SEC filing – odaterad – 0001838862-25-000011-xbrl.zip

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2024-12-31

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2024

OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission file number 1-06089

H&R Block, Inc.
(Exact name of registrant as specified in its charter)

Missouri 44-0607856
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

One H&R Block Way , Kansas City , Missouri 64105
(Address of principal executive offices, including zip code)
( 816 ) 854-3000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, without par value HRB New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☑     No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑     No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one)
Large accelerated filer ☑            Accelerated filer ☐         Non-accelerated filer ☐           Smaller reporting company  ☐ Emerging growth company ☐
    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐      No   ☑
The number of shares outstanding of the registrant's Common Stock, without par value, at the close of business on January 31, 2025: 133,849,262 shares.

Table of Contents

Form 10-Q for the Period ended December 31, 2024
Table of Contents

PART I

Item 1.
Consolidated Statements of Operations and Comprehensive Loss
     Three and six months ended December 31, 2024 and 2023
1

Consolidated Balance Sheets
          As of December 31, 2024 and June 30, 2024
2

Consolidated Statements of Cash Flows
     Six months ended December 31, 2024 and 2023
3

Consolidated Statements of Stockholders' Equity
     Three and six months ended December 31, 2024 and 2023
4

Notes to Consolidated Financial Statements
6

Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
15

Item 3.
Quantitative and Qualitative Disclosures About Market Risk
24

Item 4.
Controls and Procedures
24

PART II

Item 1.
Legal Proceedings
24

Item 1A.
Risk Factors
24

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
25

Item 3.
Defaults Upon Senior Securities
25

Item 4.
Mine Safety Disclosures
25

Item 5.
Other Information
25

Item 6.
Exhibits
26

Signatures
27

Table of Contents

PART I    FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS: (unaudited, in 000s, except per share amounts)
Three months ended December 31, Six months ended December 31,
2024 2023 2024 2023
REVENUES:
Service revenues $ 152,968   $ 149,081   $ 334,739   $ 320,807  
Royalty, product and other revenues 26,102   30,002   38,141   42,076  
179,070   179,083   372,880   362,883  
OPERATING EXPENSES:
Costs of revenues 314,209   299,827   583,790   559,185  
Selling, general and administrative 158,152   146,688   310,712   277,456  
Total operating expenses 472,361   446,515   894,502   836,641  

Other income (expense), net 2,744   5,922   14,661   15,758  
Interest expense on borrowings ( 21,752 ) ( 21,364 ) ( 37,599 ) ( 37,234 )
Loss from continuing operations before income tax benefit ( 312,299 ) ( 282,874 ) ( 544,560 ) ( 495,234 )
Income tax benefit ( 69,833 ) ( 93,758 ) ( 130,673 ) ( 143,245 )
Net loss from continuing operations ( 242,466 ) ( 189,116 ) ( 413,887 ) ( 351,989 )
Net loss from discontinued operations, net of tax benefits of $ 286 , $ 191 , $ 631 and $ 373
( 954 ) ( 639 ) ( 2,109 ) ( 1,248 )
NET LOSS $ ( 243,420 ) $ ( 189,755 ) $ ( 415,996 ) $ ( 353,237 )
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations $ ( 1.79 ) $ ( 1.33 ) $ ( 3.02 ) $ ( 2.44 )
Discontinued operations ( 0.01 ) —   ( 0.01 ) ( 0.01 )
Consolidated $ ( 1.80 ) $ ( 1.33 ) $ ( 3.03 ) $ ( 2.45 )

DIVIDENDS DECLARED PER SHARE $ 0.375   $ 0.32   $ 0.75   $ 0.64  
COMPREHENSIVE LOSS:
Net loss $ ( 243,420 ) $ ( 189,755 ) $ ( 415,996 ) $ ( 353,237 )

Change in foreign currency translation adjustments ( 29,034 ) 11,559   ( 22,917 ) 645  
Other comprehensive income (loss) ( 29,034 ) 11,559   ( 22,917 ) 645  
Comprehensive loss $ ( 272,454 ) $ ( 178,196 ) $ ( 438,913 ) $ ( 352,592 )

See accompanying notes to consolidated financial statements.

H&R Block, Inc. |Q2 FY2025 Form 10-Q
1

Table of Contents

CONSOLIDATED BALANCE SHEETS (unaudited, in 000s, except 
share and per share amounts)
As of December 31, 2024 June 30, 2024
ASSETS
Cash and cash equivalents $ 320,051   $ 1,053,326  
Cash and cash equivalents - restricted 21,473   21,867  
Receivables, less allowance for credit losses of $ 20,025 and $ 61,182
321,171   69,075  

Prepaid expenses and other current assets 114,658   95,208  
Total current assets 777,353   1,239,476  
Property and equipment, at cost, less accumulated depreciation and amortization of $ 849,691 and $ 838,814
143,833   131,319  
Operating lease right of use assets 389,629   461,986  
Intangible assets, net 270,601   264,102  
Goodwill 783,286   785,226  
Deferred tax assets and income taxes receivable 281,694   271,658  
Other noncurrent assets 65,924   65,043  
Total assets $ 2,712,320   $ 3,218,810  
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and accrued expenses $ 136,893   $ 155,830  
Accrued salaries, wages and payroll taxes 64,993   105,548  
Accrued income taxes and reserves for uncertain tax positions 149,255   318,830  
Current portion of long-term debt 349,611   — 
Operating lease liabilities 170,726   206,070  
Deferred revenue and other current liabilities 187,885   191,050  
Total current liabilities 1,059,363   977,328  
Long-term debt and line of credit borrowings 1,932,545   1,491,095  
Deferred tax liabilities and reserves for uncertain tax positions 292,643   291,063  
Operating lease liabilities 228,041   265,373  
Deferred revenue and other noncurrent liabilities 72,188   103,357  
Total liabilities 3,584,780   3,128,216  
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par, stated value $ 0.01 per share, 800,000,000 shares authorized, shares issued of 164,367,434 and 170,915,771
1,644   1,709  
Additional paid-in capital 752,093   762,583  
Accumulated other comprehensive loss ( 71,762 ) ( 48,845 )
Retained earnings (deficit) ( 908,785 ) 12,654  
Less treasury shares, at cost, of 30,522,962 and 31,324,609
( 645,650 ) ( 637,507 )
Total stockholders' equity (deficiency) ( 872,460 ) 90,594  
Total liabilities and stockholders' equity $ 2,712,320   $ 3,218,810  

See accompanying notes to consolidated financial statements.

2
Q2 FY2025 Form 10-Q| H&R Block, Inc.

Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in 000s)
Six months ended December 31, 2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ ( 415,996 ) $ ( 353,237 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 58,026   60,331  
Provision for credit losses 20,727   21,536  
Deferred taxes ( 1,531 ) ( 35,525 )
Stock-based compensation 17,945   17,525  

Changes in assets and liabilities, net of acquisitions:

Receivables ( 262,348 ) ( 348,833 )
Prepaid expenses, other current and noncurrent assets 2,588   ( 7,395 )

Accounts payable, accrued expenses, salaries, wages and payroll taxes ( 76,806 ) ( 58,543 )

Deferred revenue, other current and noncurrent liabilities ( 45,170 ) ( 58,520 )

Income tax receivables, accrued income taxes and income tax reserves ( 192,340 ) ( 180,706 )
Other, net ( 733 ) 1,201  
Net cash used in operating activities ( 895,638 ) ( 942,166 )
CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures ( 49,115 ) ( 32,708 )
Payments made for business acquisitions, net of cash acquired ( 28,017 ) ( 27,158 )

Franchise loans funded ( 17,442 ) ( 15,491 )
Payments from franchisees 971   2,747  

Other, net 6,110   1,565  
Net cash used in investing activities ( 87,493 ) ( 71,045 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of line of credit borrowings ( 100,000 ) ( 25,000 )
Proceeds from line of credit borrowings 890,000   825,000  

Dividends paid ( 96,960 ) ( 89,854 )
Repurchase of common stock, including shares surrendered ( 436,233 ) ( 378,709 )

Other, net 1,791   4,011  
Net cash provided by financing activities 258,598   335,448  
Effects of exchange rate changes on cash ( 9,136 ) 671  
Net decrease in cash and cash equivalents, including restricted balances ( 733,669 ) ( 677,092 )
Cash, cash equivalents and restricted cash, beginning of period 1,075,193   1,015,316  
Cash, cash equivalents and restricted cash, end of period $ 341,524   $ 338,224  
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net (includes payments for purchased investment tax credits) $ 62,290   $ 72,160  
Interest paid on borrowings 33,412   35,496  

Accrued additions to property and equipment 3,798   4,036  
New operating right of use assets and related lease liabilities 47,135   70,532  
Accrued dividends payable to common shareholders 50,176   45,273  

See accompanying notes to consolidated financial statements.

H&R Block, Inc. | Q2 FY2025 Form 10-Q
3

Table of Contents

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (amounts in 000s, except per share amounts)
Common Stock Additional
Paid-in
Capital Accumulated Other
Comprehensive
Loss (1)
Retained
Earnings
(Deficit) Treasury Stock Total
Stockholders’
Equity
Shares Amount Shares Amount
Balances as of July 1, 2024 170,916   $ 1,709   $ 762,583   $ ( 48,845 ) $ 12,654   ( 31,325 ) $ ( 637,507 ) $ 90,594  
Net loss —   —   —   —   ( 172,576 ) —   —   ( 172,576 )
Other comprehensive income —   —   —   6,117   —   —   —   6,117  
Stock-based compensation —   —   7,463   —   —   —   —   7,463  
Stock-based awards exercised or vested —   —   ( 23,990 ) —   ( 2,611 ) 1,319   26,848   247  
Acquisition of treasury shares (2)
—   —   —   —   —   ( 567 ) ( 35,882 ) ( 35,882 )
Repurchase and retirement of common shares ( 3,301 ) ( 33 ) ( 1,980 ) —   ( 209,708 ) —   —   ( 211,721 )

Cash dividends declared - $ 0.375 per share
—   —   —   —   ( 52,307 ) —   —   ( 52,307 )
Balances as of September 30, 2024 167,615   $ 1,676   $ 744,076   $ ( 42,728 ) $ ( 424,548 ) ( 30,573 ) $ ( 646,541 ) $ ( 368,065 )
Net loss —   —   —   —   ( 243,420 ) —   —   ( 243,420 )
Other comprehensive loss —   —   —   ( 29,034 ) —   —   —   ( 29,034 )
Stock-based compensation —   —   9,156   —   —   —   —   9,156  
Stock-based awards exercised or vested —   —   810   —   ( 245 ) 54   1,144   1,709  
Acquisition of treasury shares (2)
—   —   —   —   —   ( 4 ) ( 253 ) ( 253 )
Repurchase and retirement of common shares ( 3,248 ) ( 32 ) ( 1,949 ) —   ( 190,396 ) —   —   ( 192,377 )

Cash dividends declared - $ 0.375 per share
—   —   —   —   ( 50,176 ) —   —   ( 50,176 )
Balances as of December 31, 2024 164,367   $ 1,644   $ 752,093   $ ( 71,762 ) $ ( 908,785 ) ( 30,523 ) $ ( 645,650 ) $ ( 872,460 )

(1) The balance of our accumulated other comprehensive loss consists of foreign currency translation adjustments.
(2) Represents shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards.
See accompanying notes to consolidated financial statements.

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(amounts in 000s, except per share amounts)
Common Stock Additional
Paid-in
Capital Accumulated Other
Comprehensive
Loss (1)
Retained
Earnings
(Deficit) Treasury Stock Total
Stockholders’
Equity
Shares Amount Shares Amount
Balances as of July 1, 2023 178,936   $ 1,789   $ 770,376   $ ( 37,099 ) $ ( 48,677 ) ( 32,786 ) $ ( 654,325 ) $ 32,064  
Net loss —  —  —  —  ( 163,482 ) —  —  ( 163,482 )
Other comprehensive loss —  —  —  ( 10,914 ) —  —  —  ( 10,914 )
Stock-based compensation —  —  6,211   —  —  —  —  6,211  
Stock-based awards exercised or vested —  —  ( 34,226 ) —  ( 3,220 ) 1,867   37,348   ( 98 )
Acquisition of treasury shares (2)
—  —  —  —  —  ( 823 ) ( 28,464 ) ( 28,464 )
Repurchase and retirement of common shares ( 3,265 ) ( 32 ) ( 1,927 ) —  ( 131,341 ) —  —  ( 133,300 )

Cash dividends declared - $ 0.32 per share
—  —  —  —  ( 46,901 ) —  —  ( 46,901 )
Balances as of September 30, 2023 175,671   $ 1,757   $ 740,434   $ ( 48,013 ) $ ( 393,621 ) ( 31,742 ) $ ( 645,441 ) $ ( 344,884 )
Net loss —  —  —  —  ( 189,755 ) —  —  ( 189,755 )
Other comprehensive income —  —  —  11,559   —  —  —  11,559  
Stock-based compensation —  —  9,270   —  —  —  —  9,270  
Stock-based awards exercised or vested —  —  ( 165 ) —  ( 46 ) 348   7,087   6,876  
Acquisition of treasury shares (2)
—  —  —  —  —  ( 3 ) ( 125 ) ( 125 )
Repurchase and retirement of common shares ( 4,755 ) ( 48 ) ( 2,805 ) —  ( 217,467 ) —  —  ( 220,320 )

Cash dividends declared - $ 0.32 per share
—  —  —  —  ( 45,273 ) —  —  ( 45,273 )
Balances as of December 31, 2023 170,916   $ 1,709   $ 746,734   $ ( 36,454 ) $ ( 846,162 ) ( 31,397 ) $ ( 638,479 ) $ ( 772,652 )

(1) The balance of our accumulated other comprehensive loss consists of foreign currency translation adjustments.
(2) Represents shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards.
See accompanying notes to consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS              (unaudited)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION – The consolidated balance sheets as of December 31, 2024 and June 30, 2024, the consolidated statements of operations and comprehensive loss for the three and six months ended December 31, 2024 and 2023, the consolidated statements of cash flows for the six months ended December 31, 2024 and 2023, and the consolidated statements of stockholders' equity for the three and six months ended December 31, 2024 and 2023 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations, and cash flows as of December 31, 2024 and 2023 and for all periods presented, have been made.
"H&R Block," "the Company," "we," "our," and "us" are used interchangeably to refer to H&R Block, Inc., to H&R Block, Inc. and its subsidiaries, or to H&R Block, Inc.'s operating subsidiaries, as appropriate to the context.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our June 30, 2024 Annual Report on Form 10-K. All amounts presented herein as of June 30, 2024 or for the year then ended are derived from our Annual Report on Form 10-K.
MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses associated with pending claims and litigation, reserves for uncertain tax positions, and fair value of reporting units. Estimates have been prepared based on the best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.
SEASONALITY OF BUSINESS – Our operating revenues are seasonal in nature with peak revenues typically occurring in the months of February through April. Therefore, results for interim periods are not indicative of results to be expected for the full year.
DISCONTINUED OPERATIONS  –  Our discontinued operations include the results of operations of Sand Canyon Corporation, previously known as Option One Mortgage Corporation, which exited its mortgage business in fiscal year 2008.

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NOTE 2: REVENUE RECOGNITION
The majority of our revenues are from our United States (U.S.) tax services business. The following table disaggregates our U.S. revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:

(in 000s)
Three months ended December 31, Six months ended December 31,
2024 2023 2024 2023
Revenues:
U.S. assisted tax preparation $ 48,380   $ 48,342   $ 91,343   $ 87,605  
U.S. royalties 3,499   5,454   9,351   11,155  
U.S. DIY tax preparation 13,744   13,111   16,980   16,959  
Refund Transfers 637   813   1,497   1,955  
Peace of Mind® Extended Service Plan 16,145   17,440   39,242   42,287  
Tax Identity Shield® 4,013   4,694   7,922   9,274  
Emerald Card® and Spruce SM
10,148   11,700   18,974   20,333  
Interest and fee income on Emerald Advance® 12,308   15,235   12,308   15,533  
International 31,811   29,569   96,666   90,134  
Wave 26,561   23,133   52,964   47,076  
Other 11,824   9,592   25,633   20,572  
Total revenues $ 179,070   $ 179,083   $ 372,880   $ 362,883  

Changes in the balances of deferred revenue and wages for our Peace of Mind® Extended Service Plan (POM) are as follows:

(in 000s)
POM Deferred Revenue Deferred Wages
Six months ended December 31, 2024 2023 2024 2023
Balance, beginning of the period $ 156,610   $ 167,257   $ 20,212   $ 21,828  
Amounts deferred 3,209   3,601   15   8  
Amounts recognized on previous deferrals ( 46,962 ) ( 48,995 ) ( 6,092 ) ( 5,590 )
Balance, end of the period $ 112,857   $ 121,863   $ 14,135   $ 16,246  

As of December 31, 2024, deferred revenue related to POM was $ 112.9 million. We expect that $ 83.0 million will be recognized over the next twelve months , while the remaining balance will be recognized over the following five years .
As of December 31, 2024 and 2023, Tax Identity Shield® (TIS) deferred revenue was $ 14.1 million and $ 16.5 million, respectively. Deferred revenue related to TIS was $ 21.4 million and $ 25.2 million as of June 30, 2024 and 2023, respectively. All deferred revenue related to TIS will be recognized by April 2025 .

NOTE 3: EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY
EARNINGS PER SHARE – Basic and diluted earnings (loss) per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 2.7  million shares for the three and six months ended December 31, 2024 and 3.2  million

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shares for the three and six months ended December 31, 2023, as the effect would be antidilutive due to the net loss from continuing operations during the periods.
The computations of basic and diluted earnings (loss) per share from continuing operations are as follows:

(in 000s, except per share amounts)
Three months ended December 31, Six months ended December 31,
2024 2023 2024 2023
Net loss from continuing operations attributable to shareholders $ ( 242,466 ) $ ( 189,116 ) $ ( 413,887 ) $ ( 351,989 )
Amounts allocated to participating securities ( 240 ) ( 192 ) ( 469 ) ( 369 )
Net loss from continuing operations attributable to common shareholders $ ( 242,706 ) $ ( 189,308 ) $ ( 414,356 ) $ ( 352,358 )

Basic weighted average common shares 135,563   142,340   137,359   144,307  
Potential dilutive shares —   —   —   —  
Dilutive weighted average common shares 135,563   142,340   137,359   144,307  

Loss per share from continuing operations attributable to common shareholders:
Basic $ ( 1.79 ) $ ( 1.33 ) $ ( 3.02 ) $ ( 2.44 )
Diluted ( 1.79 ) ( 1.33 ) ( 3.02 ) ( 2.44 )

The decrease in the weighted average shares outstanding is due to share repurchases completed in the current and prior fiscal years.
STOCK-BASED COMPENSATION – We granted 1.1 million and 1.7 million shares, including adjustments for performance achievement and dividend equivalents, under our stock-based compensation plans during the six months ended December 31, 2024 and 2023, respectively. Stock-based compensation expense of our continuing operations totaled $ 9.2 million and $ 17.9 million for the three and six months ended December 31, 2024, respectively, and $ 9.9 million and $ 17.5 million for the three and six months ended December 31, 2023, respectively. As of December 31, 2024, unrecognized compensation cost for nonvested shares and units totaled $ 59.5 million.

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

(in 000s)
As of December 31, 2024 June 30, 2024
Short-term Long-term Short-term Long-term
Loans to franchisees $ 19,764   $ 20,861   $ 5,917   $ 16,498  
Receivables for U.S. assisted and DIY tax preparation and related fees 9,823   5,440   18,440   5,332  
H&R Block's Instant Refund® receivables
1,375   184   2,947   207  
Emerald Advance® 266,110   23,643   17,867   21,360  
Software receivables from retailers 2,073   —   1,029   —  
Royalties and other receivables from franchisees 6,955   —   5,808   —  
Wave payment processing receivables 693   —   1,078   —  
Other 14,378   659   15,989   427  
Total $ 321,171   $ 50,787   $ 69,075   $ 43,824  

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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. As of December 31, 2024 and June 30, 2024, loans with a principal balance more than 90 days past due or on non-accrual status were $ 2.2  million and $ 1.1  million, 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.
B alances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of December 31, 2024 are as foll ows:

(in 000s)

Tax return year of origination Balance More Than 60 Days Past Due
2023 $ 375   $ 316  
2022 and prior 1,184   1,184  

1,559   $ 1,500  
Allowance —  
Net balance $ 1,559  

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 December 31, 2024 are as follows:

(in 000s)
Fiscal year of origination Balance Non-Accrual
2025 $ 270,393   $ —  
2024 and prior 38,469   38,469  

308,862   $ 38,469  
Allowance ( 19,109 )
Net balance $ 289,753  

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ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the six months ended December 31, 2024 and 2023 is as follows:

(in 000s)
EAs All Other Total
Balances as of July 1, 2024 $ 33,536   $ 45,327   $ 78,863  
Provision for credit losses 19,109   1,618   20,727  
Charge-offs, recoveries and other ( 33,536 ) ( 45,552 ) ( 79,088 )
Balances as of December 31, 2024 $ 19,109   $ 1,393   $ 20,502  
Balances as of July 1, 2023 $ 27,386   $ 35,108   $ 62,494  
Provision for credit losses 17,885   3,651   21,536  
Charge-offs, recoveries and other ( 27,714 ) ( 37,613 ) ( 65,327 )
Balances as of December 31, 2023 $ 17,557   $ 1,146   $ 18,703  

For the six months ended December 31, 2024, there were $ 33.5  million of gross charge-offs related to EAs which were originated in fiscal year 2024.

NOTE 5: GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying amount of goodwill for the six months ended December 31, 2024 are as follows:

(in 000s)
Goodwill Accumulated Impairment Losses Net
Balances as of July 1, 2024 $ 923,523   $ ( 138,297 ) $ 785,226  

Acquisitions (1)
12,761   —   12,761  
Disposals and foreign currency changes, net ( 14,701 ) —   ( 14,701 )
Impairments —   —   —  
Balances as of December 31, 2024 $ 921,583   $ ( 138,297 ) $ 783,286  

(1)     All goodwill added during the period is expected to be tax-deductible for federal income tax reporting.
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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Components of intangible assets are as follows:

(in 000s)
Gross Carrying Amount Accumulated
Amortization Net
As of December 31, 2024:
Reacquired franchise rights $ 413,752   $ ( 235,650 ) $ 178,102  
Customer relationships 350,700   ( 280,481 ) 70,219  
Internally-developed software 123,495   ( 122,332 ) 1,163  
Noncompete agreements 22,807   ( 19,857 ) 2,950  
Purchased technology 70,100   ( 54,543 ) 15,557  
Trade name 5,800   ( 3,190 ) 2,610  

$ 986,654   $ ( 716,053 ) $ 270,601  
As of June 30, 2024:
Reacquired franchise rights $ 403,955   $ ( 228,157 ) $ 175,798  
Customer relationships 331,435   ( 270,245 ) 61,190  
Internally-developed software 122,673   ( 119,610 ) 3,063  
Noncompete agreements 21,977   ( 19,494 ) 2,483  

Purchased technology 70,100   ( 51,432 ) 18,668  
Trade name 5,800   ( 2,900 ) 2,900  
$ 955,940   $ ( 691,838 ) $ 264,102  

We made payments to acquire businesses totaling $ 28.0 million and $ 27.2 million during the six months ended December 31, 2024 and 2023, respectively. The amounts and weighted-average lives of intangible assets acquired during the six months e nded December 31, 2024, including amounts capitalized related to internally-developed software, a re as follows:

(dollars in 000s)
Amount Weighted-Average Life (in years)
Customer relationships $ 19,705   5
Reacquired franchise rights 9,983   6
Internally-developed software 1,027   3
Noncompete agreements 871   5
Total $ 31,586   5

Amortization of intangible assets for the three and six months ended December 31, 2024 was $ 12.1 million and $ 25.0 million, respectively, compared to $ 15.4 million and $ 31.2 million for the three and six months ended December 31, 2023. Estimated amortization of intangible assets for fiscal years ending June 30, 2025, 2026, 2027, 2028, and 2029 is $ 47.0 million, $ 39.9 million, $ 33.1 million, $ 24.9 million and $ 16.5 million, respectively.

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NOTE 6: LONG-TERM DEBT
The components of long-term debt are as follows:

(in 000s)
As of December 31, 2024 June 30, 2024
Senior Notes, 5.250 %, due October 2025
$ 350,000   $ 350,000  
Senior Notes, 2.500 %, due July 2028
500,000   500,000  
Senior Notes, 3.875 %, due August 2030
650,000   650,000  
Committed line of credit borrowings 790,000   —  
Debt issuance costs and discounts ( 7,844 ) ( 8,905 )
Total long-term debt 2,282,156   1,491,095  
Less: Current portion ( 349,611 ) —  
Long-term portion $ 1,932,545   $ 1,491,095  
Estimated fair value of long-term debt $ 2,193,000   $ 1,391,000  

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. 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. The CLOC will mature on June 11, 2026, unless extended pursuant to the terms of the CLOC, at which time all outstanding amounts thereunder will be due and payable. Our CLOC includes an annual facility fee, which will vary depending on our then current credit ratings.
The 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: (1) a covenant requiring the Company to maintain a debt-to-EBITDA ratio, as defined by the CLOC agreement, calculated on a consolidated basis of no greater than (a) 3.50 to 1.00 as of the last day of each fiscal quarter ending on March 31, June 30, and September 30 of each year and (b) 4.50 to 1.00 as of the last day of each fiscal quarter ending on December 31 of each year; (2) a covenant requiring us to maintain an interest coverage ratio (EBITDA-to-interest expense) calculated on a consolidated basis of not less than 2.50 to 1.00 as of the last date of any fiscal quarter; and (3) covenants restricting our ability to incur certain additional debt, incur liens, merge or consolidate with other companies, sell or dispose of assets (including equity interests), liquidate or dissolve, engage in certain transactions with affiliates or enter into certain restrictive agreements. The CLOC includes provisions for an equity cure which could potentially allow us to independently cure certain defaults. Proceeds under the CLOC may be used for working capital needs or for other general corporate pu rposes. We were in compliance with these requirements as of December 31, 2024.
We had an outst anding balance of $ 790.0 million u nder our CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of December 31, 2024.

NOTE 7: INCOME TAXES
We file a consolidated federal income tax return in the U.S. with the Internal Revenue Service (IRS) and file tax returns in various state, local, and foreign jurisdictions.
We had gross unrecognized tax benefits of $ 244.1 million and $ 251.8  million as of December 31, 2024 and June 30, 2024, respectively. The gross unrecognized tax benefits decreased by $ 7.7  million during the six months ended December 31, 2024. We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $ 148.4 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.

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Our effective tax rate for continuing operations, including the effects of discrete tax items, was 24.0 % and 28.9 % for the six months ended December 31, 2024 and 2023, respectively. Discrete items increased the effective tax rate by 0.3 % and 5.4 % for the six months ended December 31, 2024, and 2023, respectively. Discrete income tax benefits of $ 1.5  million and $ 26.6  million were recorded in the six months ended December 31, 2024 and 2023, respectively. The discrete tax benefit recorded in the current period primarily resulted from investment tax credit purchases. The discrete tax benefit recorded in the prior period primarily resulted from settlements with taxing authorities and state statute of limitations expirations. The impact of discrete tax items combined with the seasonal nature of our business can cause the effective tax rate in our second quarter to be significantly different than the rate for our full fiscal year.
Consistent with prior years, our pretax loss for the six months ended December 31, 2024 is expected to be offset by income in our third and fourth quarters due to the established pattern of seasonality in our primary business operations. As such, management has determined that it is more-likely-than-not that realization of tax benefits recorded in our financial statements will occur within our fiscal year. The amount of tax benefit recorded for the six months ended December 31, 2024 reflects management’s estimate of the annual effective tax rate applied to year-to-date loss from continuing operations adjusted for the tax impact of discrete items for the periods presented.

NOTE 8: COMMITMENTS AND CONTINGENCIES
Our U.S. and Canadian businesses offer our 100% accuracy guarantee. Assisted tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client for penalties and interest attributable to an H&R Block error on a return. DIY tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client up to a maximum of $ 10,000 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 $ 9.7 million and $ 14.1 million as of December 31, 2024 and June 30, 2024, 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 $ 38.3 million and $ 26.9 million as of December 31, 2024 and June 30, 2024 respectively, with amounts recorded in deferred revenue and other liabilities. 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.
We have contractual commitments to fund certain franchises with approved short-term lines of credit for the purpose of meeting their seasonal working capital needs. Our total obligation under these lines of credit was $ 20.9 million at December 31, 2024, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $ 5.8 million.
During the six months ended December 31, 2024, the Company entered into an agreement to purchase federal investment tax credits (“ITC”), if certain conditions are met. During the six months ended December 31, 2024, we paid $ 22.9  million for ITCs. As of December 31, 2024, the Company has a remaining commitment to purchase additional ITCs, for approximately $ 80.0  million if certain conditions set forth in the agreement are satisfied, with the final payment anticipated to occur by June 30, 2025.
Emerald Advance® term loans are originated by Pathward® N.A. (Pathward). We purchase participation interests, at par, in all EAs originated by Pathward in accordance with our participation agreement. Our participation interest varies by jurisdiction. At December 31, 2024, the principal balance of purchased participation interests for the current year totaled $ 257.9  million, which represents 87% of total EA volume originated by Pathward.

NOTE 9: LITIGATION AND OTHER RELATED CONTINGENCIES
We are a defendant in numerous litigation and arbitration matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits or arbitrations to which we are subject. In some of the matters, very large or indeterminate amounts, including

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punitive damages, may be sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in handling and resolving numerous claims over an extended period of time.
The outcome of a matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how courts and arbitrators will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will view the relevant evidence and applicable law.
In addition to litigation and arbitration matters, we are also subject to other loss contingencies arising out of our business activities, including as described below.
We accrue liabilities for litigation, arbitration and other related loss contingencies and any related settlements when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range.
For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated as of December 31, 2024. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows. Our accrued liabilities were $ 11.1  million and $ 7.2  million as of December 31, 2024 and June 30, 2024, respectively.
Our estimate of the aggregate range of reasonably possible losses includes (1) matters where a liability has been accrued and there is a reasonably possible loss in excess of the amount accrued for that liability, and (2) matters where a liability has not been accrued but we believe a loss is reasonably possible. This aggregate range only represents those losses as to which we are currently able to estimate a reasonably possible loss or range of loss. It does not represent our maximum loss exposure.
Matters for which we are not currently able to estimate the reasonably possible loss or range of loss are not included in this range. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as precise information about the amount of damages or other remedies being asserted, the defenses to the claims being asserted, discovery from other parties and investigation of factual allegations, rulings by courts or arbitrators on motions or appeals, analyses by experts, or the status or terms of any settlement negotiations.
The estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. As of December 31, 2024, we believe the estimate of the aggregate range of reasonably possible losses in excess of amounts accrued, where the range of loss can be estimated, is not material.
At the end of each reporting period, we review relevant information with respect to litigation, arbitration and other related loss contingencies and update our accruals, disclosures, and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable.

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We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and our consolidated financial position, results of operations, and cash flows.
We have received and are responding to certain governmental inquiries, class actions and mass arbitrations relating to the IRS Free File Program and other aspects of our DIY tax preparation services, including the use of pixels. Related to one of these matters, on February 23, 2024, the Federal Trade Commission (FTC) filed an administrative complaint before the FTC alleging unfair or deceptive business acts or practices in connection with certain aspects of our DIY tax preparation services. A hearing before an administrative law judge (ALJ) of the FTC was scheduled to begin on October 23, 2024. We filed a complaint in federal court in the Western District of Missouri challenging the constitutionality of the ALJ’s removal protections and seeking to enjoin the ALJ’s participation in the adjudication of the matter. The federal court denied our motion for a preliminary injunction on August 1, 2024. We filed an appeal with the Eighth Circuit Court of Appeals. On October 21, 2024, we entered into a Consent Agreement to resolve the allegations of the complaint through a Decision and Order, which became final and effective on January 8, 2025. The complaint filed in the Missouri federal court and the corresponding appeal were subsequently dismissed by consent of the parties. An accrual related to these matters is included in our loss contingency accrual.
We are from time to time a party to litigation, arbitration and other loss contingencies not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent others who may be similarly situated.
While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our business and our consolidated financial position, results of operations, and cash flows.

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS
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 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.

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Consolidated – Financial Results (in 000s, except per share amounts)
Three months ended December 31, 2024 2023 $ Change % Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation $ 48,380   $ 48,342  $ 38  0.1  %
Royalties 3,499   5,454  (1,955) (35.8) %
DIY tax preparation 13,744   13,111  633  4.8  %
Refund Transfers 637   813  (176) (21.6) %
Peace of Mind® Extended Service Plan 16,145   17,440  (1,295) (7.4) %
Tax Identity Shield® 4,013   4,694  (681) (14.5) %
Other 11,824   9,592  2,232  23.3  %
Total U.S. tax preparation and related services 98,242   99,446  (1,204) (1.2) %
Financial services:
Emerald Card® and Spruce SM
10,148   11,700  (1,552) (13.3) %
Interest and fee income on Emerald Advance® 12,308   15,235  (2,927) (19.2) %
Total financial services 22,456   26,935  (4,479) (16.6) %
International 31,811   29,569  2,242  7.6  %
Wave 26,561   23,133  3,428  14.8  %
Total revenues $ 179,070   $ 179,083  $ (13) —  %
Compensation and benefits:
Field wages 81,565   77,795  (3,770) (4.8) %
Other wages 78,731   74,671  (4,060) (5.4) %
Benefits and other compensation 38,402   36,063  (2,339) (6.5) %
198,698   188,529  (10,169) (5.4) %
Occupancy 104,999   101,194  (3,805) (3.8) %
Marketing and advertising 14,863   11,305  (3,558) (31.5) %
Depreciation and amortization 29,195   30,107  912  3.0  %
Bad debt 19,416   21,754  2,338  10.7  %
Other 105,190   93,626  (11,564) (12.4) %
Total operating expenses 472,361   446,515  (25,846) (5.8) %
Other income (expense), net 2,744   5,922  (3,178) (53.7) %
Interest expense on borrowings (21,752) (21,364) (388) (1.8) %
Pretax loss (312,299) (282,874) (29,425) (10.4) %
Income tax benefit (69,833) (93,758) (23,925) (25.5) %
Net loss from continuing operations (242,466) (189,116) (53,350) (28.2) %
Net loss from discontinued operations (954) (639) (315) (49.3) %
Net loss $ (243,420) $ (189,755) $ (53,665) (28.3) %
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations $ (1.79) $ (1.33) $ (0.46) (34.6) %
Discontinued operations (0.01) —  (0.01) **
Consolidated $ (1.80) $ (1.33) $ (0.47) (35.3) %

Adjusted diluted EPS (1)
$ (1.73) $ (1.27) $ (0.46) (36.2) %
EBITDA (1)
$ (261,352) $ (231,403) $ (29,949) (12.9) %

(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.

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Three months ended December 31, 2024 compared to December 31, 2023
Revenues of $179.1 million were flat compared to the prior year. Interest and fee income on Emerald Advance® revenues decreased $2.9 million, or 19.2%, primarily due to a decrease in EA loans originated in the current year.
International tax preparation revenues increased $2.2 million, or 7.6%, primarily due to higher tax return volumes in Australia combined with favorable foreign currency exchange rates. Wave revenues increased $3.4 million, or 14.8%, due to higher accounting, invoicing and receipts subscriptions and small business payments processing volumes.
Total operating expenses increased $25.8 million, or 5.8%, from the prior year. Field wages increased $3.8 million, or 4.8%, due to higher tax professional wages in the current year. Other wages increased $4.1 million, or 5.4%, due to higher corporate wages primarily due to salary increases. Occupancy expense increased $3.8 million, or 3.8%, primarily due to higher lease and office-related expenses. Marketing and advertising expense increased $3.6 million, or 31.5%, primarily due to the timing of advertising and lower vendor refunds for expired customer incentives in the current year.
Other operating expenses increased $11.6 million, or 12.4%. The components of other expenses are as follows:

(in 000s)
Three months ended December 31, 2024 2023 $ Change % Change
Consulting and outsourced services $ 18,439   $ 16,267  $ (2,172) (13.4) %
Bank partner fees 1,316   (1,113) (2,429) **
Client claims and refunds 4,332   3,107  (1,225) (39.4) %
Employee and travel expenses 12,495   12,375  (120) (1.0) %
Technology-related expenses 28,062   27,261  (801) (2.9) %
Credit card/bank charges 18,546   17,768  (778) (4.4) %
Insurance 4,256   2,076  (2,180) (105.0) %
Legal fees and settlements 7,192   5,421  (1,771) (32.7) %
Supplies 3,570   4,355  785  18.0  %
Other 6,982   6,109  (873) (14.3) %
$ 105,190   $ 93,626  $ (11,564) (12.4) %

Other income (expense), net decreased $3.2 million, or 53.7%, primarily due to higher foreign currency losses and lower interest income in the current year.
We recorded an income tax benefit of $69.8 million in the current year compared to $93.8 million in the prior year. The effective tax rate for the three months ended December 31, 2024, and 2023 was 22.4% and 33.1%, respectively.

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Consolidated - Financial Results (in 000s, except per share amounts)
Six months ended December 31, 2024 2023 $ Change % Change
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation $ 91,343   $ 87,605  $ 3,738  4.3  %
Royalties 9,351   11,155  (1,804) (16.2) %
DIY tax preparation 16,980   16,959  21  0.1  %
Refund Transfers 1,497   1,955  (458) (23.4) %
Peace of Mind® Extended Service Plan 39,242   42,287  (3,045) (7.2) %
Tax Identity Shield® 7,922   9,274  (1,352) (14.6) %
Other 25,633   20,572  5,061  24.6  %
Total U.S. tax preparation and related services 191,968   189,807  2,161  1.1  %
Financial services:
Emerald Card® and Spruce SM
18,974   20,333  (1,359) (6.7) %
Interest and fee income on Emerald Advance® 12,308   15,533  (3,225) (20.8) %
Total financial services 31,282   35,866  (4,584) (12.8) %
International 96,666   90,134  6,532  7.2  %
Wave 52,964   47,076  5,888  12.5  %
Total revenues $ 372,880   $ 362,883  $ 9,997  2.8  %
Compensation and benefits:
Field wages 149,659   140,230  (9,429) (6.7) %
Other wages 156,066   146,769  (9,297) (6.3) %
Benefits and other compensation 77,156   71,311  (5,845) (8.2) %
382,881   358,310  (24,571) (6.9) %
Occupancy 206,317   200,479  (5,838) (2.9) %
Marketing and advertising 24,835   16,786  (8,049) (48.0) %
Depreciation and amortization 58,026   60,332  2,306  3.8  %
Bad debt 22,146   26,552  4,406  16.6  %
Other 200,297   174,182  (26,115) (15.0) %
Total operating expenses 894,502   836,641  (57,861) (6.9) %
Other income (expense), net 14,661   15,758  (1,097) (7.0) %
Interest expense on borrowings (37,599) (37,234) (365) (1.0) %
Pretax loss (544,560) (495,234) (49,326) (10.0) %
Income tax benefit (130,673) (143,245) (12,572) (8.8) %
Net loss from continuing operations (413,887) (351,989) (61,898) (17.6) %
Net loss from discontinued operations (2,109) (1,248) (861) (69.0) %
Net loss $ (415,996) $ (353,237) $ (62,759) (17.8) %
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations $ (3.02) $ (2.44) $ (0.58) (23.8) %
Discontinued operations (0.01) (0.01) —  —  %
Consolidated $ (3.03) $ (2.45) $ (0.58) (23.7) %
Adjusted diluted EPS (1)
$ (2.89) $ (2.31) $ (0.58) (25.1) %
EBITDA (1)
$ (448,935) $ (397,668) $ (51,267) (12.9) %

(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.

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Six months ended December 31, 2024 compared to December 31, 2023
Revenues increased $10.0 million, or 2.8%, from the prior year. U.S. assisted tax preparation revenues increased $3.7 million, or 4.3%, primarily due to an increase in net average charge.
Peace of Mind® revenue decreased $3.0 million, or 7.2%, due to lower prior year sales of Peace of Mind®. Peace of Mind® revenues are initially deferred and recognized over the term of the plan. Other revenues increased $5.1 million, or 24.6%, primarily due to higher bookkeeping fees. Interest and fee income on Emerald Advance® revenues decreased $3.2 million, or 20.8%, primarily due to a decrease in EA loans originated in the current year.
International revenues increased $6.5 million, or 7.2%, primarily due to higher tax return volumes in Australia combined with favorable foreign currency exchange rates. Wave revenues increased $5.9 million, or 12.5%, due to higher accounting, invoicing and receipts subscriptions and small business payments processing volumes.
Total operating expenses increased $57.9 million, or 6.9%, from the prior year period. Field wages increased $9.4 million, or 6.7%, due to higher tax professional wages in the current year. Other wages increased $9.3 million, or 6.3%, primarily due to higher corporate wages due to salary increases in the current year. Benefits and other compensation increased $5.8 million, or 8.2%, due to higher employee insurance and severance pay in the current year. Occupancy expense increased $5.8 million, or 2.9%, primarily due to higher lease and office-related expenses. Marketing and advertising expense increased $8.0 million, or 48.0%, due to the timing of advertising and lower vendor refunds for expired customer incentives in the current year.
Other operating expenses increased $26.1 million, or 15.0%. The components of other expenses are as follows:

(in 000s)
Six months ended December 31, 2024 2023 $ Change % Change
Consulting and outsourced services $ 33,883   $ 29,401  $ (4,482) (15.2) %
Bank partner fees 1,363   (1,065) (2,428) **
Client claims and refunds 10,276   9,346  (930) (10.0) %
Employee and travel expenses 18,612   18,061  (551) (3.1) %
Technology-related expenses 52,563   50,339  (2,224) (4.4) %
Credit card/bank charges 36,695   34,937  (1,758) (5.0) %
Insurance 7,800   5,426  (2,374) (43.8) %
Legal fees and settlements 21,654   8,429  (13,225) (156.9) %
Supplies 6,477   7,118  641  9.0  %
Other 10,974   12,190  1,216  10.0  %
$ 200,297   $ 174,182  $ (26,115) (15.0) %

Legal expense increased $13.2 million primarily due to higher outside legal counsel spend.
We recorded income tax expense of $130.7 million in the current year compared to $143.2 million in the prior year. The effective tax rate for the six months ended December 31, 2024, and 2023 was 24.0% and 28.9%, respectively. See Item 1, note 7 to the consolidated financial statements for additional discussion.

FINANCIAL CONDITION
These comments should be read in conjunction with the consolidated balance sheets and consolidated statements of cash flows included in Part 1, Item 1 .
CAPITAL RESOURCES AND LIQUIDITY –
OVERVIEW – Our primary sources of capital and liquidity include cash from operations (including changes in working capital), draws on our unsecured committed line of credit (CLOC), and issuances of debt. We use our sources of liquidity primarily to fund working capital, service and repay debt, pay dividends, repurchase shares of our common stock, and acquire businesses.

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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 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, 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 six months ended December 31, 2024 and 2023. See Item 1 for the complete consolidated statements of cash flows for these periods.

(in 000s)
Six months ended December 31, 2024 2023
Net cash provided by (used in):
Operating activities $ (895,638) $ (942,166)
Investing activities (87,493) (71,045)
Financing activities 258,598   335,448 
Effects of exchange rates on cash (9,136) 671 
Net decrease in cash and cash equivalents, including restricted balances $ (733,669) $ (677,092)

Operating Activities. Cash used in operations totaled $895.6 million for the six months ended December 31, 2024 compared to $942.2 million in the prior year period. The change is primarily due to lower EA loans originated in the current year and changes in deferred taxes, partially offset by a higher net loss in the current year.
Investing Activities. Cash used in investing activities totaled $87.5 million for the six months ended December 31, 2024 compared to $71.0 million in the prior year period. The change is primarily due to higher capital expenditures in the current year.
Financing Activities. Cash provided by financing activities totaled $258.6 million for the six months ended December 31, 2024 compared to $335.4 million in the prior year period. The change is primarily due to higher repurchases of common stock in the current year.
CASH REQUIREMENTS –
Dividends and Share Repurchases. Returning capital to shareholders in the form of dividends and the repurchase of outstanding shares is, and has historically been, a significant component of our capital allocation plan.
We have consistently paid quarterly dividends. Dividends paid totaled $97.0 million and $89.9 million for the six months ended December 31, 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 six months ended December 31, 2024, 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. In the prior year period, 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. Our current share repurchase program has remaining authorization of $1.1 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. The Company may cancel, suspend, or extend the period for the purchase of shares at any

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time. Any repurchases will be funded primarily through available cash and cash from operations. Although we may continue to repurchase shares, there is no assurance that we will purchase up to the full Board authorization.
    Capital Investment. Capital expenditures totaled $49.1 million and $32.7 million for the six months ended December 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. In addition to our capital expenditures, we also made payments to acquire businesses. We acquired franchisee and competitor businesses totaling $28.0 million and $27.2 million during the six months ended December 31, 2024 and 2023, respectively. See Item 1, note 5 for additional information on our acquisitions.
FINANCING RESOURCES – The CLOC has capacity up to $1.5 billion and is scheduled to expire in June 2026. Proceeds under the CLOC may be used for working capital needs or for other general corporate purposes. We had an outst anding balance of $790.0 million under our CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of December 31, 2024.
Our Senior Notes due in October 2025 (2025 Senior Notes) are classified as a current liability as of December 31, 2024. We are considering various financing options in regard to the maturing 2025 Senior Notes and anticipate these options will provide adequate liquidity to fund the cash requirements at or prior to maturity.
The following table provides ratings for debt issued by Block Financial LLC (Block Financial) as of December 31, 2024 and June 30, 2024:

As of December 31, 2024 June 30, 2024

Short-term Long-term Outlook Short-term Long-term Outlook
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 December 31, 2024, we held cash and cash equivalents, excluding restricted amounts, of $320.1 million, including $158.6 million held by our foreign subsidiaries.
Foreign Operations. Seasonal borrowing needs of our Canadian operations are typically funded by our U.S. operations. To mitigate foreign currency risk, we sometimes enter into foreign exchange forward contracts. There were no forward contracts outstanding as of December 31, 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 a decrease of $9.1 million during the six months ended December 31, 2024 and in an increase of $0.7 million during the six months ended December 31, 2023.
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – The Company entered into an agreement to purchase federal Investment tax credits (“ITC”). During the six months ended December 31, 2024, we paid $22.9 million for ITCs. As of December 31, 2024, the Company has a remaining commitment to purchase additional ITCs, for approximately $80.0 million if certain conditions set forth in the agreement are satisfied, 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. We purchased participation interests in EAs of $257.9 million during the six months ended December 31, 2024. See Item 1 , note 8 for additional information on our commitments.
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.

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SUMMARIZED GUARANTOR FINANCIAL STATEMENTS – Block Financial is a 100% owned subsidiary of H&R Block, Inc. Block Financial is the Issuer and H&R Block, Inc. is the full and unconditional Guarantor of our Senior Notes, CLOC and other indebtedness issued from time to time.
The following table presents summarized financial information for H&R Block, Inc. (Guarantor) and Block Financial (Issuer) on a combined basis after intercompany eliminations and excludes investments in and equity earnings in non-guarantor subsidiaries.

SUMMARIZED BALANCE SHEET - GUARANTOR AND ISSUER (in 000s)
As of December 31, 2024 June 30, 2024
Current assets $ 304,264   $ 44,423 
Noncurrent assets 2,317,461   1,778,832 
Current liabilities 437,886   77,848 
Noncurrent liabilities 1,938,745   1,492,211 

SUMMARIZED STATEMENTS OF OPERATIONS - GUARANTOR AND ISSUER (in 000s)
Six months ended December 31, 2024 Twelve months ended June 30, 2024

Total revenues $ 33,436   $ 144,206 
Income (loss) from continuing operations before income taxes (3,363) 75,819 
Net income (loss) from continuing operations (2,592) 57,441 
Net income (loss) (4,702) 54,795 

The table above reflects $2.3 billion and $1.7 billion of non-current intercompany receivables due to the Issuer from non-guarantor subsidiaries as of December 31, 2024 and June 30, 2024, respectively.

REGULATORY ENVIRONMENT
There have been no material changes in our regulatory environment from what was reported in our June 30, 2024 Annual Report on Form 10-K.

NON-GAAP FINANCIAL INFORMATION
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. generally accepted accounting principles (GAAP). Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.
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 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.

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

(in 000s)
Three months ended December 31, Six months ended December 31,
2024 2023 2024 2023
Net loss - as reported $ (243,420) $ (189,755) $ (415,996) $ (353,237)
Discontinued operations, net 954   639  2,109   1,248 
Net loss from continuing operations - as reported (242,466) (189,116) (413,887) (351,989)
Add back:
Income tax benefit (69,833) (93,758) (130,673) (143,245)
Interest expense 21,752   21,364  37,599   37,234 
Depreciation and amortization 29,195   30,107  58,026   60,332 
(18,886) (42,287) (35,048) (45,679)
EBITDA from continuing operations $ (261,352) $ (231,403) $ (448,935) $ (397,668)

The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure:

(in 000s, except per share amounts)
Three months ended December 31, Six months ended December 31,
2024 2023 2024 2023
Net loss from continuing operations - as reported $ (242,466) $ (189,116) $ (413,887) $ (351,989)
Adjustments:
Amortization of intangibles related to acquisitions (pretax) 10,910   12,269  22,038   24,824 
Tax effect of adjustments (1)
(2,539) (3,087) (5,184) (6,022)
Adjusted net loss from continuing operations $ (234,095) $ (179,934) $ (397,033) $ (333,187)
Diluted loss per share from continuing operations - as reported $ (1.79) $ (1.33) $ (3.02) $ (2.44)
Adjustments, net of tax 0.06   0.06  0.13   0.13 
Adjusted diluted loss per share from continuing operations $ (1.73) $ (1.27) $ (2.89) $ (2.31)

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

FORWARD-LOOKING INFORMATION
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. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "could," "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. 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 disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate.

H&R Block, Inc. |Q2 FY2025 Form 10-Q
23

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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. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law.
By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, operational and regulatory factors, many of which are beyond the Company's control. In addition, factors that may cause the Company’s actual effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, and increases in applicable tax rates in jurisdictions where the Company operates. Investors should understand that it is not possible to predict or identify all such factors and, consequently, should not consider any such list to be a complete set of all potential risks or uncertainties.
Details about risks, uncertainties and assumptions that could affect various aspects of our business are included throughout our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and are also described from time to time in other filings with the SEC. Investors should carefully consider all of these risks, and should pay particular attention to Item 1A, "Risk Factors," and Item 7 under "Critical Accounting Policies" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in our market risks from those reported in our June 30, 2024 Annual Report on Form 10-K.

ITEM 4.     CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES – As of the end of the period covered by this Form 10-Q, management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING – There were no changes during the three months ended December 31, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II    OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS
For a description of our material pending legal proceedings, see discussion in Part I, Item 1, note 9 to the consolidated financial statements.

ITEM 1A.    RISK FACTORS
There have been no material changes in our risk factors from those reported in our June 30, 2024 Annual Report on Form 10-K.

24
Q2 FY2025 Form 10-Q| H&R Block, Inc.

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ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
A summary of our purchases of H&R Block common stock during the three months ended December 31, 2024 is as follows:

(in 000s, except per share amounts)
Total Number of
Shares Purchased (1)
Average
Price Paid
per Share Total Number of Shares
Purchased as Part of
Publicly Announced Plans 
or Programs (2)
Maximum Dollar Value of
Shares that May Yet Be
Purchased Under the Plans 
or Programs (2)

October 1 - October 31 2   $ 62.63   —   $ 1,290,424  
November 1 - November 30 3,130   $ 58.62   3,128   $ 1,107,066  
December 1 - December 31 120   $ 59.02   120   $ 1,100,000  
3,252   $ 58.64   3,248  

(1) We purchased approximately 4 thousand shares in connection with funding employee income tax withholding obligations arising upon the lapse of restrictions on restricted share units.
(2) On August 15, 2024, we announced that our Board of Directors approved a $1.5 billion share repurchase program. The repurchase program does not have an expiration date.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES
None.

ITEM 4.    MINE SAFETY DISCLOSURES
Not applicable.

ITEM 5.    OTHER INFORMATION
Director and Section 16 Officer Trading Arrangements
On November 11, 2024, Jeffrey J. Jones II, President, Chief Executive Officer and Director, adopted a Rule 10b5-1 plan (Rule 10b5-1 Plan) intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. Mr. Jones’s Rule 10b5-1 Plan provides for the sale of up to 212,963 shares of the Company’s common stock, pursuant to the terms of the Rule 10b5-1 Plan. The Rule 10b5-1 Plan expires on November 11, 2025, or upon the earlier completion of all authorized transactions under such Rule 10b5-1 Plan.
No other director or Section 16 officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K during the three months ended December 31, 2024.

H&R Block, Inc. |Q2 FY2025 Form 10-Q
25

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ITEM 6.    EXHIBITS
The following exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K:

22
List of Guarantor and Issuer Subsidiaries, filed as Exhibit 22 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, file number 1-06089, is incorporated herein by reference.

31.1
Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2
Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1
Certification by Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.

32.2
Certification by Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH Inline XBRL Taxonomy Extension Schema

101.CAL Inline XBRL Extension Calculation Linkbase

101.LAB Inline XBRL Taxonomy Extension Label Linkbase

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

26
Q2 FY2025 Form 10-Q| H&R Block, Inc.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

H&R BLOCK, INC.

/s/ Jeffrey J. Jones II
Jeffrey J. Jones II
President and Chief Executive Officer
February 6, 2025

/s/ Tiffany L. Mason
Tiffany L. Mason
Chief Financial Officer
February 6, 2025

/s/ Kellie J. Logerwell
Kellie J. Logerwell
Chief Accounting Officer
February 6, 2025

H&R Block, Inc. |Q2 FY2025 Form 10-Q
27

0000001 - Document - Cover
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0000002 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
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0000003 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical)
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0000004 - Statement - CONSOLIDATED BALANCE SHEETS
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0000005 - Statement - CONSOLIDATED BALANCE SHEETS (Parenthetical)
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0000006 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS
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0000007 - Statement - CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
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0000008 - Statement - CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical)
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0000009 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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0000010 - Disclosure - REVENUE RECOGNITION
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0000011 - Disclosure - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY
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0000012 - Disclosure - RECEIVABLES
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0000013 - Disclosure - GOODWILL AND INTANGIBLE ASSETS
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0000014 - Disclosure - LONG-TERM DEBT
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0000015 - Disclosure - INCOME TAXES
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0000016 - Disclosure - COMMITMENTS AND CONTINGENCIES
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0000017 - Disclosure - LITIGATION AND OTHER RELATED CONTINGENCIES
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0000018 - Disclosure - Commitment and Contingencies
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9954471 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)
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9954472 - Disclosure - REVENUE RECOGNITION (Tables)
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9954473 - Disclosure - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY (Tables)
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9954474 - Disclosure - RECEIVABLES (Tables)
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9954475 - Disclosure - GOODWILL AND INTANGIBLE ASSETS (Tables)
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9954476 - Disclosure - LONG-TERM DEBT LONG-TERM DEBT (Tables)
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9954477 - Disclosure - Commitment and Contingencies (Tables)
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9954478 - Disclosure - REVENUE RECOGNITION (Disaggregation of Revenue by Major Service Line) (Details)
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9954479 - Disclosure - REVENUE RECOGNITION (Deferred Revenue) (Details)
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9954480 - Disclosure - REVENUE RECOGNITION (Narrative) (Details)
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9954481 - Disclosure - REVENUE RECOGNITION (Remaining Performance Obligation) (Details)
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9954481 - Disclosure - REVENUE RECOGNITION (Remaining Performance Obligation) (Details)
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9954482 - Disclosure - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY (Narrative) (Details)
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9954483 - Disclosure - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY (Computations of Basic and Diluted Earnings Per Share) (Details)
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9954484 - Disclosure - RECEIVABLES (Schedule of Short-Term Receivables) (Details)
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9954485 - Disclosure - RECEIVABLES (Narrative) (Details)
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9954486 - Disclosure - RECEIVABLES (Schedule of Receivables Based on Year of Origination) (Details)
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9954487 - Disclosure - RECEIVABLES (Schedule of Activity in the Allowance For Doubtful Accounts) (Details)
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9954488 - Disclosure - GOODWILL AND INTANGIBLE ASSETS (Schedule of Goodwill) (Details)
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9954489 - Disclosure - GOODWILL AND INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details)
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9954490 - Disclosure - GOODWILL AND INTANGIBLE ASSETS (Intangible Assets Acquired) (Details)
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9954491 - Disclosure - GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details)
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9954492 - Disclosure - LONG-TERM DEBT (Components of Long-Term Debt) (Details)
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9954493 - Disclosure - LONG-TERM DEBT (Narrative) (Details)
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9954494 - Disclosure - INCOME TAXES (Narrative) (Details)
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9954495 - Disclosure - LITIGATION AND OTHER RELATED CONTINGENCIES (Details)
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9954496 - Disclosure - Commitment and Contingencies (Details)
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Wave payment processing receivables
Wave Payment Processing Receivables [Member]
Wave Payment Processing Receivables [Member]

Stock Appreciation Rights (SARs)
Stock Appreciation Rights (SARs) [Member]

Pay vs Performance Disclosure [Line Items]

Aggregate principal amount
Line of Credit Facility, Maximum Borrowing Capacity

Changes in assets and liabilities, net of acquisitions:
Increase (Decrease) in Operating Capital [Abstract]

Underlying Security Market Price Change
Underlying Security Market Price Change, Percent

All Award Types
Award Type [Domain]

Fair Value as of Grant Date
Award Grant Date Fair Value

Remaining performance obligation, expected timing of satisfaction, period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

Statement of Stockholders' Equity [Abstract]
Statement of Stockholders' Equity [Abstract]

Revolving credit facility
Revolving Credit Facility [Member]

Effects of exchange rate changes on cash
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations

MNPI Disclosure Timed for Compensation Value
MNPI Disclosure Timed for Compensation Value [Flag]

Estimated amortization, 2022
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling 12 Months

Restatement Determination Date:
Restatement Determination Date [Axis]

COMMITMENTS AND CONTINGENCIES
Commitments and Contingencies

Class of Financing Receivable [Domain]
Class of Financing Receivable [Domain]

Insider Trading Policies and Procedures [Line Items]

Rule 10b5-1 Arrangement Terminated
Rule 10b5-1 Arrangement Terminated [Flag]

Disaggregation of Revenue [Line Items]
Disaggregation of Revenue [Line Items]

Restatement does not require Recovery
Restatement Does Not Require Recovery [Text Block]

Senior Notes, 3.875%, due August 2030
2030 Senior Notes [Member]
2030 Senior Notes [Member]

Schedule of Goodwill [Table]
Schedule of Goodwill [Table]

Line of Credit Facility [Line Items]
Line of Credit Facility [Line Items]

INCOME TAXES
Income Tax Disclosure [Text Block]

Accumulated impairment losses, beginning balance
Accumulated impairment losses, ending balance
Goodwill, Impaired, Accumulated Impairment Loss

Business Acquisition [Line Items]
Business Acquisition [Line Items]

PEO Total Compensation Amount
PEO Total Compensation Amount

Less treasury shares, at cost, of 30,522,962 and 31,324,609
Treasury Stock, Value

Receivables, less allowance for credit losses of $20,025 and $61,182
Short-term
Accounts Receivable, after Allowance for Credit Loss, Current

Goodwill [Roll Forward]
Goodwill [Roll Forward]

Receivable Type [Domain]
Receivable [Domain]

Trading Arrangements, by Individual
Trading Arrangements, by Individual [Table]

Treasury stock, shares (in shares)
Treasury Stock, Common, Shares

Litigation Case [Axis]
Litigation Case [Axis]

Trading Symbol
Trading Symbol

Non-PEO NEO Average Compensation Actually Paid Amount
Non-PEO NEO Average Compensation Actually Paid Amount

Noncompete agreements
Noncompete Agreements
Noncompete Agreements [Member]

Estimated fair value of long-term debt
Long-Term Debt, Fair Value

NET LOSS
Net loss
Net Income (Loss) Attributable to Parent

Total current liabilities
Liabilities, Current

Changed Peer Group, Footnote
Changed Peer Group, Footnote [Text Block]

Company Selected Measure Name
Company Selected Measure Name

Beginning Balances, (in shares)
Ending Balances, (in shares)
Shares, Issued

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities and Equity [Abstract]

Lines of credit, total obligation
Obligation For Unfunded Letter Of Credit
Obligation for unfunded letter of credit

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

STOCKHOLDERS' EQUITY:
Equity, Attributable to Parent [Abstract]

Contract with Customer, Liability
Contract with Customer, Liability
Deferred revenue
Contract with Customer, Liability

Computations of Basic And Diluted Earnings Per Share
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Executive Category:
Executive Category [Axis]

Weighted-Average Life (in years)
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life

Maximum annual debt-to-EBITDA ratio
Debt Instrument, Covenant, Annual Debt To EBITDA Ratio
Debt Instrument, Covenant, Annual Debt To EBITDA Ratio

Tax Identity Shield®
TIS
Tax Identity Shield [Member]
Tax Identity Shield [Member]

Other Commitments [Table]
Other Commitments [Table]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant Accounting Policies [Text Block]

Name
Measure Name

Maximum borrowing capacity
Line of Credit Facility, Current Borrowing Capacity

Name
Forgone Recovery, Individual Name

Goodwill
Goodwill, beginning balance
Goodwill, ending balance
Goodwill

Equity Components [Axis]
Equity Components [Axis]

Additional 402(v) Disclosure
Additional 402(v) Disclosure [Text Block]

Underlying Securities
Award Underlying Securities Amount

Entity Small Business
Entity Small Business

Estimated amortization, 2026
Finite-Lived Intangible Asset, Expected Amortization, Year Four

Local Phone Number
Local Phone Number

Schedule of Activity in Allowance For Credit Losses
Schedule of Activity in the Allowance for Doubtful Accounts [Table Text Block]
Schedule of Activity in the Allowance for Doubtful Accounts [Table Text Block]

Receivables
Increase (Decrease) in Accounts Receivable

Recovery of Erroneously Awarded Compensation Disclosure [Line Items]

Operating lease liabilities
Operating Lease, Liability, Noncurrent

Cash and cash equivalents - restricted
Restricted Cash and Cash Equivalents, Current

Non-Accrual
Financing Receivable, Nonaccrual

Forgone Recovery due to Violation of Home Country Law, Amount
Forgone Recovery due to Violation of Home Country Law, Amount

Debt Instrument, Name [Domain]
Debt Instrument, Name [Domain]

Reacquired franchise rights
Reacquired Franchise Rights
Reacquired Franchise Rights [Member]
Reacquired Franchise Rights [Member]

Line of Credit Facility [Table]
Line of Credit Facility [Table]

Components of Long-Term Debt
Schedule of Long-Term Debt Instruments [Table Text Block]

Debt issuance costs and discounts
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net

Potential dilutive shares (in shares)
Weighted Average Number of Shares Outstanding, Diluted, Adjustment

Accrued income taxes and reserves for uncertain tax positions
Accrued Income Taxes, Current

All Other
All Other Receivables [Member]
All Other Receivables [Member]

Product and Service [Domain]
Product and Service [Domain]

Other Performance Measure, Amount
Other Performance Measure, Amount

Interest expense on borrowings
Interest Expense, Debt

Aggregate Available
Trading Arrangement, Securities Aggregate Available Amount

Discrete income tax expense (benefit)
Effective Income Tax Rate Reconciliation, Discrete Adjustments, Amount
Effective Income Tax Rate Reconciliation, Discrete Adjustments, Amount

Standby Letters of Credit
Standby Letters of Credit [Member]

CASH FLOWS FROM INVESTING ACTIVITIES:
Net Cash Provided by (Used in) Investing Activities [Abstract]

Insider Trading Policies and Procedures Not Adopted
Insider Trading Policies and Procedures Not Adopted [Text Block]

Award Type
Award Type [Axis]

Antidilutive securities excluded from computation of earnings per share, amount (in shares)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

Document Quarterly Report
Document Quarterly Report

Unrecognized compensation costs, nonvested shares and units
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount

Amount
Finite-Lived Intangible Assets Acquired

Goodwill [Line Items]
Goodwill [Line Items]

New operating right of use assets and related lease liabilities
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability

Allowance for Doubtful Accounts [Roll Forward]
Accounts Receivable, Allowance for Credit Loss [Roll Forward]

Trading Arrangement:
Trading Arrangement [Axis]

Management Estimates
Use of Estimates, Policy [Policy Text Block]

PEO Actually Paid Compensation Amount
PEO Actually Paid Compensation Amount

Peace of Mind® Extended Service Plan
POM
Peace of Mind Revenues [Member]
Peace of Mind Revenues [Member]

Long-term Debt, Type [Domain]
Long-Term Debt, Type [Domain]

Entity File Number
Entity File Number

Operating lease liabilities
Operating Lease, Liability, Current

Receivables for U.S. assisted and DIY tax preparation and related fees
Receivables For Tax Preparation And Related Fees [Member]
Receivables for Tax Preparation and Related Fees

Capitalized software
Computer Software, Intangible Asset [Member]

Amortization
Amortization of Intangible Assets

Entity Shell Company
Entity Shell Company

Business Acquisition, Acquiree [Domain]
Business Acquisition, Acquiree [Domain]

Net
Finite-Lived Intangible Assets, Net

Restatement Determination Date
Restatement Determination Date

Income tax receivables, accrued income taxes and income tax reserves
Increase (Decrease) in Income Taxes Payable

Rule 10b5-1 Arrangement Adopted
Rule 10b5-1 Arrangement Adopted [Flag]

Cash, cash equivalents and restricted cash, beginning of period
Cash, cash equivalents and restricted cash, end of period
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents

Accumulated Amortization
Finite-Lived Intangible Assets, Accumulated Amortization

Stock Price or TSR Estimation Method
Stock Price or TSR Estimation Method [Text Block]

Wave
Wave HQ Inc. [Member]
Wave HQ Inc. [Member]

DIY tax preparation
DIY Tax Preparation Fees [Member]
DIY Tax Preparation Fees [Member]

Common stock, shares issued (in shares)
Common Stock, Shares, Issued

Current deferred revenue
Contract with Customer, Liability, Current

Security Exchange Name
Security Exchange Name

Long-Term Debt
Long-Term Debt

Selling, general and administrative
Selling, General and Administrative Expense

Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss), Net of Tax

Employee Stock Option
Share-Based Payment Arrangement, Option [Member]

Total operating expenses
Costs and Expenses

Other, net
Proceeds from (Payments for) Other Financing Activities

Comprehensive loss
Comprehensive Income (Loss), Net of Tax, Attributable to Parent

Document Type
Document Type

Deferred Type [Axis]
Deferred Type [Axis]
Deferred Type [Axis]

Acquisitions(1)
Goodwill, Acquired During Period

Tabular List, Table
Tabular List [Table Text Block]

Discontinued operations
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share

Entity Address, Address Line One
Entity Address, Address Line One

Acquisition of treasury shares(2)
Treasury Stock, Value, Acquired, Cost Method

Accounts, Notes, Loans and Financing Receivable by Receivable Type [Axis]
Receivable Type [Axis]

Loans to franchisees
Loans To Franchisees [Member]
Loans to Franchisees

Purchase Commitment, Remaining Minimum Amount Committed
Purchase Commitment, Remaining Minimum Amount Committed

Repurchase of common stock, including shares surrendered
Payments for repurchase of common stock, including shares surrendered
Payments for repurchase of common stock, including shares surrendered

Basis of Presentation
Basis of Accounting, Policy [Policy Text Block]

Business Acquisition [Axis]
Business Acquisition [Axis]

Allowance for doubtful accounts
Accounts Receivable, Allowance for Credit Loss, Current

Schedule of Intangible Assets
Schedule of Finite-Lived Intangible Assets [Table Text Block]

Deferred revenue and other current liabilities
Other Liabilities, Current

Accounts payable, accrued expenses, salaries, wages and payroll taxes
Increase (Decrease) in Accounts Payable and Accrued Liabilities

Income Statement [Abstract]
Income Statement [Abstract]

OPERATING EXPENSES:
Costs and Expenses [Abstract]

Title of 12(b) Security
Title of 12(b) Security

Goodwill before impairment losses, beginning balance
Goodwill before impairment losses, ending balance
Goodwill, Gross

Insider Trading Policies and Procedures Adopted
Insider Trading Policies and Procedures Adopted [Flag]

Aggregate Erroneous Compensation Not Yet Determined
Aggregate Erroneous Compensation Not Yet Determined [Text Block]

Current year of origination
Current Year Of Origination [Member]
Current Year Of Origination [Member]

Stock-based awards exercised or vested
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture

Income Tax Disclosure [Abstract]
Income Tax Disclosure [Abstract]

Forgone Recovery due to Expense of Enforcement, Amount
Forgone Recovery due to Expense of Enforcement, Amount

Goodwill and Intangible Assets [Table]
Goodwill and Intangible Assets [Table]
Goodwill and Intangible Assets [Table]

Entity Tax Identification Number
Entity Tax Identification Number

Other Commitments [Domain]
Other Commitments [Domain]

Entity Interactive Data Current
Entity Interactive Data Current

Disaggregation of Revenue [Table]
Disaggregation of Revenue [Table]

LONG-TERM DEBT
Long-Term Debt [Text Block]

Change in tax benefits that are reasonably possible
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit

Total Shareholder Return Amount
Total Shareholder Return Amount

Entity Common Stock, Shares Outstanding
Entity Common Stock, Shares Outstanding

Adjustment To PEO Compensation, Footnote
Adjustment To PEO Compensation, Footnote [Text Block]

Retained earnings (deficit)
Retained Earnings (Accumulated Deficit)

Measure:
Measure [Axis]

Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Abstract]

Name
Outstanding Recovery, Individual Name

Entity Incorporation, State or Country Code
Entity Incorporation, State or Country Code

Other Commitments [Line Items]
Other Commitments [Line Items]

Entity Address, State or Province
Entity Address, State or Province

Compensation Actually Paid vs. Total Shareholder Return
Compensation Actually Paid vs. Total Shareholder Return [Text Block]

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Cash Provided by (Used in) Operating Activities [Abstract]

Continuing operations
Income (Loss) from Continuing Operations, Per Basic Share

Estimated amortization, 2023
Finite-Lived Intangible Asset, Expected Amortization, Year One

BASIC AND DILUTED LOSS PER SHARE:
Earnings Per Share, Basic [Abstract]

PEO
PEO [Member]

Other, net
Other Operating Activities, Cash Flow Statement

Net loss from continuing operations
Net loss from continuing operations attributable to shareholders
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest

Common stock, stated value per share (in usd per share)
Common Stock, Par or Stated Value Per Share

Line Of Credit Facility, Available Increase In Borrowing Capacity
Line Of Credit Facility, Available Increase In Borrowing Capacity
Line Of Credit Facility, Available Increase In Borrowing Capacity

Schedule of Short-Term Receivables
Schedule of Short-Term Receivables [Table Text Block]
Schedule of Short-Term Receivables [Table Text Block]

Net cash used in investing activities
Net Cash Provided by (Used in) Investing Activities

Net loss from continuing operations attributable to common shareholders
Net Income (Loss) Available to Common Stockholders, Basic

Debt Instrument [Axis]
Debt Instrument [Axis]

Repurchase and retirement of common shares
Stock Repurchased and Retired During Period, Value

Outstanding Aggregate Erroneous Compensation Amount
Outstanding Aggregate Erroneous Compensation Amount

Effective tax rate
Effective Income Tax Rate Reconciliation, Percent

Credit Facility [Axis]
Credit Facility [Axis]

Deferred tax liabilities and reserves for uncertain tax positions
Liability for Uncertainty in Income Taxes, Noncurrent

Total liabilities
Liabilities

Service revenues
Service [Member]

Total Shareholder Return Vs Peer Group
Total Shareholder Return Vs Peer Group [Text Block]

Accumulated Other Comprehensive Loss(1)
AOCI Attributable to Parent [Member]

Prepaid expenses, other current and noncurrent assets
Increase (Decrease) in Prepaid Expense and Other Assets

Aggregate Erroneous Compensation Amount
Aggregate Erroneous Compensation Amount

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]

Standard guarantee accrual amount
Standard Guarantee Accrual Amount
Standard guarantee accrual amount

All Executive Categories
All Executive Categories [Member]

Repayments of Long-Term Lines of Credit
Repayments of Long-Term Lines of Credit

Class of Financing Receivable [Axis]
Class of Financing Receivable [Axis]

Franchise loans funded
Payments For Loans Made To Franchisees
Payments For Loans Made To Franchisees

Non-Rule 10b5-1 Arrangement Adopted
Non-Rule 10b5-1 Arrangement Adopted [Flag]

Other
Other revenue [Member]
Other revenue [Member]

Debt Disclosure [Abstract]
Debt Disclosure [Abstract]

Provision for credit losses
Premium Receivable, Credit Loss Expense (Reversal)

Earnings Per Share [Abstract]
Earnings Per Share [Abstract]

Common stock, no par, stated value $0.01 per share, 800,000,000 shares authorized, shares issued of 164,367,434 and 170,915,771
Common Stock, Value, Issued

Trade name
Trade Names [Member]

Accrued additions to property and equipment
Accrued Additions to Property and Equipment
Accrued Additions to Property and Equipment

LITIGATION AND OTHER RELATED CONTINGENCIES
Legal Matters and Contingencies [Text Block]

Awards Close in Time to MNPI Disclosures, Table
Awards Close in Time to MNPI Disclosures [Table Text Block]

Disposals and foreign currency changes, net
Goodwill Disposals and Other
Goodwill disposals and other

Senior Notes
Senior Notes [Member]

Total current assets
Assets, Current

Contingent business acquisition obligations
Business Combination, Contingent Consideration, Liability

Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Abstract]

All Individuals
All Individuals [Member]

SUPPLEMENTARY CASH FLOW DATA:
Supplemental Cash Flow Information [Abstract]

Litigation Case Type [Domain]
Litigation Case [Domain]

Other income (expense), net
Other Nonoperating Income (Expense)

Entity Filer Category
Entity Filer Category

Allowance
Financing Receivable, Allowance for Credit Loss

Non-PEO NEO Average Total Compensation Amount
Non-PEO NEO Average Total Compensation Amount

Swingline Loans
Swingline Credit Facility [Member]
Swingline Credit Facility [Member]

Statement [Table]
Statement [Table]

Current Fiscal Year End Date
Current Fiscal Year End Date

GOODWILL AND INTANGIBLE ASSETS
Goodwill and Intangible Assets Disclosure [Text Block]

Emerald Advance®
EAs
Emerald Advance Term Loans [Member]
Emerald Advance Term Loans

Unrecognized tax benefits
Unrecognized Tax Benefits

PEO Name
PEO Name

Other
Other Receivables [Member]
Other Receivables [Member]

Schedule of Goodwill
Schedule of Goodwill [Table Text Block]

Net cash used in operating activities
Net Cash Provided by (Used in) Operating Activities

Erroneously Awarded Compensation Recovery
Erroneously Awarded Compensation Recovery [Table]

Depreciation and amortization
Depreciation, Depletion and Amortization

Emerald Card® and SpruceSM
Fees from Emerald Card [Member]
Fees from Emerald Card [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts, Notes, Loans and Financing Receivable [Line Items]

Interest rate
Debt Instrument, Interest Rate, Stated Percentage

H&R Block's Instant Refund® receivables
H&R Block's Instant Refund® receivables
H&R Block Instant Refund [Member]
H&R Block Instant Refund [Member]

Accounts payable and accrued expenses
Accounts Payable and Accrued Liabilities, Current

Award Timing, How MNPI Considered
Award Timing, How MNPI Considered [Text Block]

Statement of Financial Position [Abstract]
Statement of Financial Position [Abstract]

Discontinued Operation, Tax Effect of Discontinued Operation
Discontinued Operation, Tax Effect of Discontinued Operation

Total stockholders' equity (deficiency)
Beginning Balances, Value
Ending Balances, Value
Equity, Attributable to Parent

Net balance
Financing Receivable, after Allowance for Credit Loss

Impairments
Goodwill, Impairment Loss

Emerald Advance Lines of Credit Write Offs
Emerald Advance Term Loan Write Offs [Member]
Emerald Advance Term Loan Write Offs

Amounts recognized on previous deferrals
Contract with Customer, Liability, Revenue Recognized

Royalties
Royalties [Member]
Royalties [Member]

Finite-Lived Intangible Assets, Major Class Name [Domain]
Finite-Lived Intangible Assets, Major Class Name [Domain]

Change in foreign currency translation adjustments
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax

Long-Term Debt and Lease Obligation
Long-Term Debt and Lease Obligation

Loss from continuing operations before income tax benefit
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

Increase in effective tax rate from discrete item, percent
Effective Income Tax Rate Reconciliation, Effect of Discrete Items, Percent
Effective Income Tax Rate Reconciliation, Effect of Discrete Items, Percent

Minimum interest coverage ratio
Debt Instrument, Covenant, Interest Coverage Ratio
Debt Instrument, Covenant, Interest Coverage Ratio

Entity Emerging Growth Company
Entity Emerging Growth Company

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table]

Remaining franchise equity lines of credit-undrawn commitment
Remaining Obligation For Unfunded Letter Of Credit
Remaining obligation for unfunded letter of credit.

Intangible assets, net
Intangible Assets, Net (Excluding Goodwill)

International
International [Member]
International [Member]

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year

Increase (Decrease) in Stockholders' Equity [Roll Forward]
Increase (Decrease) in Stockholders' Equity [Roll Forward]

Named Executive Officers, Footnote
Named Executive Officers, Footnote [Text Block]

Purchased technology
Purchased Technology [Member]
Purchased Technology [Member]

Gross unrecognized tax benefits increase (decrease)
Unrecognized Tax Benefits, Period Increase (Decrease)

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]

Document Fiscal Period Focus
Document Fiscal Period Focus

Pay vs Performance Disclosure, Table
Pay vs Performance [Table Text Block]

Nonvested units granted (in shares)
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted

Title
Trading Arrangement, Individual Title

Stock-based compensation
Share-Based Payment Arrangement, Noncash Expense

Common Stock
Common Stock [Member]

Individual:
Individual [Axis]

City Area Code
City Area Code

Entity Address, Postal Zip Code
Entity Address, Postal Zip Code

Provision for credit losses
Provision For Bad Debts And Loan Losses
Provision for bad debts and loan losses.

EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY
Earnings Per Share [Text Block]

Product and Service [Axis]
Product and Service [Axis]

Royalty, product and other revenues
Royalty [Member]

Document Fiscal Year Focus
Document Fiscal Year Focus

Internally-developed software
Software and Software Development Costs [Member]

Property and equipment, at cost, less accumulated depreciation and amortization of $849,691 and $838,814
Property, Plant and Equipment, Net

Long-term
Accounts Receivable, after Allowance for Credit Loss, Noncurrent

Schedule of Acquired Finite-Lived Intangible Assets by Major Class
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

Exercise Price
Award Exercise Price

Customer Advance, Line Of Credit, Outstanding Amount
Customer Advance, Line Of Credit, Outstanding Amount
Customer Advance, Line Of Credit, Outstanding Amount

Finite-Lived Intangible Assets by Major Class [Axis]
Finite-Lived Intangible Assets by Major Class [Axis]

Dividends declared per share (in usd per share)
Cash dividends declared per share (in usd per share)
Common Stock, Dividends, Per Share, Cash Paid

Franchisee and competitor businesses
Franchisee and Competitor Businesses [Member]
Franchisee and Competitor Businesses [Member]

Other comprehensive income (loss)
Other Comprehensive Income (Loss), Net of Tax

Statement of Cash Flows [Abstract]
Statement of Cash Flows [Abstract]

Cash dividends declared - $0.38 per share
Dividends, Common Stock, Cash

ASSETS
Assets [Abstract]

Award Timing MNPI Disclosure
Award Timing MNPI Disclosure [Text Block]

Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets Disclosure [Abstract]

Senior Notes, 5.250%, due October 2025
Senior Notes due 2025 [Member]
Senior Notes due 2025 [Member]

LIABILITIES:
Liabilities [Abstract]

Income taxes paid, net (includes payments for purchased investment tax credits)
Income Taxes Paid, Net

Net loss from discontinued operations, net of tax benefits of $286, $191, $631 and $373
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest

Net cash provided by financing activities
Net Cash Provided by (Used in) Financing Activities

COMMITMENTS AND CONTINGENCIES
Commitments and Contingencies Disclosure [Text Block]

Diluted
Income (Loss) from Continuing Operations, Per Diluted Share

Other, net
Payments for (Proceeds from) Other Investing Activities

Amounts allocated to participating securities
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic

Retained Earnings (Deficit)
Retained Earnings [Member]

Current portion of long-term debt
Long-term Debt, Current Maturities
Long-Term Debt, Current Maturities

Adjustment to Non-PEO NEO Compensation Footnote
Adjustment to Non-PEO NEO Compensation Footnote [Text Block]

Total liabilities and stockholders' equity
Liabilities and Equity

Other noncurrent assets
Other Assets, Noncurrent

Peer Group Total Shareholder Return Amount
Peer Group Total Shareholder Return Amount

Operating lease right of use assets
Operating Lease, Right-of-Use Asset

Consolidated
Earnings Per Share, Basic

Schedule of Long-term Debt Instruments [Table]
Schedule of Long-Term Debt Instruments [Table]

Accounting Policies [Abstract]
Accounting Policies [Abstract]

Equity Valuation Assumption Difference, Footnote
Equity Valuation Assumption Difference, Footnote [Text Block]

Senior Notes, 2.500%, due July 2028
Senior Notes Due 2028 [Member]
Senior Notes Due 2028

Erroneous Compensation Analysis
Erroneous Compensation Analysis [Text Block]

Beginning balance
Ending balance
Premium Receivable, Allowance for Credit Loss

Arrangement Duration
Trading Arrangement Duration

Entity Address, City or Town
Entity Address, City or Town

Award Timing MNPI Considered
Award Timing MNPI Considered [Flag]

Interest and fee income on Emerald Advance®
Interest and Fee Income on Emerald Advance [Member]
Interest and Fee Income on Emerald Advance [Member]

Document Transition Report
Document Transition Report

Award Timing Predetermined
Award Timing Predetermined [Flag]

Schedule of Business Acquisitions, by Acquisition [Table]
Schedule of Business Acquisitions, by Acquisition [Table]

Termination Date
Trading Arrangement Termination Date

Goodwill and Intangible Assets [Line Items]
Goodwill and Intangible Assets [Line Items]
Goodwill and Intangible Assets Disclosure [Line Items]

Common stock, shares authorized (in shares)
Common Stock, Shares Authorized

Deferred tax assets and income taxes receivable
Deferred Income Tax Assets And Income Taxes Receivable, Net
Deferred Income Tax Assets And Income Taxes Receivable, Net

Impaired, non-accrual status term
Impaired Non Accrual Status Term
Impaired Non Accrual Status Term

POM maximum per tax return
POM Maximum per Tax Return
POM Maximum per Tax Return

Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]

All Trading Arrangements
All Trading Arrangements [Member]

Refund Transfers
Refund Transfer Revenues [Member]
Refund Transfer Revenues [Member]

All Adjustments to Compensation
All Adjustments to Compensation [Member]

Award Timing Disclosures [Line Items]

Deferred Type [Domain]
Deferred Type [Domain]
[Domain] for Deferred Type [Axis]

Compensation Amount
Outstanding Recovery Compensation Amount

Accrued dividends payable to common shareholders
Dividends Payable

Schedule of Accounts, Notes, Loans and Financing Receivable [Table]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table]

Other Commitments [Axis]
Other Commitments [Axis]

Royalties and other receivables from franchisees
Royalties From Franchisees [Member]
Royalties from Franchisees [Member]

Prior year and before
Prior Year Of Origination and Before [Member]
Prior Year Of Origination and Before [Member]

Prepaid expenses and other current assets
Prepaid Expense and Other Assets, Current

Estimated amortization, 2025
Finite-Lived Intangible Asset, Expected Amortization, Year Three

Financing receivable
Balance
Financing Receivable, before Allowance for Credit Loss

Insider Trading Arrangements [Line Items]

Deferred Revenue
Deferred Revenue [Member]
Deferred Revenue [Member]

Maximum quarterly debt-to-EBITDA ratio
Debt Instrument, Covenant, Quarterly Debt To EBITDA Ratio
Debt Instrument, Covenant, Quarterly Debt To EBITDA Ratio

Stock-based awards exercised or vested (in shares)
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture

Entity Registrant Name
Entity Registrant Name

Material Terms of Trading Arrangement
Material Terms of Trading Arrangement [Text Block]

Award Timing Method
Award Timing Method [Text Block]

Estimated amortization, 2024
Finite-Lived Intangible Asset, Expected Amortization, Year Two

Adjustment to Compensation, Amount
Adjustment to Compensation Amount

Deferred revenue, other current and noncurrent liabilities
Increase (Decrease) in Other Current Liabilities

Amounts deferred
Contract with Customer, Liability, Amount Deferred
Contract with Customer, Liability, Amount Deferred

Document Period End Date
Document Period End Date

Investment Tax Credit
Investment Tax Credit

Compensation Actually Paid vs. Net Income
Compensation Actually Paid vs. Net Income [Text Block]

Adoption Date
Trading Arrangement Adoption Date

Peer Group Issuers, Footnote
Peer Group Issuers, Footnote [Text Block]

Accumulated depreciation and amortization
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment

Treasury Stock, Common
Treasury Stock, Common [Member]

Entity Central Index Key
Entity Central Index Key

Loss contingency accrual
Loss Contingency Accrual

Stock-based compensation
Share-Based Payment Arrangement, Expense

Non-Rule 10b5-1 Arrangement Terminated
Non-Rule 10b5-1 Arrangement Terminated [Flag]

Gross Carrying Amount
Finite-Lived Intangible Assets, Gross

Income tax benefit
Income Tax Expense (Benefit)

Accounts Receivable, Allowance for Credit Loss, Writeoff
Charge-offs, recoveries and other
Accounts Receivable, Allowance for Credit Loss, Writeoff

Accrued salaries, wages and payroll taxes
Employee-related Liabilities, Current

Name
Trading Arrangement, Individual Name

Other comprehensive income (loss)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent

Disaggregation of Revenue by Major Service Line
Disaggregation of Revenue [Table Text Block]

Total revenues
Revenue from Contract with Customer, Excluding Assessed Tax

Entity [Domain]
Entity [Domain]

Compensation Actually Paid vs. Company Selected Measure
Compensation Actually Paid vs. Company Selected Measure [Text Block]

Long-term Debt, Type [Axis]
Long-Term Debt, Type [Axis]

Amendment Flag
Amendment Flag

Legal Entity [Axis]
Legal Entity [Axis]

Cash and cash equivalents
Cash and Cash Equivalents, at Carrying Value

Movement in Deferred Revenue [Roll Forward]
Movement in Deferred Revenue [Roll Forward]

Payments made for business acquisitions, net of cash acquired
Payments made for business acquisitions, net of cash acquired
Payments to Acquire Businesses, Net of Cash Acquired

Senior notes
Senior Notes

Interest paid on borrowings
Interest Paid, Excluding Capitalized Interest, Operating Activities

Credit Facility [Domain]
Credit Facility [Domain]

Repurchase and retirement of common shares (in shares)
Stock Repurchased and Retired During Period, Shares

Acquisition of treasury shares (in shares)
Treasury Stock, Shares, Acquired

Compensation Actually Paid vs. Other Measure
Compensation Actually Paid vs. Other Measure [Text Block]

Long-term debt and line of credit borrowings
Long-Term Debt, Excluding Current Maturities

Dilutive weighted average common shares (in shares)
Weighted Average Number of Shares Outstanding, Diluted

Forgone Recovery, Explanation of Impracticability
Forgone Recovery, Explanation of Impracticability [Text Block]

Deferred Wages
Deferred Wages [Member]
Deferred Wages [Member]

Schedule of Deferred Revenue Related To The Peace of Mind Program
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

REVENUE RECOGNITION
Revenue from Contract with Customer [Text Block]

Capital expenditures
Payments to Acquire Property, Plant, and Equipment

Company Selected Measure Amount
Company Selected Measure Amount

Deferred taxes
Deferred Income Tax Expense (Benefit) Including Discontinued Operations
Deferred Income Tax Expense (Benefit) Including Discontinued Operations

Additional paid-in capital
Additional Paid in Capital, Common Stock

Additional Paid-in Capital
Additional Paid-in Capital [Member]

Software receivables from retailers
Software Receivable from Retailers [Member]
Software Receivable from Retailers [Member]

Total assets
Assets

Name
Awards Close in Time to MNPI Disclosures, Individual Name

Loss Contingencies [Line Items]
Loss Contingencies [Line Items]

Cover [Abstract]
Cover [Abstract]

RECEIVABLES
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Stock-based compensation
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition

Dividends paid
Payments of Dividends

Deferred revenue and other noncurrent liabilities
Other Liabilities, Noncurrent

Non-NEOs
Non-NEOs [Member]

Net decrease in cash and cash equivalents, including restricted balances
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect

CASH FLOWS FROM FINANCING ACTIVITIES:
Net Cash Provided by (Used in) Financing Activities [Abstract]

Non-PEO NEO
Non-PEO NEO [Member]

Equity Component [Domain]
Equity Component [Domain]

Adjustment to Compensation:
Adjustment to Compensation [Axis]

Non-GAAP Measure Description
Non-GAAP Measure Description [Text Block]

Debt Instrument [Line Items]
Debt Instrument [Line Items]

Basic weighted average common shares (in shares)
Weighted Average Number of Shares Outstanding, Basic

Payments from franchisees
Proceeds from Collection of Franchise Loans Receivable
Proceeds from Collection of Franchise Loans Receivable

Entity Current Reporting Status
Entity Current Reporting Status

REVENUES:
Revenues [Abstract]

Costs of revenues
Cost of Revenue

COMPREHENSIVE LOSS:
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Assisted tax preparation
Tax Preparation Fees [Member]
Tax Preparation Fees [Member]

Pay vs Performance Disclosure
Pay vs Performance Disclosure [Table]

Statement [Line Items]
Statement [Line Items]

Forgone Recovery due to Disqualification of Tax Benefits, Amount
Forgone Recovery due to Disqualification of Tax Benefits, Amount

Schedule of Receivables Based On Year of Origination
Schedule of Receivables Based on Year of Origination [Table Text Block]
Schedule of Receivables Based on Year of Origination [Table Text Block]

Awards Close in Time to MNPI Disclosures
Awards Close in Time to MNPI Disclosures [Table]

Long-term Line of Credit
Long-Term Line of Credit

Customer relationships
Customer Relationships
Customer Relationships [Member]

Discontinued Operations
Interest Expense Allocated to Discontinued Operations, Policy [Policy Text Block]

Proceeds from Long-Term Lines of Credit
Proceeds from Long-Term Lines of Credit

Schedule of Litigation and Related Contingencies [Table]
Schedule of Litigation and Related Contingencies [Table]
Schedule of Litigation and Related Contingencies [Table]



Document
Exhibit 31.1

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey J. Jones II, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of H&R Block, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 6, 2025 /s/ Jeffrey J. Jones II
Jeffrey J. Jones II
Chief Executive Officer
H&R Block, Inc.

Document
Exhibit 31.2

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Tiffany L. Mason, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of H&R Block, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 6, 2025 /s/ Tiffany L. Mason
Tiffany L. Mason
Chief Financial Officer
H&R Block, Inc.

Document
Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

    In connection with the quarterly report of H&R Block, Inc. (the “Company”) on Form 10‑Q for the fiscal quarter ended December 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey J. Jones II, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jeffrey J. Jones II
Jeffrey J. Jones II
Chief Executive Officer
H&R Block, Inc.
February 6, 2025

Document
Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

    In connection with the quarterly report of H&R Block, Inc. (the “Company”) on Form 10‑Q for the fiscal quarter ended December 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Tiffany L. Mason, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Tiffany L. Mason
Tiffany L. Mason
Chief Financial Officer
H&R Block, Inc.
February 6, 2025