What changed in this filing

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Item 1. Financial Statements

2026-02-05 compared with 2025-11-06 · 100 added, 67 removed, 404 unchanged (29% of the section changed)

2 unchanged sentences

(unaudited, in 000s, except per share amounts)

Three months ended September 30,

Three months ended December 31, Six months ended December 31,

2025 2024 2025 2024

Service revenues $ 167,779 $ 152,968 $ 359,890 $ 334,739

28 unchanged sentences

share and per share amounts)

As of September 30, 2025 June 30, 2025

As of December 31, 2025 June 30, 2025

Cash and cash equivalents $ 349,194 $ 983,277

38 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in 000s)

Three months ended September 30, 2025 2024

Six months ended December 31, 2025 2024

CASH FLOWS FROM OPERATING ACTIVITIES:

21 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayments of line of credit borrowings ( 30,000 ) ( 100,000 )

Proceeds from line of credit borrowings 975,000 890,000

4 unchanged sentences

Other, net 4,752 1,791

Net cash used in financing activities ( 225,025 ) ( 284,450 )

Net cash provided by financing activities 429,536 258,598

Effects of exchange rate changes on cash ( 1,106 ) ( 9,136 )

8 unchanged sentences

Accrued dividends payable to common shareholders 53,215 50,176

Accrued purchase of common stock — 7,131

See accompanying notes to consolidated financial statements.

19 unchanged sentences

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 )

Q2 FY2026 Form 10-Q| H&R Block, Inc.

(amounts in 000s, except per share amounts)

16 unchanged sentences

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 )

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

1 unchanged sentence

See accompanying notes to consolidated financial statements.

Q1 FY2026 Form 10-Q| H&R Block, Inc.

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION – The consolidated balance sheets as of September 30, 2025 and June 30, 2025, the consolidated statements of operations and comprehensive loss for the three months ended September 30, 2025 and 2024, the consolidated statements of cash flows for the three months ended September 30, 2025 and 2024, and the consolidated statements of stockholders' equity for the three months ended September 30, 2025 and 2024 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 September 30, 2025 and 2024 and for all periods presented, have been made.

BASIS OF PRESENTATION – The consolidated balance sheets as of December 31, 2025 and June 30, 2025, the consolidated statements of operations and comprehensive loss for the three and six months ended December 31, 2025 and 2024, the consolidated statements of cash flows for the six months ended December 31, 2025 and 2024, and the consolidated statements of stockholders' equity for the three and six months ended December 31, 2025 and 2024 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 December 31, 2025 and 2024 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.

10 unchanged sentences

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.

H&R Block, Inc.

|Q1 FY2026 Form 10-Q

Q2 FY2026 Form 10-Q| H&R Block, Inc.

REVENUE RECOGNITION

2 unchanged sentences

revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:

Three months ended September 30,

Three months ended December 31, Six months ended December 31,

2025 2024 2025 2024

assisted tax preparation $ 55,919 $ 48,380 $ 104,563 $ 91,343

5 unchanged sentences

Emerald Card® and Spruce SM

9,124 10,148 16,976 18,974

Interest and fee income on Emerald Advance® 13,446 12,308 13,446 12,308

5 unchanged sentences

POM Deferred Revenue Deferred Wages

Three months ended September 30, 2025 2024 2025 2024

Six months ended December 31, 2025 2024 2025 2024

Balance, beginning of the period $ 149,302 $ 156,610 $ 19,884 $ 20,212

2 unchanged sentences

Balance, end of the period $ 107,696 $ 112,857 $ 14,103 $ 14,135

As of September 30, 2025, deferred revenue related to POM was $ 123.9 million.

As of December 31, 2025, deferred revenue related to POM was $ 107.7 million.

W e expect that $ 80.2 million will be recognized over the next twelve months , while the remaining balance will be recognized over the following five years .

As of September 30, 2025 and 2024, Tax Identity Shield® (TIS) deferred revenue was $ 18.7 million and $ 17.7 million, respectively.

As of December 31, 2025 and 2024, Tax Identity Shield® (TIS) deferred revenue was $ 14.9 million and $ 14.1 million, respectively.

Deferred revenue related to TIS was $ 22.6 million and $ 21.4 million as of June 30, 2025 and 2024, respectively.

4 unchanged sentences

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 2.7 million shares for both the three months ended September 30, 2025 and 2024, as the effect would be antidilutive due to the net loss from continuing operations during the periods.

Q1 FY2026 Form 10-Q| H&R Block, Inc.

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 2.4 million shares for the three and six months ended December 31, 2025 and 2.7 million

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

shares for the three and six months ended December 31, 2024, as the effect would be antidilutive due to the net loss from continuing operations during the periods.

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

(in 000s, except per share amounts)

Three months ended September 30,

Three months ended December 31, Six months ended December 31,

2025 2024 2025 2024

Net loss from continuing operations attributable to shareholders $ ( 241,566 ) $ ( 242,466 ) $ ( 406,934 ) $ ( 413,887 )

8 unchanged sentences

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 0 .8 million and 1.0 million shares, including adjustments for performance achievement and dividend equivalents, under our stock-based compensation plans during the three months ended September 30, 2025 and 2024, respectively.

Stock-based compensation expense of our continuing operations totaled $ 6.2 million and $ 8.7 million for the three months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, unrecognized compensation cost for nonvested shares and units totaled $ 68.5 million.

STOCK-BASED COMPENSATION – We granted 0.9 million and 1.1 million shares, including adjustments for performance achievement and dividend equivalents, under our stock-based compensation plans during the six months ended December 31, 2025 and 2024, respectively.

Stock-based compensation expense of our continuing operations totaled $ 7.6 million and $13.8 million for the three and six months ended December 31, 2025, respectively, and $ 9.2 million and $17.9 million for the three and six months ended December 31, 2024, respectively.

As of December 31, 2025, unrecognized compensation cost for nonvested shares and units totaled $ 62.9 million.

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

As of September 30, 2025 June 30, 2025

As of December 31, 2025 June 30, 2025

Short-term Long-term Short-term Long-term

10 unchanged sentences

Total $ 352,480 $ 47,280 $ 63,621 $ 47,016

Q2 FY2026 Form 10-Q| H&R Block, Inc.

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 $3.5 million and $3.1 million as of September 30, 2025 and June 30, 2025, respectively.

H&R Block, Inc.

|Q1 FY2026 Form 10-Q

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 December 31, 2025 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.

2 unchanged sentences

In December of each year, we charge-off the receivables and the related allowance to an amount we believe represents the net realizable value.

B alances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of September 30, 2025 are as foll ows:

B alances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of December 31, 2025 are as foll ows:

Tax return year of origination Balance More Than 60 Days Past Due

2 unchanged sentences

1,539 $ 1,479

Allowance ( 1,079 )

Net balance $ 1,539

2 unchanged sentences

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 September 30, 2025 are as follows:

Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination, as of December 31, 2025 are as follows:

Fiscal year of origination Balance Non-Accrual

4 unchanged sentences

Net balance $ 311,397

Q1 FY2026 Form 10-Q| H&R Block, Inc.

ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the three months ended September 30, 2025 and 2024 is as follows:

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the six months ended December 31, 2025 and 2024 is as follows:

EAs All Other Total

2 unchanged sentences

Charge-offs, recoveries and other ( 19,663 ) ( 44,627 ) ( 64,290 )

Balances as of September 30, 2025 $ 19,663 $ 44,766 $ 64,429

Balances as of December 31, 2025 $ 19,893 $ 1,780 $ 21,673

Balances as of July 1, 2024 $ 33,536 $ 45,327 $ 78,863

1 unchanged sentence

Charge-offs, recoveries and other ( 33,536 ) ( 45,552 ) ( 79,088 )

Balances as of September 30, 2024 $ 33,536 $ 44,889 $ 78,425

Balances as of December 31, 2024 $ 19,109 $ 1,393 $ 20,502

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

GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the three months ended September 30, 2025 are as follows:

Changes in the carrying amount of goodwill for the six months ended December 31, 2025 are as follows:

Goodwill Accumulated Impairment Losses Net

4 unchanged sentences

Impairments — — —

Balances as of September 30, 2025 $ 936,036 $ ( 138,297 ) $ 797,739

Balances as of December 31, 2025 $ 953,915 $ ( 138,297 ) $ 815,618

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

We test goodwill for impairment annually as of February 1, or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

H&R Block, Inc.

|Q1 FY2026 Form 10-Q

Q2 FY2026 Form 10-Q| H&R Block, Inc.

Components of intangible assets are as follows:

1 unchanged sentence

Amortization Net

As of September 30, 2025:

As of December 31, 2025:

Reacquired franchise rights $ 429,290 $ ( 250,627 ) $ 178,663

13 unchanged sentences

$ 986,736 $ ( 727,324 ) $ 259,412

We made payments to acquire businesses totaling $ 5.1 million and $ 5.9 million during the three months ended September 30, 2025 and 2024, respectively.

The amounts and weighted-average lives of intangible assets acquired during the three months e nded September 30, 2025, including amounts capitalized related to internally-developed software, a re as follows:

We made payments to acquire businesses totaling $ 35.4 million and $ 28.0 million during the six months ended December 31, 2025 and 2024, respectively.

The amounts and weighted-average lives of intangible assets acquired during the six months e nded December 31, 2025, including amounts capitalized related to internally-developed software, a re as follows:

(dollars in 000s)

5 unchanged sentences

Total $ 34,155 5

Amortization of intangible assets for the three months ended September 30, 2025 was $ 11.1 million compared to $ 12.9 million for the three months ended September 30, 2024.

Amortization of intangible assets for the three and six months ended December 31, 2025 was $ 11.3 million and $22.4 million respectively, compared to $ 12.1 million and $25.0 million for the three and six months ended December 31, 2024.

Estimated amortization of intangible assets for fiscal years ending June 30, 2026, 2027, 2028, 2029, and 2030 is $ 47.3 million, $ 45.0 million, $ 36.6 million, $ 27.7 million and $ 17.8 million, respectively.

Q1 FY2026 Form 10-Q| H&R Block, Inc.

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

LONG-TERM DEBT

The components of long-term debt are as follows:

As of September 30, 2025 June 30, 2025

As of December 31, 2025 June 30, 2025

Senior Notes, 5.250 %, due October 2025

13 unchanged sentences

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 will be 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).

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.

11 unchanged sentences

Proceeds under the 2025 CLOC may be used for working capital needs or for other general corporate pu rposes.

We were in compliance with these requirements as of September 30, 2025.

H&R Block, Inc.

|Q1 FY2026 Form 10-Q

We had an outstanding balance of $245.0 million under our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of September 30, 2025.

We were in compliance with these requirements as of December 31, 2025.

Q2 FY2026 Form 10-Q| H&R Block, Inc.

We had an outstanding balance of $ 945.0 million under our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of December 31, 2025 .

We file a consolidated federal income tax return in the U.S.

2 unchanged sentences

1 was signed into law.

The legislation did not have a material impact on our tax benefit for the three months ended September 30, 2025, and we do not expect it to materially change our effective income tax rate for the fiscal year ending June 30, 2026.

Our effective tax rate for continuing operations, including the effects of discrete tax items, was 23.6 % and 26.2 % for the three months ended September 30, 2025 and 2024, respectively.

Consistent with prior years, our pretax loss for the three months ended September 30, 2025 is expected to be offset by income in our third and fourth quarters due to the established pattern of seasonality in our primary business operations.

The legislation did not have a material impact on our tax benefit for the six months ended December 31, 2025, and we do not expect it to materially change our effective income tax rate for the fiscal year ending June 30, 2026.

Our effective tax rate for continuing operations, including the effects of discrete tax items, was 24.0% for both the six months ended December 31, 2025 and 2024.

Consistent with prior years, our pretax loss for the six months ended December 31, 2025 is expected to be offset by income in our third and fourth quarters due to the established pattern of seasonality in our primary business operations.

As such, management has determined that it is more-likely-than-not that realization of tax benefits recorded in our financial statements will occur within our fiscal year.

The amount of tax benefit recorded for the three months ended September 30, 2025 reflects management’s estimate of the annual effective tax rate applied to year-to-date loss from continued operations adjusted for the tax impact of discrete items for the periods presented.

The amount of tax benefit recorded for the six months ended December 31, 2025 reflects management’s estimate of the annual effective tax rate applied to year-to-date loss from continuing operations adjusted for the tax impact of discrete items for the periods presented.

COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

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 $ 10.4 million and $ 11.4 million as of September 30, 2025 and June 30, 2025, respectively.

Our liability related to estimated losses under the 100% accuracy guarantee was $ 10.9 million and $ 11.4 million as of December 31, 2025 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 $ 30.6 million and $ 29.6 million as of September 30, 2025 and June 30, 2025 respectively, with amounts recorded in deferred revenue and other liabilities.

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 $ 36.9 million and $ 29.6 million as of December 31, 2025 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.

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 $ 13.2 million at September 30, 2025, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $ 8.1 million.

Our total obligation under these lines of credit was $ 21.9 million at December 31, 2025, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $ 5.9 million.

Emerald Advance® term loans are originated by Pathward® N.A.

We purchase participation interests, at par, in all EAs originated by Pathward in accordance with our participation agreement.

Our participation interest varies by jurisdiction.

At December 31, 2025, the principal balance of purchased participation interests for the current year totaled $281.1 million, which represents 87% of total EA volume originated by Pathward.

LITIGATION AND OTHER RELATED CONTINGENCIES

3 unchanged sentences

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.

Jurisdictions may permit claimants not to specify the monetary damages sought or may

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

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.

Q1 FY2026 Form 10-Q| H&R Block, Inc.

The outcome of a matter and the amount or range of potential loss at particular points in time may be difficult to ascertain.

6 unchanged sentences

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 September 30, 2025.

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 December 31, 2025.

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 $ 6.8 million and $ 6.2 million as of September 30, 2025 and June 30, 2025, respectively.

Our accrued liabilities were $ 10.0 million and $ 6.2 million as of December 31, 2025 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.

5 unchanged sentences

The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.

As of September 30, 2025, 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.

As of December 31, 2025, 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.

2 unchanged sentences

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.

The amounts claimed in the matters are substantial, however, and there

Q2 FY2026 Form 10-Q| H&R Block, Inc.

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.

H&R Block, Inc.

|Q1 FY2026 Form 10-Q

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.

14 unchanged sentences

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 months ended September 30, 2025 and 2024.

Q1 FY2026 Form 10-Q| H&R Block, Inc.

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

Consolidated – Financial Results (in 000s, except per share amounts)

Three months ended September 30, 2025 2024

Three months ended December 31, Six months ended December 31,

2025 2024 2025 2024

tax preparation and related services:

6 unchanged sentences

Emerald Card® and Spruce SM

9,124 10,148 16,976 18,974

Interest and fee income on Emerald Advance® 13,446 12,308 13,446 12,308

18 unchanged sentences

Income tax benefit ( 77,657 ) ( 69,833 ) ( 128,620 ) ( 130,673 )

Segment net income from continuing operations ( 165,368 ) ( 171,421 )

Segment net loss from continuing operations ( 241,566 ) ( 242,466 ) ( 406,934 ) ( 413,887 )

Reconciliation of segment profit:

2 unchanged sentences

Net loss $ ( 242,166 ) $ ( 243,420 ) $ ( 407,985 ) $ ( 415,996 )

H&R Block, Inc.

|Q1 FY2026 Form 10-Q

Q2 FY2026 Form 10-Q| H&R Block, Inc.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements