H&R Block Reports Record Revenue Year with 4.2% Growth, Increases Dividend by 12%

H&R Block reported record revenue year with total revenue of $3.8 billion, a 4.2% increase YoY. EBITDA rose 1.4% to $976 million, while net income from continuing operations reached $609 million. Assisted revenue grew 6.1%, DIY revenue increased 9.7%, and small business revenue saw double-digit growth. The company also announced a 12% dividend increase and acquired 124 franchise locations.

H&R Block (NYSE: HRB) has announced its fiscal 2025 financial results, showcasing a record year with total revenue reaching $3.8 billion, a 4.2% increase year-over-year (YoY). The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 1.4% to $976 million, while net income from continuing operations reached $609 million [1].

The company's assisted revenue grew by 6.1%, DIY revenue increased by 9.7%, and small business revenue saw double-digit growth, driven by the performance of the Wave Financial segment and franchise acquisitions. Additionally, H&R Block announced a 12% increase in its quarterly dividend to $0.42 per share and acquired 124 franchise locations during the year [2].

The company's CEO, Jeffrey J. Jones, highlighted the strong performance of the assisted offering, particularly among higher income earners, and the significant growth in the small business segment, driven by the combination of Block Advisors and Wave. The Spruce mobile banking platform also saw a nearly 40% increase in new accounts and total deposits reaching $1.75 billion since its launch [2].

H&R Block's CFO, Tiffany L. Mason, outlined the fiscal 2026 outlook, projecting revenue between $3.875 billion and $3.895 billion, EBITDA of $1.015 billion to $1.035 billion, and adjusted earnings per share (EPS) between $4.85 and $5.00. The company's effective tax rate is expected to be approximately 25% [2].

The company's capital allocation strategy remains shareholder-friendly, with a 12% increase in its quarterly dividend and the repurchase of approximately 6.5 million shares (4.7% of shares outstanding) at $400.1 million during fiscal 2025 [1].

References:
[1] https://www.ainvest.com/news/block-exceeds-q2-sales-expectations-sets-optimistic-full-year-guidance-2508/
[2] https://seekingalpha.com/news/4484347-h-and-r-block-outlines-3_875b-3_895b-revenue-target-for-2026-amid-ceo-transition-and-small