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Dec 31, 2025
H&R Block Q2 2026 Earnings Report
H&R Block reported an 11% increase in revenue for the second quarter of fiscal year 2026, driven by growth in assisted tax preparation, Wave subscription revenue, and DIY software sales, while reaffirming its full-year outlook.
Key Takeaways
H&R Block, Inc. announced its financial results for the fiscal 2026 second quarter, ending December 31, 2025, reporting a total revenue of $198.9 million, an 11.1% increase from the prior year. The company's net loss from continuing operations improved slightly by 0.4% to ($241.6) million. The growth was primarily attributed to higher volume and net average charge in the assisted category, strong growth in Wave subscription revenue and payments volume, and increased DIY software sales. The company reaffirmed its full-year outlook for fiscal 2026.
Total revenue for the second quarter increased by 11.1% to $198.9 million compared to the prior year.
Net loss from continuing operations improved by 0.4% to ($241.6) million.
The increase in revenue was primarily driven by higher volume and net average charge in the assisted category, strong growth in Wave subscription revenue and payments volume, and increased DIY software sales.
Total operating expenses increased by 5.4% to $497.7 million, mainly due to higher field wages and increased consulting costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
H&R Block reaffirmed its full-year fiscal 2026 outlook, expecting revenue between $3.875 billion and $3.895 billion, EBITDA between $1.015 billion and $1.035 billion, an effective tax rate of approximately 25%, and adjusted diluted EPS between $4.85 and $5.00.
Positive Outlook
- Revenue is expected to be in the range of $3.875 billion to $3.895 billion.
- EBITDA is projected to be in the range of $1.015 billion to $1.035 billion.
- Adjusted Diluted Earnings Per Share is anticipated to be in the range of $4.85 to $5.00.
- The company's client-first strategy and disciplined execution are expected to drive durable growth and long-term value.
- Tangible improvements in tax professional assistance and award-winning online tax products are expected to elevate value for clients.
Challenges Ahead
- The business is highly seasonal, with the second quarter historically contributing modestly to annual revenue and typically generating a net loss.
- Future period non-GAAP outlook includes adjustments for items not indicative of core operations, which may be significant and not currently determinable.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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