What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-11-07 compared with 2024-05-09 · 73 added, 164 removed, 158 unchanged (60% of the section changed)

2 unchanged sentences

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 either prepared by H&R Block tax professionals in one of our 6,643 company-owned or 2,168 franchise offices (as of March 31, 2024), virtually or via an internet 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 and online through Wave.

Tax returns are either prepared by H&R Block tax professionals in one of our company-owned or franchise offices, 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.

1 unchanged sentence

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

Three months ended March 31, 2024 2023 $ Change % Change

Three months ended September 30, 2024 2023 $ Change % Change

tax preparation and related services:

28 unchanged sentences

Interest expense on borrowings (15,847) (15,870) 23 0.1 %

Pretax income 907,358 855,428 51,930 6.1 %

Income taxes 215,772 209,351 (6,421) (3.1) %

Net income from continuing operations 691,586 646,077 45,509 7.0 %

Pretax loss (232,261) (212,360) (19,901) (9.4) %

Income tax benefit (60,840) (49,487) 11,353 22.9 %

Net loss from continuing operations (171,421) (162,873) (8,548) (5.2) %

Net loss from discontinued operations (1,155) (609) (546) (89.7) %

Net income $ 690,737 $ 643,429 $ 47,308 7.4 %

DILUTED EARNINGS PER SHARE

Net loss $ (172,576) $ (163,482) $ (9,094) (5.6) %

BASIC AND DILUTED LOSS PER SHARE:

Continuing operations $ (1.23) $ (1.11) $ (0.12) (10.8) %

8 unchanged sentences

|Q1 FY2025 Form 10-Q

Three months ended March 31, 2024 compared to March 31, 2023

Three months ended September 30, 2024 compared to September 30, 2023

Revenues increased $10.0 million, or 5.4%, from the prior year.

assisted tax preparation revenues increased $81.8 million, or 5.6%, due to a 4.4% increase in net average charge combined with higher company-owned tax return volumes in the current year.

royalty revenue decreased $8.2 million, or 5.5%, due to lower franchise tax return volumes.

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, 2024 our total assisted tax return volume, which includes both company-owned and franchise offices, decreased 1.1% from the prior year.

DIY tax preparation revenues increased $31.5 million, or 18.9%, primarily due to an 8.9% increase in online paid returns combined with a 10.3% increase in paid net average charge compared to the prior year.

Interest and fee income on Emerald Advance® (EA) decreased $12.6 million, or 37.3%, due to lower customer fees under the new EA term loan, partially offset by higher interest income in the current year due to the increase in EA loans and a later due date for the loans than the prior year.

assisted tax preparation revenues increased $3.7 million, or 9.4%, due to higher company-owned tax return volumes combined with an increase in net average charge in the current year.

Other revenues increased $2.8 million, or 25.8%, primarily due to higher bookkeeping fees.

International tax preparation revenues increased $4.3 million, or 7.1%, primarily due to higher tax return volumes in Australia combined with favorable foreign currency exchange rates.

Wave revenues increased $2.5 million, or 10.3%, due to higher accounting, invoicing and receipts subscriptions and small business payments processing volumes.

Total operating expenses increased $32.0 million, or 8.2%, from the prior year.

Field wages increased $29.5 million, or 6.1%, due to higher wages in the current year primarily due to the increase in company-owned volumes.

Marketing and advertising expense decreased $16.2 million, or 7.7%, primarily due to the timing of television advertising in the current year compared to the prior year.

Bad debt expense increased $6.7 million, or 19.7%, primarily due to an increase in Refund Transfers and higher bad debt rates in the current year.

Field wages increased $5.7 million, or 9.1%, due to higher U.S.

and Australian tax professional wages due to higher volumes in the current year.

Other wages increased $5.2 million, or 7.3%, due to higher corporate wages primarily due to higher headcount.

Benefits and other compensation increased $3.5 million, or 9.9%, primarily due to higher stock-based compensation and severance pay in the current year.

Marketing and advertising expense increased $4.5 million, or 81.9%, primarily due to lower vendor refunds for expired customer incentives and higher online advertising in the current year.

Other operating expenses increased $14.6 million, or 18.1%.

The components of other expenses are as follows:

Three months ended March 31, 2024 2023 $ Change % Change

Consulting and outsourced services $ 37,896 $ 42,130 $ 4,234 10.0 %

Bank partner fees 29,681 24,778 (4,903) (19.8) %

Client claims and refunds 8,117 8,787 670 7.6 %

Employee and travel expenses 8,368 9,906 1,538 15.5 %

Technology-related expenses 30,623 26,385 (4,238) (16.1) %

Credit card/bank charges 36,702 34,159 (2,543) (7.4) %

Insurance 2,645 2,891 246 8.5 %

Legal fees and settlements 11,286 2,685 (8,601) (320.3) %

Supplies 11,231 15,956 4,725 29.6 %

Other 9,380 11,615 2,235 19.2 %

$ 185,929 $ 179,292 $ (6,637) (3.7) %

Bank partner fees increased $4.9 million, or 19.8%, due to the increase in Refund Advance loans in the current year.

Legal fees and settlements expense increased $8.6 million in the current year.

Supplies expense decreased $4.7 million, or 29.6%, primarily due to lower office supplies purchased in the current year.

Other income (expense), net decreased $8.0 million, or 60.5%, primarily due to income from a legal settlement in the prior year.

We recorded income tax expense of $215.8 million in the current year compared to $209.4 million in the prior year.

The effective tax rate for the three months ended March 31, 2024, and 2023 was 23.8% and 24.5%, respectively.

Q3 FY2024 Form 10-Q| H&R Block, Inc.

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

Nine months ended March 31, 2024 2023 $ Change % Change

tax preparation and related services:

Assisted tax preparation $ 1,622,430 $ 1,530,577 $ 91,853 6.0 %

Royalties 153,070 161,337 (8,267) (5.1) %

DIY tax preparation 215,529 182,330 33,199 18.2 %

Refund Transfers 120,892 120,210 682 0.6 %

Peace of Mind® Extended Service Plan 59,100 58,840 260 0.4 %

Tax Identity Shield® 16,810 19,237 (2,427) (12.6) %

Other 32,637 28,845 3,792 13.1 %

tax preparation and related services 2,220,468 2,101,376 119,092 5.7 %

Financial services:

Emerald Card® and Spruce SM

61,493 68,448 (6,955) (10.2) %

Interest and fee income on Emerald Advance® 36,702 47,267 (10,565) (22.4) %

Total financial services 98,195 115,715 (17,520) (15.1) %

International 158,398 156,297 2,101 1.3 %

Wave 70,656 66,651 4,005 6.0 %

Total revenues $ 2,547,717 $ 2,440,039 $ 107,678 4.4 %

Compensation and benefits:

Field wages 650,529 618,656 (31,873) (5.2) %

Other wages 222,125 207,786 (14,339) (6.9) %

Benefits and other compensation 170,964 169,477 (1,487) (0.9) %

1,043,618 995,919 (47,699) (4.8) %

Occupancy 319,843 316,874 (2,969) (0.9) %

Marketing and advertising 211,135 236,299 25,164 10.6 %

Depreciation and amortization 91,004 98,660 7,656 7.8 %

Bad debt 67,560 57,018 (10,542) (18.5) %

Other 360,111 363,081 2,970 0.8 %

Total operating expenses 2,093,271 2,067,851 (25,420) (1.2) %

Other income (expense), net 20,982 21,020 (38) (0.2) %

Interest expense on borrowings (63,304) (57,107) (6,197) (10.9) %

Pretax income 412,124 336,101 76,023 22.6 %

Income taxes 72,527 78,254 5,727 7.3 %

Net income from continuing operations 339,597 257,847 81,750 31.7 %

Net loss from discontinued operations (2,097) (6,418) 4,321 67.3 %

Net income $ 337,500 $ 251,429 $ 86,071 34.2 %

DILUTED EARNINGS PER SHARE

Continuing operations $ 2.34 $ 1.62 $ 0.72 44.4 %

Discontinued operations (0.02) (0.04) 0.02 50.0 %

Consolidated $ 2.32 $ 1.58 $ 0.74 46.8 %

Adjusted diluted EPS (1)

$ 2.54 $ 1.80 $ 0.74 41.1 %

$ 566,432 $ 491,868 $ 74,564 15.2 %

(1) All non-GAAP measures are results from continuing operations.

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

H&R Block, Inc.

|Q3 FY2024 Form 10-Q

Nine months ended March 31, 2024 compared to March 31, 2023

Revenues increased $107.7 million, or 4.4%, from the prior year.

assisted tax preparation revenues increased $91.9 million, or 6.0%, due to a 4.6% increase in net average charge combined with higher company-owned tax return volumes in the current year.

royalties revenue decreased $8.3 million, or 5.1%, due to lower franchise tax return volumes.

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, 2024 our total assisted tax return volume, which includes both company-owned and franchise offices, decreased 1.1% from the prior year.

DIY tax preparation revenues increased $33.2 million, or 18.2%, primarily due to a 9.1% increase in online paid returns combined with a 9.4% increase in paid net average charge compared to the prior year.

Emerald Card® and Spruce SM revenues decreased $7.0 million, or 10.2%, due to lower Emerald Card® activity in the current year as a result of less funds being loaded on the cards.

Interest and fee income on Emerald Advance® decreased $10.6 million, or 22.4%, due to lower customer fees under the new EA term loan, partially offset by higher interest income due to the increase in EA loans and a longer loan term in the current year.

Total operating expenses increased $25.4 million, or 1.2%, from the prior year period.

Field wages increased $31.9 million, or 5.2%, due to higher wages in the current year primarily resulting from an increase in company-owned volumes.

Other wages increased $14.3 million, or 6.9%, primarily due to higher corporate wages in the current year.

Marketing and advertising expense decreased $25.2 million, or 10.6%, primarily due to the timing of television advertising in the current year compared to the prior year.

Depreciation and amortization expense decreased $7.7 million, or 7.8%, primarily due to lower amortization of capitalized software.

Bad debt expense increased $10.5 million, or 18.5%, due to an increase in Refund Transfers and EA loans coupled with higher bad debt rates compared to the prior year.

Other operating expenses decreased $3.0 million, or 0.8%.

The components of other expenses are as follows:

Nine months ended March 31, 2024 2023 $ Change % Change

Three months ended September 30, 2024 2023 $ Change % Change

Consulting and outsourced services $ 15,444 $ 13,134 $ (2,310) (17.6) %

9 unchanged sentences

$ 95,107 $ 80,556 $ (14,551) (18.1) %

Consulting and outsourced services expense decreased $15.3 million, or 18.6%, due to lower contract labor, Emerald Card® data processing and call center expenses in the current year.

Legal fees and settlements expense increased $12.6 million, or 175.5%, in the current year.

We recorded income tax expense of $72.5 million in the current year compared to $78.3 million in the prior year.

The effective tax rate for the nine months ended March 31, 2024, and 2023 was 17.6% and 23.3%, respectively.

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

Assisted tax return volume, which includes our company-owned and franchise operations, decreased 1.2% from July 1, 2023 through April 30, 2024 compared to the prior year period.

DIY online paid tax return volume from July 1, 2023 through April 30, 2024, increased 5.9% compared to the prior year period.

Our business is highly

Q3 FY2024 Form 10-Q| H&R Block, Inc.

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, 2024.

Legal expenses increased $11.5 million primarily due to higher outside legal counsel spend.

We recorded an income tax benefit of $60.8 million in the current year compared to $49.5 million in the prior year.

The effective tax rate for the three months ended September 30, 2024, and 2023 was 26.2% and 23.3%, respectively.

FINANCIAL CONDITION

4 unchanged sentences

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 January.

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

Q1 FY2025 Form 10-Q| H&R Block, Inc.

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 March 31, 2024 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, 2024 and 2023.

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 September 30, 2024 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 three months ended September 30, 2024 and 2023.

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

Nine months ended March 31, 2024 2023

Three months ended September 30, 2024 2023

Net cash provided by (used in):

5 unchanged sentences

Operating Activities.

Cash provided by operations totaled $420.3 million for the nine months ended March 31, 2024 compared to $498.4 million in the prior year period.

The change is primarily due to higher receivables in the current year and the receipt of income tax receivables in the prior year, partially offset by lower bonus and payroll tax payments in the current year.

Cash used in operations totaled $328.6 million for the three months ended September 30, 2024 compared to $335.0 million in the prior year period.

The change is primarily due to changes in accrued liabilities compared to the prior year period.

Investing Activities.

Cash used in investing activities totaled $99.6 million for the nine months ended March 31, 2024 compared to $101.3 million in the prior year period.

The change is primarily due to lower payments to acquire businesses in the current year.

Cash used in investing activities totaled $26.4 million for the three months ended September 30, 2024 compared to $23.9 million in the prior year period.

The change is primarily due to higher capital expenditures in the current year.

Financing Activities.

Cash used in financing activities totaled $520.5 million for the nine months ended March 31, 2024 compared to $505.6 million in the prior year period.

The change is primarily due to higher shares surrendered related to the vesting of stock-based compensation awards in the current year.

Cash used in financing activities totaled $284.5 million for the three months ended September 30, 2024 compared to $195.2 million in the prior year period.

The change is primarily due to higher repurchases of common stock in the current year.

CASH REQUIREMENTS –

2 unchanged sentences

We have consistently paid quarterly dividends.

Dividends paid totaled $135.1 million and $133.8 million for the nine months ended March 31, 2024 and 2023, respectively.

Although we have historically paid dividends and plan

H&R Block, Inc.

|Q3 FY2024 Form 10-Q

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 nine months ended March 31, 2024, we repurchased $350.1 million of our common stock at an average price of $43.66 per share, excluding excise taxes in connection with such repurchases.

In the prior year period, we repurchased $350.1 million of our common stock at an average price of $42.86 per share.

Our current share repurchase program has remaining authorization of $350.0 million, which is effective through June 2025.

Dividends paid totaled $44.7 million and $43.0 million for the three months ended September 30, 2024 and 2023, 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.

On August 15, 2024, the Board of Directors approved a $1.5 billion share repurchase program.

The repurchase program does not have an expiration date and replaced the previously existing share repurchase program.

During the three months ended September 30, 2024, we repurchased $209.6 million of our common stock at an average price of $63.51 per share, excluding excise taxes in connection with such repurchases.

In the prior year period, we repurchased $132.0 million of our common stock at an average price of $40.43 per share, excluding excise taxes in connection with such repurchases.

Our current share repurchase program has remaining authorization of $1.3 billion and does not have an expiration date.

Share repurchases may be effectuated through open market transactions, some of which may be effectuated under SEC Rule 10b5-1.

3 unchanged sentences

Capital Investment.

Capital expenditures totaled $53.8 million and $56.7 million for the nine months ended March 31, 2024 and 2023, respectively.

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

Capital expenditures totaled $18.7 million and $12.9 million for the three months ended September 30, 2024 and 2023, respectively.

Our capital expenditures relate primarily to recurring improvements to

H&R Block, Inc.

|Q1 FY2025 Form 10-Q

retail offices, as well as investments in computers, software and related assets.

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

We acquired franchisee and competitor businesses totaling $43.2 million and $47.7 million during the nine months ended March 31, 2024 and 2023, respectively.

We acquired franchisee and competitor businesses totaling $5.9 million and $6.9 million during the three months ended September 30, 2024 and 2023, respectively.

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

1 unchanged sentence

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

We had no outst anding balance under our CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of March 31, 2024.

The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of March 31, 2024 and June 30, 2023:

As of March 31, 2024 June 30, 2023

We had no outst anding balance under our CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of September 30, 2024.

The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of September 30, 2024 and June 30, 2024:

As of September 30, 2024 June 30, 2024

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

Moody's P-3 Baa3 Stable P-3 Baa3 Positive

Moody's P-3 Baa3 Stable P-3 Baa3 Stable

S&P A-2 BBB Stable A-2 BBB Stable

Other than described above, there have been no material changes in our borrowings from those reported as of June 30, 2024 in our Annual Report on Form 10-K.

CASH AND OTHER ASSETS – As of March 31, 2024, we held cash and cash equivalents, excluding restricted amounts, of $794.6 million, including $130.8 million held by our foreign subsidiaries.

CASH AND OTHER ASSETS – As of September 30, 2024, we held cash and cash equivalents, excluding restricted amounts, of $415.9 million, including $183.5 million held by our foreign subsidiaries.

Foreign Operations.

1 unchanged sentence

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

There were no forward contracts outstanding as of March 31, 2024.

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

The impact of changes in foreign exchange rates during the period on our international cash balances resulted in an decrease of $2.7 million and $7.9 million during the nine months ended March 31, 2024 and 2023, respectively.

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

We purchase a 90% participation interest, at par, in all EAs originated by Pathward in accordance with our participation agreement.

Effective October 20, 2023, we amended the Program Management Agreement and entered into a new participation agreement related to EAs originated by Pathward.

We purchased participation interests of $346.3 million during the nine months ended March 31, 2024.

There were no forward contracts outstanding as of September 30, 2024.

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 an increase of $3.2 million during the three months ended September 30, 2024 and in a decrease of $3.7 million during the three months ended September 30, 2023.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – The Company entered into an agreement to purchase federal Investment tax credits (“ITC”).

During the three months ended September 30, 2024, we paid $22.9 million for ITCs.

As of September 30, 2024, the Company has a remaining commitment to purchase additional ITCs, estimated to be $74.0 million, with the final closing payment anticipated to occur by June 30, 2025.

Effective October 18, 2024, we amended our Program Management Agreement (PMA) with Pathward®, N.A to extend the term of the PMA for two years until June 30, 2027.

There have been no other material changes in our contractual obligations and commercial commitments from those reported in our June 30, 2024 Annual Report on Form 10-K.

Q3 FY2024 Form 10-Q| H&R Block, Inc.

SUMMARIZED GUARANTOR FINANCIAL STATEMENTS – Block Financial is a 100% owned subsidiary of H&R Block, Inc.

1 unchanged sentence

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

Q1 FY2025 Form 10-Q| H&R Block, Inc.

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

1 unchanged sentence

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

As of March 31, 2024 June 30, 2023

As of September 30, 2024 June 30, 2024

Current assets $ 48,965 $ 44,423

3 unchanged sentences

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

Nine months ended March 31, 2024 Twelve months ended June 30, 2023

Three months ended September 30, 2024 Twelve months ended June 30, 2024

Total revenues $ 9,758 $ 144,206

2 unchanged sentences

Net income 7,750 54,795

The table above reflects $1.7 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of March 31, 2024 and June 30, 2023, respectively.

The table above reflects $1.7 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of September 30, 2024 and June 30, 2024, respectively.

REGULATORY ENVIRONMENT

11 unchanged sentences

|Q1 FY2025 Form 10-Q

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,

2024 2023 2024 2023

Net income - as reported $ 690,737 $ 643,429 $ 337,500 $ 251,429

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

Three months ended September 30,

Net loss - as reported $ (172,576) $ (163,482)

Discontinued operations, net 1,155 609

Net income from continuing operations - as reported 691,586 646,077 339,597 257,847

Income taxes 215,772 209,351 72,527 78,254

Net loss from continuing operations - as reported (171,421) (162,873)

Income tax benefit (60,840) (49,487)

Interest expense 15,847 15,870

4 unchanged sentences

(in 000s, except per share amounts)

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

2024 2023 2024 2023

Net income from continuing operations - as reported $ 691,586 $ 646,077 $ 339,597 $ 257,847

Three months ended September 30,

Net loss from continuing operations - as reported $ (171,421) $ (162,873)

Amortization of intangibles related to acquisitions (pretax) 11,128 12,555

1 unchanged sentence

(2,645) (2,936)

Adjusted net income from continuing operations $ 701,622 $ 655,898 $ 368,475 $ 287,195

Diluted earnings per share from continuing operations - as reported $ 4.87 $ 4.14 $ 2.34 $ 1.62

Adjusted net loss from continuing operations $ (162,938) $ (153,254)

Diluted loss per share from continuing operations - as reported $ (1.23) $ (1.11)

Adjustments, net of tax 0.06 0.06

Adjusted diluted earnings per share from continuing operations $ 4.94 $ 4.20 $ 2.54 $ 1.80

Adjusted diluted loss per share from continuing operations $ (1.17) $ (1.05)

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

7 unchanged sentences

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

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.

Q1 FY2025 Form 10-Q| H&R Block, Inc.

disease (including the coronavirus (COVID-19) pandemic), 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.

9 unchanged sentences

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