olivLaw · US equity research
H&R Block, Inc. HRB
Services-Personal Services · SIC 7200 · Vertical: Services-Personal Services (SIC 7200)
H&R Block is one of the largest providers of tax return preparation services in the United States, Canada and Australia, complemented by financial products and small business solutions. Fiscal 2026 revenue was 3.95 billion USD, and the company entered fiscal 2027 with growth guidance and a policy of returning capital to shareholders.
At the close of 04 Nov 2026, H&R Block, Inc. (HRB) stock was 55.47 USD (+4.38% on the day), with market capitalisation 6.8 bn USD, P/E 9.8 on diluted EPS of 5.66 USD over the last 12 months, dividend yield 3.03%, beta 0.07, 52-week range 28.34–55.47 USD. Latest reported quarter (Q4 2026): revenue of 1.1 bn USD (+3.0% YoY), net income of 293.7 m USD (−1.9% YoY), diluted EPS 2.31 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 74.3
- overbought (≥ 70)
- Bollinger (20, 2)
- 42.50 – 54.59
- above the upper band · %B 1.07 · band width 24.9%
- SMA 50 / 200
- 46.75 / 39.32
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.10 / 1.40
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +32.1% | −1.1% | +33.2 pp | — |
| 3 months | +20.9% | −0.5% | +21.4 pp | — |
| 6 months | +89.2% | +4.4% | +84.8 pp | — |
| Year to date | +27.3% | +12.3% | +15.0 pp | — |
| 1 year | +11.0% | +13.5% | −2.6 pp | −19.1% |
| 3 years | +30.0% | +76.4% | −46.4 pp | −16.0% |
| 5 years | +119.8% | +63.7% | +56.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 193.8 m | 179.1 m | 2.3 bn | 1.1 bn | 203.6 m | 198.9 m | 2.4 bn | 1.1 bn |
| Cost of revenue | 269.6 m | 314.2 m | 969.4 m | 532.9 m | 274.0 m | 339.9 m | 1.0 bn | 550.5 m |
| SG&A | 152.6 m | 158.2 m | 329.4 m | 206.8 m | 136.6 m | 157.8 m | 329.3 m | 217.6 m |
| Depreciation & amortisation | 28.8 m | 29.2 m | 29.2 m | 29.6 m | 28.9 m | 30.0 m | 31.5 m | 32.0 m |
| Interest expense | 15.8 m | 21.8 m | 24.7 m | 15.8 m | 17.4 m | 23.4 m | 24.3 m | 15.5 m |
| Pre-tax income | -232.3 m | -312.3 m | 958.2 m | 367.8 m | -216.3 m | -319.2 m | 1.0 bn | 373.0 m |
| Income tax | -60.8 m | -69.8 m | 235.3 m | 67.4 m | -51.0 m | -77.7 m | 167.7 m | 78.5 m |
| Net income | -172.6 m | -243.4 m | 722.3 m | 299.4 m | -165.8 m | -242.2 m | 847.9 m | 293.7 m |
| Diluted EPS | -1.24 | -1.80 | 5.31 | 2.21 ≈ | -1.26 | -1.92 | 6.60 | 2.31 ≈ |
| Operating cash flow | -328.6 m | -567.1 m ≈ | 1.3 bn ≈ | 251.6 m | -356.8 m | -614.0 m ≈ | 1.6 bn ≈ | 252.0 m |
| Capex | 18.7 m | 30.4 m ≈ | 22.7 m ≈ | 10.3 m | 13.2 m | 35.5 m ≈ | 18.4 m ≈ | 15.5 m |
| Dividends paid | 44.7 m | 52.3 m ≈ | 50.2 m ≈ | 50.2 m | 50.2 m | 54.3 m ≈ | 53.2 m ≈ | 53.2 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 21 percentile of its own 38-quarter history (min 3.7, median 12.5, max 50.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 2.6 bn | 3.4 bn | 3.5 bn | 3.5 bn | 3.6 bn | 3.8 bn | 3.9 bn |
| Revenue YoY | −2.1% | −14.7% | +29.3% | +1.4% | +0.3% | +4.0% | +4.2% | +4.9% |
| Net income | 422.5 m | -7.5 m | 583.8 m | 553.7 m | 553.7 m | 595.3 m | 605.8 m | 733.6 m |
| Net income YoY | −31.1% | −101.8% | unavailable | −5.2% | +0.0% | +7.5% | +1.8% | +21.1% |
| Diluted EPS | 2.04 | -0.04 | 3.08 | 3.22 | 3.51 | 4.12 | 4.39 | 5.66 |
| Diluted EPS YoY | −29.9% | −102.0% | unavailable | +4.5% | +9.0% | +17.4% | +6.6% | +28.9% |
| net % | 13.7% | -0.3% | 17.1% | 16.0% | 15.9% | 16.5% | 16.1% | 18.6% |
| Free cash flow | 511.0 m | 27.3 m | 573.1 m | 746.6 m | 752.1 m | 657.2 m | 598.8 m | 756.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 958.7 m USD
- Financial debt
- 1.5 bn USD
- Net debt
- 532.8 m USD
- Equity
- 117.5 m USD
- Total assets
- 3.3 bn USD
- Debt / equity
- 12.69x
- Current ratio
- 1.13x
- ROE
- 710.9%
- ROA
- 22.5%
- FCF margin
- 19.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.4 bn | 3.5 bn | 3.5 bn | 3.6 bn | 3.8 bn | 3.9 bn | SEC (XBRL)· 14 Aug 2026verified |
| Cost of revenue | 1.8 bn | 1.9 bn | 1.9 bn | 2.0 bn | 2.1 bn | 2.2 bn | SEC (XBRL)· 14 Aug 2026verified |
| Gross profit | 1.6 bn ≈ | 1.6 bn ≈ | 1.5 bn ≈ | 1.6 bn ≈ | 1.7 bn ≈ | 1.7 bn ≈ | SEC (XBRL)· 14 Aug 2026derived |
| SG&A | 802.3 m | 837.1 m | 800.0 m | 813.5 m | 846.9 m | 841.3 m | SEC (XBRL)· 14 Aug 2026verified |
| Depreciation & amortisation | 156.9 m | 142.2 m | 130.5 m | 121.8 m | 116.8 m | 122.4 m | SEC (XBRL)· 14 Aug 2026verified |
| Interest expense | 106.9 m | 88.3 m | 73.0 m | 79.1 m | 78.1 m | 80.6 m | SEC (XBRL)· 14 Aug 2026verified |
| Pre-tax income | 762.3 m | 659.1 m | 711.2 m | 762.3 m | 781.4 m | 853.9 m | SEC (XBRL)· 14 Aug 2026verified |
| Income tax | 164.4 m | 98.4 m | 149.4 m | 164.4 m | 172.0 m | 117.6 m | SEC (XBRL)· 14 Aug 2026verified |
| Net income | 583.8 m | 553.7 m | 553.7 m | 595.3 m | 605.8 m | 733.6 m | SEC (XBRL)· 14 Aug 2026verified |
| Diluted EPS | 3.08 | 3.22 | 3.51 | 4.12 | 4.39 | 5.66 | SEC (XBRL)· 14 Aug 2026verified |
| Weighted average diluted shares | 188.8 m | 171.4 m | 157.2 m | 143.9 m | 137.3 m | 128.9 m | SEC (XBRL)· 14 Aug 2026verified |
| Dividend per share | 0.27 | 1.08 | 1.16 | 1.28 | 1.50 | 1.68 | SEC (XBRL)· 14 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 934.3 m | 885.0 m | 987.0 m | 1.1 bn | 983.3 m | 958.7 m | SEC (XBRL)· 14 Aug 2026verified |
| Receivables | 197.9 m | 58.4 m | 60.0 m | 69.1 m | 63.6 m | 58.2 m | SEC (XBRL)· 14 Aug 2026verified |
| Current assets | 1.7 bn | 1.4 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.1 bn | SEC (XBRL)· 14 Aug 2026verified |
| Property, plant & equipment, net | 148.5 m | 123.9 m | 130.0 m | 131.3 m | 135.1 m | 141.5 m | SEC (XBRL)· 14 Aug 2026verified |
| Goodwill | 757.7 m | 760.4 m | 775.5 m | 785.2 m | 802.1 m | 812.5 m | SEC (XBRL)· 14 Aug 2026verified |
| Intangibles (excl. goodwill) | 360.1 m | 309.6 m | 277.0 m | 264.1 m | 259.4 m | 267.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Total assets | 3.7 bn | 3.3 bn | 3.1 bn | 3.2 bn | 3.3 bn | 3.3 bn | SEC (XBRL)· 14 Aug 2026verified |
| Accounts payable | 198.1 m | 160.9 m | 159.9 m | 155.8 m | 144.0 m | 156.3 m | SEC (XBRL)· 14 Aug 2026verified |
| Short-term debt | 0 | 0 | 0 | 0 | 349.9 m | 0 | SEC (XBRL)· 14 Aug 2026verified |
| Long-term debt | 1.5 bn | 1.5 bn | 1.5 bn | 1.5 bn | 1.1 bn | 1.5 bn | SEC (XBRL)· 14 Aug 2026verified |
| Current liabilities | 1.2 bn | 998.8 m | 938.8 m | 977.3 m | 1.3 bn | 993.4 m | SEC (XBRL)· 14 Aug 2026verified |
| Total liabilities | 3.3 bn | 3.1 bn | 3.0 bn | 3.1 bn | 3.2 bn | 3.1 bn | SEC (XBRL)· 14 Aug 2026verified |
| Equity | 352.4 m † | 211.6 m † | 32.1 m † | 90.6 m † | 88.9 m † | 117.5 m † | SEC (XBRL)· 14 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 625.9 m | 808.5 m | 821.8 m | 720.9 m | 680.9 m | 838.7 m | SEC (XBRL)· 14 Aug 2026verified |
| Capex | 52.8 m | 62.0 m | 69.7 m | 63.7 m | 82.0 m | 82.6 m | SEC (XBRL)· 14 Aug 2026verified |
| Free cash flow | 573.1 m ≈ | 746.6 m ≈ | 752.1 m ≈ | 657.2 m ≈ | 598.8 m ≈ | 756.1 m ≈ | SEC (XBRL)· 14 Aug 2026derived |
| Investing cash flow | -45.5 m | -76.5 m | -101.4 m | -93.9 m | -105.4 m | -124.8 m | SEC (XBRL)· 14 Aug 2026verified |
| Financing cash flow | -2.4 bn | -1.3 bn | -751.0 m | -564.3 m | -647.4 m | -734.2 m | SEC (XBRL)· 14 Aug 2026verified |
| Dividends paid | 195.1 m | 186.5 m | 177.9 m | 179.8 m | 197.3 m | 211.0 m | SEC (XBRL)· 14 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 78 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.8 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation92
- Returns66
- Quality95
- Balance sheet28
- Growth68
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 22.08 – 172.19 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)91.93 – 150.08 (Mid 113.85)WACC 8.6% · starting FCFF 825.6 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -22.7%
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E66.29 – 172.19 (Mid 74.61)7 companies used · median multiple 13.2x · quartiles 11.7x – 30.4xCSV, EVI, RGS, SCI, UNF, WW, YELP
- Dividend discount (DDM)22.08 – 29.69 (Mid 25.32)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 78/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 18.6% | 90 (vs peers) | 10% |
| FCF conversion · Quality | 103.1% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 4.4% | 36 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 17.3% | 100 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.1x | 28 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 9.8x | 86 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 11.1% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 3.1% | 44 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 27.9% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial28/100 · 1/3 factors with a value
- Growth68/100 · 2/2 factors with a value
- Quality95/100 · 2/3 factors with a value
- Returns66/100 · 2/2 factors with a value
- Valuation92/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
H&R BLOCK INC (HRB). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 3.9 bn USD in 2026; YoY growth 4.9%; net margin 18.6%; ROE 710.9%.
The estimated value range is 66.29–150.08 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 74.61 USD, the price of 55.47 USD leaves a potential of 34.5% (value / price − 1) and a margin of safety of 25.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 78/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 18.6%
- FCF conversion: 103.1%
- EPS CAGR 3Y: 17.3%
- P/E (TTM): 9.8x
- FCF yield: 11.1%
- Payout ratio (FCF): 27.9%
- The price is below the estimated value range
What contradicts it
- Current ratio: 1.1x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Services-Personal Services (SIC 7200) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SCIService Corporation International | 10.5 bn | 19.2 | 35.7% | 12.7% | +2.9% | −3% / +26% |
| HRBH&R Block Inc | 6.8 bn | 9.8 | 710.9% | 18.6% | +4.9% | +11% / +30% |
| YELPYelp Inc | 1.2 bn | 10.6 | 18.2% | 8.6% | +3.7% | −24% / −50% |
| CSVCarriage Services, Inc. | 571.4 m | 12.8 | 17.3% | 10.7% | +3.3% | −17% / +59% |
| EVIEVI Industries, Inc. | 282.3 m | 45.3 | 5.3% | 1.7% | +14.6% | +6% / −16% |
| WWWw International, Inc. | 121.3 m | 0.1 | 332.6% | 148.1% | −11.6% | −57% / unavailable |
| RGSRegis Corporation | 79.4 m | 13.2 | 3.7% | 3.1% | +6.8% | +18% / +362% |
| DLPNDolphin Entertainment, Inc. | 12.2 m | — | -51.6% | -6.3% | +9.7% | −42% / −70% |
| XWELXWELL, Inc. | 5.1 m | — | — | -82.9% | −13.8% | −21% / −75% |
| MRMMedirom Healthcare Technologies Inc. | — | — | 26.0% | 1.8% | +21.5% | −85% / −94% |
| UNFUnifirst Corporation | — | 41.7 | 5.0% | 4.3% | +3.7% | +45% / +45% |
1- and 3-year price returns: for HRB from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 34.42 Total return -35% · Per year -35% | 60.86 Total return 13% · Per year 13% | 91.68 Total return 69% · Per year 69% |
| 3 years | 33.31 Total return -33% · Per year -12% | 66.27 Total return 30% · Per year 9% | 109.63 Total return 111% · Per year 28% |
| 5 years | 32.23 Total return -30% · Per year -7% | 72.17 Total return 48% · Per year 8% | 131.09 Total return 160% · Per year 21% |
- Exit P/E± 16.57
- Net margin± 11.60
- Annual revenue growth± 9.53
- Annual dilution± 0.97
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
H&R Block is one of the largest providers of tax return preparation services in the United States, Canada and Australia, complemented by financial products and small business solutions. Fiscal 2026 revenue was 3.95 billion USD, and the company entered fiscal 2027 with growth guidance and a policy of returning capital to shareholders.
SWOT
Strengths
- The network of company-owned and franchise offices, a well-known brand and a large filing volume give scale that is hard to match.
- The company generates significant operating cash flow and has a consistent policy of returning capital to shareholders.
- Diversification into financial products, small business services and international markets reduces reliance on any single product.
Weaknesses
- The business is highly seasonal, causing losses in early quarters and a need for short-term funding.
- Franchise royalty revenue declined and financial services contracted in fiscal 2026.
- Seasonal staffing and office occupancy costs could grow faster than revenue if volumes fall.
Opportunities
- Growth in Wave and expansion of small business services could add recurring revenue if the acquisition strategy works.
- Artificial intelligence and automation could improve productivity and client experience if implemented effectively.
- Acquiring franchise offices could increase control over revenue and margins if integration goes well.
Threats
- Simplified filing or government pre-populated returns could reduce demand for paid preparation.
- Free programs from government and competitors could erode pricing and market share.
- Increasingly sophisticated fraud, including AI-enabled schemes, could create costs and reputational damage.
Risks
- Changes in tax lawhigh
Changes to tax rules or IRS procedures could reduce demand and fees for services, with a material effect on results.
- Competition and free offeringshigh
Free offerings and price pressure could reduce market share and margins, especially in the DIY segment.
- Economic downturnmedium
Recession, unemployment and high inflation could lead clients to skip filing or choose cheaper alternatives.
- Fraud and data securitymedium
Unauthorized access to accounts using stolen identity information could harm reputation and create additional costs.
- Execution of growth strategymedium
The new strategy and acquisitions might not deliver expected growth if integration or resource allocation is weak.
Investment thesis
What would need to be true (bull case)
- Growth in revenue, margins and operating cash flow in fiscal 2026 suggests the current strategy can work if the trend holds.
- Fiscal 2027 guidance and the dividend increase suggest management confidence in the company's cash generation.
- A leading position in tax preparation and a broad office network could strengthen market share against a fragmented field of competitors.
What would break the thesis
- Dependence on tax legislation and seasonality makes revenue vulnerable to regulatory change or lower demand.
- Part of the fiscal 2026 profit growth came from a one-time tax benefit, which could make future results look more modest.
- Pressure from free programs and technology could limit growth in fees and volume over time.
What to watch
- Delivery of fiscal 2027 revenue and adjusted EPS guidance2027
- Trends in assisted and DIY return volumes during the tax seasonQ1 2027
- Results of integrating acquired franchise offices and Wave growthnext 10-K
- Legislative changes on pre-populated returns and IRS free filing programs2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
H&R Block offers assisted and do-it-yourself (DIY) tax preparation through company-owned and franchise offices, online, mobile and virtual channels. The company also offers financial products tied to tax returns, such as refund transfers, the Emerald Prepaid Mastercard and the Spruce app, plus small business services through Block Advisors and Wave. In fiscal 2026 it prepared 11.3 million assisted U.S. tax returns and 3.6 million DIY online paid returns 1.
The company runs a mixed workforce of approximately 4.6 thousand regular full-time associates and a peak headcount of about 73.4 thousand including seasonal staff 1. Franchisees pay the company royalties of approximately 30% of gross U.S. tax preparation revenue 1.
Segments
Financial services
Refund-linked products, prepaid cards and short-term loans are offered through a bank partner and generate smaller revenue that fell slightly. Financial services revenue declined 2.3% in fiscal 2026 1.
Market context
The tax return preparation industry is highly competitive and fragmented, with accounting firms, software providers, independent preparers and government bodies competing on price and service. The market is affected by tax law changes, state initiatives to simplify filing and free programs that could reduce demand for paid services 1. In fiscal 2026 the company filed or was involved in 22.3 million returns 1.
Guidance for fiscal 2027 calls for revenue between 4.11 and 4.16 billion USD, pointing to continued moderate growth if current trends hold 2. Sensitivity to the economic cycle remains, since recession and high unemployment can reduce filings or push clients toward cheaper alternatives 1.
Trends
- Growth in assisted tax preparationtailwind
Assisted revenue rose in fiscal 2026, supported by a higher net average charge and company-owned office volume. This is a favorable trend if pricing power holds.
- Capital return policymixed
The company repurchased shares and raised its quarterly dividend by 10%, which supports income-oriented investors but uses cash that could otherwise fund other priorities.
- Pressure from free offerings and automationheadwind
Government free filing programs, if reinstated or expanded, and AI-driven technology could reduce the need for paid preparation.
- Growth through franchise office acquisitionsmixed
Buying franchise offices increases preparation revenue but lowers royalties, so the net effect depends on the volume and pricing of those offices.
Competitive position
Competition comes from accounting firms, independent preparers, online and mobile software providers, and government or volunteer organizations offering free returns. The company differentiates through its physical office network, its accuracy guarantee and its associated financial products 1.
In the DIY and small business segments pressure is on price and functionality, and competitors may match free offerings. The company acknowledged it cannot assure it will keep its full market share or margins 1.
- Intuit (TurboTax)INTU
Major provider of DIY tax software and business services, competing directly in the online segment.
- Online and mobile tax software providers
Applications and platforms offering DIY preparation, often at low or no cost, cited among the company's risks 1.
- Accounting firms and CPAs
Compete for clients with complex tax situations and for small business owners, especially for assisted preparation 1.
- Tax authorities and volunteer organizations
Offer or facilitate free returns, which could reduce demand for paid services as described by the company 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- H&R Block (HRB) Uses AI to Drive ValueYahoo Finance — News · 15 Sept 2026 · EN
- H&R Block CEO Sells Over 2,800 Shares After the Stock Hit a 52-Week HighYahoo Finance — News · 02 Sept 2026 · EN
The latest news item in our archive is from 15 Sept 2026; the newest SEC filing is from 29 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Proxy statement29 Sept 2026
- Current report14 Aug 2026Departure or appointment of officers
- Annual report14 Aug 2026
- Current report11 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Quarterly report05 Feb 2026
- Current report03 Feb 2026Results of operations · Financial statements and exhibits
- Current report22 Jan 2026Departure or appointment of officers · Financial statements and exhibits
- Current report10 Nov 2025Shareholder vote
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / H&R Block, Inc. · 14 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / H&R Block, Inc. · 11 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.