H&R Block Q3 Revenue Rises 5.3% to $2.4B, Authorizes $100M Buyback
H&R Block posted fiscal third-quarter net income of $848.8 million, up 17.4%, with adjusted EPS of $6.02 on revenue of $2.4 billion, a 5.3% increase that topped estimates. The board authorized an incremental $100 million buyback, maintained a $0.42 quarterly dividend and raised full-year revenue guidance to about $3.915 billion.
1. Q3 Financial Performance
H&R Block delivered third-quarter revenue of $2.4 billion, up 5.3% year-over-year, driven by higher net average charge and volume in U.S. assisted tax preparation and international growth. Net income from continuing operations increased 17.4% to $848.8 million, with adjusted earnings per share rising 11.9% to $6.02.
2. One-Time Tax Benefit
The company recognized an $84.1 million non-cash tax benefit related to the resolution of an IRS examination, which contributed a $0.65 per share gain. This one-time benefit, combined with fewer outstanding shares, boosted overall profitability for the quarter.
3. Shareholder Returns and Outlook
H&R Block maintained its quarterly dividend of $0.42 per share and has $700 million remaining under its share repurchase plan, with an incremental $100 million authorized for Q4. Based on season performance, full-year revenue guidance was raised to $3.910–3.920 billion, with adjusted diluted EPS now expected at $5.10–$5.20.