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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	March 31, 2026
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission file number 1-06089

H&R Block, Inc.

(Exact name of registrant as specified in its charter)


Missouri						44-0607856
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

One H&R Block Way, Kansas City, Missouri 64105

(Address of principal executive offices, including zip code)

(816) 854-3000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, without par value	HRB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

The number of shares outstanding of the registrant's Common Stock, without par value, at the close of business on April 30, 2026: 126,760,207 shares.

Table of Contents

Form 10-Q for the Period ended March 31, 2026

Table of Contents


	PART I
Item 1.	Consolidated Statements of Operations and Comprehensive Income Three and nine months ended March 31, 2026 and 2025	1
	Consolidated Balance Sheets As of March 31, 2026 and June 30, 2025	2
	Consolidated Statements of Cash Flows Nine months ended March 31, 2026 and 2025	3
	Consolidated Statements of Stockholders' Equity Three and nine months ended March 31, 2026 and 2025	4
	Notes to Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
	PART II
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	29
	Signatures	30

Table of Contents

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME:					(unaudited, in 000s, except per share amounts)
	Three months ended March 31,				Nine months ended March 31,
	2026		2025		2026		2025
REVENUES:
Service revenues	$	2,226,323	$	2,099,481	$	2,586,213	$	2,434,220
Royalty, product and other revenues	171,784		177,623		214,310		215,764
	2,398,107		2,277,104		2,800,523		2,649,984
OPERATING EXPENSES:
Costs of revenues	1,031,951		969,392		1,645,887		1,553,182
Selling, general and administrative	329,332		329,399		623,722		640,111
Total operating expenses	1,361,283		1,298,791		2,269,609		2,193,293

Other income (expense), net	3,941		4,554		15,077		19,215
Interest expense on borrowings	(24,307)		(24,686)		(65,087)		(62,285)
Income from continuing operations before income taxes	1,016,458		958,181		480,904		413,621
Income taxes	167,678		235,253		39,058		104,580
Net income from continuing operations	848,780		722,928		441,846		309,041
Net loss from discontinued operations, net of tax benefits of $263, $180, $576, and $811	(879)		(598)		(1,930)		(2,707)
NET INCOME	$	847,901	$	722,330	$	439,916	$	306,334
BASIC EARNINGS PER SHARE:
Continuing operations	$	6.66	$	5.38	$	3.43	$	2.26
Discontinued operations	—		(0.01)		(0.02)		(0.02)
Consolidated	$	6.66	$	5.37	$	3.41	$	2.24
DILUTED EARNINGS PER SHARE:
Continuing operations	$	6.61	$	5.32	$	3.40	$	2.23
Discontinued operations	(0.01)		(0.01)		(0.02)		(0.02)
Consolidated	$	6.60	$	5.31	$	3.38	$	2.21




DIVIDENDS DECLARED PER SHARE	$	0.42	$	0.375	$	1.26	$	1.125
COMPREHENSIVE INCOME:
Net income	$	847,901	$	722,330	$	439,916	$	306,334



Change in foreign currency translation adjustments	(4,008)		445		(7,591)		(22,472)
Other comprehensive income (loss)	(4,008)		445		(7,591)		(22,472)
Comprehensive income	$	843,893	$	722,775	$	432,325	$	283,862

See accompanying notes to consolidated financial statements.


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			1

Table of Contents


CONSOLIDATED BALANCE SHEETS	(unaudited, in 000s, except share and per share amounts)
As of	March 31, 2026		June 30, 2025
ASSETS
Cash and cash equivalents	$	867,008	$	983,277
Cash and cash equivalents - restricted	19,737		19,862
Receivables, less allowance for credit losses of $53,638 and $55,775	297,636		63,621

Prepaid expenses and other current assets	104,102		95,788
Total current assets	1,288,483		1,162,548
Property and equipment, at cost, less accumulated depreciation and amortization of $880,616 and $828,744	147,694		135,068
Operating lease right of use assets	522,885		521,215
Intangible assets, net	275,966		259,412
Goodwill	815,620		802,053
Deferred tax assets and income taxes receivable	270,090		317,691
Other noncurrent assets	70,980		65,911
Total assets	$	3,391,718	$	3,263,898
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and accrued expenses	$	303,595	$	144,046
Accrued salaries, wages and payroll taxes	299,695		107,375
Accrued income taxes and reserves for uncertain tax positions	262,533		296,244
Current portion of long-term debt	—		349,893
Operating lease liabilities	209,269		209,203
Deferred revenue and other current liabilities	219,321		191,849
Total current liabilities	1,294,413		1,298,610
Long-term debt	1,490,933		1,143,305
Deferred tax liabilities and reserves for uncertain tax positions	187,707		306,134
Operating lease liabilities	325,561		322,847
Deferred revenue and other noncurrent liabilities	117,476		104,106
Total liabilities	3,416,090		3,175,002
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par, stated value $0.01 per share, 800,000,000 shares authorized, shares issued of 156,506,438 and 164,367,434	1,565		1,644
Additional paid-in capital	776,872		766,998
Accumulated other comprehensive loss	(55,346)		(47,755)
Retained earnings (deficit)	(110,471)		12,061
Less treasury shares, at cost, of 29,746,662 and 30,420,033	(636,992)		(644,052)
Total stockholders' equity (deficiency)	(24,372)		88,896
Total liabilities and stockholders' equity	$	3,391,718	$	3,263,898

See accompanying notes to consolidated financial statements.


2			Q3 FY2026 Form 10-Q\| H&R Block, Inc.

Table of Contents


CONSOLIDATED STATEMENTS OF CASH FLOWS	(unaudited, in 000s)
Nine months ended March 31,	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	439,916	$	306,334
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	90,442		87,247
Provision for credit losses	57,523		56,042
Deferred taxes	3,044		(12,503)
Stock-based compensation	22,177		25,420

Changes in assets and liabilities, net of acquisitions:

Receivables	(289,209)		(335,605)
Prepaid expenses, other current and noncurrent assets	(17,548)		(7,504)

Accounts payable, accrued expenses, salaries, wages and payroll taxes	340,925		240,246

Deferred revenue, other current and noncurrent liabilities	41,186		20,684

Income tax receivables, accrued income taxes and income tax reserves	(99,767)		50,049
Other, net	(1,972)		(1,088)
Net cash provided by operating activities	586,717		429,322
CASH FLOWS FROM INVESTING ACTIVITIES:



Capital expenditures	(67,144)		(71,784)
Payments made for business acquisitions, net of cash acquired	(55,047)		(35,323)



Franchise loans funded	(18,201)		(21,455)
Payments from franchisees	16,503		11,478

Other, net	1,329		6,194
Net cash used in investing activities	(122,560)		(110,890)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of line of credit borrowings	(2,375,000)		(1,950,000)
Proceeds from line of credit borrowings	2,375,000		1,950,000
Repayments of long-term debt	(350,000)		—
Proceeds from issuance of long-term debt	346,980		—


Dividends paid	(157,766)		(147,136)
Repurchase of common stock, including shares surrendered	(412,686)		(436,516)

Other, net	(6,009)		(11,854)
Net cash used in financing activities	(579,481)		(595,506)
Effects of exchange rate changes on cash	(1,070)		(8,429)
Net decrease in cash and cash equivalents, including restricted balances	(116,394)		(285,503)
Cash, cash equivalents and restricted cash, beginning of period	1,003,139		1,075,193
Cash, cash equivalents and restricted cash, end of period	$	886,745	$	789,690
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net (includes payments for purchased investment tax credits)	$	135,460	$	65,505
Interest paid on borrowings	76,480		63,251


Accrued additions to property and equipment	2,020		2,448
New operating right of use assets and related lease liabilities	182,343		135,372
Accrued dividends payable to common shareholders	53,239		50,194

See accompanying notes to consolidated financial statements.


H&R Block, Inc. \| Q3 FY2026 Form 10-Q			3

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY					(amounts in 000s, except per share amounts)
	Common Stock			Additional Paid-in Capital	Accumulated Other Comprehensive Loss(1)		Retained Earnings (Deficit)		Treasury Stock			Total Stockholders’ Equity
	Shares	Amount									Shares			Amount
Balances as of July 1, 2025	164,367	$	1,644		$	766,998	$	(47,755)	$	12,061	(30,420)	$	(644,052)		$	88,896
Net loss	—	—			—		—		(165,819)		—	—			(165,819)
Other comprehensive loss	—	—			—		(9,308)		—		—	—			(9,308)
Stock-based compensation	—	—			6,172		—		—		—	—			6,172
Stock-based awards exercised or vested	—	—			(10,551)		—		(1,797)		579	12,255			(93)
Acquisition of treasury shares(2)	—	—			—		—		—		(244)	(12,297)			(12,297)
Repurchase and retirement of common shares	(7,861)	(79)			(4,638)		—		(399,401)		—	—			(404,118)


Cash dividends declared - $0.42 per share	—	—			—		—		(54,343)		—	—			(54,343)
Balances as of September 30, 2025	156,506	$	1,565		$	757,981	$	(57,063)	$	(609,299)	(30,085)	$	(644,094)		$	(550,910)
Net loss	—	—			—		—		(242,166)		—	—			(242,166)
Other comprehensive income	—	—			—		5,725		—		—	—			5,725
Stock-based compensation	—	—			7,625		—		—		—	—			7,625
Stock-based awards exercised or vested	—	—			2,925		—		(160)		342	7,328			10,093
Acquisition of treasury shares(2)	—	—			—		—		—		(5)	(230)			(230)



Cash dividends declared - $0.42 per share	—	—			—		—		(53,215)		—	—			(53,215)
Balances as of December 31, 2025	156,506	$	1,565		$	768,531	$	(51,338)	$	(904,840)	(29,748)	$	(636,996)		$	(823,078)
Net income	—	—			—		—		847,901		—	—			847,901
Other comprehensive loss	—	—			—		(4,008)		—		—	—			(4,008)
Stock-based compensation	—	—			8,379		—		—		—	—			8,379
Stock-based awards exercised or vested	—	—			(38)		—		(293)		3	45			(286)
Acquisition of treasury shares(2)	—	—			—		—		—		(1)	(41)			(41)



Cash dividends declared - $0.42 per share	—	—			—		—		(53,239)		—	—			(53,239)
Balances as of March 31, 2026	156,506	$	1,565		$	776,872	$	(55,346)	$	(110,471)	(29,746)	$	(636,992)		$	(24,372)


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					(amounts in 000s, except per share amounts)
	Common Stock			Additional Paid-in Capital	Accumulated Other Comprehensive Loss(1)		Retained Earnings (Deficit)		Treasury Stock			Total Stockholders’ Equity
	Shares	Amount									Shares			Amount
Balances as of July 1, 2024	170,916	$	1,709		$	762,583	$	(48,845)	$	12,654	(31,325)	$	(637,507)		$	90,594
Net loss	—	—			—		—		(172,576)		—	—			(172,576)
Other comprehensive income	—	—			—		6,117		—		—	—			6,117
Stock-based compensation	—	—			7,463		—		—		—	—			7,463
Stock-based awards exercised or vested	—	—			(23,990)		—		(2,611)		1,319	26,848			247
Acquisition of treasury shares(2)	—	—			—		—		—		(567)	(35,882)			(35,882)
Repurchase and retirement of common shares	(3,301)	(33)			(1,980)		—		(209,708)		—	—			(211,721)


Cash dividends declared - $0.375 per share	—	—			—		—		(52,307)		—	—			(52,307)
Balances as of September 30, 2024	167,615	$	1,676		$	744,076	$	(42,728)	$	(424,548)	(30,573)	$	(646,541)		$	(368,065)
Net loss	—	—			—		—		(243,420)		—	—			(243,420)
Other comprehensive loss	—	—			—		(29,034)		—		—	—			(29,034)
Stock-based compensation	—	—			9,156		—		—		—	—			9,156
Stock-based awards exercised or vested	—	—			810		—		(245)		54	1,144			1,709
Acquisition of treasury shares(2)	—	—			—		—		—		(4)	(253)			(253)
Repurchase and retirement of common shares	(3,248)	(32)			(1,949)		—		(190,396)		—	—			(192,377)


Cash dividends declared - $0.375 per share	—	—			—		—		(50,176)		—	—			(50,176)
Balances as of December 31, 2024	164,367	$	1,644		$	752,093	$	(71,762)	$	(908,785)	(30,523)	$	(645,650)		$	(872,460)
Net income	—	—			—		—		722,330		—	—			722,330
Other comprehensive income	—	—			—		445		—		—	—			445
Stock-based compensation	—	—			7,424		—		—		—	—			7,424
Stock-based awards exercised or vested	—	—			(696)		—		(260)		41	856			(100)
Acquisition of treasury shares(2)	—	—			—		—		—		(6)	(283)			(283)



Cash dividends declared - $0.375 per share	—	—			—		—		(50,194)		—	—			(50,194)
Balances as of March 31, 2025	164,367	$	1,644		$	758,821	$	(71,317)	$	(236,909)	(30,488)	$	(645,077)		$	(192,838)

(1) The balance of our accumulated other comprehensive loss consists of foreign currency translation adjustments.

(2) Represents shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards.

See accompanying notes to consolidated financial statements.


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION – The consolidated balance sheets as of March 31, 2026 and June 30, 2025, the consolidated statements of operations and comprehensive income for the three and nine months ended March 31, 2026 and 2025, the consolidated statements of cash flows for the nine months ended March 31, 2026 and 2025, and the consolidated statements of stockholders' equity for the three and nine months ended March 31, 2026 and 2025 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations, and cash flows as of March 31, 2026 and 2025 and for all periods presented, have been made.

"H&R Block," "the Company," "we," "our," and "us" are used interchangeably to refer to H&R Block, Inc., to H&R Block, Inc. and its subsidiaries, or to H&R Block, Inc.'s operating subsidiaries, as appropriate to the context.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our June 30, 2025 Annual Report on Form 10-K. All amounts presented herein as of June 30, 2025 or for the year then ended are derived from our Annual Report on Form 10-K.

MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses associated with pending claims and litigation, reserves for uncertain tax positions, and fair value of reporting units. Estimates have been prepared based on the best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.

SEASONALITY OF BUSINESS – Our operating revenues are seasonal in nature with peak revenues typically occurring in the months of February through April. Therefore, results for interim periods are not indicative of results to be expected for the full year.

DISCONTINUED OPERATIONS – Our discontinued operations include the results of operations of Sand Canyon Corporation, previously known as Option One Mortgage Corporation, which exited its mortgage business in fiscal year 2008.


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NOTE 2: REVENUE RECOGNITION

The majority of our revenues are from our United States (U.S.) tax services business. The following table disaggregates our U.S. revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:


							(in 000s)
	Three months ended March 31,				Nine months ended March 31,
	2026		2025		2026		2025
Revenues:
U.S. assisted tax preparation	$	1,742,135	$	1,635,877	$	1,846,698	$	1,727,220
U.S. royalties	128,182		133,961		139,139		143,312
U.S. DIY tax preparation	215,245		214,666		235,797		231,646
Refund Transfers	119,935		113,732		121,416		115,229
Peace of Mind® Extended Service Plan	14,347		15,625		54,087		54,867
Tax Identity Shield®	8,485		7,025		16,851		14,947
Emerald Card® and SpruceSM	39,590		40,195		56,566		59,169
Interest and fee income on Emerald Advance®	15,198		14,286		28,644		26,594
International	70,119		60,438		170,498		157,104
Wave	29,871		26,717		89,506		79,681
Other	15,000		14,582		41,321		40,215
Total revenues	$	2,398,107	$	2,277,104	$	2,800,523	$	2,649,984

Changes in the balances of deferred revenue and wages for our Peace of Mind® Extended Service Plan (POM) are as follows:


							(in 000s)
POM	Deferred Revenue				Deferred Wages
Nine months ended March 31,	2026		2025		2026		2025
Balance, beginning of the period	$	149,302	$	156,610	$	19,884	$	20,212
Amounts deferred	83,409		70,536		9,355		7,222
Amounts recognized on previous deferrals	(61,743)		(64,885)		(7,925)		(8,396)
Balance, end of the period	$	170,968	$	162,261	$	21,314	$	19,038

As of March 31, 2026, deferred revenue related to POM was $171.0 million. We expect that $91.9 million will be recognized over the next twelve months, while the remaining balance will be recognized over the following five years.

As of March 31, 2026 and 2025, Tax Identity Shield® (TIS) deferred revenue was $37.6 million and $31.2 million, respectively. Deferred revenue related to TIS was $22.6 million and $21.4 million as of June 30, 2025 and 2024, respectively. All deferred revenue related to TIS will be recognized by April 2027.

NOTE 3: EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS PER SHARE – Basic and diluted earnings (loss) per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 1.3 million and 0.8 million shares for the three and nine months ended March 31, 2026,


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respectively, and 0.6 million and 0.5 million shares for the three and nine months ended March 31, 2025, respectively, as the effect would be antidilutive.

The computations of basic and diluted earnings per share from continuing operations are as follows:


(in 000s, except per share amounts)
	Three months ended March 31,				Nine months ended March 31,
	2026		2025		2026		2025
Net income from continuing operations attributable to shareholders	$	848,780	$	722,928	$	441,846	$	309,041
Amounts allocated to participating securities	(4,250)		(3,442)		(2,193)		(1,408)
Net income from continuing operations attributable to common shareholders	$	844,530	$	719,486	$	439,653	$	307,633

Basic weighted average common shares	126,760		133,853		128,248		136,207
Potential dilutive shares	1,053		1,476		1,241		1,737
Dilutive weighted average common shares	127,813		135,329		129,489		137,944

Earnings per share from continuing operations attributable to common shareholders:
Basic	$	6.66	$	5.38	$	3.43	$	2.26
Diluted	6.61		5.32		3.40		2.23

The decrease in the weighted average shares outstanding is due to share repurchases completed in the current and prior fiscal years.

STOCK-BASED COMPENSATION – We granted 1.0 million and 1.1 million shares, including adjustments for performance achievement and dividend equivalents, under our stock-based compensation plans during the nine months ended March 31, 2026 and 2025, respectively. Stock-based compensation expense of our continuing operations totaled $8.4 million and $22.2 million for the three and nine months ended March 31, 2026, respectively, and $7.5 million and $25.4 million for the three and nine months ended March 31, 2025, respectively. As of March 31, 2026, unrecognized compensation cost for nonvested shares and units totaled $55.3 million.

NOTE 4: RECEIVABLES

Receivables, net of their related allowance, consist of the following:


(in 000s)
As of	March 31, 2026				June 30, 2025
	Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	16,438	$	11,349	$	7,386	$	16,402
Receivables for U.S. assisted and DIY tax preparation and related fees	179,870		11,250		15,896		6,361
H&R Block's Instant Refund® receivables	17,294		789		2,243		939
Emerald Advance®	20,101		24,219		13,899		22,816
Software receivables from retailers	7,313		—		2,582		—
Royalties and other receivables from franchisees	33,671		—		4,414		—
Wave payment processing receivables	6,274		—		1,533		—
Other	16,675		597		15,668		498
Total	$	297,636	$	48,204	$	63,621	$	47,016


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Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets.

LOANS TO FRANCHISEES – Franchisee loan balances consist of term loans made primarily to finance the purchase of franchises and revolving lines of credit primarily for the purpose of funding working capital needs. Loans with a principal balance more than 90 days past due or on non-accrual status were $3.0 million and $3.1 million as of March 31, 2026 and June 30, 2025, respectively.

H&R BLOCK'S INSTANT REFUND® – H&R Block's Instant Refund® amounts are generally received from the Canada Revenue Agency within 60 days of filing the client's return, with the remaining balance collectible from the client.

We review the credit quality of our Instant Refund receivables based on pools, which are segregated by the tax return year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year, we charge-off the receivables and the related allowance to an amount we believe represents the net realizable value.

Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of March 31, 2026 are as follows:


			(in 000s)

Tax return year of origination	Balance		More Than 60 Days Past Due
2025	$	17,482	$	79
2024 and prior	1,163		1,163

	18,645		$	1,242
Allowance	(562)
Net balance	$	18,083

EMERALD ADVANCE® – We review the credit quality of our purchased participation interests in Emerald Advance® (EA) receivables based on pools, which are segregated by the fiscal year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. Typically, in December of each year, we charge-off the receivables and the related allowance for EAs to an amount we believe represents the net realizable value.

Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination, as of March 31, 2026 are as follows:


(in 000s)
Fiscal year of origination	Balance		Non-Accrual
2026	$	35,495	$	—
2025 and prior	26,403		26,403

	61,898		$	26,403
Allowance	(17,578)
Net balance	$	44,320


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ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the nine months ended March 31, 2026 and 2025 is as follows:


(in 000s)
	EAs		All Other		Total
Balances as of July 1, 2025	$	19,663	$	45,156	$	64,819
Provision for credit losses	17,578		39,945		57,523
Charge-offs, recoveries and other	(19,663)		(44,803)		(64,466)
Balances as of March 31, 2026	$	17,578	$	40,298	$	57,876
Balances as of July 1, 2024	$	33,536	$	45,327	$	78,863
Provision for credit losses	19,371		36,671		56,042
Charge-offs, recoveries and other	(33,536)		(45,864)		(79,400)
Balances as of March 31, 2025	$	19,371	$	36,134	$	55,505

For the nine months ended March 31, 2026, there were $19.7 million of gross charge-offs related to EAs which were originated in fiscal year 2025.

NOTE 5: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the nine months ended March 31, 2026 are as follows:


(in 000s)
	Goodwill		Accumulated Impairment Losses		Net
Balances as of July 1, 2025	$	940,350	$	(138,297)	$	802,053

Acquisitions(1)	19,055		—		19,055
Disposals and foreign currency changes, net	(5,488)		—		(5,488)
Impairments	—		—		—
Balances as of March 31, 2026	$	953,917	$	(138,297)	$	815,620

(1) All goodwill added during the period is expected to be tax-deductible for federal income tax reporting.

In conjunction with our annual impairment test, we tested goodwill for impairment during the quarter and did not identify any impairment.


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Components of intangible assets are as follows:


(in 000s)
	Gross Carrying Amount		Accumulated Amortization		Net
As of March 31, 2026:
Reacquired franchise rights	$	431,555	$	(254,474)	$	177,081
Customer relationships	386,141		(305,246)		80,895
Internally-developed software	121,671		(117,831)		3,840
Noncompete agreements	24,476		(20,923)		3,553
Purchased technology	68,100		(59,388)		8,712
Trade name	5,800		(3,915)		1,885

	$	1,037,743	$	(761,777)	$	275,966
As of June 30, 2025:
Reacquired franchise rights	$	415,700	$	(243,330)	$	172,370
Customer relationships	354,107		(287,067)		67,040
Internally-developed software	119,959		(117,604)		2,355
Noncompete agreements	23,070		(20,188)		2,882

Purchased technology	68,100		(55,655)		12,445
Trade name	5,800		(3,480)		2,320
	$	986,736	$	(727,324)	$	259,412

We made payments to acquire businesses totaling $55.0 million and $35.3 million during the nine months ended March 31, 2026 and 2025, respectively. The amounts and weighted-average lives of intangible assets acquired during the nine months ended March 31, 2026, including amounts capitalized related to internally-developed software, are as follows:


(dollars in 000s)
	Amount		Weighted-Average Life (in years)
Customer relationships	$	32,165	5
Reacquired franchise rights	15,975		6
Internally-developed software	1,770		3
Noncompete agreements	1,437		5
Total	$	51,347	5

Amortization of intangible assets for the three and nine months ended March 31, 2026 was $12.3 million and $34.7 million respectively, compared to $11.3 million and $36.3 million for the three and nine months ended March 31, 2025. Estimated amortization of intangible assets for fiscal years ending June 30, 2026, 2027, 2028, 2029, and 2030 is $47.2 million, $44.9 million, $36.5 million, $27.6 million and $17.6 million, respectively.


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NOTE 6: LONG-TERM DEBT

The components of long-term debt are as follows:


			(in 000s)
As of	March 31, 2026		June 30, 2025
Senior Notes, 5.250%, due October 2025	$	—	$	350,000
Senior Notes, 2.500%, due July 2028	500,000		500,000
Senior Notes, 3.875%, due August 2030	650,000		650,000
Senior Notes, 5.375%, due September 2032	350,000		—

Debt issuance costs and discounts	(9,067)		(6,802)
Total long-term debt	1,490,933		1,493,198
Less: Current portion	—		(349,893)
Long-term portion	$	1,490,933	$	1,143,305
Estimated fair value of long-term debt	$	1,422,000	$	1,437,000

On August 26, 2025, we issued $350.0 million of 5.375% Senior Notes due September 15, 2032 (2032 Senior Notes). The 2032 Senior Notes are not redeemable by the bondholders prior to maturity, although we have the right to redeem some or all of these notes at any time, at specified redemption prices. The net proceeds from the 2032 Senior Notes were used for general corporate purposes, which includes, among other uses, the redemption of the $350.0 million in principal outstanding of our 5.250% notes due October 2025 (2025 Senior Notes). We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.

UNSECURED COMMITTED LINE OF CREDIT – On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement (2025 CLOC), which amended and restated our Fourth Amended and Restated Credit and Guarantee Agreement, extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table. All other material terms remain substantially unchanged from our previous CLOC.

The 2025 CLOC provides for an unsecured senior revolving credit facility in the aggregate principal amount of $1.5 billion, which includes a $175.0 million sublimit for swingline loans and a $50.0 million sublimit for standby letters of credit. We may request increases in the aggregate principal amount of the revolving credit facility of up to $500.0 million, subject to obtaining commitments from lenders and meeting certain other conditions. The 2025 CLOC will mature on July 11, 2030, unless extended pursuant to the terms of the 2025 CLOC, at which time all outstanding amounts thereunder will be due and payable. Our 2025 CLOC includes an annual facility fee, which will vary depending on our then current credit ratings.

The 2025 CLOC is subject to various conditions, triggers, events or occurrences that could result in earlier termination and contains customary representations, warranties, covenants and events of default, including, without limitation: (1) a covenant requiring the Company to maintain a debt-to-EBITDA ratio, as defined by the 2025 CLOC agreement, calculated on a consolidated basis of no greater than (a) 3.50 to 1.00 as of the last day of each fiscal quarter ending on March 31, June 30, and September 30 of each year and (b) 4.50 to 1.00 as of the last day of each fiscal quarter ending on December 31 of each year; (2) a covenant requiring us to maintain an interest coverage ratio (EBITDA-to-interest expense) calculated on a consolidated basis of not less than 2.50 to 1.00 as of the last date of any fiscal quarter; and (3) covenants restricting our ability to incur certain additional debt, incur liens, merge or consolidate with other companies, sell or dispose of assets (including equity interests), liquidate or dissolve, engage in certain transactions with affiliates or enter into certain restrictive agreements. The 2025 CLOC includes provisions for an equity cure which could potentially allow us to independently cure certain defaults. Proceeds under the 2025 CLOC may be used for working capital needs or for other general corporate purposes. We were in compliance with these requirements as of March 31, 2026.

We had no outstanding balance under our CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of March 31, 2026.


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NOTE 7: INCOME TAXES

We file a consolidated U.S. federal income tax return with the Internal Revenue Service (IRS) and also file income tax returns in various state, local, and foreign jurisdictions.

On July 4, 2025, H.R. 1 was signed into law. The legislation did not have a material impact on our income tax expense for the nine months ended March 31, 2026, and we do not expect it to materially impact our effective income tax rate for the fiscal year ending June 30, 2026.

Our effective income tax rate on continuing operations, including the impact of discrete tax items, was 8.1% for the nine months ended March 31, 2026, compared to 25.3% for the nine months ended March 31, 2025. Discrete tax items decreased the effective tax rate by 16.1% for the nine months ended March 31, 2026, and increased the effective tax rate by 0.9% for the nine months ended March 31, 2025. We recorded a discrete income tax benefit of $77.6 million for the nine months ended March 31, 2026, compared to a discrete income tax expense of $3.8 million for the nine months ended March 31, 2025.

The discrete income tax benefit recognized during the current year period was primarily attributable to the settlement of an IRS examination of our 2020 U.S. federal income tax return and related carryback claims to the 2015 through 2018 tax years. The closure of the IRS examination resulted in a discrete income tax benefit of $84.1 million, which was recorded in income tax expense. The benefit primarily reflects the release of the related unrecognized tax benefits, including reversal of accrued interest through the date of settlement. Due to the seasonality of our business, the impact of discrete tax items on our effective income tax rate for the nine months ended March 31, 2026 is greater than the expected impact on our projected full-year effective income tax rate.

Changes in gross unrecognized tax benefits for the nine months ended March 31, 2026 are as follows:


	(in 000s)
Balances as of July 1, 2025	$	266,548
Additions based on tax positions related to prior years	528
Reductions based on tax positions related to prior years	(2,998)
Additions based on tax positions related to the current year	16,998
Reductions related to settlements with tax authorities	(122,159)
Expiration of statute of limitations	(1,182)
Balance as of March 31, 2026	$	157,735

NOTE 8: COMMITMENTS AND CONTINGENCIES

Our U.S. and Canadian businesses offer our 100% accuracy guarantee. Assisted tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client for penalties and interest attributable to an H&R Block error on a return. Similarly, DIY tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client (up to a maximum of $10,000 in the U.S.) if our software makes an arithmetic error that results in payment of penalties and/or interest to the respective taxing authority that a client would otherwise not have been required to pay. Our liability related to estimated losses under the 100% accuracy guarantee was $12.4 million and $11.4 million as of March 31, 2026 and June 30, 2025, respectively. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets.

Liabilities related to acquisitions for (1) estimated contingent consideration based on expected financial performance of the acquired business and economic conditions at the time of acquisition and (2) estimated accrued compensation related to continued employment of key employees were $28.0 million and $29.6 million as of March 31, 2026 and June 30, 2025 respectively, with amounts recorded in deferred revenue and other liabilities. Should actual results differ from our estimates, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations.


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We have contractual commitments to fund certain franchises with approved short-term lines of credit for the purpose of meeting their seasonal working capital needs. Our total obligation under these lines of credit was $22.6 million at March 31, 2026, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $11.2 million.

Emerald Advance® term loans are originated by Pathward® N.A. (Pathward). We purchase participation interests, at par, in all EAs originated by Pathward in accordance with our participation agreement. Our participation interest varies by jurisdiction. For the nine months ended March 31, 2026, the principal balance of purchased participation interests for the current year totaled $283.7 million, which represents 87% of total EA volume originated by Pathward.

Refund Advance loans are originated by Pathward and offered to certain assisted U.S. tax preparation clients, based on client eligibility as determined by Pathward. We pay fees primarily based on loan size and customer type. We have provided a guarantee up to $18.0 million related to certain loans to clients prior to the IRS accepting electronic filing. At March 31, 2026 and June 30, 2025, we accrued an estimated liability of $2.2 million related to this guarantee.

NOTE 9: LITIGATION AND OTHER RELATED CONTINGENCIES

We are a defendant in numerous litigation and arbitration matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits or arbitrations to which we are subject. In some of the matters, very large or indeterminate amounts, including punitive damages, may be sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in handling and resolving numerous claims over an extended period of time.

The outcome of a matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how courts and arbitrators will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will view the relevant evidence and applicable law.

In addition to litigation and arbitration matters, we are also subject to other loss contingencies arising out of our business activities, including as described below.

We accrue liabilities for litigation, arbitration and other related loss contingencies and any related settlements when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range.

For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated as of March 31, 2026. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows. Our accrued liabilities were $13.3 million and $6.2 million as of March 31, 2026 and June 30, 2025, respectively.

Our estimate of the aggregate range of reasonably possible losses includes (1) matters where a liability has been accrued and there is a reasonably possible loss in excess of the amount accrued for that liability, and (2) matters where a liability has not been accrued but we believe a loss is reasonably possible. This aggregate range only


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represents those losses as to which we are currently able to estimate a reasonably possible loss or range of loss. It does not represent our maximum loss exposure.

Matters for which we are not currently able to estimate the reasonably possible loss or range of loss are not included in this range. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as precise information about the amount of damages or other remedies being asserted, the defenses to the claims being asserted, discovery from other parties and investigation of factual allegations, rulings by courts or arbitrators on motions or appeals, analyses by experts, or the status or terms of any settlement negotiations.

The estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. As of March 31, 2026, we believe the estimate of the aggregate range of reasonably possible losses in excess of amounts accrued, where the range of loss can be estimated, is not material.

At the end of each reporting period, we review relevant information with respect to litigation, arbitration and other related loss contingencies and update our accruals, disclosures, and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and our consolidated financial position, results of operations, and cash flows.

We have received and are responding to certain governmental inquiries, class actions and mass arbitrations relating to the IRS Free File Program and other aspects of our DIY tax preparation services, including the use of pixels. An accrual related to these matters is included in our loss contingency accrual.

We are from time to time a party to litigation, arbitration and other loss contingencies not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent others who may be similarly situated.

While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our business and our consolidated financial position, results of operations, and cash flows.

NOTE 10: SEGMENT INFORMATION

We provide assisted and DIY tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded services and products, including those of our bank partners, to the general public primarily in the U.S., Canada and Australia. Tax returns are prepared by H&R Block tax professionals in one of our company-owned or franchise offices, virtually or via an online review, or they are prepared and filed by our clients through our DIY tax solutions. We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report a single segment that includes all of our continuing operations. The majority of our revenues are from our U.S. tax services business.


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			15

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The Company's Chief Operating Decision Maker (CODM) is our chief executive officer, who regularly reviews consolidated financial information to evaluate financial performance and allocate resources. Specifically, the CODM uses revenues, operating expenses, net income and EBITDA at a consolidated level, as key financial metrics in deciding how to reinvest to grow the business. These financial metrics are used by the CODM to make operating decisions and identify growth opportunities. The measure of segment assets is total consolidated assets as presented on the consolidated balance sheet.

The following table presents the significant revenue and expense categories included in the segment's net income from continuing operations as regularly provided to the CODM on a consolidated basis and then reconciled to net income for the three and nine months ended March 31, 2026 and 2025.


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Consolidated – Financial Results					(in 000s, except per share amounts)
	Three months ended March 31,				Nine months ended March 31,
	2026		2025		2026		2025
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation	$	1,742,135	$	1,635,877	$	1,846,698	$	1,727,220
Royalties	128,182		133,961		139,139		143,312
DIY tax preparation	215,245		214,666		235,797		231,646
Refund Transfers	119,935		113,732		121,416		115,229
Peace of Mind® Extended Service Plan	14,347		15,625		54,087		54,867
Tax Identity Shield®	8,485		7,025		16,851		14,947



Emerald Card® and SpruceSM	39,590		40,195		56,566		59,169
Interest and fee income on Emerald Advance®	15,198		14,286		28,644		26,594

International	70,119		60,438		170,498		157,104
Wave	29,871		26,717		89,506		79,681
Other	15,000		14,582		41,321		40,215
Total revenues	$	2,398,107	$	2,277,104	$	2,800,523	$	2,649,984
Compensation and benefits:
Field wages	577,513		532,916		741,405		682,575
Other wages	78,703		74,621		230,987		230,687
Benefits and other compensation	118,151		111,575		194,802		188,731
	774,367		719,112		1,167,194		1,101,993
Occupancy	127,312		119,709		339,700		326,026
Marketing and advertising	185,388		196,667		208,725		221,502
Depreciation and amortization	31,519		29,221		90,442		87,247
Bad debt	39,806		40,479		63,827		62,625
Other	202,891		193,603		399,721		393,900
Total operating expenses	1,361,283		1,298,791		2,269,609		2,193,293
Other income (expense), net	3,941		4,554		15,077		19,215
Interest expense on borrowings	(24,307)		(24,686)		(65,087)		(62,285)
Income from continuing operations before income taxes	1,016,458		958,181		480,904		413,621
Income taxes	167,678		235,253		39,058		104,580
Segment net income from continuing operations	848,780		722,928		441,846		309,041

Reconciliation of segment profit:
Reconciling items:
Net loss from discontinued operations	(879)		(598)		(1,930)		(2,707)
Net income	$	847,901	$	722,330	$	439,916	$	306,334


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			17

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RECENT DEVELOPMENTS

On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement (2025 CLOC), which amended and restated our Fourth Amended and Restated Credit and Guarantee Agreement, extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table. All other material terms remain substantially unchanged from the Fourth Amended and Restated Credit and Guarantee Agreement. See our Current Report on Form 8-K filed on July 15, 2025 for additional information.

On August 7, 2025, Jeffrey J. Jones II notified the Board of Directors of the Company of his intention to retire as President and Chief Executive Officer of the Company, effective as of December 31, 2025. Mr. Jones retired from the Board of Directors, effective on December 31, 2025. On August 8, 2025, the Board appointed Curtis A. Campbell, the Company's President, Global Consumer Tax and Chief Product Officer, to succeed Mr. Jones as President and Chief Executive Officer, effective immediately upon Mr. Jones’ retirement. See our Current Report on Form 8-K filed on August 11, 2025 for more information.

On August 13, 2025, Kellie J. Logerwell notified the Company of her intention to retire as the Company’s Vice President and Chief Accounting Officer, effective as of October 24, 2025. Ms. Logerwell was succeeded as principal accounting officer by April M. Wasleski, who most-recently served as the Company’s Director of Accounting and whose appointment as Vice President and Chief Accounting Officer became effective October 24, 2025. See our Current Report on Form 8-K filed on August 15, 2025 for more information.

RESULTS OF OPERATIONS

Our subsidiaries provide assisted and do-it-yourself (DIY) tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded products and services, including those of our bank partners, to the general public primarily in the United States (U.S.), Canada and Australia. Tax returns are either prepared by H&R Block tax professionals in one of our 6,802 company-owned or 1,814 franchise offices (as of March 31, 2026), virtually or via an online review or prepared and filed by our clients through our DIY tax solutions. We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report a single segment that includes all of our continuing operations.


18			Q3 FY2026 Form 10-Q\| H&R Block, Inc.

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Consolidated – Financial Results			(in 000s, except per share amounts)
Three months ended March 31,	2026		2025		$ Change		% Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation	$	1,742,135	$	1,635,877	$	106,258	6.5	%
Royalties	128,182		133,961		(5,779)		(4.3)	%
DIY tax preparation	215,245		214,666		579		0.3	%
Refund Transfers	119,935		113,732		6,203		5.5	%
Peace of Mind® Extended Service Plan	14,347		15,625		(1,278)		(8.2)	%
Tax Identity Shield®	8,485		7,025		1,460		20.8	%
Other	15,000		14,582		418		2.9	%
Total U.S. tax preparation and related services	2,243,329		2,135,468		107,861		5.1	%
Financial services:
Emerald Card® and SpruceSM	39,590		40,195		(605)		(1.5)	%
Interest and fee income on Emerald Advance®	15,198		14,286		912		6.4	%
Total financial services	54,788		54,481		307		0.6	%
International	70,119		60,438		9,681		16.0	%
Wave	29,871		26,717		3,154		11.8	%
Total revenues	$	2,398,107	$	2,277,104	$	121,003	5.3	%
Compensation and benefits:
Field wages	577,513		532,916		(44,597)		(8.4)	%
Other wages	78,703		74,621		(4,082)		(5.5)	%
Benefits and other compensation	118,151		111,575		(6,576)		(5.9)	%
	774,367		719,112		(55,255)		(7.7)	%
Occupancy	127,312		119,709		(7,603)		(6.4)	%
Marketing and advertising	185,388		196,667		11,279		5.7	%
Depreciation and amortization	31,519		29,221		(2,298)		(7.9)	%
Bad debt	39,806		40,479		673		1.7	%
Other	202,891		193,603		(9,288)		(4.8)	%
Total operating expenses	1,361,283		1,298,791		(62,492)		(4.8)	%
Other income (expense), net	3,941		4,554		(613)		(13.5)	%
Interest expense on borrowings	(24,307)		(24,686)		379		1.5	%
Pretax income	1,016,458		958,181		58,277		6.1	%
Income taxes	167,678		235,253		67,575		28.7	%
Net income from continuing operations	848,780		722,928		125,852		17.4	%
Net loss from discontinued operations	(879)		(598)		(281)		(47.0)	%
Net income	$	847,901	$	722,330	$	125,571	17.4	%
DILUTED EARNINGS PER SHARE
Continuing operations	$	6.61	$	5.32	$	1.29	24.2	%
Discontinued operations	(0.01)		(0.01)		—		—	%
Consolidated	$	6.60	$	5.31	$	1.29	24.3	%




Adjusted diluted EPS(1)	$	6.02	$	5.38	$	0.64	11.9	%
EBITDA (1)	$	1,072,284	$	1,012,088	$	60,196	5.9	%

(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.


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Three months ended March 31, 2026 compared to March 31, 2025

Revenues increased $121.0 million, or 5.3%, from the prior year. U.S. assisted tax preparation revenues increased $106.3 million, or 6.5%, primarily due to a 3.8% increase in net average charge combined with a 2.6% increase in company-owned tax return volumes in the current year. U.S. royalties revenue decreased $5.8 million, or 4.3%, due to lower franchise tax return volumes, which was primarily driven by franchise acquisitions. During the year we purchased franchise offices which results in increasing tax preparation revenues and decreasing royalties as the revenues and returns become company-owned after the acquisition. For the three months ended March 31, 2026 our total assisted tax return volume, which includes both company-owned and franchise offices, increased 0.4% from the prior year.

U.S. DIY tax preparation revenues increased $0.6 million, or 0.3%, largely due to a 3.5% increase in online paid net average charge, offset by a 3.0% decrease in online paid volume.

Refund Transfer revenues increased $6.2 million, or 5.5%, primarily due to an increase in Refund Transfer volume.

International tax preparation revenues increased $9.7 million, or 16.0%, primarily due to favorable foreign currency exchange rates in Canada and Australia.

Total operating expenses increased $62.5 million, or 4.8%, from the prior year. Field wages increased $44.6 million, or 8.4%, due to increased tax professional wages resulting from an increase in U.S. assisted tax preparation revenues. Certain wage‑related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally. This change had no impact on total operating expenses, and prior period amounts have not been reclassified. Benefits and other compensation increased $6.6 million or 5.9% due primarily to higher payroll taxes, stock-based compensation and severance pay in the current year. Occupancy expense increased $7.6 million, or 6.4%, primarily due to higher lease expenses and facility repairs. Marketing and advertising expenses decreased $11.3 million, or 5.7%, due to lower online and TV advertising as well as lower customer incentive expenses.

Other operating expenses increased $9.3 million, or 4.8%. The components of other expenses are as follows:


							(in 000s)
Three months ended March 31,	2026		2025		$ Change		% Change
Consulting and outsourced services	$	39,046	$	38,887	$	(159)	(0.4)	%
Bank partner fees	34,030		30,836		(3,194)		(10.4)	%
Client claims and refunds	8,655		8,420		(235)		(2.8)	%
Employee and travel expenses	7,993		8,552		559		6.5	%
Technology-related expenses	37,076		34,472		(2,604)		(7.6)	%
Credit card/bank charges	41,856		39,605		(2,251)		(5.7)	%
Insurance	3,664		4,644		980		21.1	%
Legal fees and settlements	10,294		7,986		(2,308)		(28.9)	%
Supplies	11,353		10,407		(946)		(9.1)	%
Other	8,924		9,794		870		8.9	%
	$	202,891	$	193,603	$	(9,288)	(4.8)	%

We recorded income tax expense of $167.7 million in the current year compared to $235.3 million in the prior year. The effective tax rate for the three months ended March 31, 2026, and 2025 was 16.5% and 24.6%, respectively. The decrease in the effective tax rate was primarily attributable to the settlement of an IRS examination of our 2020 U.S. federal income tax return and related carryback claims to the 2015 through 2018 tax years. The closure of the IRS examination resulted in a discrete income tax benefit of $84.1 million, which was recorded in income tax expense. See Item 1, note 7 to the consolidated financial statements for additional discussion.


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Consolidated - Financial Results			(in 000s, except per share amounts)
Nine months ended March 31,	2026		2025		$ Change		% Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation	$	1,846,698	$	1,727,220	$	119,478	6.9	%
Royalties	139,139		143,312		(4,173)		(2.9)	%
DIY tax preparation	235,797		231,646		4,151		1.8	%
Refund Transfers	121,416		115,229		6,187		5.4	%
Peace of Mind® Extended Service Plan	54,087		54,867		(780)		(1.4)	%
Tax Identity Shield®	16,851		14,947		1,904		12.7	%
Other	41,321		40,215		1,106		2.8	%
Total U.S. tax preparation and related services	2,455,309		2,327,436		127,873		5.5	%
Financial services:
Emerald Card® and SpruceSM	56,566		59,169		(2,603)		(4.4)	%
Interest and fee income on Emerald Advance®	28,644		26,594		2,050		7.7	%
Total financial services	85,210		85,763		(553)		(0.6)	%
International	170,498		157,104		13,394		8.5	%
Wave	89,506		79,681		9,825		12.3	%
Total revenues	$	2,800,523	$	2,649,984	$	150,539	5.7	%
Compensation and benefits:
Field wages	741,405		682,575		(58,830)		(8.6)	%
Other wages	230,987		230,687		(300)		(0.1)	%
Benefits and other compensation	194,802		188,731		(6,071)		(3.2)	%
	1,167,194		1,101,993		(65,201)		(5.9)	%
Occupancy	339,700		326,026		(13,674)		(4.2)	%
Marketing and advertising	208,725		221,502		12,777		5.8	%
Depreciation and amortization	90,442		87,247		(3,195)		(3.7)	%
Bad debt	63,827		62,625		(1,202)		(1.9)	%
Other	399,721		393,900		(5,821)		(1.5)	%
Total operating expenses	2,269,609		2,193,293		(76,316)		(3.5)	%
Other income (expense), net	15,077		19,215		(4,138)		(21.5)	%
Interest expense on borrowings	(65,087)		(62,285)		(2,802)		(4.5)	%
Pretax income	480,904		413,621		67,283		16.3	%
Income taxes	39,058		104,580		65,522		62.7	%
Net income from continuing operations	441,846		309,041		132,805		43.0	%
Net loss from discontinued operations	(1,930)		(2,707)		777		28.7	%
Net income	$	439,916	$	306,334	$	133,582	43.6	%
DILUTED EARNINGS PER SHARE
Continuing operations	$	3.40	$	2.23	$	1.17	52.5	%
Discontinued operations	(0.02)		(0.02)		—		—	%
Consolidated	$	3.38	$	2.21	$	1.17	52.9	%
Adjusted diluted EPS(1)	$	2.95	$	2.41	$	0.54	22.4	%
EBITDA (1)	$	636,433	$	563,153	$	73,280	13.0	%

(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			21

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Nine months ended March 31, 2026 compared to March 31, 2025

Revenues increased $150.5 million, or 5.7%, from the prior year. U.S. assisted tax preparation revenues increased $119.5 million, or 6.9%, primarily due to a 4.0% increase in net average charge combined with a 2.7% increase in company-owned tax return volumes in the current year. U.S. royalties revenue decreased $4.2 million, or 2.9%, due to lower franchise tax return volumes, which was primarily driven by franchise acquisitions. During the year we purchased franchise offices which results in increasing tax preparation revenues and decreasing royalties as the revenues and returns become company-owned after the acquisition. Through the nine months ended March 31, 2026 our total assisted tax return volume, which includes both company-owned and franchise offices, increased 0.6% from the prior year.

U.S. DIY tax preparation revenues increased $4.2 million, or 1.8%, largely due to a 3.9% increase in online paid net average charge, offset by a 2.7% decrease in online paid volume.

International revenues increased $13.4 million, or 8.5%, primarily due to favorable foreign currency exchange rates in Canada and Australia.

Total operating expenses increased $76.3 million, or 3.5%, from the prior year period. Field wages increased $58.8 million, or 8.6%, due to increased tax professional wages as a result of higher U.S. assisted tax preparation revenues. Certain wage‑related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally. This change had no impact on total operating expenses, and prior period amounts have not been reclassified. Benefits and other compensation increased $6.1 million, or 3.2%, due to higher payroll taxes, employee insurance, and severance. Occupancy expense increased $13.7 million, or 4.2%, primarily due to higher lease expenses and facility repairs. Marketing and advertising expense decreased $12.8 million, or 5.8%, due to lower online and TV advertising as well as lower customer incentives.

Other operating expenses increased $5.8 million, or 1.5%. The components of other expenses are as follows:


							(in 000s)
Nine months ended March 31,	2026		2025		$ Change		% Change
Consulting and outsourced services	$	76,536	$	72,770	$	(3,766)	(5.2)	%
Bank partner fees	32,781		32,199		(582)		(1.8)	%
Client claims and refunds	17,795		18,696		901		4.8	%
Employee and travel expenses	26,073		27,164		1,091		4.0	%
Technology-related expenses	93,197		87,035		(6,162)		(7.1)	%
Credit card/bank charges	80,780		76,300		(4,480)		(5.9)	%
Insurance	11,210		12,444		1,234		9.9	%
Legal fees and settlements	25,273		29,640		4,367		14.7	%
Supplies	19,010		16,884		(2,126)		(12.6)	%
Other	17,066		20,768		3,702		17.8	%
	$	399,721	$	393,900	$	(5,821)	(1.5)	%

Technology-related expenses increased $6.2 million, or 7.1%, due to higher third-party technology and software costs.

We recorded income tax expense of $39.1 million in the current year compared to $104.6 million in the prior year. The effective tax rate for the nine months ended March 31, 2026, and 2025 was 8.1% and 25.3% respectively. The decrease in the effective tax rate was primarily attributable to the settlement of an IRS examination of our 2020 U.S. federal income tax return and related carryback claims to the 2015 through 2018 tax years. The closure of the IRS examination resulted in a discrete income tax benefit of $84.1 million, which was recorded in income tax expense. See Item 1, note 7 to the consolidated financial statements for additional discussion.


22			Q3 FY2026 Form 10-Q\| H&R Block, Inc.

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TAX SEASON UPDATE

Assisted tax return volume, which includes our company-owned and franchise operations, was flat from July 1, 2025 through April 30, 2026 compared to the prior year period. DIY online paid tax return volume from July 1, 2025 through April 30, 2026 decreased 4.2% compared to the prior year period. Our business is highly seasonal and results for the nine months ended March 31, as well as results for the period ended April 30, may not be indicative of results for the fiscal year ended June 30, 2026.

FINANCIAL CONDITION

These comments should be read in conjunction with the consolidated balance sheets and consolidated statements of cash flows included in Part 1, Item 1.

CAPITAL RESOURCES AND LIQUIDITY –

OVERVIEW – Our primary sources of capital and liquidity include cash from operations (including changes in working capital), draws on our unsecured committed line of credit (CLOC), and issuances of debt. We use our sources of liquidity primarily to fund working capital, service and repay debt, pay dividends, repurchase shares of our common stock, and acquire businesses.

Our operations are highly seasonal and substantially all of our revenues and cash flow are generated during the period from February through April in a typical year. Therefore, we normally require the use of cash to fund losses and working capital needs, periodically resulting in a working capital deficit, during the months of May through January. We typically have relied on available cash balances from the prior tax season and borrowings to meet liquidity needs.

Given the likely availability of a number of liquidity options discussed herein, we believe that, in the absence of any unexpected developments, our existing sources of capital as of March 31, 2026 are sufficient to meet our operating, investing and financing needs.

DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS – The following table summarizes our statements of cash flows for the nine months ended March 31, 2026 and 2025. See Item 1 for the complete consolidated statements of cash flows for these periods.


	(in 000s)
Nine months ended March 31,	2026		2025
Net cash provided by (used in):
Operating activities	$	586,717	$	429,322
Investing activities	(122,560)		(110,890)
Financing activities	(579,481)		(595,506)
Effects of exchange rates on cash	(1,070)		(8,429)
Net decrease in cash and cash equivalents, including restricted balances	$	(116,394)	$	(285,503)

Operating Activities. Cash provided by operations totaled $586.7 million for the nine months ended March 31, 2026 compared to $429.3 million in the prior year period. The increase is primarily due to higher net income, changes in accounts payable, accrued expenses, salaries, wages and payroll taxes and accounts receivable, partially offset by taxes paid and the release of income tax reserves associated with the settlement of the IRS examination of our 2020 U.S. federal income tax return and related carryback claims to the 2015 through 2018 tax years.

Investing Activities. Cash used in investing activities totaled $122.6 million for the nine months ended March 31, 2026 compared to $110.9 million in the prior year period. The increase is primarily due to higher payments made for business acquisitions in the current year.

Financing Activities. Cash used in financing activities totaled $579.5 million for the nine months ended March 31, 2026 compared to $595.5 million in the prior year period. The change is primarily due to lower share repurchases for payroll taxes on stock based awards, partially offset by higher dividends.


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			23

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CASH REQUIREMENTS –

Dividends and Share Repurchases. Returning capital to shareholders in the form of dividends and the repurchase of outstanding shares is, and has historically been, a significant component of our capital allocation plan.

We have consistently paid quarterly dividends. Dividends paid totaled $157.8 million and $147.1 million for the nine months ended March 31, 2026 and 2025, respectively. Although we have historically paid dividends and plan to continue to do so, there can be no assurances that circumstances will not change in the future that could affect our ability or decisions to pay dividends.

During the nine months ended March 31, 2026, we repurchased $400.1 million of our common stock at an average price of $50.90 per share, excluding excise taxes in connection with such repurchases. In the prior year period, we repurchased $400.1 million of our common stock at an average price of $61.10 per share, excluding excise taxes in connection with such repurchases. Our current share repurchase program has remaining authorization of $700.0 million and does not have an expiration date.

Share repurchases may be effectuated through open market transactions, some of which may be effectuated under SEC Rule 10b5-1. The Company may cancel, suspend, or extend the period for the purchase of shares at any time. Any repurchases will be funded primarily through available cash and cash from operations. Although we may continue to repurchase shares, there is no assurance that we will purchase up to the full Board authorization.

Capital Investment. Capital expenditures totaled $67.1 million and $71.8 million for the nine months ended March 31, 2026 and 2025, respectively. Our capital expenditures relate primarily to recurring improvements to retail offices, as well as investments in computers, software and related assets. In addition to our capital expenditures, we also made payments to acquire businesses. We acquired franchisee and competitor businesses totaling $55.0 million and $35.3 million during the nine months ended March 31, 2026 and 2025, respectively. See Item 1, note 5 for additional information on our acquisitions.

FINANCING RESOURCES – The 2025 CLOC has capacity up to $1.5 billion and is scheduled to expire in July 2030. Proceeds under the 2025 CLOC may be used for working capital needs or for other general corporate purposes. We had no outstanding balance on our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of March 31, 2026.

On August 26, 2025, we issued the 2032 Senior Notes. We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.

The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of March 31, 2026 and June 30, 2025:

As of

March 31, 2026

June 30, 2025

Short-term

Long-term

Outlook

Short-term

Long-term

Outlook

Moody's

P-3

Baa3

Stable

P-3

Baa3

Stable

S&P

A-2

BBB

Stable

A-2

BBB

Stable

Other than described above, there have been no material changes in our borrowings from those reported as of June 30, 2025 in our Annual Report on Form 10-K.

CASH AND OTHER ASSETS – As of March 31, 2026, we held cash and cash equivalents, excluding restricted amounts, of $867.0 million, including $196.7 million held by our foreign subsidiaries.

Foreign Operations. Seasonal borrowing needs of our Canadian operations are typically funded by our U.S. operations. To mitigate foreign currency risk, we sometimes enter into foreign exchange forward contracts. There were no forward contracts outstanding as of March 31, 2026.

We do not currently intend to repatriate non-borrowed funds held by our foreign subsidiaries in a manner that would trigger a tax liability.


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The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $1.1 million and $8.4 million during the nine months ended March 31, 2026 and 2025, respectively.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – EAs are originated by Pathward. We purchase participation interests, at par, in all EAs originated by Pathward in accordance with our participation agreement. Our participation interest varies by jurisdiction. For the nine months ended March 31, 2026, the principal balance of purchased participation interests for the current year totaled $283.7 million, which represents 87% of total EA volume originated by Pathward.

Except as described in Recent Developments related to the 2025 CLOC, the 2032 Senior Notes issuance and the 2025 Senior Notes redemption, there have been no other material changes in our contractual obligations and commercial commitments from those reported in our June 30, 2025 Annual Report on Form 10-K.

SUMMARIZED GUARANTOR FINANCIAL STATEMENTS – Block Financial is a 100% owned subsidiary of H&R Block, Inc. Block Financial is the Issuer and H&R Block, Inc. is the full and unconditional Guarantor of our Senior Notes, CLOC and other indebtedness issued from time to time.

The following table presents summarized financial information for H&R Block, Inc. (Guarantor) and Block Financial (Issuer) on a combined basis after intercompany eliminations and excludes investments in and equity earnings in non-guarantor subsidiaries.


SUMMARIZED BALANCE SHEET - GUARANTOR AND ISSUER			(in 000s)
As of	March 31, 2026		June 30, 2025
Current assets	$	53,021	$	38,254
Noncurrent assets	1,848,462		1,836,847
Current liabilities	82,882		432,139
Noncurrent liabilities	1,495,849		1,148,806


SUMMARIZED STATEMENTS OF OPERATIONS - GUARANTOR AND ISSUER			(in 000s)
	Nine months ended March 31, 2026		Twelve months ended June 30, 2025
Total revenues	$	104,498	$	126,240
Income from continuing operations before income taxes	47,726		58,596
Net income from continuing operations	36,749		45,120
Net income	34,820		41,443

The table above reflects $1.8 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of March 31, 2026 and June 30, 2025.

REGULATORY ENVIRONMENT

There have been no material changes in our regulatory environment from what was reported in our June 30, 2025 Annual Report on Form 10-K.

NON-GAAP FINANCIAL INFORMATION

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. generally accepted accounting principles (GAAP). Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to material discrete tax impacts of IRS examination settlements, amortization of intangibles from acquisitions and goodwill impairments. We may


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			25

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consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted net income from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and free cash flow yield. We also use EBITDA from continuing operations and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

The following is a reconciliation of net income to EBITDA from continuing operations, which is a non-GAAP financial measure:


							(in 000s)
	Three months ended March 31,				Nine months ended March 31,
	2026		2025		2026		2025
Net income - as reported	$	847,901	$	722,330	$	439,916	$	306,334
Discontinued operations, net	879		598		1,930		2,707
Net income from continuing operations - as reported	848,780		722,928		441,846		309,041
Add back:
Income taxes	167,678		235,253		39,058		104,580
Interest expense	24,307		24,686		65,087		62,285
Depreciation and amortization	31,519		29,221		90,442		87,247
	223,504		289,160		194,587		254,112
EBITDA from continuing operations	$	1,072,284	$	1,012,088	$	636,433	$	563,153

The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure:


(in 000s, except per share amounts)
	Three months ended March 31,				Nine months ended March 31,
	2026		2025		2026		2025
Net income from continuing operations - as reported	$	848,780	$	722,928	$	441,846	$	309,041
Adjustments:
Amortization of intangibles related to acquisitions (pretax)	12,170		11,278		34,401		33,316
Discrete tax impact of IRS examination settlements	(84,113)		—		(84,113)		—
Tax effect of pretax adjustments (1)	(3,145)		(2,927)		(8,381)		(8,111)
Adjusted net income from continuing operations	$	773,692	$	731,279	$	383,753	$	334,246
Diluted earnings per share from continuing operations - as reported	$	6.61	$	5.32	$	3.40	$	2.23
Adjustments, net of tax	(0.59)		0.06		(0.45)		0.18
Adjusted diluted earnings per share from continuing operations	$	6.02	$	5.38	$	2.95	$	2.41

(1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.

FORWARD-LOOKING INFORMATION

This report and other documents filed with the Securities and Exchange Commission (SEC) may contain forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts,


26			Q3 FY2026 Form 10-Q\| H&R Block, Inc.

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investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "could," "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management's plans or objectives for future operations, services or products, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company's control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate.

All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law.

By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, operational and regulatory factors, many of which are beyond the Company's control. In addition, factors that may cause the Company’s actual effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, and increases in applicable tax rates in jurisdictions where the Company operates. Investors should understand that it is not possible to predict or identify all such factors and, consequently, should not consider any such list to be a complete set of all potential risks or uncertainties.

Details about risks, uncertainties and assumptions that could affect various aspects of our business are included throughout our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and are also described from time to time in other filings with the SEC. Investors should carefully consider all of these risks, and should pay particular attention to Item 1A, "Risk Factors," and Item 7 under "Critical Accounting Estimates" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risks from those reported in our June 30, 2025 Annual Report on Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES – As of the end of the period covered by this Form 10-Q, management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING – There were no changes during the three months ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			27

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ITEM 1. LEGAL PROCEEDINGS

For a description of our material pending legal proceedings, see discussion in Part I, Item 1, note 9 to the consolidated financial statements.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors from those reported in our June 30, 2025 Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

A summary of our purchases of H&R Block common stock during the three months ended March 31, 2026 is as follows:


(in 000s, except per share amounts)
	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1 - January 31	1	$	41.87	—	$	700,000
February 1 - February 28	—	$	30.62	—	$	700,000
March 1 - March 31	—	$	—	—	$	700,000
	1	$	41.52	—

(1)We purchased approximately 1 thousand shares in connection with funding employee income tax withholding obligations arising upon the lapse of restrictions on restricted share units.

(2)On August 15, 2024, we announced that our Board of Directors approved a $1.5 billion share repurchase program. The repurchase program does not have an expiration date.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Director and Section 16 Officer Trading Arrangements

During the three months ended March 31, 2026, no director or Section 16 officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.


28			Q3 FY2026 Form 10-Q\| H&R Block, Inc.

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ITEM 6. EXHIBITS

The following exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K:


22			List of Guarantor and Issuer Subsidiaries.
31.1			Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2			Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certification by Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
32.2			Certification by Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH			Inline XBRL Taxonomy Extension Schema
101.CAL			Inline XBRL Extension Calculation Linkbase
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


H&R Block, Inc. \|Q3 FY2026 Form 10-Q			29

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


H&R BLOCK, INC.

/s/ Curtis A. Campbell
Curtis A. Campbell
President and Chief Executive Officer
May 6, 2026

/s/ Tiffany L. Mason
Tiffany L. Mason
Chief Financial Officer
May 6, 2026

/s/ April M. Wasleski
April M. Wasleski
Chief Accounting Officer
May 6, 2026


30			Q3 FY2026 Form 10-Q\| H&R Block, Inc.

H&R BLOCK INC 10-Q