H & R Block Q2 revenue rises 11% on higher DIY sales

Overview

• Tax preparation service's fiscal Q2 revenue rose 11% yr/yr

• Adjusted EPS for fiscal Q2 increased 6.4% due to fewer shares outstanding

• Company reaffirmed fiscal year 2026 outlook

Outlook

• H&R Block reaffirms fiscal year revenue guidance of $3.875 bln to $3.895 bln

• Company maintains fiscal year EBITDA forecast of $1.015 bln to $1.035 bln

• H&R Block expects adjusted diluted EPS for fiscal year to be $4.85 to $5.00

Result Drivers

• ASSISTED CATEGORY - Higher volume and net average charge in assisted tax preparation drove revenue growth

• WAVE GROWTH - Strong growth in Wave subscription revenue and payments volume contributed to revenue increase

• DIY SALES - Increased sales of DIY software supported revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy."

• Wall Street's median 12-month price target for H & R Block Inc is $55.00, about 42% above its February 2 closing price of $38.72

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX31LTV

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