10-Q – 2025-11-06 – R12.htm

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RECEIVABLES

9 Months Ended

Mar. 31, 2026

Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
 

RECEIVABLES
NOTE 4: RECEIVABLES
Receivables, net of their related allowance, consist of the following:

(in 000s)
As of September 30, 2025 June 30, 2025
Short-term Long-term Short-term Long-term
Loans to franchisees $ 10,833   $ 16,526   $ 7,386  $ 16,402 
Receivables for U.S. assisted and DIY tax preparation and related fees 12,594   6,392   15,896  6,361 
H&R Block's Instant Refund® receivables
841   974   2,243  939 
Emerald Advance® 13,100   24,169   13,899  22,816 
Software receivables from retailers 338   —   2,582  — 
Royalties and other receivables from franchisees 6,366   —   4,414  — 
Wave payment processing receivables 1,936   —   1,533  — 
Other 18,137   588   15,668  498 
Total $ 64,145   $ 48,649   $ 63,621  $ 47,016 

Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets.
LOANS TO FRANCHISEES – Franchisee loan balances consist of term loans made primarily to finance the purchase of franchises and revolving lines of credit primarily for the purpose of funding working capital needs. Loans with a principal balance more than 90 days past due or on non-accrual status were $3.5 million and $3.1 million as of September 30, 2025 and June 30, 2025, respectively.
H&R BLOCK'S INSTANT REFUND ® – H&R Block's Instant Refund® amounts are generally received from the Canada Revenue Agency within 60 days of filing the client's return, with the remaining balance collectible from the client.
We review the credit quality of our Instant Refund receivables based on pools, which are segregated by the tax return year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year, we charge-off the receivables and the related allowance to an amount we believe represents the net realizable value.
Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of September 30, 2025 are as foll ows:

(in 000s)

Tax return year of origination Balance More Than 60 Days Past Due
2024 $ 2,237   $ 2,085  
2023 and prior 657   657  

2,894   $ 2,742  
Allowance (1,079)
Net balance $ 1,815  

EMERALD ADVANCE ® – We review the credit quality of our purchased participation interests in Emerald Advance® (EA) receivables based on pools, which are segregated by the fiscal year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. Typically, in December of each year, we charge-off the receivables and the related allowance for EAs to an amount we believe represents the net realizable value.
Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination, as of September 30, 2025 are as follows:

(in 000s)
Fiscal year of origination Balance Non-Accrual
2025 $ 34,444   $ 34,444  
2024 and prior 22,488   22,488  

56,932   $ 56,932  
Allowance (19,663)
Net balance $ 37,269  

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

(in 000s)
EAs All Other Total
Balances as of July 1, 2025 $ 19,663   $ 45,156   $ 64,819  
Provision for credit losses —   975   975  
Charge-offs, recoveries and other —   (1,365) (1,365)
Balances as of September 30, 2025 $ 19,663   $ 44,766   $ 64,429  
Balances as of July 1, 2024 $ 33,536  $ 45,327  $ 78,863 
Provision for credit losses —  1,024  1,024 
Charge-offs, recoveries and other —  (1,462) (1,462)
Balances as of September 30, 2024 $ 33,536  $ 44,889  $ 78,425 

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- References No definition available.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/310-10/tableOfContent

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

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