What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-08-14 compared with 2025-08-15 · 145 added, 119 removed, 840 unchanged (24% of the section changed)

15 unchanged sentences

The Company's external auditor, Deloitte & Touche LLP, an independent registered public accounting firm, has issued an audit report on the effectiveness of the Company's internal control over financial reporting.

/s/ Jeffrey J.

Jones II /s/ Tiffany L.

Jones II Tiffany L.

/s/ Curtis A.

Campbell /s/ Tiffany L.

Campbell Tiffany L.

President and Chief Executive Officer Chief Financial Officer

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We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Income Taxes - Uncertain Tax Positions - Refer to Note 9 to the consolidated financial statements

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◦ Evaluated management’s approach to identifying uncertain tax positions related to changes in the transfer pricing terms and conditions and tested the calculation of the tax positions at the individual legal entity level and at the consolidated level.

Goodwill - Wave Reporting Unit - Refer to Note 6 to the consolidated financial statements

Critical Audit Matter Description

The Company tests goodwill for impairment annually as of February 1 ("measurement date"), 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.

The Company determines the fair value of the Wave reporting unit using the income approach ("discounted cash flow model") and the market approach ("guideline public company method").

The determination of the fair value using the discounted cash flow model requires management to make significant estimates and assumptions related to forecasts of future revenues, operating margins, and the discount rate.

The determination of the fair value using the guideline public company method requires management to make significant assumptions related to the selection of market multiples of comparable publicly traded companies.

The goodwill balance was $783 million as of February 1, 2025, of which $159 million relates to the Wave reporting unit.

The estimated fair value of the Wave reporting unit exceeded its carrying value as of the measurement date and, therefore, no impairment was recognized.

2025 Form 10-K | H&R Block, Inc.

We identified the Company's goodwill impairment assessment for the Wave reporting unit as of the measurement date as a critical audit matter because of the significant judgments made by management to estimate the fair value of Wave.

This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to forecasts of future revenues and operating margins and selection of market multiples of comparable publicly traded companies and the discount rate.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the forecasts of future revenues and operating margins ("forecasts"), selection of market multiples of comparable publicly traded companies, and the discount rate for the Wave reporting unit included the following, among others:

• We tested the effectiveness of the control over management’s evaluation and determination of estimates and assumptions related to the forecast of future revenues and operating margins and selection of market multiples of comparable publicly traded companies and the discount rate.

• We evaluated management’s ability to accurately forecast by comparing actual results to management’s historical forecasts.

• We evaluated the reasonableness of management’s revenue and operating margin forecasts by comparing the forecasts to (1) the Company's historical revenue growth and operating margin rates, (2) internal communications to management and the Board of Directors, (3) forecasted information included in industry reports, applicable market data, and guideline public company information, and (4) underlying analyses detailing business strategies and growth plans.

• We tested the source information underlying the determination of the discount rate.

• With the assistance of our fair value specialists, we performed the following:

◦ Evaluated the valuation methodologies

◦ Tested the mathematical accuracy of the discount rate calculations

◦ Evaluated the market multiples, including comparing the reporting unit’s growth and profitability to the guideline public companies, testing the underlying source information and mathematical accuracy of the calculations, and comparing the multiples selected by management to the guideline companies.

/s/ Deloitte & Touche LLP

2 unchanged sentences

We have served as the Company's auditor since 2007.

H&R Block, Inc.

| 2025 Form 10-K

2026 Form 10-K | H&R Block, Inc.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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August 14, 2026

2025 Form 10-K | H&R Block, Inc.

H&R Block, Inc.

| 2026 Form 10-K

CONSOLIDATED STATEMENTS OF OPERATIONS

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See accompanying notes to consolidated financial statements.

H&R Block, Inc.

| 2025 Form 10-K

2026 Form 10-K | H&R Block, Inc.

CONSOLIDATED BALANCE SHEETS (in 000s, except share

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Retained earnings 30,782 12,061

Less treasury shares, at cost, of 30,420,033 and 31,324,609

Less treasury shares of 29,657,150 and 30,420,033 , at cost

( 635,107 ) ( 644,052 )

2 unchanged sentences

See accompanying notes to consolidated financial statements.

2025 Form 10-K | H&R Block, Inc.

H&R Block, Inc.

| 2026 Form 10-K

CONSOLIDATED STATEMENTS OF CASH FLOWS (in 000s)

25 unchanged sentences

Proceeds from line of credit borrowings 2,375,000 1,950,000 1,025,000

Repayments of long-term debt ( 350,000 ) — —

Proceeds from issuance of long-term debt 346,980 — —

Dividends paid ( 211,005 ) ( 197,330 ) ( 179,775 )

12 unchanged sentences

See accompanying notes to consolidated financial statements.

H&R Block, Inc.

| 2025 Form 10-K

2026 Form 10-K | H&R Block, Inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (amounts in 000s, except per share amounts)

18 unchanged sentences

Net income — — — — 605,773 — — 605,773

Other comprehensive loss — — — ( 11,746 ) — — — ( 11,746 )

Other comprehensive income — — — 1,090 — — — 1,090

Stock-based compensation — — 31,132 — — — — 31,132

19 unchanged sentences

See accompanying notes to consolidated financial statements.

2025 Form 10-K | H&R Block, Inc.

H&R Block, Inc.

| 2026 Form 10-K

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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Estimated useful lives are generally 15 to 40 years for buildings, two to five years for computers and other equipment, three to five

H&R Block, Inc.

| 2025 Form 10-K

2026 Form 10-K | H&R Block, Inc.

years for purchased software and up to eight years for leasehold improvements.

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▪ Level 3 – valuation is based on significant inputs that are unobservable in the market and our own estimates of assumptions that we believe market participants would use in pricing the asset.

2025 Form 10-K | H&R Block, Inc.

H&R Block, Inc.

| 2026 Form 10-K

Assets measured on a recurring basis are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date.

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We have determined that our contracts do not contain a significant financing component.

Service revenues consist of assisted and online tax preparation revenues, fees for electronic filing, revenues from RTs, Emerald Card®, Spruce SM , Peace of Mind® (POM), Tax Identity Shield® (TIS) and Wave.

Assisted tax preparation.

Services include tax preparation and electronic filing or printing of the completed tax return.

Revenues from tax preparation and printing for clients that choose to print and mail their returns, are recognized when a completed return is accepted by the customer.

Revenues from tax preparation and printing for clients that choose to print and mail their returns, are recognized when a completed return is accepted by the customer, generally at payment.

Revenues for electronic filing are recognized when the return is electronically filed.

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Revenues include fees for online and desktop tax preparation software and for electronic filing or printing.

Revenues for online software and printing for clients that choose to print and mail their returns, are recognized when the customer uses the software to complete a return.

Revenues for online software and printing for clients that choose to print and mail their returns, are recognized when the customer uses the software to complete a return and the completed return is accepted by the customer.

Revenues for desktop software are recognized when the software is sold to the end user.

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Refund Transfer.

Revenues are recognized when the Internal Revenue Service (IRS) filing acknowledgment is received and the bank account is established at our bank partner, Pathward TM , N.A.

Revenues are recognized when the Internal Revenue Service (IRS) filing acknowledgment is received and the bank account is established at our bank partner, Pathward ® , N.A.

(Pathward), a wholly-owned subsidiary of Pathward Financial, Inc.

2 unchanged sentences

Interchange income is a fee paid by merchants to our bank partner through the card networks.

Revenues associated with Emerald Card® and Spruce SM are recognized based on authorization of cardholder transactions.

Revenues associated with Emerald Card® and Spruce SM are recognized based on card network authorization of cardholder transactions.

Peace of Mind® Extended Service Plan .

Revenues are initially deferred and recognized over the term of the plan, based on the historical pattern of actual claims paid, as claims paid represent the transfer of POM services to the customer.

Revenues are initially deferred and recognized over the term of the plan, based on the historical pattern of actual claims paid, as claims paid represent the transfer of POM services to

2026 Form 10-K | H&R Block, Inc.

the customer.

The plan is effective for the life of the tax return, which can be up to six years;

however, the majority

H&R Block, Inc.

| 2025 Form 10-K

of claims are incurred in years two and three after the sale of POM.

however, the majority of claims are incurred in years two and three after the sale of POM.

POM has multiple performance obligations where we represent our clients if they are audited by a taxing authority, and assume the cost, subject to certain limits, of additional taxes owed by a client resulting from errors attributable to H&R Block.

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TIS has multiple performance obligations where we provide clients assistance in helping protect their tax identity and access to services to help restore their tax identity, if necessary.

Protection services include a daily scan of the dark web for personal information, a monthly scan for the client's social security number in credit header data, notifying clients if their information is detected on a tax return filed through H&R Block, and obtaining additional IRS identity protections when eligible.

Protection services include a daily scan of the dark web for personal information, a monthly scan for the client's social security number in credit header data, notifying clients if their information is detected on a tax return filed through H&R Block, obtaining additional IRS identity protections when eligible, and in our Plus plan, an identity health score which provides insight into the likelihood of future identity fraud.

Interest and fee income on Emerald Advance ® .

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Expenses related to severance benefits for continuing operations totaled $ 7.5 million, $ 8.4 million and $ 2.6 million in fiscal years 2026, 2025 and 2024, respectively.

NEW ACCOUNTING PRONOUNCEMENTS – In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No.

2023-07 (ASU 2023-07), “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures,” which requires companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker.

We adopted ASU 2023-07 during the year ended June 30, 2025, and retrospectively applied to all periods presented.

The requirements of this ASU are disclosure-related and did not have an impact on our statement of operations or balance sheet.

See note 13 .

In December 2023, the FASB issued Accounting Standards Update No.

NEW ACCOUNTING PRONOUNCEMENTS – In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No.

2023-09 (ASU 2023-09), “Income Taxes (Topic 740):

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The new disclosures include specific categories in the rate reconciliation, income taxes paid by federal, state, and foreign jurisdiction, and disaggregated pretax income and income tax expense between domestic and foreign jurisdictions.

ASU 2023-09 will be effective for annual periods beginning in fiscal year 2026 and will be applied on a prospective basis with the option to apply the standard retrospectively.

2025 Form 10-K | H&R Block, Inc.

We adopted ASU 2023-09 during the year ended June 30, 2026, which will be applied on a prospective basis.

The requirements of this ASU are disclosure-related and did not have an impact on our statement of operations or balance sheet.

See N ote 9 .

H&R Block, Inc.

| 2026 Form 10-K

REVENUE RECOGNITION

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Per share amounts are computed by dividing net income from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period.

H&R Block, Inc.

| 2025 Form 10-K

2026 Form 10-K | H&R Block, Inc.

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

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Additionally, the franchise territory serves as additional protection in the event a franchisee defaults on the loan, as we may revoke franchise rights, write off the remaining balance of the loan and refranchise the territory or begin operating it as company-owned.

2025 Form 10-K | H&R Block, Inc.

H&R Block, Inc.

| 2026 Form 10-K

H&R Block's Instant Refund®.

34 unchanged sentences

Net balance $ 35,919

H&R Block, Inc.

| 2025 Form 10-K

2026 Form 10-K | H&R Block, Inc.

Allowance for Credit Losses.

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

2025 Form 10-K | H&R Block, Inc.

H&R Block, Inc.

| 2026 Form 10-K

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.

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Total $ 55,102 5

H&R Block, Inc.

| 2025 Form 10-K

2026 Form 10-K | H&R Block, Inc.

LONG-TERM DEBT

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650,000 650,000

Senior Notes, 5.375 %, due September 2032 (1)

Debt issuance costs and discounts ( 8,507 ) ( 6,802 )

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The interest rates on our Senior Notes are subject to adjustment based upon our credit ratings.

Our unsecured committed line of credit (CLOC) provides for an unsecured senior revolving credit facility in the aggregate principal amount of $ 1.5 billion, which includes a $ 175.0 million sublimit for swingline loans and a $ 50.0 million sublimit for standby letters of credit.

On August 26, 2025, we issued $350.0 million of 5.375% Senior Notes due September 15, 2032 (2032 Senior Notes).

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 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.

UNSECURED COMMITTED LINE OF CREDIT - On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement (2025 CLOC), which amended and restated our Fourth Amended and Restated Credit and Guarantee Agreement, extended the scheduled maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table.

All other material terms remain substantially unchanged from our previous CLOC.

The 2025 CLOC provides for an unsecured senior revolving credit facility in the aggregate principal amount of $ 1.5 billion, which includes a $ 175.0 million sublimit for swingline loans and a $ 50.0 million sublimit for standby letters of credit.

We may request increases in the aggregate principal amount of the revolving credit facility of up to $ 500.0 million, subject to obtaining commitments from lenders and meeting certain other conditions.

Our CLOC includes an annual facility fee, which will vary depending on our then current credit ratings and was scheduled to expire on June 11, 2026.

On July 11, 2025, we entered into a Fifth Amended and Restated Credit and Guarantee Agreement, which amended and restated our existing CLOC, extended the maturity date to July 11, 2030, maintained the aggregate principal amount of $1.5 billion, and revised the interest rate table.

Other material terms remain substantially unchanged from our existing CLOC.

The 2025 CLOC will mature on July 11, 2030, unless extended pursuant to the terms of the 2025 CLOC, at which time all outstanding amounts thereunder will be due and payable.

Our 2025 CLOC includes an annual facility fee, which will vary depending on our then current credit ratings.

The 2025 CLOC is subject to various conditions, triggers, events or occurrences that could result in earlier termination and contains customary representations, warranties, covenants and events of default, including, without limitation:

5 unchanged sentences

We were in compliance with these requirements as of June 30, 2026.

We had no outstanding balance under our CLOC as of June 30, 2025 and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of June 30, 2025.

We had no outstanding balance under the 2025 CLOC as of June 30, 2026 and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of June 30, 2026.

H&R Block, Inc.

| 2026 Form 10-K

OTHER INFORMATION – The aggregate payments required to retire long-term debt are $500.0 million in fiscal year 2029, $650.0 million in fiscal year 2031 and $ 350.0 million in fiscal year 2033.

2 unchanged sentences

Stock-based compensation expense and related tax items are as follows:

2025 Form 10-K | H&R Block, Inc.

Year ended June 30, 2026 2025 2024

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We generally expense the grant-date fair value, net of estimated forfeitures, over the vesting period on a straight-line basis.

Options and restricted share units (other than performance-based share units) granted to employees typically vest pro-rata based upon service over a three-year period with a portion vesting each year.

Restricted share units (other than performance-based share units) granted to employees typically vest pro-rata based upon service over a three-year period with a portion vesting each year.

Performance-based share units granted to employees typically cliff vest at the end of a three-year period based upon satisfaction of both service-based and performance-based requirements.

1 unchanged sentence

The performance metrics for these awards typically consist of earnings before interest, taxes, depreciation and amortization (EBITDA), total shareholder return or our stock price.

Deferred stock units granted to non-employee directors vest when they are granted and are settled six months after the director separates from service as a director of the Company, except in the case of death.

We also grant deferred stock units, and beginning in fiscal year 2026, restricted share units, to non-employee directors.

Deferred stock units granted to non-employee directors prior to fiscal year 2026 vest when they are granted and are settled six months after the director separates from service as a director of the Company, except in the case of death.

The director restricted share units provide for a one-year vesting term from the date of grant, subject to the director’s continued service as a director.

Prior to receipt of the award, each director can elect to receive the shares of common stock either immediately upon vesting or to defer receipt of the shares until the six-month anniversary date of termination of service as a director.

All share units granted to employees and non-employee directors receive cumulative dividend equivalents to the extent of the units ultimately vesting at the time of distribution.

Options granted under our Plan have a maximum contractual term of ten years .

2026 Form 10-K | H&R Block, Inc.

A summary of restricted share units and deferred stock units, including those that are performance-based, for the year ended June 30, 2026, is as follows:

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The following assumptions were used to value performance-based share units using the Monte Carlo valuation model during the periods:

H&R Block, Inc.

| 2025 Form 10-K

Year ended June 30, 2026 2025 2024

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With respect to federal, state and local jurisdictions and countries outside of the U.S., we are typically subject to examination for three to six years after the income tax returns have been filed.

On November 7, 2022, the IRS commenced their examination of our 2020 tax return and related carryback claims to tax years 2015 through 2018.

federal income tax returns for tax years 2021, 2019, and 2014 and prior are closed.

federal income tax returns for tax years 2022 and prior have been examined or are otherwise closed.

The IRS examination of the 2020 tax year is complete, although the statute of limitations remains open.

Although the outcome of tax audits is always uncertain, we believe that adequate amounts of tax, interest, and penalties have been provided for in the accompanying consolidated financial statements for any adjustments that might be incurred due to federal, state, local or foreign audits.

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Foreign 316,559 343,432 272,410

Total income before income taxes $ 853,888 $ 781,403 $ 762,322

H&R Block, Inc.

| 2026 Form 10-K

The components of income tax expense for continuing operations are as follows:

Year ended June 30, 2026 2025 2024

Federal $ 13,481 $ 143,298 $ 191,664

State 13,059 30,716 9,695

Foreign 49,108 21,689 18,240

75,648 195,703 219,599

Federal 8,940 ( 52,659 ) ( 59,441 )

State ( 386 ) ( 4,454 ) ( 11,749 )

Foreign 33,368 33,363 15,950

41,922 ( 23,750 ) ( 55,240 )

Total income tax expense (benefit):

Federal $ 22,421 $ 90,639 $ 132,223

State 12,673 26,262 (2,054)

Foreign 82,476 55,052 34,190

Total income taxes for continuing operations $ 117,570 $ 171,953 $ 164,359

We operate in multiple income tax jurisdictions both within the U.S.

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Although these intercompany transactions reflect arm’s length terms and the proper transfer pricing documentation is in place, transfer pricing terms and conditions may be scrutinized by local tax authorities during an audit and any resulting changes may impact our mix of earnings in countries with differing statutory tax rates.

2025 Form 10-K | H&R Block, Inc.

The reconciliation between the statutory U.S.

A reconciliation of income taxes for the year ended June 30, 2026, between the statutory U.S.

federal tax rate and our effective tax rate from continuing operations is as follows:

(dollars in 000s)

Year ended June 30, 2026 Amount Percent

statutory tax rate $ 179,317 21.0 %

State and local income taxes, net of federal benefit 1

Foreign tax effects

Statutory income tax rate differential ( 22,574 ) ( 2.6 ) %

Other 7,790 0.9 %

Other foreign jurisdictions 3,992 0.5 %

Effects of cross-border tax laws, net of foreign tax credits

Global intangible low-taxed income 21,242 2.5 %

Other ( 1,453 ) ( 0.2 ) %

Tax credits ( 5,939 ) ( 0.7 ) %

Nontaxable or nondeductible items 4,905 0.6 %

Other ( 2,388 ) ( 0.3 ) %

Changes in unrecognized tax benefits ( 79,847 ) ( 9.4 ) %

Effective tax rate $ 117,570 13.8 %

(1) State taxes in California, Illinois, Minnesota, Texas, and New York make up greater than 50% of the tax effect in this category.

The reconciliation between the statutory U.S.

federal tax rate and our effective tax rate from continuing operations for the years ended June 30, 2025 and 2024 is as follows:

2026 Form 10-K | H&R Block, Inc.

Year ended June 30, 2025 2024

12 unchanged sentences

Effective tax rate 22.0 % 21.6 %

The components of income tax expense for continuing operations are as follows:

Year ended June 30, 2025 2024 2023

Federal $ 143,298 $ 191,664 $ 97,430

State 30,716 9,695 19,023

Foreign 21,689 18,240 18,214

195,703 219,599 134,667

Federal ( 52,659 ) ( 59,441 ) 23,367

State ( 4,454 ) ( 11,749 ) 1,860

Foreign 33,363 15,950 ( 10,482 )

( 23,750 ) ( 55,240 ) 14,745

Total income taxes for continuing operations $ 171,953 $ 164,359 $ 149,412

H&R Block, Inc.

| 2025 Form 10-K

Our effective tax rate from continuing operations was 13.8%, 22.0%, and 21.6% for fiscal years ended June 30, 2026, 2025, and 2024, respectively.

The decrease in the effective tax rate for fiscal year 2026 is primarily attributable to the settlement of an IRS examination related to our 2020 U.S.

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

In the United States, on July 4, 2025, H.R.

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Among other provisions, the legislation reinstates immediate expensing for domestic research and experimental expenditures, extends 100% bonus depreciation for qualified property placed in service beginning January 20, 2025, and makes certain other provisions of the Tax Cuts and Jobs Act permanent.

We are evaluating the impacts of this legislation and will reflect its impact in our financial statements in fiscal year 2026.

At this time, we are unable to reasonably estimate the financial impact of these changes.

We account for income taxes under the asset and liability method, which requires us to record deferred income tax assets and liabilities for future tax conseq uences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis.

The impact of this legislation is reflected in our financial statements for the fiscal year ended June 30, 2026, and there was no material impact on our effective tax rate.

We account for income taxes under the asset and liability method, which requires us to record deferred income tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying value of existing assets and liabilities and their respective tax basis.

Deferred taxes are determined separately for each tax-paying component within each tax jurisdiction based on provisions of enacted tax law.

2 unchanged sentences

Determination of a valuation allowance for deferred tax assets requires that we make judgments about future matters that are not certain, including projections of future taxable income and evaluating potential tax-planning strategies

H&R Block, Inc.

| 2026 Form 10-K

The significant components of deferred tax assets and liabilities are reflected in the following table:

5 unchanged sentences

Net operating loss carry-forward 13,071 38,856

Tax credit carry-forward 8,513 6,569

Lease liabilities 151,596 130,911

2 unchanged sentences

Intangibles - intellectual property 51,178 61,138

Property and equipment 8,973 1,873

Other 13,455 13,679

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Net deferred tax asset $ 186,189 $ 228,108

2025 Form 10-K | H&R Block, Inc.

Changes in our valuation allowance for fiscal years 2026, 2025 and 2024 are as follows:

4 unchanged sentences

Balance, end of the year $ 19,789 $ 18,538 $ 16,569

Our valuation allowance on deferred tax assets has a net increase of $ 2.0 million during the current period.

The $ 4.2 million of additions charged to costs is primarily related to foreign tax credits that we do not expect to utilize in future years.

The increase is offset by a $ 2.2 million decrease to our valuation allowance balance for adjustments related to certain domestic and foreign net operating losses utilized in the current fiscal year and changes in future projections of net operating loss utilization.

Our valuation allowance on deferred tax assets had a net increase of $ 1.3 million during the current period.

The $ 2.0 million of additions charged to costs is primarily related to foreign tax credits generated in the current fiscal year that we do not expect to utilize in future years.

The increase is offset by a $ 0.7 million decrease to our valuation allowance balance for adjustments primarily related to certain domestic and foreign net operating losses utilized in the current fiscal year and changes in future projections of net operating loss utilization.

Certain of our subsidiaries file stand-alone returns in various sta te, local and foreign jurisdictions, and others join in filing consolidated or combined returns in such jurisdictions.

1 unchanged sentence

The amount of state and foreign net operating losses varies by taxing jurisdiction.

We maintain a valuation allowance of $ 4.3 million on state net operating losses and $ 5.5 million on foreign net operating losses for the portion of such loses that, more likely than not, will not be realized.

We maintain a valuation allowance of $ 3.7 million on state net operating losses

2026 Form 10-K | H&R Block, Inc.

and $ 5.6 million on foreign net operating losses for the portion of such loses that, more likely than not, will not be realized.

Of the total net operating loss deferred tax assets, $ 3.8 million are more likely than not to be realized.

Net operating loss deferred tax assets of $ 8.5 million will expire in varying amounts during fiscal years 2027 through 2046 and the remaining $ 4.6 million have no expiration.

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

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

therefore, no provision has been made for income taxes that might be payable upon remittance of such earnings.

6 unchanged sentences

Additions based on tax positions related to the current year 25,819 37,883 37,063

Reductions based on tax positions related to the current year ( 5,419 ) — —

Reductions related to the 2020 IRS examination closure (120,392) — —

Reductions related to settlements with tax authorities ( 998 ) ( 379 ) ( 4,472 )

2 unchanged sentences

Included in the total gross unrecognized tax benefit ending balance as of June 30, 2026, 2025 and 2024 are $ 120.5 million, $ 232.8 million and $ 207.5 million respectively, which if recognized, would impact our effective tax rate.

Increases from prior year are primarily related to additions based on current year tax positions offset by expirations of statute of limitations and settlements with taxing authorities.

We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $ 152.0 million within the next twelve months.

The anticipated decrease is due to the expiration of statutes of limitations, anticipated closure of various tax matters currently under examination, and settlements with tax authorities.

For such matters where a change in the balance of unrecognized tax benefits is not yet deemed reasonably possible, no estimate has been included.

The decrease in unrecognized tax benefits during the year was primarily attributable to the closure of the IRS examination of the Company's 2020 U.S.

federal income tax return and related carryback years, as well as the expiration of statute of limitations.

Interest and penalties, if any, accrued on the unrecognized ta x benefits are reflected in income tax expense.

The total gross interest recorded to income tax expense for periods ending June 30, 2025, 2024 and 2023 totaled $ 1.4 million, $ 14.1 million and $ 10.1 million, respectively.

The total penalties, if any, recorded for the same periods

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| 2025 Form 10-K

were immaterial.

During the fiscal years ended June 30, 2026, 2025, and 2024, the Company recorded a net interest benefit of $ 12.3 million, and net interest expense of $ 1.4 million and $ 14.1 million, respectively.

The total penalties, if any, recorded for the same periods were immaterial.

The total gross interest and penalties accrued as of June 30, 2026 and 2025 totaled $ 27.8 million and $ 44.7 million, respectively.

The amounts paid for income taxes (net of refunds received) were as follows:

Year ended June 30, 2026

Federal $ 150,564

State and local 11,458

Ireland 25,685

Total $ 202,134

COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

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 $ 11.4 million and $ 14.1 million as of June 30, 2025 and 2024, respectively.

Our liability related to estimated losses under the 100% accuracy guarantee was $ 11.0 million and

H&R Block, Inc.

| 2026 Form 10-K

$ 11.4 million as of June 30, 2026 and 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 $ 26.6 million and $ 29.6 million as of June 30, 2026 and 2025, respectively, with amounts recorded in deferred revenue and other liabilities.

These liabilities will be settled within the next ten years.

These liabilities will be settled within the next nine years.

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.

6 unchanged sentences

Included in deferred revenue and other liabilities is $ 8.4 million and $9.0 million as of June 30, 2026 and 2025, respectively, reflecting our obligation under this plan.

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

Emerald Advance® term loans are originated by Pathward.

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

80 unchanged sentences

The Company's Chief Operating Decision Maker (CODM) is our chief executive officer, who regularly reviews consolidated financial information to evaluate financial performance and allocate resources.

Specifically, the CODM uses revenues, operating expenses, net income and EBITDA at a consolidated level, as key financial metrics in deciding how to reinvest to grow the business through our strategic imperatives of Block Experience, Financial Products and Small Business.

These financial metrics are used by the CODM to make operating decisions and identify growth opportunities.

39 unchanged sentences

Net income $ 733,596 $ 605,773 $ 595,317

SUBSEQUENT EVENT

O n August 5, 2026, the Company effected a workforce and field organization restructuring program intended to transition to a year-round office leadership model, streamline our field support structure, and better align resources with our long-term growth strategy.

As part of this program, approximately 200 positions throughout the organization are being eliminated.

The Company expects to execute the workforce reduction by the end of the fiscal quarter ending September 30, 2026, and we expect to incur an estimated pre-tax charge associated with severance and related costs under the program of $8.3 million.

Because the program and related employee notifications occurred after June 30, 2026, no amounts related to the program have been recognized in the accompanying consolidated financial statements.

2026 Form 10-K | H&R Block, Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

1 unchanged sentence

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-K

Item 8. Financial Statements and Supplementary Data