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Apr 30, 2020

H&R Block Q4 2020 Earnings Report

H&R Block's Q4 performance was impacted by COVID-19 and the extension of the U.S. federal tax filing deadline, resulting in lower revenue and earnings compared to the prior year.

Key Takeaways

H&R Block reported fiscal year 2020 results, which were negatively impacted by the COVID-19 pandemic and the extension of the U.S. federal tax filing deadline. The company ended the year with $2.7 billion in cash and announced a quarterly dividend of $0.26 per share. An update on full tax season results will be included in the fiscal 2021 first quarter earnings call.

Total revenues decreased due to lower U.S. tax return volumes, partially offset by the addition of Wave.

COVID-19 pandemic impacted Wave's client volumes and revenues, leading to a goodwill impairment of $106.0 million.

Total operating expenses increased primarily due to the impairment of Wave's goodwill, Wave's operating expenses, legal fees, and planned investments in technology.

The company announced a quarterly cash dividend of $0.26 per share.

Total Revenue
$1.81B
Previous year: $2.33B
-22.4%
EPS
$3.01
Previous year: $4.32
-30.3%
Adj. EBITDA Margin
45.3%
Gross Profit
$1.04B
Previous year: $1.47B
-29.1%
Cash and Equivalents
$2.66B
Previous year: $1.57B
+69.3%
Free Cash Flow
$1.56B
Previous year: $1.94B
-19.4%
Total Assets
$5.11B
Previous year: $3.3B
+54.9%

H&R Block

H&R Block

H&R Block Revenue by Segment

Forward Guidance

H&R Block did not provide forward guidance in this earnings report. The focus is on executing during the first quarter and navigating the difficult time caused by the pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income