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Mar 31
H&R Block Q3 2025 Earnings Report
H&R Block reported a solid Q3 2025 with increased revenue, earnings, and net income from continuing operations.
Key Takeaways
H&R Block achieved a 4.2% year-over-year revenue increase in Q3 2025, with net income rising to $722.9 million and EPS hitting $5.32. The company maintained strong operating margins and reaffirmed its FY25 outlook.
Revenue increased 4.2% year-over-year to $2.28 billion, driven by higher net average charge and increased U.S. return volume.
Net income from continuing operations grew 4.5% to $722.9 million.
Adjusted EPS rose 8.9% to $5.38 due to higher net income and share repurchases.
H&R Block reaffirmed its full-year 2025 guidance, reflecting confidence in continued operational performance.
H&R Block
H&R Block
H&R Block Revenue by Segment
H&R Block Revenue by Geographic Location
Revenue by Segment
U.S. Assisted Tax Prep Revenue
CapyFin.comU.S. Royalties Revenue
CapyFin.comU.S. DIY Tax Prep Revenue
CapyFin.comRefund Transfers Revenue
CapyFin.comPeace of Mind Plan Revenue
CapyFin.comTax Identity Shield Revenue
CapyFin.comOther Revenue
CapyFin.comEmerald Card & Spruce Revenue
CapyFin.comEmerald Advance Interest & Fees Revenue
CapyFin.comInternational Revenue
CapyFin.comWave Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
H&R Block reaffirmed its FY25 guidance, projecting revenue between $3.69 and $3.75 billion and adjusted EPS between $5.15 and $5.35.
Positive Outlook
- Reaffirmed FY25 revenue guidance of $3.69–$3.75 billion.
- Adjusted EPS forecast remains strong at $5.15–$5.35.
- Expected effective tax rate around 13%, boosting EPS by ~$0.50.
- Continued momentum in client volume and satisfaction in Assisted channel.
- Robust capital return strategy with $1.1 billion remaining in buyback authorization.
Challenges Ahead
- International revenue declined year-over-year.
- Emerald Advance fee income dropped compared to prior year.
- Operating expenses rose due to increased wages and benefits.
- Slight decrease in revenue from Refund Transfers.
- Continued decline in Tax Identity Shield and Peace of Mind Plan revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income