7% DIY Revenue Growth 1
Small Business: Record Revenue Year Q Doubledigit small business revenue growth Q Custom DIY experiences continue to prove highly effective Q Tax client conversions supported bookkeeping and payroll growth Fiscal 2025 was a record revenue year for small business, with double-digit top-line growth. Our Assisted small business tax service performed well, and our DIY strategy (customizing experiences by occupation) proved highly effective in driving client growth. We also saw favorable trends in bookkeeping and payroll, as we successfully converted tax clients into users of these value-creating additional services. This momentum is a direct result of the team s commitment and execution across multiple strategic initiatives, positioning us to continue delivering favorable results. Wave, our digital platform for small businesses, had a standout year. With the full-year impact of paid products like Pro tier, Wave delivered a 13% increase in annual revenue. Spruce1, our mobile banking platform, continues to support clients in managing their finances and building better saving habits. In fiscal 2025, newly created Spruce accounts rose nearly 40%, and total customer deposits reached $1.75 billion since launch. Notably, nearly half of all deposits came from non-tax sources, including recurring payroll deposits and transfers from other accounts. Our efforts across the business have established a strong foundation for sustained growth, and in fiscal 2025, they contributed to the following financial outcomes. Total revenue grew 4.2% year-over-year, reaching approximately $3.8 billion. This growth was driven by higher net average charge (NAC) across both our Assisted and DIY channels, as well as increased company-owned Assisted return volumes. EBITDA2 was $976 million, a 1.4% improvement over the prior year. Earnings per share from continuing operations rose 6.8% to $4.42, and adjusted EPS2 increased 5.7% to $4.66, supported by share repurchases and higher net income. Q Revenue increased 13% yearover-year Q Momentum driven by paid subscription products like Pro tier Q Significant growth lever for the overall Block business H&R Block s capital allocation story remains strong. Our disciplined approach continues to drive meaningful value for shareholders as we invest in the business, grow the dividend, and through the flexibility of share repurchases, return excess capital to shareholders. During the fiscal year, we returned approximately $600 million to shareholders in the form of dividends and share repurchases. In August 2025, we were pleased to announce a 12% increase in our quarterly dividend to $0.42. Since 2016, we have more than doubled the quarterly dividend3, and over this period, the cumulative total of capital returned to shareholders has reached more than $4.5 billion. We remain confident in our ability to drive ongoing value for shareholders through our strategy and these practices. Looking Ahead As we look ahead to fiscal 2026 and beyond, our strategy remains focused on client growth, innovation, and our ongoing transformation. We operate in a stable industry with a large total addressable market, and we see significant opportunity to capture market share by delivering exceptional client experiences and leveraging technology to drive both growth and productivity. We continue to deliver consistent and sustainable growth from small business. The combination of Block Advisors and Wave enables us to offer a broad range of services from tax preparation to payroll to digital SaaS solutions. Our expertise and breadth of offerings differentiate us through the advice-forward, long-term relationships we build with small business owners. We are optimistic about small business and expect its contribution to total revenue to grow meaningfully in the years ahead. 1 Note: SpruceSM banking accounts established at, and debit card issued by, Pathward , N.A., Member FDIC, pursuant to license by Mastercard . Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. 2 All share amounts are based on weighted average fully diluted shares over the corresponding period. EBITDA and adjusted EPS are non-GAAP financial measures. A reconciliation of EBITDA and adjusted EPS to the most comparable GAAP measures can be found on pages 32 and 33 of our Annual Report on Form 10-K filed with the SEC on August 15, 2025. 3 Dividend growth is calculated as the percentage growth from our April 2016 dividend to our August 2025 dividend. 2
Savings account with interest Checking account Q Achieved $1.75B in custom mer deposits since launch Q ~40% increase in newly cre eated Spruce accounts in FY25 Q ~50% of FY25 deposit transsactio ons from non-tax sources Debit card Cash back Bill payment Budgeting Free credit score Smart tax refund We re also building on our success in serving more complex Assisted and DIY clients. These segments offer greater loyalty and lifetime value, which translates into stronger financial results. Our marketing, operations, and product teams are focused on attracting and converting these clients with precision and purpose. At the same time, we re intensifying efforts to balance volume, price, and mix, ensuring we deliver value to clients while driving sustainable growth. Enhancements to the client experience and a strong focus on conversion will support this effort in the years ahead. AI and automation will continue to play a central role in enhancing the client experience and driving operational efficiency. We re investing in tools that support both clients and tax professionals to boost productivity, expand our capacity to meet complex needs, and foster greater confidence and trust in the service experience. Lastly, franchise acquisitions remain a strategic priority. We believe there is meaningful runway for additional acquisitions at attractive EBITDA multiples, and we will continue to pursue these opportunities as part of our disciplined capital allocation strategy. In Closing As we shared in August, I will retire as President and CEO of H&R Block at the end of this calendar year. I will transition into a strategic advisor role until September 2026 to support a smooth handoff to Curtis Campbell, who will assume the role on January 1, 2026. Curtis is a proven leader with deep tax industry experience and strong alignment with Block s culture. His background in engineering and product, combined with his leadership of Global Consumer Tax, makes him the right person to lead H&R Block into its next chapter. As part of our broader succession planning, the Board and I have shaped a senior leadership team, that Curtis will lead, with deep expertise across consumer services, technology, marketing, legal, finance, and operations and the strength to confidently guide Block into the future. Also, in April the Board named Dick Johnson Chairman as part of our broader succession planning. With Dick in this role and the exceptional leadership team we ve built, Block is set up for continued success and the next phase of transformation. When I joined Block in 2017, I saw a company with incredible potential. Over the past eight years, we ve elevated our relevance, rebuilt our technology, embraced AI, and created significant shareholder value. We ve also built a high-performing, connected culture reflected in our highest associate engagement and franchise satisfaction scores in recent memory. Our success is thanks to the incredible people at Block. I m proud of our Senior Leadership Team, our associates, tax professionals and our franchisees, whose dedication and partnership have made all the difference. As I prepare to step back, I do so with immense pride and full confidence in Block s future. We have a resilient business model, a strong leadership team, and a clear strategy for growth. Thank you for your continued support and investment. It has been the honor of a lifetime to serve as your CEO. Sincerely, Jeffrey J. Jones President and Chief Executive Officer 3
 • shareholder letter icon 9/24/2025 Letter Continued (Full PDF)
 • stockholder letter icon 9/21/2023 HRB Stockholder Letter
 • stockholder letter icon 9/25/2024 HRB Stockholder Letter
 • stockholder letter icon More "Consumer Services" Category Stockholder Letters
 • Benford's Law Stocks icon HRB Benford's Law Stock Score = 74


HRB Shareholder/Stockholder Letter Transcript:

2025 Annual Report

Our Purpose
Our Vision
To provide help and inspire
confidence in our clients and
communities everywhere
To empower financial
freedom for our clients
through trust and technology
H&R Block Investment Thesis
National Scale &
Strong Brand Recognition
Stable Industry
Q
Q
Q
Business model tied
to essential tax prep
services
Consumer tax industry
has grown at a ~1% CAGR
for decades
Compelling
Financial Profile
Q
~9,000 company and
franchise offices
Q
Consistent, strong free
cash flow1
Q
~60,000 expert tax pros
and robust DIY offering
Q
Solid balance sheet and
liquidity profile
Q
Strategic investments
to support innovation
and growth
Q
Disciplined capital
allocation strategy
Steadfast and resilient
Proven Track Record
Since 2016:
Dividend
Increase3
FY25 EBITDA2
>43%
12%
Shares Outstanding
Repurchased4
>$4.5B
returned to
shareholders
Sh
h as e s
$976M
>2X
nds
e
d
rc
FY25 Total Revenue Growth
Div
i
4.2%
a re R e p
u
Quarterly Dividend Increase
1 Free cash flow is a non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less capital expenditures. The Company
believes free cash flow is useful to investors as an indication of the strength of the Company and its ability to generate cash and to evaluate the Company   s
cash generation ability relative to competitors. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.
2 EBITDA is a non-GAAP financial measure. A reconciliation of EBITDA to the most comparable GAAP measure can be found on page 32 of our Annual Report on
Form 10-K filed with the SEC on August 15, 2025.
3 Dividend increase since 2016 is calculated as the percentage growth from our April 2016 dividend to our August 2025 dividend.
4 Shares outstanding calculated as of April 30, 2016.

   2025 marked another year of meaningful
progress in our transformation journey, with
strong revenue growth, disciplined capital
allocation, and continued innovation across
our client offerings.   
Jeffrey J. Jones II
President & CEO
Dear Fellow Shareholders:
At H&R Block, we believe that when people feel confident
about their finances, they   re empowered to move forward.
As I reflect on fiscal 2025, I see that belief come to life through
the meaningful progress we made on our transformation
journey: from enhancing the client experience and investing in
innovation, to strengthening our leadership team and aligning
our associates around a shared commitment to Block   s future.
Our Vision is to empower financial freedom through trust
and technology. Our Purpose is to provide help and inspire
confidence in our clients and communities everywhere.
These principles ground our work as we continue building a
stronger foundation for H&R Block   s next chapter.
Our award-winning DIY product, the MyBlock mobile app,
and our expert review service, Tax Pro Review, continue to
position us as a leader in digital tax preparation. These tools,
combined with our unmatched retail footprint, allow us to
meet clients    tax needs however they choose: fully virtual,
fully in-person, or anywhere in between.
Marketing remains a key driver of demand, and our team
continues to focus on attracting more complex prospects
and converting them into loyal clients. We   re gaining more
surgical precision for how we attract and acquire free DIY
clients who have a greater propensity to become paying
clients over time, increasing lifetime value and strengthening
our financial mix.
A Year of Progress
Fiscal 2025 was a year of focused execution across consumer
tax, small business, financial products, and the overall Block
experience.
Our Assisted business remains a strong foundation at
H&R Block, as it has since day one. This year, revenue grew
by 6.1%, and we saw client growth in every income segment
above $80,000, with the fastest growth among clients
earning more than $100,000. These results demonstrate the
confidence more complex clients have in our ability to meet
evolving needs, choosing H&R Block for the distinct value and
trusted expertise we offer.
We also made meaningful strides in client conversion. In
Assisted, enhancements in how we welcome clients, match
them with the right tax professional, and manage their
expectations throughout the process led to higher conversion
rates for the second consecutive year. In DIY, enhancements
to AI Tax Assist led to a 13-point increase in conversion
among new clients who utilized the tool. Meaningful
outcomes like this reinforce our confidence that continued
AI innovation will elevate the value we deliver and further
strengthen our service across all channels.
Beyond consumer tax, we   ve seen strong performance in
small business, Wave, and Spruce.
In fiscal 2025:
6.1%
Assisted
Revenue
Growth
9.7%
DIY
Revenue
Growth
1

Small Business: Record Revenue Year
Q
Doubledigit small
business
revenue
growth
Q
Custom DIY
experiences
continue to
prove highly
effective
Q
Tax client
conversions
supported
bookkeeping
and payroll
growth
Fiscal 2025 was a record revenue year for small business, with
double-digit top-line growth. Our Assisted small business tax
service performed well, and our DIY strategy (customizing
experiences by occupation) proved highly effective in driving
client growth. We also saw favorable trends in bookkeeping
and payroll, as we successfully converted tax clients into
users of these value-creating additional services. This
momentum is a direct result of the team   s commitment and
execution across multiple strategic initiatives, positioning us
to continue delivering favorable results.
Wave, our digital platform for small businesses, had a
standout year. With the full-year impact of paid products like
Pro tier, Wave delivered a 13% increase in annual revenue.
Spruce1, our mobile banking platform, continues to support
clients in managing their finances and building better saving
habits. In fiscal 2025, newly created Spruce accounts rose
nearly 40%, and total customer deposits reached $1.75
billion since launch. Notably, nearly half of all deposits came
from non-tax sources, including recurring payroll deposits
and transfers from other accounts.
Our efforts across the business have established a strong
foundation for sustained growth, and in fiscal 2025, they
contributed to the following financial outcomes. Total
revenue grew 4.2% year-over-year, reaching approximately
$3.8 billion. This growth was driven by higher net average
charge (NAC) across both our Assisted and DIY channels, as
well as increased company-owned Assisted return volumes.
EBITDA2 was $976 million, a 1.4% improvement over the prior
year. Earnings per share from continuing operations rose
6.8% to $4.42, and adjusted EPS2 increased 5.7% to $4.66,
supported by share repurchases and higher net income.
Q
Revenue
increased
13% yearover-year
Q
Momentum
driven by paid
subscription
products like
Pro tier
Q
Significant
growth lever
for the overall
Block business
H&R Block   s capital allocation story remains strong. Our
disciplined approach continues to drive meaningful value
for shareholders as we invest in the business, grow the
dividend, and through the flexibility of share repurchases,
return excess capital to shareholders. During the fiscal year,
we returned approximately $600 million to shareholders
in the form of dividends and share repurchases. In August
2025, we were pleased to announce a 12% increase in our
quarterly dividend to $0.42. Since 2016, we have more than
doubled the quarterly dividend3, and over this period, the
cumulative total of capital returned to shareholders has
reached more than $4.5 billion. We remain confident in our
ability to drive ongoing value for shareholders through our
strategy and these practices.
Looking Ahead
As we look ahead to fiscal 2026 and beyond, our strategy
remains focused on client growth, innovation, and our
ongoing transformation. We operate in a stable industry
with a large total addressable market, and we see significant
opportunity to capture market share by delivering
exceptional client experiences and leveraging technology to
drive both growth and productivity.
We continue to deliver consistent and sustainable growth
from small business. The combination of Block Advisors and
Wave enables us to offer a broad range of services     from
tax preparation to payroll to digital SaaS solutions. Our
expertise and breadth of offerings differentiate us through
the advice-forward, long-term relationships we build with
small business owners. We are optimistic about small
business and expect its contribution to total revenue to
grow meaningfully in the years ahead.
1 Note: SpruceSM banking accounts established at, and debit card issued by, Pathward  , N.A., Member FDIC, pursuant to license by Mastercard  .
Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.
2 All share amounts are based on weighted average fully diluted shares over the corresponding period. EBITDA and adjusted EPS are non-GAAP financial
measures. A reconciliation of EBITDA and adjusted EPS to the most comparable GAAP measures can be found on pages 32 and 33 of our Annual Report
on Form 10-K filed with the SEC on August 15, 2025.
3 Dividend growth is calculated as the percentage growth from our April 2016 dividend to our August 2025 dividend.
2

Savings account with interest
Checking account
Q
Achieved $1.75B in custom
mer
deposits since launch
Q
~40% increase in newly cre
eated
Spruce accounts in FY25
Q
~50% of FY25 deposit transsactio
ons
from non-tax sources
Debit card
Cash back
Bill payment
Budgeting
Free credit score
Smart tax refund
We   re also building on our success in serving more complex
Assisted and DIY clients. These segments offer greater
loyalty and lifetime value, which translates into stronger
financial results. Our marketing, operations, and product
teams are focused on attracting and converting these
clients with precision and purpose.
At the same time, we   re intensifying efforts to balance
volume, price, and mix, ensuring we deliver value to clients
while driving sustainable growth. Enhancements to the
client experience and a strong focus on conversion will
support this effort in the years ahead.
AI and automation will continue to play a central role in
enhancing the client experience and driving operational
efficiency. We   re investing in tools that support both
clients and tax professionals to boost productivity, expand
our capacity to meet complex needs, and foster greater
confidence and trust in the service experience.
Lastly, franchise acquisitions remain a strategic priority.
We believe there is meaningful runway for additional
acquisitions at attractive EBITDA multiples, and we will
continue to pursue these opportunities as part of our
disciplined capital allocation strategy.
In Closing
As we shared in August, I will retire as President and CEO of
H&R Block at the end of this calendar year. I will transition
into a strategic advisor role until September 2026 to
support a smooth handoff to Curtis Campbell, who will
assume the role on January 1, 2026.
Curtis is a proven leader with deep tax industry experience
and strong alignment with Block   s culture. His background
in engineering and product, combined with his leadership
of Global Consumer Tax, makes him the right person to lead
H&R Block into its next chapter. As part of our broader
succession planning, the Board and I have shaped a senior
leadership team, that Curtis will lead, with deep expertise
across consumer services, technology, marketing, legal,
finance, and operations and the strength to confidently
guide Block into the future.
Also, in April the Board named Dick Johnson Chairman
as part of our broader succession planning. With Dick in
this role and the exceptional leadership team we   ve built,
Block is set up for continued success and the next phase of
transformation.
When I joined Block in 2017, I saw a company with incredible
potential. Over the past eight years, we   ve elevated our
relevance, rebuilt our technology, embraced AI, and
created significant shareholder value. We   ve also built a
high-performing, connected culture reflected in our highest
associate engagement and franchise satisfaction scores in
recent memory.
Our success is thanks to the incredible people at Block. I   m
proud of our Senior Leadership Team, our associates, tax
professionals and our franchisees, whose dedication and
partnership have made all the difference. As I prepare to
step back, I do so with immense pride and full confidence in
Block   s future. We have a resilient business model, a strong
leadership team, and a clear strategy for growth. Thank you
for your continued support and investment. It has been the
honor of a lifetime to serve as your CEO.
Sincerely,
Jeffrey J. Jones
President and Chief Executive Officer
3



shareholder letter icon 9/24/2025 Letter Continued (Full PDF)
 

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