Recent News
On November 4, 2025 the company’s board declared a quarterly cash dividend of $0.42 per share payable January 6, 2026. On November 6, 2025 H&R Block released fiscal 2026 first-quarter results, reported revenue of $203.6 million and reiterated fiscal 2026 guidance while announcing $400 million of share repurchases completed in the quarter. Earlier, the company announced Q1 release timing on October 23, 2025 and rolled out an Emerald Advance® loan application window on October 29, 2025.
Technical Analysis
ADX at 17.25 indicates no established trend; directional signals carry limited force for near-term directional conviction.
DI+ registered a peak-and-reversal, a bearish development, while DI- has been decreasing, a bullish development; those opposing moves with a weak ADX create conflicting directional cues and reduce signal reliability for immediate price direction.
MACD currently sits at -0.43 and has crossed above its signal line (-0.74), with the MACD trend increasing; that cross above the signal line signals emerging bullish momentum despite the MACD remaining below zero.
MRO at -23.98 and increasing indicates price sits below the model target and suggests upward pressure toward the target if the oscillator continues to rise.
RSI at 42.53 and increasing points to building buying interest without overbought conditions, supporting the modest bullish bias implied by MACD and MRO.
Price sits at $43.58, slightly above the 20-day average ($43.45) and the 12-day EMA (price12dayEMA $43.41, trend increasing), but below the 50-day ($45.53) and 200-day ($52.07) averages; short-term momentum favors higher levels while longer-term moving averages indicate persistent downside reference points.
Ichimoku components show price above Tenkan-sen ($42.99) and Kijun-sen ($43.05) but below the Senkou cloud (Senkou A $47.89 / Senkou B $48.01), signaling short-term support but longer-term resistance around the cloud. Bollinger bands cluster tightly (upper ~ $43.81, lower ~ $43.08), consistent with low volatility, and current volume sits below recent averages, indicating limited conviction behind intraday moves.
Fundamental Analysis
Top-line and profitability: Total revenue stood at $203,551,000 for the period reported, with YoY revenue growth of -0.10% and QoQ revenue growth of +59.50%, reflecting seasonal and periodization effects reported for the quarter. Net income registered a loss of $165,819,000 and operating income registered a loss of $207,031,000, producing an operating margin of -101.71% and an EBIT margin of -97.73%, both well below the industry peer mean (EBIT margin industry peer mean 20.53%).
Earnings per share: Reported EPS came in at -$1.20 versus an estimate of -$1.35, delivering an EPS surprise of +11.11%, which narrowed downside versus expectations for the quarter.
Cash flow and liquidity: Operating cash flow totaled -$356,838,000 and free cash flow totaled -$370,026,000, producing a free cash flow yield of -5.68%, below the industry peer mean free cash flow yield (~0.48%). Cash and short-term investments totaled $376,410,000, while the company carried net debt of $1,358,552,000; the cash position provides runway but negative operating cash flow and negative free cash flow indicate cash strain versus capital returns.
Balance sheet structure: Total debt measured $2,246,114,000 and debt-to-assets registered 85.69%, substantially above the industry peer mean (≈37.97%), while total equity remained negative at -$550,910,000 and book value per share measured -$4.36, reflecting an unusual capital structure that amplifies leverage metrics.
Profitability and returns: Return on equity at 30.10% contrasts with negative net income; distortions arise from negative equity and non-recurring items. Gross margin and cash conversion metrics remained negative, and EBITDA registered -$170,007,000 for the period, all of which constrain intrinsic valuation despite the company’s active capital returns.
Valuation: WMDST values the stock as over-valued. Key market multiples show negative PE and negative enterprise multiple metrics alongside a price-to-sales ratio of 31.99 and an EV/R of 41.18, all consistent with the stated over-valued determination when paired with negative margins and weak cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 1.0 B |
| Operating Cash Flow | $ -356.84 M | |
| Capital Expenditures | $ -13.19 M | |
| Change In Working Capital | $ -244.89 M | |
| Dividends Paid | $ -50.21 M | |
| Cash Flow Delta | $ -605.74 M | |
| End Period Cash Flow | $ 397.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 203.6 M | |
| Forward Revenue | $ -53.03 M | |
| COSTS | ||
| Cost Of Revenue | $ 274.0 M | |
| Depreciation | $ 28.9 M | |
| Depreciation and Amortization | $ 28.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 410.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ -70.47 M | |
| EBITDA | $ -170.01 M | |
| EBIT | $ -198.93 M | |
| Operating Income | $ -207.03 M | |
| Interest Income | — | |
| Interest Expense | $ 17.4 M | |
| Net Interest Income | $ -17.40 M | |
| Income Before Tax | $ -216.33 M | |
| Tax Provision | $ -50.96 M | |
| Tax Rate | 23.6 % | |
| Net Income | $ -165.82 M | |
| Net Income From Continuing Operations | $ -165.82 M | |
| EARNINGS | ||
| EPS Estimate | $ -1.35 | |
| EPS Actual | $ -1.20 | |
| EPS Difference | $ 0.15 | |
| EPS Surprise | 11.111 % | |
| Forward EPS | $ 1.37 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.6 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ -1.60 B | |
| Total Current Assets | $ 564.2 M | |
| Cash and Short-Term Investments | $ 376.4 M | |
| Cash | $ 376.4 M | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 67.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 145.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 739.6 M | |
| Net Debt | $ 1.4 B | |
| Total Debt | $ 2.2 B | |
| Total Liabilities | $ 3.2 B | |
| EQUITY | ||
| Total Equity | $ -550.91 M | |
| Retained Earnings | $ -609.30 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -4.36 | |
| Shares Outstanding | 126.421 M | |
| Revenue Per-Share | $ 1.61 | |
| VALUATION | Market Capitalization | $ 6.5 B |
| Enterprise Value | $ 8.4 B | |
| Enterprise Multiple | -49.3 | |
| Enterprise Multiple QoQ | -346.762 % | |
| Enterprise Multiple YoY | 16.308 % | |
| Enterprise Multiple IPRWA | high: 53.904 median: 51.776 mean: 47.643 low: 28.794 HRB: -49.3 |
|
| EV/R | 41.176 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -4.758 | |
| Asset To Liability | 0.826 | |
| Debt To Capital | 1.325 | |
| Debt To Assets | 0.857 | |
| Debt To Assets QoQ | 38.092 % | |
| Debt To Assets YoY | 1053.399 % | |
| Debt To Assets IPRWA | HRB: 0.857 high: 0.538 median: 0.418 mean: 0.38 low: 0.274 |
|
| Debt To Equity | -4.077 | |
| Debt To Equity QoQ | -117.896 % | |
| Debt To Equity YoY | 692.178 % | |
| Debt To Equity IPRWA | high: 3.791 median: 3.21 mean: 2.768 low: 1.225 HRB: -4.077 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -11.82 | |
| Price To Book QoQ | -114.567 % | |
| Price To Book YoY | -46.8 % | |
| Price To Book IPRWA | high: 14.757 mean: 7.846 median: 7.23 low: 2.9 HRB: -11.82 |
|
| Price To Earnings (P/E) | -42.923 | |
| Price To Earnings QoQ | -274.829 % | |
| Price To Earnings YoY | -15.84 % | |
| Price To Earnings IPRWA | high: 92.833 mean: 74.712 median: 68.822 low: 40.745 HRB: -42.923 |
|
| PE/G Ratio | 0.281 | |
| Price To Sales (P/S) | 31.99 | |
| Price To Sales QoQ | 392.738 % | |
| Price To Sales YoY | -24.183 % | |
| Price To Sales IPRWA | HRB: 31.99 high: 10.705 mean: 9.12 median: 7.645 low: 6.832 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 40.547 | |
| Forward PE/G | -0.265 | |
| Forward P/S | -130.615 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.859 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.069 | |
| Asset Turnover Ratio QoQ | -79.738 % | |
| Asset Turnover Ratio YoY | 2.947 % | |
| Asset Turnover Ratio IPRWA | high: 0.281 mean: 0.144 median: 0.078 HRB: 0.069 low: 0.058 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -24.795 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 25.264 HRB: -24.795 mean: -33.122 median: -35.231 low: -67.066 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -1.161 | |
| CapEx To Revenue | -0.065 | |
| CapEx To Depreciation | -0.456 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.2 B | |
| Net Invested Capital | $ 1.2 B | |
| Invested Capital | $ 1.2 B | |
| Net Tangible Assets | $ -1.60 B | |
| Net Working Capital | $ -175.31 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.509 | |
| Current Ratio | 0.763 | |
| Current Ratio QoQ | -14.775 % | |
| Current Ratio YoY | -0.717 % | |
| Current Ratio IPRWA | high: 1.733 mean: 0.803 HRB: 0.763 median: 0.558 low: 0.541 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -13.212 | |
| Cost Of Debt | 0.623 % | |
| Interest Coverage Ratio | -11.431 | |
| Interest Coverage Ratio QoQ | -147.167 % | |
| Interest Coverage Ratio YoY | -16.293 % | |
| Interest Coverage Ratio IPRWA | high: 9.896 mean: 6.1 median: 3.449 low: 2.398 HRB: -11.431 |
|
| Operating Cash Flow Ratio | -0.183 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 24.795 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | -3.303 | |
| Dividend Payout Ratio | -0.303 | |
| Dividend Rate | $ 0.40 | |
| Dividend Yield | 0.008 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -19.687 % | |
| Revenue Growth | -81.679 % | |
| Revenue Growth QoQ | 59.501 % | |
| Revenue Growth YoY | -0.1 % | |
| Revenue Growth IPRWA | high: 9.738 % mean: 2.882 % low: -0.69 % median: -0.69 % HRB: -81.679 % |
|
| Earnings Growth | -152.863 % | |
| Earnings Growth QoQ | 164.437 % | |
| Earnings Growth YoY | -5.585 % | |
| Earnings Growth IPRWA | high: 46.729 % mean: 11.414 % median: -1.136 % low: -3.067 % HRB: -152.863 % |
|
| MARGINS | ||
| Gross Margin | -34.618 % | |
| Gross Margin QoQ | -166.532 % | |
| Gross Margin YoY | -11.454 % | |
| Gross Margin IPRWA | high: 57.212 % mean: 32.491 % median: 27.036 % low: 25.096 % HRB: -34.618 % |
|
| EBIT Margin | -97.729 % | |
| EBIT Margin QoQ | -383.043 % | |
| EBIT Margin YoY | -12.479 % | |
| EBIT Margin IPRWA | high: 26.256 % median: 21.411 % mean: 20.531 % low: 15.053 % HRB: -97.729 % |
|
| Return On Sales (ROS) | -101.71 % | |
| Return On Sales QoQ | -404.357 % | |
| Return On Sales YoY | -8.913 % | |
| Return On Sales IPRWA | high: 25.446 % median: 21.474 % mean: 20.619 % low: 15.053 % HRB: -101.71 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -370.03 M | |
| Free Cash Flow Yield | -5.682 % | |
| Free Cash Flow Yield QoQ | -269.865 % | |
| Free Cash Flow Yield YoY | 33.789 % | |
| Free Cash Flow Yield IPRWA | high: 1.244 % median: 1.17 % mean: 0.48 % low: -5.487 % HRB: -5.682 % |
|
| Free Cash Growth | -253.34 % | |
| Free Cash Growth QoQ | 210.961 % | |
| Free Cash Growth YoY | 15.44 % | |
| Free Cash Growth IPRWA | high: 102.031 % mean: -22.383 % median: -51.667 % HRB: -253.34 % low: -835.14 % |
|
| Free Cash To Net Income | 2.232 | |
| Cash Flow Margin | -66.504 % | |
| Cash Flow To Earnings | 0.816 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -5.635 % | |
| Return On Assets QoQ | -161.243 % | |
| Return On Assets YoY | -5.816 % | |
| Return On Assets IPRWA | high: 4.819 % mean: 1.861 % median: 0.646 % low: 0.502 % HRB: -5.635 % |
|
| Return On Capital Employed (ROCE) | -10.571 % | |
| Return On Equity (ROE) | 0.301 | |
| Return On Equity QoQ | -91.064 % | |
| Return On Equity YoY | -35.805 % | |
| Return On Equity IPRWA | high: 0.335 HRB: 0.301 mean: 0.121 median: 0.075 low: 0.027 |
|
| DuPont ROE | 71.777 % | |
| Return On Invested Capital (ROIC) | -12.836 % | |
| Return On Invested Capital QoQ | -164.812 % | |
| Return On Invested Capital YoY | -118.198 % | |
| Return On Invested Capital IPRWA | high: 8.035 % mean: 3.933 % median: 2.511 % low: 1.439 % HRB: -12.836 % |
|