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Mar 31, 2022

H&R Block Q3 2022 Earnings Report

Reported fiscal 2022 third quarter results and increased financial outlook.

Key Takeaways

H&R Block's third quarter revenue reached $2.1 billion, a 4% increase year-over-year, driven by a higher net average charge in the Assisted channel. The company raised its fiscal year 2022 outlook due to strong tax season performance and repurchased $226 million of shares in the quarter.

Total revenue increased by 4% to $2.1 billion compared to the prior year, driven by positive mix from a higher net average charge in the Assisted channel.

Operating expenses increased by 4% to $1.2 billion, primarily due to greater field compensation and marketing expenses.

Pretax income increased by $33 million to $862 million.

Earnings per share decreased to $4.06, while adjusted earnings per share was $4.11, flat compared to last year.

Total Revenue
$2.06B
Previous year: $308M
+569.0%
EPS
$4.11
Previous year: -$1.17
-451.3%
Gross Profit
$1.23B
Previous year: -$72M
-1807.7%
Cash and Equivalents
$1.04B
Previous year: $280M
+271.7%
Free Cash Flow
$1.27B
Previous year: -$448M
-384.1%
Total Assets
$3.78B
Previous year: $3.17B
+19.3%

H&R Block

H&R Block

H&R Block Revenue by Segment

Forward Guidance

The Company increased its fiscal year 2022 outlook: Revenue is now expected to be in the range of $3.375 to $3.425 billion. EBITDA is now expected to be in the range of $850 to $875 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income