H&R Block Reaffirms Fiscal 2027 Outlook After 10% Revenue Rise

The Tip Desk · November 12, 2026 · 3 min read

First-quarter revenue reached $224.3 million as the tax-preparation company posted a $188.1 million continuing-operations loss and kept its full-year revenue range of $4.11 billion to $4.16 billion.

H&R Block, Inc. (HRB) reported first-quarter fiscal 2027 revenue of $224.3 million, up $20.8 million, or 10.2%, from a year earlier, and said it remains confident in the assumptions behind its full-year outlook.

The tax-preparation company said the increase was primarily the result of growth in international services, higher tax protection and identity services, an increase in small business services, and growth in U.S. tax preparation revenues. International services revenue was $74.8 million, compared with $66.5 million a year earlier. Tax protection and identity services rose to $34.3 million from $29.2 million. Small business services increased to $34.9 million from $31.0 million, and U.S. tax preparation revenue rose to $54.5 million from $51.9 million.

U.S. services revenue totaled $138.7 million. U.S. consumer assisted tax preparation was $30.7 million, and U.S. small business assisted tax preparation was $20.6 million. Royalties and other revenues were $10.8 million.

The company reminded readers that its business is highly seasonal and that first-quarter results consistently reflect that pattern, contributing modestly to annual revenue and typically generating a net loss. Total operating expenses were $456.2 million, up $45.6 million, or 11.1%, versus the prior year. The company said the increase was primarily due to higher field compensation and benefits, increased general corporate expenses, and higher occupancy and equipment costs.

During the quarter, H&R Block recognized $8.0 million of severance and related costs associated with a previously announced seasonal office leadership transition, recorded in field compensation and benefits and excluded from adjusted results. Field compensation and benefits were $102.1 million. Occupancy and equipment costs were $132.3 million.

Net loss from continuing operations increased by $22.8 million, or 13.8%, to $188.1 million, and loss per share from continuing operations increased 21.4% to $1.53. Adjusted net loss from continuing operations increased by $14.9 million, or 9.5%, to $172.1 million, and adjusted loss per share increased 16.7% to $1.40, which the company attributed to a higher net loss and fewer shares outstanding as a result of share repurchases.

Cash and cash equivalents declined to $390.5 million from $958.7 million at June 30, 2026. Total stockholders’ equity swung to a deficiency of $242.3 million from equity of $117.5 million. Net cash used in operating activities was $358.5 million. Capital expenditures were $20.8 million.

The company repurchased and retired 2.2 million shares at an aggregate price of $100.3 million, or $45.68 a share, in the first quarter, leaving approximately $500 million remaining on its $1.5 billion share repurchase program. The board declared a quarterly cash dividend of $0.46 a share, payable January 6, 2027, to shareholders of record as of December 3, 2026. Year-to-date, the company has returned $156.9 million to shareholders in the form of dividends and share repurchases.

Chief executive officer Curtis Campbell said the company is pleased with its start to fiscal 2027, including revenue growth of more than 10%, and that it continues advancing strategic initiatives designed to enhance the client experience and support future growth. Chief financial officer Tiffany Mason said the company invested in the business to support future growth while returning capital to shareholders through dividends and share repurchases.

The company continues to expect fiscal 2027 revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, an effective tax rate of approximately 23%, and adjusted diluted earnings per share of $6.04 to $6.24.