What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2026-02-05 · 119 added, 96 removed, 235 unchanged (48% of the section changed)

13 unchanged sentences

On August 13, 2025, Kellie J.

Logerwell notified H&R Block, Inc.

(the “Company”) of her intention to retire as the Company’s Vice President and Chief Accounting Officer, effective as of October 24, 2025.

Logerwell notified the Company of her intention to retire as the Company’s Vice President and Chief Accounting Officer, effective as of October 24, 2025.

Logerwell was succeeded as principal accounting officer by April M.

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Our subsidiaries provide assisted and do-it-yourself (DIY) tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded products and services, including those of our bank partners, to the general public primarily in the United States (U.S.), Canada and Australia.

Tax returns are prepared by H&R Block tax professionals in one of our company-owned or franchise offices, virtually or via an online review, or they are prepared and filed by our clients through our DIY tax solutions.

Tax returns are either prepared by H&R Block tax professionals in one of our 6,802 company-owned or 1,814 franchise offices (as of March 31, 2026), virtually or via an online review or prepared and filed by our clients through our DIY tax solutions.

We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave.

We report a single segment that includes all of our continuing operations.

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

Q3 FY2026 Form 10-Q| H&R Block, Inc.

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

Three months ended December 31, 2025 2024 $ Change % Change

Three months ended March 31, 2026 2025 $ Change % Change

tax preparation and related services:

28 unchanged sentences

Interest expense on borrowings (24,307) (24,686) 379 1.5 %

Pretax loss (319,223) (312,299) (6,924) (2.2) %

Income tax benefit (77,657) (69,833) 7,824 11.2 %

Net loss from continuing operations (241,566) (242,466) 900 0.4 %

Pretax income 1,016,458 958,181 58,277 6.1 %

Income taxes 167,678 235,253 67,575 28.7 %

Net income from continuing operations 848,780 722,928 125,852 17.4 %

Net loss from discontinued operations (879) (598) (281) (47.0) %

Net loss $ (242,166) $ (243,420) $ 1,254 0.5 %

BASIC AND DILUTED LOSS PER SHARE:

Net income $ 847,901 $ 722,330 $ 125,571 17.4 %

DILUTED EARNINGS PER SHARE

Continuing operations $ 6.61 $ 5.32 $ 1.29 24.2 %

6 unchanged sentences

See " Non-GAAP Financial Information " at the end of this item for a reconciliation of non-GAAP measures.

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

Three months ended December 31, 2025 compared to December 31, 2024

Revenues increased $19.8 million, or 11.1%, from the prior ye ar.

assisted tax preparation revenues increased $7.5 million , or 15.6%, primarily due to an increase in company-owned tax return volumes and net average charge in the current year.

DIY tax preparation revenues increased $3.1 million, or 22.3%, primarily due to higher software downloads.

Wave revenues increased $3.2 million, or 12.1%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.

H&R Block, Inc.

|Q3 FY2026 Form 10-Q

Three months ended March 31, 2026 compared to March 31, 2025

Revenues increased $121.0 million, or 5.3%, from the prior year.

assisted tax preparation revenues increased $106.3 million, or 6.5%, primarily due to a 3.8% increase in net average charge combined with a 2.6% increase in company-owned tax return volumes in the current year.

royalties revenue decreased $5.8 million, or 4.3%, due to lower franchise tax return volumes, which was primarily driven by franchise acquisitions.

During the year we purchased franchise offices which results in increasing tax preparation revenues and decreasing royalties as the revenues and returns become company-owned after the acquisition.

For the three months ended March 31, 2026 our total assisted tax return volume, which includes both company-owned and franchise offices, increased 0.4% from the prior year.

DIY tax preparation revenues increased $0.6 million, or 0.3%, largely due to a 3.5% increase in online paid net average charge, offset by a 3.0% decrease in online paid volume.

Refund Transfer revenues increased $6.2 million, or 5.5%, primarily due to an increase in Refund Transfer volume.

International tax preparation revenues increased $9.7 million, or 16.0%, primarily due to favorable foreign currency exchange rates in Canada and Australia.

Total operating expenses increased $62.5 million, or 4.8%, from the prior year.

Compensation and benefits increased $8.5 million, or 4.3%, primarily due to higher tax professional wages as a result of higher assisted revenue and higher corporate wages primarily due to salary increases.

Field wages increased $44.6 million, or 8.4%, due to increased tax professional wages resulting from an increase in U.S.

assisted tax preparation revenues.

Certain wage‑related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally.

This change had no impact on total operating expenses, and prior period amounts have not been reclassified.

Benefits and other compensation increased $6.6 million or 5.9% due primarily to higher payroll taxes, stock-based compensation and severance pay in the current year.

Occupancy expense increased $7.6 million, or 6.4%, primarily due to higher lease expenses and facility repairs.

Marketing and advertising expenses decreased $11.3 million, or 5.7%, due to lower online and TV advertising as well as lower customer incentive expenses.

Other operating expenses increased $9.3 million, or 4.8%.

The components of other expenses are as follows:

Three months ended December 31, 2025 2024 $ Change % Change

Three months ended March 31, 2026 2025 $ Change % Change

Consulting and outsourced services $ 39,046 $ 38,887 $ (159) (0.4) %

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$ 202,891 $ 193,603 $ (9,288) (4.8) %

Consulting and outsourced services expense increased $5.9 million, or 32.0%, due to increased spend on various strategic projects.

We recorded an income tax benefit of $77.7 million in the current year compared to $69.8 million in the prior year.

The effective tax rate for the three months ended December 31, 2025, and 2024 was 24.3% and 22.4%, respectively.

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

We recorded income tax expense of $167.7 million in the current year compared to $235.3 million in the prior year.

The effective tax rate for the three months ended March 31, 2026, and 2025 was 16.5% and 24.6%, respectively.

The decrease in the effective tax rate was primarily attributable to the settlement of an IRS examination of our 2020 U.S.

federal income tax return and related carryback claims to the 2015 through 2018 tax years.

The closure of the IRS examination resulted in a discrete income tax benefit of $84.1 million, which was recorded in income tax expense.

See Item 1, note 7 to the consolidated financial statements for additional discussion.

Q3 FY2026 Form 10-Q| H&R Block, Inc.

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

Six months ended December 31, 2025 2024 $ Change % Change

Nine months ended March 31, 2026 2025 $ Change % Change

tax preparation and related services:

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Interest expense on borrowings (65,087) (62,285) (2,802) (4.5) %

Pretax loss (535,554) (544,560) 9,006 1.7 %

Income tax benefit (128,620) (130,673) (2,053) (1.6) %

Net loss from continuing operations (406,934) (413,887) 6,953 1.7 %

Pretax income 480,904 413,621 67,283 16.3 %

Income taxes 39,058 104,580 65,522 62.7 %

Net income from continuing operations 441,846 309,041 132,805 43.0 %

Net loss from discontinued operations (1,930) (2,707) 777 28.7 %

Net loss $ (407,985) $ (415,996) $ 8,011 1.9 %

BASIC AND DILUTED LOSS PER SHARE:

Net income $ 439,916 $ 306,334 $ 133,582 43.6 %

DILUTED EARNINGS PER SHARE

Continuing operations $ 3.40 $ 2.23 $ 1.17 52.5 %

6 unchanged sentences

See " Non-GAAP Financial Information " at the end of this item for a reconciliation of non-GAAP measures.

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

Six months ended December 31, 2025 compared to December 31, 2024

H&R Block, Inc.

|Q3 FY2026 Form 10-Q

Nine months ended March 31, 2026 compared to March 31, 2025

Revenues increased $150.5 million, or 5.7%, from the prior year.

assisted tax preparation revenues increased $13.2 million, or 14.5%, primarily due to an increase in net average charge combined with an increase in company-owned tax return volumes in the current year.

DIY tax preparation revenues increased $3.6 million, or 21.0%, primarily due to higher software downloads and higher paid online volume.

Wave revenues increased $6.7 million, or 12.6%, due to higher accounting, invoicing, and receipts subscriptions and small business payment processing volumes.

assisted tax preparation revenues increased $119.5 million, or 6.9%, primarily due to a 4.0% increase in net average charge combined with a 2.7% increase in company-owned tax return volumes in the current year.

royalties revenue decreased $4.2 million, or 2.9%, due to lower franchise tax return volumes, which was primarily driven by franchise acquisitions.

During the year we purchased franchise offices which results in increasing tax preparation revenues and decreasing royalties as the revenues and returns become company-owned after the acquisition.

Through the nine months ended March 31, 2026 our total assisted tax return volume, which includes both company-owned and franchise offices, increased 0.6% from the prior year.

DIY tax preparation revenues increased $4.2 million, or 1.8%, largely due to a 3.9% increase in online paid net average charge, offset by a 2.7% decrease in online paid volume.

International revenues increased $13.4 million, or 8.5%, primarily due to favorable foreign currency exchange rates in Canada and Australia.

Total operating expenses increased $76.3 million, or 3.5%, from the prior year period.

Compensation and benefits increased $9.9 million, or 2.6%, primarily due to higher tax professional wages as a result of higher assisted revenue and higher corporate wages primarily due to salary increases.

Field wages increased $58.8 million, or 8.6%, due to increased tax professional wages as a result of higher U.S.

assisted tax preparation revenues.

Certain wage‑related expenses are now being reported in field wages rather than other wages to better align with how costs are managed and evaluated internally.

This change had no impact on total operating expenses, and prior period amounts have not been reclassified.

Occupancy expense increased $6.1 million, or 2.9%, primarily due to higher lease expenses.

Other operating expenses decreased $3.5 million, or 1.7%.

Benefits and other compensation increased $6.1 million, or 3.2%, due to higher payroll taxes, employee insurance, and severance.

Occupancy expense increased $13.7 million, or 4.2%, primarily due to higher lease expenses and facility repairs.

Marketing and advertising expense decreased $12.8 million, or 5.8%, due to lower online and TV advertising as well as lower customer incentives.

Other operating expenses increased $5.8 million, or 1.5%.

The components of other expenses are as follows:

Six months ended December 31, 2025 2024 $ Change % Change

Nine months ended March 31, 2026 2025 $ Change % Change

Consulting and outsourced services $ 76,536 $ 72,770 $ (3,766) (5.2) %

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$ 399,721 $ 393,900 $ (5,821) (1.5) %

Legal expense decreased $6.7 million, or 30.8%, primarily due to lower outside legal counsel spend.

We recorded income tax benefit of $128.6 million in the current year compared to $130.7 million in the prior year.

The effective tax rate for both the six months ended December 31, 2025, and 2024 was 24.0%.

Technology-related expenses increased $6.2 million, or 7.1%, due to higher third-party technology and software costs.

We recorded income tax expense of $39.1 million in the current year compared to $104.6 million in the prior year.

The effective tax rate for the nine months ended March 31, 2026, and 2025 was 8.1% and 25.3% respectively.

The decrease in the effective tax rate was primarily attributable to the settlement of an IRS examination of our 2020 U.S.

federal income tax return and related carryback claims to the 2015 through 2018 tax years.

The closure of the IRS examination resulted in a discrete income tax benefit of $84.1 million, which was recorded in income tax expense.

See Item 1, note 7 to the consolidated financial statements for additional discussion.

Q3 FY2026 Form 10-Q| H&R Block, Inc.

TAX SEASON UPDATE

Assisted tax return volume, which includes our company-owned and franchise operations, was flat from July 1, 2025 through April 30, 2026 compared to the prior year period.

DIY online paid tax return volume from July 1, 2025 through April 30, 2026 decreased 4.2% compared to the prior year period.

Our business is highly seasonal and results for the nine months ended March 31, as well as results for the period ended April 30, may not be indicative of results for the fiscal year ended June 30, 2026.

FINANCIAL CONDITION

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Our operations are highly seasonal and substantially all of our revenues and cash flow are generated during the period from February through April in a typical year.

Therefore, we normally require the use of cash to fund losses and working capital needs, periodically resulting in a working capital deficit, during the months of May through

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

Therefore, we normally require the use of cash to fund losses and working capital needs, periodically resulting in a working capital deficit, during the months of May through January.

We typically have relied on available cash balances from the prior tax season and borrowings to meet liquidity needs.

Given the likely availability of a number of liquidity options discussed herein, we believe that, in the absence of any unexpected developments, our existing sources of capital as of December 31, 2025 are sufficient to meet our operating, investing and financing needs.

DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS – The following table summarizes our statements of cash flows for the six months ended December 31, 2025 and 2024.

Given the likely availability of a number of liquidity options discussed herein, we believe that, in the absence of any unexpected developments, our existing sources of capital as of March 31, 2026 are sufficient to meet our operating, investing and financing needs.

DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS – The following table summarizes our statements of cash flows for the nine months ended March 31, 2026 and 2025.

See Item 1 for the complete consolidated statements of cash flows for these periods.

Six months ended December 31, 2025 2024

Nine months ended March 31, 2026 2025

Net cash provided by (used in):

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Operating Activities.

Cash used in operations totaled $970.8 million for the six months ended December 31, 2025 compared to $895.6 million in the prior year period.

The increase is primarily due to changes in accrued income taxes and receivables, partially offset by deferred income taxes and a lower net loss.

Cash provided by operations totaled $586.7 million for the nine months ended March 31, 2026 compared to $429.3 million in the prior year period.

The increase is primarily due to higher net income, changes in accounts payable, accrued expenses, salaries, wages and payroll taxes and accounts receivable, partially offset by taxes paid and the release of income tax reserves associated with the settlement of the IRS examination of our 2020 U.S.

federal income tax return and related carryback claims to the 2015 through 2018 tax years.

Investing Activities.

Cash used in investing activities totaled $91.9 million for the six months ended December 31, 2025 compared to $87.5 million in the prior year period.

The increase is primarily due to higher payments made for business acquisitions.

Cash used in investing activities totaled $122.6 million for the nine months ended March 31, 2026 compared to $110.9 million in the prior year period.

The increase is primarily due to higher payments made for business acquisitions in the current year.

Financing Activities.

Cash provided by financing activities totaled $429.5 million for the six months ended December 31, 2025 compared to $258.6 million in the prior year period.

The change is primarily due to higher net proceeds from line of credit borrowings, lower share repurchases for payroll taxes on stock-based awards, partially offset by higher dividends.

Cash used in financing activities totaled $579.5 million for the nine months ended March 31, 2026 compared to $595.5 million in the prior year period.

The change is primarily due to lower share repurchases for payroll taxes on stock based awards, partially offset by higher dividends.

H&R Block, Inc.

|Q3 FY2026 Form 10-Q

CASH REQUIREMENTS –

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We have consistently paid quarterly dividends.

Dividends paid totaled $104.6 million and $97.0 million for the six months ended December 31, 2025 and 2024, respectively.

Dividends paid totaled $157.8 million and $147.1 million for the nine months ended March 31, 2026 and 2025, respectively.

Although we have historically paid dividends and plan to continue to do so, there can be no assurances that circumstances will not change in the future that could affect our ability or decisions to pay dividends.

During the six months ended December 31, 2025, we repurchased $400.1 million of our common stock at an average price of $50.90 per share, excluding excise taxes in connection with such repurchases.

During the nine months ended March 31, 2026, we repurchased $400.1 million of our common stock at an average price of $50.90 per share, excluding excise taxes in connection with such repurchases.

In the prior year period, we repurchased $400.1 million of our common stock at an average price of $61.10 per share, excluding excise taxes in connection with such repurchases.

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Capital Investment.

Capital expenditures totaled $48.7 million and $49.1 million for the six months ended December 31, 2025 and 2024, respectively.

Capital expenditures totaled $67.1 million and $71.8 million for the nine months ended March 31, 2026 and 2025, respectively.

Our capital expenditures relate primarily to recurring improvements to retail offices, as well as investments in computers, software and related assets.

In addition to our capital

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

expenditures, we also made payments to acquire businesses.

We acquired franchisee and competitor businesses totaling $35.4 million and $28.0 million during the six months ended December 31, 2025 and 2024, respectively.

In addition to our capital expenditures, we also made payments to acquire businesses.

We acquired franchisee and competitor businesses totaling $55.0 million and $35.3 million during the nine months ended March 31, 2026 and 2025, respectively.

See Item 1, note 5 for additional information on our acquisitions.

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

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 had no outstanding balance on our 2025 CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of March 31, 2026.

On August 26, 2025, we issued the 2032 Senior Notes.

We redeemed our 2025 Senior Notes at 100% of the principal amount, plus accrued and unpaid interest, on September 19, 2025.

The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of December 31, 2025 and June 30, 2025:

As of December 31, 2025 June 30, 2025

The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of March 31, 2026 and June 30, 2025:

As of March 31, 2026 June 30, 2025

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

2 unchanged sentences

Other than described above, there have been no material changes in our borrowings from those reported as of June 30, 2025 in our Annual Report on Form 10-K.

CASH AND OTHER ASSETS – As of December 31, 2025, we held cash and cash equivalents, excluding restricted amounts, of $349.2 million, including $199.7 million held by our foreign subsidiaries.

CASH AND OTHER ASSETS – As of March 31, 2026, we held cash and cash equivalents, excluding restricted amounts, of $867.0 million, including $196.7 million held by our foreign subsidiaries.

Foreign Operations.

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To mitigate foreign currency risk, we sometimes enter into foreign exchange forward contracts.

There were no forward contracts outstanding as of December 31, 2025.

There were no forward contracts outstanding as of March 31, 2026.

We do not currently intend to repatriate non-borrowed funds held by our foreign subsidiaries in a manner that would trigger a tax liability.

The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $1.1 million and $9.1 million during the six months ended December 31, 2025 and 2024, respectively.

Q3 FY2026 Form 10-Q| H&R Block, Inc.

The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $1.1 million and $8.4 million during the nine months ended March 31, 2026 and 2025, respectively.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – EAs are originated by Pathward.

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Our participation interest varies by jurisdiction.

We purchased participation interests of $281.1 million during the six months ended December 31, 2025.

For the nine months ended March 31, 2026, the principal balance of purchased participation interests for the current year totaled $283.7 million, which represents 87% of total EA volume originated by Pathward.

Except as described in Recent Developments related to the 2025 CLOC, the 2032 Senior Notes issuance and the 2025 Senior Notes redemption, there have been no other material changes in our contractual obligations and commercial commitments from those reported in our June 30, 2025 Annual Report on Form 10-K.

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is the full and unconditional Guarantor of our Senior Notes, CLOC and other indebtedness issued from time to time.

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

The following table presents summarized financial information for H&R Block, Inc.

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SUMMARIZED BALANCE SHEET - GUARANTOR AND ISSUER (in 000s)

As of December 31, 2025 June 30, 2025

As of March 31, 2026 June 30, 2025

Current assets $ 53,021 $ 38,254

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SUMMARIZED STATEMENTS OF OPERATIONS - GUARANTOR AND ISSUER (in 000s)

Six months ended December 31, 2025 Twelve months ended June 30, 2025

Nine months ended March 31, 2026 Twelve months ended June 30, 2025

Total revenues $ 104,498 $ 126,240

Income (loss) from continuing operations before income taxes (7,472) 58,596

Net income (loss) from continuing operations (5,753) 45,120

Net income (loss) (6,804) 41,443

The table above reflects $2.4 billion and $1.8 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of December 31, 2025 and June 30, 2025, respectively.

Income from continuing operations before income taxes 47,726 58,596

Net income from continuing operations 36,749 45,120

Net income 34,820 41,443

The table above reflects $1.8 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of March 31, 2026 and June 30, 2025.

REGULATORY ENVIRONMENT

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We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business.

We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments.

We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow and free cash flow yield.

We make adjustments for certain non-GAAP financial measures related to material discrete tax impacts of IRS examination settlements, amortization of intangibles from acquisitions and goodwill impairments.

H&R Block, Inc.

|Q3 FY2026 Form 10-Q

consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted net income from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and free cash flow yield.

We also use EBITDA from continuing operations and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

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

The following is a reconciliation of net loss to EBITDA from continuing operations, which is a non-GAAP financial measure:

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

The following is a reconciliation of net income to EBITDA from continuing operations, which is a non-GAAP financial measure:

Three months ended March 31, Nine months ended March 31,

2026 2025 2026 2025

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

Net income - as reported $ 847,901 $ 722,330 $ 439,916 $ 306,334

Discontinued operations, net 879 598 1,930 2,707

Net loss from continuing operations - as reported (241,566) (242,466) (406,934) (413,887)

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

Net income from continuing operations - as reported 848,780 722,928 441,846 309,041

Income taxes 167,678 235,253 39,058 104,580

Interest expense 24,307 24,686 65,087 62,285

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(in 000s, except per share amounts)

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

Three months ended March 31, Nine months ended March 31,

2026 2025 2026 2025

Net loss from continuing operations - as reported $ (241,566) $ (242,466) $ (406,934) $ (413,887)

Net income from continuing operations - as reported $ 848,780 $ 722,928 $ 441,846 $ 309,041

Amortization of intangibles related to acquisitions (pretax) 12,170 11,278 34,401 33,316

Tax effect of adjustments (1)

Discrete tax impact of IRS examination settlements (84,113) — (84,113) —

Tax effect of pretax adjustments (1)

(3,145) (2,927) (8,381) (8,111)

Adjusted net loss from continuing operations $ (232,758) $ (234,095) $ (389,939) $ (397,033)

Diluted loss per share from continuing operations - as reported $ (1.91) $ (1.79) $ (3.16) $ (3.02)

Adjusted net income from continuing operations $ 773,692 $ 731,279 $ 383,753 $ 334,246

Diluted earnings per share from continuing operations - as reported $ 6.61 $ 5.32 $ 3.40 $ 2.23

Adjustments, net of tax (0.59) 0.06 (0.45) 0.18

Adjusted diluted loss per share from continuing operations $ (1.84) $ (1.73) $ (3.03) $ (2.89)

Adjusted diluted earnings per share from continuing operations $ 6.02 $ 5.38 $ 2.95 $ 2.41

(1) Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.

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This report and other documents filed with the Securities and Exchange Commission (SEC) may contain forward-looking statements.

In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others.

In addition, our senior management may make forward-looking statements orally to analysts,

Q3 FY2026 Form 10-Q| H&R Block, Inc.

investors, the media and others.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.

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They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management's plans or objectives for future operations, services or products, or descriptions of assumptions underlying any of the above.

They may also include the expected impact of external events beyond the Company's control, such as outbreaks of infectious

H&R Block, Inc.

|Q2 FY2026 Form 10-Q

disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate.

They may also include the expected impact of external events beyond the Company's control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate.

All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events.

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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 2. Management’s Discussion and Analysis