FULLTEXT DEL 1 AV 1
SEC filing – odaterad – Financial_Report.xlsx
===== BLAD: Cover ===== Cover - shares 9 Months Ended Mar. 31, 2025 Apr. 30, 2025 Cover [Abstract] Document Type 10-Q Document Quarterly Report true Document Period End Date Mar. 31, 2025 Document Transition Report false Entity File Number 1-06089 Entity Registrant Name H&R Block, Inc. Entity Incorporation, State or Country Code MO Entity Tax Identification Number 44-0607856 Entity Address, Address Line One One H&R Block Way Entity Address, City or Town Kansas City Entity Address, State or Province MO Entity Address, Postal Zip Code 64105 City Area Code 816 Local Phone Number 854-3000 Title of 12(b) Security Common Stock, without par value Trading Symbol HRB Security Exchange Name NYSE Entity Current Reporting Status Yes Entity Interactive Data Current Yes Entity Filer Category Large Accelerated Filer Entity Small Business false Entity Emerging Growth Company false Entity Shell Company false Amendment Flag false Document Fiscal Year Focus 2025 Document Fiscal Period Focus Q3 Entity Central Index Key 0000012659 Current Fiscal Year End Date --06-30 Entity Common Stock, Shares Outstanding 133880414 ===== BLAD: CONSOLIDATED STATEMENTS OF OPER ===== CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands 3 Months Ended 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2021 REVENUES: Total revenues 2277104 2184834 2649984 2547717 OPERATING EXPENSES: Costs of revenues 969392 926008 1553182 1485193 Selling, general and administrative 329399 330622 640111 608078 Total operating expenses 1298791 1256630 2193293 2093271 Other income (expense), net 4554 5224 19215 20982 Interest expense on borrowings -24686 -26070 -62285 -63304 Income from continuing operations before income taxes 958181 907358 413621 412124 Income taxes 235253 215772 104580 72527 Net income from continuing operations 722928 691586 309041 339597 Net loss from discontinued operations, net of tax benefits of $180, $254, $811 and $627 -598 -849 -2707 -2097 NET INCOME 722330 690737 306334 337500 BASIC EARNINGS PER SHARE: Continuing operations 5.38 4.94 2.26 2.37 Diluted 5.32 4.87 2.23 2.34 2.34 Discontinued operations (in dollars per share) -0.01 -0.01 -0.02 -0.02 Earnings Per Share, Diluted 5.31 4.86 2.21 2.32 Discontinued operations -0.01 -0.01 -0.02 -0.01 Consolidated 5.37 4.93 2.24 2.36 Dividends declared per share (in usd per share) 0.375 0.32 1.125 0.96 COMPREHENSIVE INCOME: Net income 722330 690737 306334 337500 Change in foreign currency translation adjustments 445 -9882 -22472 -9237 Other comprehensive income (loss) 445 -9882 -22472 -9237 Comprehensive income 722775 680855 283862 328263 Service revenues REVENUES: Total revenues 2099481 1993556 2434220 2314363 Royalty, product and other revenues REVENUES: Total revenues 177623 191278 215764 233354 ===== BLAD: CONSOLIDATED STATEMENTS OF OP_2 ===== CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands 3 Months Ended 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Income Statement [Abstract] Discontinued Operation, Tax Effect of Discontinued Operation 180 254 811 627 ===== BLAD: CONSOLIDATED BALANCE SHEETS ===== CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands Mar. 31, 2025 Jun. 30, 2024 ASSETS Cash and cash equivalents 772946 1053326 Cash and cash equivalents - restricted 16744 21867 Receivables, less allowance for credit losses of $49,315 and $61,182 352398 69075 Prepaid expenses and other current assets 104450 95208 Total current assets 1246538 1239476 Property and equipment, at cost, less accumulated depreciation and amortization of $864,681 and $838,814 146456 131319 Operating lease right of use assets 417197 461986 Intangible assets, net 270007 264102 Goodwill 785936 785226 Deferred tax assets and income taxes receivable 308989 271658 Other noncurrent assets 69888 65043 Total assets 3245011 3218810 LIABILITIES: Accounts payable and accrued expenses 243754 155830 Accrued salaries, wages and payroll taxes 269849 105548 Accrued income taxes and reserves for uncertain tax positions 346733 318830 Current portion of long-term debt 349787 0 Operating lease liabilities 173902 206070 Deferred revenue and other current liabilities 205778 191050 Total current liabilities 1589803 977328 Long-term debt and line of credit borrowings 1142890 1491095 Deferred tax liabilities and reserves for uncertain tax positions 337634 291063 Operating lease liabilities 252630 265373 Deferred revenue and other noncurrent liabilities 114892 103357 Total liabilities 3437849 3128216 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, no par, stated value $0.01 per share, 800,000,000 shares authorized, shares issued of 164,367,434 and 170,915,771 1644 1709 Additional paid-in capital 758821 762583 Accumulated other comprehensive loss -71317 -48845 Retained earnings (deficit) -236909 12654 Less treasury shares, at cost, of 30,487,639 and 31,324,609 -645077 -637507 Total stockholders' equity (deficiency) -192838 90594 Total liabilities and stockholders' equity 3245011 3218810 Treasury stock, shares (in shares) 30487639 31324609 ===== BLAD: CONSOLIDATED BALANCE SHEETS (Pa ===== CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands Mar. 31, 2025 Jun. 30, 2024 Statement of Financial Position [Abstract] Allowance for doubtful accounts 49315 61182 Accumulated depreciation and amortization 864681 838814 Common stock, stated value per share (in usd per share) 0.01 0.01 Common stock, shares authorized (in shares) 800000000 800000000 Common stock, shares issued (in shares) 164367434 170915771 Treasury stock, shares (in shares) 30487639 31324609 ===== BLAD: CONSOLIDATED STATEMENTS OF CASH ===== CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands 3 Months Ended 9 Months Ended Mar. 31, 2024 USD ($) Mar. 31, 2025 USD ($) Mar. 31, 2024 USD ($) CASH FLOWS FROM OPERATING ACTIVITIES: Net income 690737 306334 337500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 87247 91004 Provision for credit losses 56042 61359 Deferred taxes -12503 -58223 Stock-based compensation 25420 25310 Changes in assets and liabilities, net of acquisitions: Receivables -335605 -348106 Prepaid expenses, other current and noncurrent assets -7504 -18037 Accounts payable, accrued expenses, salaries, wages and payroll taxes 240246 223045 Deferred revenue, other current and noncurrent liabilities 20684 12483 Income tax receivables, accrued income taxes and income tax reserves 50049 93961 Other, net -1088 -32 Net cash provided by operating activities 429322 420264 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures -71784 -53831 Payments made for business acquisitions, net of cash acquired -35323 -43163 Franchise loans funded -21455 -18815 Payments from franchisees 11478 12884 Other, net 6194 3282 Net cash used in investing activities -110890 -99643 CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of Long-Term Lines of Credit -1950000 -1025000 Proceeds from Long-Term Lines of Credit 1950000 1025000 Dividends paid -147136 -135127 Repurchase of common stock, including shares surrendered -436516 -379018 Other, net -11854 -6358 Net cash used in financing activities -595506 -520503 Effects of exchange rate changes on cash -8429 -2739 Net decrease in cash and cash equivalents, including restricted balances -285503 -202621 Cash, cash equivalents and restricted cash, beginning of period 1075193 1015316 Cash, cash equivalents and restricted cash, end of period 812695 789690 812695 SUPPLEMENTARY CASH FLOW DATA: Income taxes paid, net (includes payments for purchased investment tax credits) 35888 65505 Interest paid on borrowings 66464 63251 Accrued additions to property and equipment 1477 2448 New operating right of use assets and related lease liabilities 139872 135372 Accrued dividends payable to common shareholders 44648 50194 44648 ===== BLAD: CONSOLIDATED STATEMENT OF STOCK ===== CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands Total Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss(1) Retained Earnings (Deficit) Treasury Stock, Common Increase (Decrease) in Stockholders' Equity [Roll Forward] Treasury stock, shares (in shares) 32786000 Beginning Balances, (in shares) at Jun. 30, 2023 178936000 Beginning Balances, Value at Jun. 30, 2023 32064 1789 770376 -37099 [1] -48677 -654325 Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income -163482 -163482 Other comprehensive income (loss) -10914 -10914 [1] Stock-based compensation 6211 6211 Stock-based awards exercised or vested -98 -34226 -3220 37348 Stock-based awards exercised or vested (in shares) 1867000 Acquisition of treasury shares (in shares) [2] -823000 Acquisition of treasury shares(2) [2] -28464 -28464 Cash dividends declared - $0.375 per share -46901 -46901 Ending Balances, Value at Sep. 30, 2023 -344884 740434 -48013 [1] -393621 -645441 Beginning Balances, (in shares) at Jun. 30, 2023 178936000 Beginning Balances, Value at Jun. 30, 2023 32064 1789 770376 -37099 [1] -48677 -654325 Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income 337500 Ending Balances, (in shares) at Mar. 31, 2024 170916000 Ending Balances, Value at Mar. 31, 2024 -129806 1709 753605 -46336 -200296 -638488 Increase (Decrease) in Stockholders' Equity [Roll Forward] Dividends declared per share (in usd per share) 0.96 Stock-based compensation 25300 Treasury stock, shares (in shares) 31742000 Beginning Balances, Value at Sep. 30, 2023 -344884 740434 -48013 [1] -393621 -645441 Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income -189755 -189755 Other comprehensive income (loss) 11559 11559 Stock-based compensation 9270 9270 Stock-based awards exercised or vested 6876 -165 -46 7087 Stock-based awards exercised or vested (in shares) 348000 Acquisition of treasury shares (in shares) -3000 Acquisition of treasury shares(2) -125 -125 Repurchase and retirement of common shares (in shares) -3265000 Repurchase and retirement of common shares -133300 -32 -1927 -131341 Cash dividends declared - $0.375 per share -45273 -45273 Ending Balances, (in shares) at Dec. 31, 2023 175671000 Ending Balances, Value at Dec. 31, 2023 -772652 1757 746734 -36454 -846162 -638479 Increase (Decrease) in Stockholders' Equity [Roll Forward] Dividends declared per share (in usd per share) 0.32 Treasury stock, shares (in shares) 31397000 Net income 690737 690737 Other comprehensive income (loss) -9882 -9882 Stock-based compensation 7140 7140 Stock-based awards exercised or vested -192 -269 -223 300 Stock Issued During Period, Value, Other 0 Stock-based awards exercised or vested (in shares) 16000 Acquisition of treasury shares (in shares) -7000 Acquisition of treasury shares(2) -309 -309 Repurchase and retirement of common shares (in shares) -4755000 Repurchase and retirement of common shares -220320 -48 -2805 -217467 Cash dividends declared - $0.375 per share -44648 -44648 Ending Balances, (in shares) at Mar. 31, 2024 170916000 Ending Balances, Value at Mar. 31, 2024 -129806 1709 753605 -46336 -200296 -638488 Increase (Decrease) in Stockholders' Equity [Roll Forward] Dividends declared per share (in usd per share) 0.32 Stock-based compensation 7800 Treasury stock, shares (in shares) 31388000 Treasury stock, shares (in shares) 31324609 31325000 Beginning Balances, (in shares) at Jun. 30, 2024 170916000 Beginning Balances, Value at Jun. 30, 2024 90594 1709 762583 -48845 [1] 12654 -637507 Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income -172576 -172576 Other comprehensive income (loss) 6117 6117 [1] Stock-based compensation 7463 7463 Stock-based awards exercised or vested 247 -23990 -2611 26848 Stock-based awards exercised or vested (in shares) 1319000 Acquisition of treasury shares (in shares) [2] -567000 Acquisition of treasury shares(2) [2] -35882 -35882 Cash dividends declared - $0.375 per share -52307 -52307 Ending Balances, Value at Sep. 30, 2024 -368065 744076 -42728 [1] -424548 -646541 Beginning Balances, (in shares) at Jun. 30, 2024 170916000 Beginning Balances, Value at Jun. 30, 2024 90594 1709 762583 -48845 [1] 12654 -637507 Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income 306334 Ending Balances, (in shares) at Mar. 31, 2025 164367000 Ending Balances, Value at Mar. 31, 2025 -192838 1644 758821 -71317 -236909 -645077 Increase (Decrease) in Stockholders' Equity [Roll Forward] Dividends declared per share (in usd per share) 1.125 Stock-based compensation 25400 Treasury stock, shares (in shares) 30573000 Beginning Balances, Value at Sep. 30, 2024 -368065 744076 -42728 [1] -424548 -646541 Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income -243420 -243420 Other comprehensive income (loss) -29034 -29034 [1] Stock-based compensation 9156 9156 Stock-based awards exercised or vested 1709 810 -245 1144 Stock-based awards exercised or vested (in shares) 54000 Acquisition of treasury shares (in shares) -4000 Acquisition of treasury shares(2) -253 -253 Repurchase and retirement of common shares (in shares) -3301000 Repurchase and retirement of common shares -211721 -33 -1980 -209708 Cash dividends declared - $0.375 per share -50176 -50176 Ending Balances, (in shares) at Dec. 31, 2024 167615000 Ending Balances, Value at Dec. 31, 2024 -872460 1676 752093 -71762 [1] -908785 -645650 Increase (Decrease) in Stockholders' Equity [Roll Forward] Dividends declared per share (in usd per share) 0.375 Treasury stock, shares (in shares) 30523000 Net income 722330 722330 Other comprehensive income (loss) 445 445 Stock-based compensation 7424 7424 Stock-based awards exercised or vested -100 -696 -260 856 Stock-based awards exercised or vested (in shares) 41000 Acquisition of treasury shares (in shares) -6000 Acquisition of treasury shares(2) -283 -283 Repurchase and retirement of common shares (in shares) -3248000 Repurchase and retirement of common shares -192377 -32 -1949 -190396 Cash dividends declared - $0.375 per share -50194 -50194 Ending Balances, (in shares) at Mar. 31, 2025 164367000 Ending Balances, Value at Mar. 31, 2025 -192838 1644 758821 -71317 -236909 -645077 Increase (Decrease) in Stockholders' Equity [Roll Forward] Dividends declared per share (in usd per share) 0.375 Stock-based compensation 7500 Treasury stock, shares (in shares) 30487639 30488000 [1] The balance of our accumulated other comprehensive loss consists of foreign currency translation adjustments. Represents shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. ===== BLAD: CONSOLIDATED STATEMENT OF STO_2 ===== CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares 3 Months Ended 9 Months Ended Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Dec. 31, 2023 Mar. 31, 2025 Mar. 31, 2024 Statement of Stockholders' Equity [Abstract] Cash dividends declared per share (in usd per share) 0.375 0.375 0.32 0.32 1.125 0.96 ===== BLAD: SUMMARY OF SIGNIFICANT ACCOUNTI ===== SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 9 Months Ended Mar. 31, 2025 Accounting Policies [Abstract] SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION – The consolidated balance sheets as of March 31, 2025 and June 30, 2024, the consolidated statements of operations and comprehensive income for the three and nine months ended March 31, 2025 and 2024, the consolidated statements of cash flows for the nine months ended March 31, 2025 and 2024, and the consolidated statements of stockholders' equity for the three and nine months ended March 31, 2025 and 2024 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 March 31, 2025 and 2024 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. ===== BLAD: REVENUE RECOGNITION ===== REVENUE RECOGNITION 9 Months Ended Mar. 31, 2025 Revenue from Contract with Customer [Abstract] REVENUE RECOGNITION 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 March 31, Nine months ended March 31, 2025 2024 2025 2024 Revenues: U.S. assisted tax preparation $ 1,635,877 $ 1,534,825 $ 1,727,220 $ 1,622,430 U.S. royalties 133,961 141,915 143,312 153,070 U.S. DIY tax preparation 214,666 198,570 231,646 215,529 Refund Transfers 113,732 118,937 115,229 120,892 Peace of Mind® Extended Service Plan 15,625 16,813 54,867 59,100 Tax Identity Shield® 7,025 7,536 14,947 16,810 Emerald Card® and Spruce SM 40,195 41,160 59,169 61,493 Interest and fee income on Emerald Advance® 14,286 21,169 26,594 36,702 International 60,438 68,264 157,104 158,398 Wave 26,717 23,580 79,681 70,656 Other 14,582 12,065 40,215 32,637 Total revenues $ 2,277,104 $ 2,184,834 $ 2,649,984 $ 2,547,717 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 Nine months ended March 31, 2025 2024 2025 2024 Balance, beginning of the period $ 156,610 $ 167,257 $ 20,212 $ 21,828 Amounts deferred 70,536 72,369 7,222 8,324 Amounts recognized on previous deferrals (64,885) (68,445) (8,396) (8,324) Balance, end of the period $ 162,261 $ 171,181 $ 19,038 $ 21,828 As of March 31, 2025, deferred revenue related to POM was $162.3 million. We expect that $91.8 million will be recognized over the next twelve months, while the remaining balance will be recognized over the following five years. As of March 31, 2025 and 2024, Tax Identity Shield® (TIS) deferred revenue was $31.2 million and $31.6 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 through April 2026. ===== BLAD: EARNINGS PER SHARE AND STOCKHOL ===== EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY 9 Months Ended Mar. 31, 2025 Earnings Per Share [Abstract] EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY 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 0.6 million and 0.5 million shares for the three and nine months ended March 31, 2025, respectively, and one thousand and 0.2 million shares for the three and nine months ended March 31, 2024, respectively, as the effect would be antidilutive. The computations of basic and diluted earnings per share from continuing operations are as follows: (in 000s, except per share amounts) Three months ended March 31, Nine months ended March 31, 2025 2024 2025 2024 Net income from continuing operations attributable to shareholders $ 722,928 $ 691,586 $ 309,041 $ 339,597 Amounts allocated to participating securities (3,442) (2,788) (1,408) (1,350) Net income from continuing operations attributable to common shareholders $ 719,486 $ 688,798 $ 307,633 $ 338,247 Basic weighted average common shares 133,853 139,525 136,207 142,724 Potential dilutive shares 1,476 2,015 1,737 1,870 Dilutive weighted average common shares 135,329 141,540 137,944 144,594 Earnings per share from continuing operations attributable to common shareholders: Basic $ 5.38 $ 4.94 $ 2.26 $ 2.37 Diluted 5.32 4.87 2.23 2.34 The decrease in the weighted average shares outstanding is due to share repurchases completed in the current and prior fiscal years. STOCK-BASED COMPENSATION ===== BLAD: RECEIVABLES ===== RECEIVABLES 9 Months Ended Mar. 31, 2025 Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] RECEIVABLES NOTE 4: RECEIVABLES Receivables, net of their related allowance, consist of the following: (in 000s) As of March 31, 2025 June 30, 2024 Short-term Long-term Short-term Long-term Loans to franchisees $ 17,267 $ 17,979 $ 5,917 $ 16,498 Receivables for U.S. assisted and DIY tax preparation and related fees 221,510 9,282 18,440 5,332 H&R Block's Instant Refund® receivables 24,162 808 2,947 207 Emerald Advance® 22,385 22,635 17,867 21,360 Software receivables from retailers 11,097 — 1,029 — Royalties and other receivables from franchisees 32,394 — 5,808 — Wave payment processing receivables 1,801 — 1,078 — Other 21,782 612 15,989 427 Total $ 352,398 $ 51,316 $ 69,075 $ 43,824 Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets. LOANS TO FRANCHISEES – Franchisee loan balances consist of term loans made primarily to finance the purchase of franchises and revolving lines of credit primarily for the purpose of funding working capital needs. Loans with a principal balance more than 90 days past due or on non-accrual status were $2.2 million and $1.1 million as of March 31, 2025 and June 30, 2024, respectively. H&R BLOCK'S INSTANT REFUND ® – H&R Block's Instant Refund® amounts are generally received from the Canada Revenue Agency within 60 days of filing the client's return, with the remaining balance collectible from the client. We review the credit quality of our Instant Refund receivables based on pools, which are segregated by the tax return year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year, we charge-off the receivables and the related allowance to an amount we believe represents the net realizable value. Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of March 31, 2025 are as foll ows: (in 000s) Tax return year of origination Balance More Than 60 Days Past Due 2024 $ 24,713 $ — 2023 and prior 1,027 1,027 25,740 $ 1,027 Allowance (770) Net balance $ 24,970 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 March 31, 2025 are as follows: (in 000s) Fiscal year of origination Balance Non-Accrual 2025 $ 40,017 $ — 2024 and prior 24,374 24,374 64,391 $ 24,374 Allowance (19,371) Net balance $ 45,020 ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the nine months ended March 31, 2025 and 2024 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 19,371 36,671 56,042 Charge-offs, recoveries and other (33,536) (45,864) (79,400) Balances as of March 31, 2025 $ 19,371 $ 36,134 $ 55,505 Balances as of July 1, 2023 $ 27,386 $ 35,108 $ 62,494 Provision for credit losses 21,011 40,348 61,359 Charge-offs, recoveries and other (27,714) (37,455) (65,169) Balances as of March 31, 2024 $ 20,683 $ 38,001 $ 58,684 ===== BLAD: GOODWILL AND INTANGIBLE ASSETS ===== GOODWILL AND INTANGIBLE ASSETS 9 Months Ended Mar. 31, 2025 Goodwill and Intangible Assets Disclosure [Abstract] GOODWILL AND INTANGIBLE ASSETS NOTE 5: GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill for the nine months ended March 31, 2025 are as follows: (in 000s) Goodwill Accumulated Impairment Losses Net Balances as of July 1, 2024 $ 923,523 $ (138,297) $ 785,226 Acquisitions (1) 15,374 — 15,374 Disposals and foreign currency changes, net (14,664) — (14,664) Impairments — — — Balances as of March 31, 2025 $ 924,233 $ (138,297) $ 785,936 (1) All goodwill added during the period is expected to be tax-deductible for federal income tax reporting. In conjunction with our annual impairment test, we tested goodwill for impairment during the quarter and did not identify any impairment. Components of intangible assets are as follows: (in 000s) Gross Carrying Amount Accumulated Net As of March 31, 2025: Reacquired franchise rights $ 415,419 $ (239,452) $ 175,967 Customer relationships 358,442 (286,040) 72,402 Internally-developed software 124,420 (122,357) 2,063 Noncompete agreements 23,190 (20,081) 3,109 Purchased technology 70,100 (56,099) 14,001 Trade name 5,800 (3,335) 2,465 $ 997,371 $ (727,364) $ 270,007 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 $35.3 million and $43.2 million during the nine months ended March 31, 2025 and 2024, respectively. The amounts and weighted-average lives of intangible assets acquired during the nine months e nded March 31, 2025, including amounts capitalized related to internally-developed software, a re as follows: (dollars in 000s) Amount Weighted-Average Life (in years) Customer relationships $ 27,435 5 Reacquired franchise rights 11,649 6 Internally-developed software 1,949 3 Noncompete agreements 1,254 5 Total $ 42,287 5 Amortization of intangible assets for the three and nine months ended March 31, 2025 was $11.3 million and $36.3 million, respectively, compared to $15.0 million and $46.2 million for the three and nine months ended March 31, 2024, respectively. Estimated amortization of intangible assets for fiscal years ending June 30, 2025, 2026, 2027, 2028, and 2029 is $47.6 million, $41.5 million, $34.7 million, $26.5 million and $18.1 million, respectively. ===== BLAD: LONG-TERM DEBT ===== LONG-TERM DEBT 9 Months Ended Mar. 31, 2025 Debt Disclosure [Abstract] LONG-TERM DEBT NOTE 6: LONG-TERM DEBT The components of long-term debt are as follows: (in 000s) As of March 31, 2025 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 Debt issuance costs and discounts (7,323) (8,905) Total long-term debt 1,492,677 1,491,095 Less: Current portion (349,787) — Long-term portion $ 1,142,890 $ 1,491,095 Estimated fair value of long-term debt $ 1,422,000 $ 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 March 31, 2025. We had no outstanding balance under our CLOC and amounts available to borrow were not limited by the debt-to-EBITDA covenant as of March 31, 2025. ===== BLAD: INCOME TAXES ===== INCOME TAXES 9 Months Ended Mar. 31, 2025 Income Tax Disclosure [Abstract] INCOME TAXES 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 $284.0 million and $251.8 million as of March 31, 2025 and June 30, 2024, respectively. The gross unrecognized tax benefits increased by $32.2 million during the nine months ended March 31, 2025. The increase is primarily related to various current federal and state tax positions expected to be taken in our income tax returns. 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. Our effective tax rate for continuing operations, including the effects of discrete tax items, was 25.3% and 17.6% for the nine months ended March 31, 2025 and 2024, respectively. Discrete items increased the effective tax rate by 0.9% for the nine months ended March 31, 2025 and decreased the effective tax rate by 6.3% for the nine months ended March 31, 2024. Discrete income tax expense of $3.8 million and benefit of $26.0 million were recorded in the nine months ended March 31, 2025, and 2024, respectively. The discrete tax expense recorded in the current period primarily resulted from interest expense on uncertain tax positions, partially offset by benefits related to investment tax credit purchases and stock-based compensation vesting. The discrete tax benefit recorded in the prior period primarily resulted from settlements with taxing authorities and state statute of limitations expirations. The impact discrete tax items have on our tax rate through the third quarter are slightly exaggerated versus the impact discrete tax items have on the full fiscal year tax rate. ===== BLAD: COMMITMENTS AND CONTINGENCIES ===== COMMITMENTS AND CONTINGENCIES 9 Months Ended Mar. 31, 2025 Commitments and Contingencies Disclosure [Abstract] COMMITMENTS AND CONTINGENCIES 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 $11.3 million and $14.1 million as of March 31, 2025 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 $32.4 million and $26.9 million as of March 31, 2025 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 $21.0 million at March 31, 2025, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $9.1 million. ===== BLAD: LITIGATION AND OTHER RELATED CO ===== LITIGATION AND OTHER RELATED CONTINGENCIES 9 Months Ended Mar. 31, 2025 Commitments and Contingencies Disclosure [Abstract] LITIGATION AND OTHER RELATED CONTINGENCIES 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 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 March 31, 2025. 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 $5.5 million and $7.2 million as of March 31, 2025 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 March 31, 2025, 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. 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. An accrual related to these matters is included in our loss contingency accrual. ===== BLAD: Pay vs Performance Disclosure ===== Pay vs Performance Disclosure - USD ($) $ in Thousands 3 Months Ended 9 Months Ended Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Mar. 31, 2025 Mar. 31, 2024 Pay vs Performance Disclosure Net income 722330 -243420 -172576 690737 -189755 -163482 306334 337500 ===== BLAD: Insider Trading Arrangements ===== Insider Trading Arrangements 3 Months Ended Mar. 31, 2025 Trading Arrangements, by Individual Non-Rule 10b5-1 Arrangement Adopted false Non-Rule 10b5-1 Arrangement Terminated false ===== BLAD: SUMMARY OF SIGNIFICANT ACCOUN_2 ===== SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) 9 Months Ended Mar. 31, 2025 Accounting Policies [Abstract] Basis of Presentation The consolidated balance sheets as of March 31, 2025 and June 30, 2024, the consolidated statements of operations and comprehensive income for the three and nine months ended March 31, 2025 and 2024, the consolidated statements of cash flows for the nine months ended March 31, 2025 and 2024, and the consolidated statements of stockholders' equity for the three and nine months ended March 31, 2025 and 2024 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 March 31, 2025 and 2024 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. 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. ===== BLAD: REVENUE RECOGNITION (Tables) ===== REVENUE RECOGNITION (Tables) 9 Months Ended Mar. 31, 2025 Revenue from Contract with Customer [Abstract] Disaggregation of Revenue by Major Service Line 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 March 31, Nine months ended March 31, 2025 2024 2025 2024 Revenues: U.S. assisted tax preparation $ 1,635,877 $ 1,534,825 $ 1,727,220 $ 1,622,430 U.S. royalties 133,961 141,915 143,312 153,070 U.S. DIY tax preparation 214,666 198,570 231,646 215,529 Refund Transfers 113,732 118,937 115,229 120,892 Peace of Mind® Extended Service Plan 15,625 16,813 54,867 59,100 Tax Identity Shield® 7,025 7,536 14,947 16,810 Emerald Card® and Spruce SM 40,195 41,160 59,169 61,493 Interest and fee income on Emerald Advance® 14,286 21,169 26,594 36,702 International 60,438 68,264 157,104 158,398 Wave 26,717 23,580 79,681 70,656 Other 14,582 12,065 40,215 32,637 Total revenues $ 2,277,104 $ 2,184,834 $ 2,649,984 $ 2,547,717 Schedule of Deferred Revenue Related To The Peace of Mind Program 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 Nine months ended March 31, 2025 2024 2025 2024 Balance, beginning of the period $ 156,610 $ 167,257 $ 20,212 $ 21,828 Amounts deferred 70,536 72,369 7,222 8,324 Amounts recognized on previous deferrals (64,885) (68,445) (8,396) (8,324) Balance, end of the period $ 162,261 $ 171,181 $ 19,038 $ 21,828 ===== BLAD: EARNINGS PER SHARE AND STOCKH_2 ===== EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY (Tables) 9 Months Ended Mar. 31, 2025 Earnings Per Share [Abstract] Computations of Basic And Diluted Earnings Per Share The computations of basic and diluted earnings per share from continuing operations are as follows: (in 000s, except per share amounts) Three months ended March 31, Nine months ended March 31, 2025 2024 2025 2024 Net income from continuing operations attributable to shareholders $ 722,928 $ 691,586 $ 309,041 $ 339,597 Amounts allocated to participating securities (3,442) (2,788) (1,408) (1,350) Net income from continuing operations attributable to common shareholders $ 719,486 $ 688,798 $ 307,633 $ 338,247 Basic weighted average common shares 133,853 139,525 136,207 142,724 Potential dilutive shares 1,476 2,015 1,737 1,870 Dilutive weighted average common shares 135,329 141,540 137,944 144,594 Earnings per share from continuing operations attributable to common shareholders: Basic $ 5.38 $ 4.94 $ 2.26 $ 2.37 Diluted 5.32 4.87 2.23 2.34 ===== BLAD: RECEIVABLES (Tables) ===== RECEIVABLES (Tables) 9 Months Ended Mar. 31, 2025 Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] Schedule of Short-Term Receivables Receivables, net of their related allowance, consist of the following: (in 000s) As of March 31, 2025 June 30, 2024 Short-term Long-term Short-term Long-term Loans to franchisees $ 17,267 $ 17,979 $ 5,917 $ 16,498 Receivables for U.S. assisted and DIY tax preparation and related fees 221,510 9,282 18,440 5,332 H&R Block's Instant Refund® receivables 24,162 808 2,947 207 Emerald Advance® 22,385 22,635 17,867 21,360 Software receivables from retailers 11,097 — 1,029 — Royalties and other receivables from franchisees 32,394 — 5,808 — Wave payment processing receivables 1,801 — 1,078 — Other 21,782 612 15,989 427 Total $ 352,398 $ 51,316 $ 69,075 $ 43,824 Schedule of Receivables Based On Year of Origination 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 March 31, 2025 are as foll ows: (in 000s) Tax return year of origination Balance More Than 60 Days Past Due 2024 $ 24,713 $ — 2023 and prior 1,027 1,027 25,740 $ 1,027 Allowance (770) Net balance $ 24,970 Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination, as of March 31, 2025 are as follows: (in 000s) Fiscal year of origination Balance Non-Accrual 2025 $ 40,017 $ — 2024 and prior 24,374 24,374 64,391 $ 24,374 Allowance (19,371) Net balance $ 45,020 Schedule of Activity in Allowance For Credit Losses Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the nine months ended March 31, 2025 and 2024 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 19,371 36,671 56,042 Charge-offs, recoveries and other (33,536) (45,864) (79,400) Balances as of March 31, 2025 $ 19,371 $ 36,134 $ 55,505 Balances as of July 1, 2023 $ 27,386 $ 35,108 $ 62,494 Provision for credit losses 21,011 40,348 61,359 Charge-offs, recoveries and other (27,714) (37,455) (65,169) Balances as of March 31, 2024 $ 20,683 $ 38,001 $ 58,684 ===== BLAD: GOODWILL AND INTANGIBLE ASSETS ===== GOODWILL AND INTANGIBLE ASSETS (Tables) 9 Months Ended Mar. 31, 2025 Goodwill and Intangible Assets Disclosure [Abstract] Schedule of Goodwill Changes in the carrying amount of goodwill for the nine months ended March 31, 2025 are as follows: (in 000s) Goodwill Accumulated Impairment Losses Net Balances as of July 1, 2024 $ 923,523 $ (138,297) $ 785,226 Acquisitions (1) 15,374 — 15,374 Disposals and foreign currency changes, net (14,664) — (14,664) Impairments — — — Balances as of March 31, 2025 $ 924,233 $ (138,297) $ 785,936 (1) All goodwill added during the period is expected to be tax-deductible for federal income tax reporting. Schedule of Intangible Assets Components of intangible assets are as follows: (in 000s) Gross Carrying Amount Accumulated Net As of March 31, 2025: Reacquired franchise rights $ 415,419 $ (239,452) $ 175,967 Customer relationships 358,442 (286,040) 72,402 Internally-developed software 124,420 (122,357) 2,063 Noncompete agreements 23,190 (20,081) 3,109 Purchased technology 70,100 (56,099) 14,001 Trade name 5,800 (3,335) 2,465 $ 997,371 $ (727,364) $ 270,007 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 Schedule of Acquired Finite-Lived Intangible Assets by Major Class The amounts and weighted-average lives of intangible assets acquired during the nine months e nded March 31, 2025, including amounts capitalized related to internally-developed software, a re as follows: (dollars in 000s) Amount Weighted-Average Life (in years) Customer relationships $ 27,435 5 Reacquired franchise rights 11,649 6 Internally-developed software 1,949 3 Noncompete agreements 1,254 5 Total $ 42,287 5 ===== BLAD: LONG-TERM DEBT LONG-TERM DEBT ( ===== LONG-TERM DEBT LONG-TERM DEBT (Tables) 9 Months Ended Mar. 31, 2025 Debt Disclosure [Abstract] Components of Long-Term Debt The components of long-term debt are as follows: (in 000s) As of March 31, 2025 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 Debt issuance costs and discounts (7,323) (8,905) Total long-term debt 1,492,677 1,491,095 Less: Current portion (349,787) — Long-term portion $ 1,142,890 $ 1,491,095 Estimated fair value of long-term debt $ 1,422,000 $ 1,391,000 ===== BLAD: REVENUE RECOGNITION (Disaggrega ===== REVENUE RECOGNITION (Disaggregation of Revenue by Major Service Line) (Details) - USD ($) $ in Thousands 3 Months Ended 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Disaggregation of Revenue [Line Items] Total revenues 2277104 2184834 2649984 2547717 Assisted tax preparation Disaggregation of Revenue [Line Items] Total revenues 1635877 1534825 1727220 1622430 Royalties Disaggregation of Revenue [Line Items] Total revenues 133961 141915 143312 153070 DIY tax preparation Disaggregation of Revenue [Line Items] Total revenues 214666 198570 231646 215529 International Disaggregation of Revenue [Line Items] Total revenues 60438 68264 157104 158398 Refund Transfers Disaggregation of Revenue [Line Items] Total revenues 113732 118937 115229 120892 Emerald Card® and SpruceSM Disaggregation of Revenue [Line Items] Total revenues 40195 41160 59169 61493 Peace of Mind® Extended Service Plan Disaggregation of Revenue [Line Items] Total revenues 15625 16813 54867 59100 Tax Identity Shield® Disaggregation of Revenue [Line Items] Total revenues 7025 7536 14947 16810 Interest and fee income on Emerald Advance® Disaggregation of Revenue [Line Items] Total revenues 14286 21169 26594 36702 Wave Disaggregation of Revenue [Line Items] Total revenues 26717 23580 79681 70656 Other Disaggregation of Revenue [Line Items] Total revenues 14582 12065 40215 32637 ===== BLAD: REVENUE RECOGNITION (Deferred R ===== REVENUE RECOGNITION (Deferred Revenue) (Details) - POM - USD ($) $ in Thousands 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Movement in Deferred Revenue [Roll Forward] Contract with Customer, Liability 162300 Deferred Revenue Movement in Deferred Revenue [Roll Forward] Contract with Customer, Liability 156610 167257 Amounts deferred 70536 72369 Amounts recognized on previous deferrals -64885 -68445 Contract with Customer, Liability 162261 171181 Deferred Wages Movement in Deferred Revenue [Roll Forward] Contract with Customer, Liability 20212 21828 Amounts deferred 7222 8324 Amounts recognized on previous deferrals -8396 -8324 Contract with Customer, Liability 19038 21828 ===== BLAD: REVENUE RECOGNITION (Narrative) ===== REVENUE RECOGNITION (Narrative) (Details) - USD ($) $ in Millions Mar. 31, 2025 Jun. 30, 2024 Mar. 31, 2024 Jun. 30, 2023 POM Disaggregation of Revenue [Line Items] Deferred revenue 162.3 Current deferred revenue 91.8 TIS Disaggregation of Revenue [Line Items] Current deferred revenue 31.2 21.4 31.6 25.2 ===== BLAD: REVENUE RECOGNITION (Remaining ===== REVENUE RECOGNITION (Remaining Performance Obligation) (Details) Mar. 31, 2025 POM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01 Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] Remaining performance obligation, expected timing of satisfaction, period 12 months POM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-01 Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] Remaining performance obligation, expected timing of satisfaction, period 5 years TIS Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year 2026 ===== BLAD: EARNINGS PER SHARE AND STOCKH_3 ===== EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions 3 Months Ended 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Earnings Per Share [Abstract] Basic weighted average common shares (in shares) 133853 139525 136207 142724 Nonvested units granted (in shares) 1700 Stock-based compensation 7.5 7.8 25.4 25.3 Unrecognized compensation costs, nonvested shares and units 50.8 50.8 ===== BLAD: EARNINGS PER SHARE AND STOCKH_4 ===== EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY (Computations of Basic and Diluted Earnings Per Share) (Details) - USD ($) shares in Thousands, $ in Thousands 3 Months Ended 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Earnings Per Share [Abstract] Net income from continuing operations attributable to shareholders 722928 691586 309041 339597 Amounts allocated to participating securities -3442 -2788 -1408 -1350 Net income from continuing operations attributable to common shareholders 719486 688798 307633 338247 Basic weighted average common shares (in shares) 133853 139525 136207 142724 Potential dilutive shares (in shares) 1476 2015 1737 1870 Dilutive weighted average common shares (in shares) 135329 141540 137944 144594 ===== BLAD: RECEIVABLES (Schedule of Short- ===== RECEIVABLES (Schedule of Short-Term Receivables) (Details) - USD ($) $ in Thousands Mar. 31, 2025 Jun. 30, 2024 Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 352398 69075 Long-term 51316 43824 Loans to franchisees Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 17267 5917 Long-term 17979 16498 Receivables for U.S. assisted and DIY tax preparation and related fees Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 221510 18440 Long-term 9282 5332 H&R Block's Instant Refund® receivables Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 24162 2947 Long-term 808 207 Emerald Advance® Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 22385 17867 Long-term 22635 21360 Software receivables from retailers Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 11097 1029 Long-term 0 0 Royalties and other receivables from franchisees Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 32394 5808 Long-term 0 0 Wave payment processing receivables Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 1801 1078 Long-term 0 0 Other Accounts, Notes, Loans and Financing Receivable [Line Items] Short-term 21782 15989 Long-term 612 427 ===== BLAD: RECEIVABLES (Narrative) (Detail ===== RECEIVABLES (Narrative) (Details) - USD ($) 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Accounts, Notes, Loans and Financing Receivable [Line Items] Accounts Receivable, Allowance for Credit Loss, Writeoff -79400000 -65169000 H&R Block's Instant Refund® receivables Accounts, Notes, Loans and Financing Receivable [Line Items] Impaired, non-accrual status term 60 days Financing receivable 25740000 Emerald Advance® Accounts, Notes, Loans and Financing Receivable [Line Items] Impaired, non-accrual status term 60 days Financing receivable 64391000 Accounts Receivable, Allowance for Credit Loss, Writeoff -33536000 -27714000 Emerald Advance Lines of Credit Write Offs Accounts, Notes, Loans and Financing Receivable [Line Items] Accounts Receivable, Allowance for Credit Loss, Writeoff -33500000 ===== BLAD: RECEIVABLES (Schedule of Receiv ===== RECEIVABLES (Schedule of Receivables Based on Year of Origination) (Details) - USD ($) 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Accounts, Notes, Loans and Financing Receivable [Line Items] Accounts Receivable, Allowance for Credit Loss, Writeoff -79400000 -65169000 H&R Block's Instant Refund® receivables Accounts, Notes, Loans and Financing Receivable [Line Items] Balance 25740000 Allowance -770000 Net balance 24970000 Non-Accrual 1027000 Emerald Advance® Accounts, Notes, Loans and Financing Receivable [Line Items] Balance 64391000 Allowance -19371000 Net balance 45020000 Non-Accrual 24374000 Accounts Receivable, Allowance for Credit Loss, Writeoff -33536000 -27714000 Current year of origination | H&R Block's Instant Refund® receivables Accounts, Notes, Loans and Financing Receivable [Line Items] Balance 24713000 Non-Accrual 0 Current year of origination | Emerald Advance® Accounts, Notes, Loans and Financing Receivable [Line Items] Balance 40017000 Non-Accrual 0 Prior year and before | H&R Block's Instant Refund® receivables Accounts, Notes, Loans and Financing Receivable [Line Items] Balance 1027000 Non-Accrual 1027000 Prior year and before | Emerald Advance® Accounts, Notes, Loans and Financing Receivable [Line Items] Balance 24374000 Non-Accrual 24374000 ===== BLAD: RECEIVABLES (Schedule of Activi ===== RECEIVABLES (Schedule of Activity in the Allowance For Doubtful Accounts) (Details) - USD ($) 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Allowance for Doubtful Accounts [Roll Forward] Beginning balance 78863000 62494000 Provision for credit losses 56042000 61359000 Charge-offs, recoveries and other 79400000 65169000 Ending balance 55505000 58684000 EAs Allowance for Doubtful Accounts [Roll Forward] Beginning balance 33536000 27386000 Provision for credit losses 19371000 21011000 Charge-offs, recoveries and other 33536000 27714000 Ending balance 19371000 20683000 All Other Allowance for Doubtful Accounts [Roll Forward] Beginning balance 45327000 35108000 Provision for credit losses 36671000 40348000 Charge-offs, recoveries and other 45864000 37455000 Ending balance 36134000 38001000 Emerald Advance Lines of Credit Write Offs Allowance for Doubtful Accounts [Roll Forward] Charge-offs, recoveries and other 33500000 ===== BLAD: GOODWILL AND INTANGIBLE ASSET_2 ===== GOODWILL AND INTANGIBLE ASSETS (Schedule of Goodwill) (Details) $ in Thousands 9 Months Ended Mar. 31, 2025 USD ($) Goodwill [Roll Forward] Goodwill before impairment losses, beginning balance 923523 Accumulated impairment losses, beginning balance -138297 Goodwill, beginning balance 785226 Acquisitions(1) 15374 Disposals and foreign currency changes, net -14664 Impairments 0 Goodwill before impairment losses, ending balance 924233 Accumulated impairment losses, ending balance -138297 Goodwill, ending balance 785936 ===== BLAD: GOODWILL AND INTANGIBLE ASSET_3 ===== GOODWILL AND INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands Mar. 31, 2025 Jun. 30, 2024 Goodwill and Intangible Assets [Line Items] Gross Carrying Amount 997371 955940 Accumulated Amortization -727364 -691838 Net 270007 264102 Reacquired franchise rights Goodwill and Intangible Assets [Line Items] Gross Carrying Amount 415419 403955 Accumulated Amortization -239452 -228157 Net 175967 175798 Customer relationships Goodwill and Intangible Assets [Line Items] Gross Carrying Amount 358442 331435 Accumulated Amortization -286040 -270245 Net 72402 61190 Internally-developed software Goodwill and Intangible Assets [Line Items] Gross Carrying Amount 124420 122673 Accumulated Amortization -122357 -119610 Net 2063 3063 Noncompete agreements Goodwill and Intangible Assets [Line Items] Gross Carrying Amount 23190 21977 Accumulated Amortization -20081 -19494 Net 3109 2483 Purchased technology Goodwill and Intangible Assets [Line Items] Gross Carrying Amount 70100 70100 Accumulated Amortization -56099 -51432 Net 14001 18668 Trade name Goodwill and Intangible Assets [Line Items] Gross Carrying Amount 5800 5800 Accumulated Amortization -3335 -2900 Net 2465 2900 ===== BLAD: GOODWILL AND INTANGIBLE ASSET_4 ===== GOODWILL AND INTANGIBLE ASSETS (Intangible Assets Acquired) (Details) $ in Thousands 9 Months Ended Mar. 31, 2025 USD ($) Business Acquisition [Line Items] Amount 42287 Weighted-Average Life (in years) 5 years Customer Relationships Business Acquisition [Line Items] Amount 27435 Weighted-Average Life (in years) 5 years Reacquired Franchise Rights Business Acquisition [Line Items] Amount 11649 Weighted-Average Life (in years) 6 years Noncompete Agreements Business Acquisition [Line Items] Amount 1254 Weighted-Average Life (in years) 5 years Capitalized software Business Acquisition [Line Items] Amount 1949 Weighted-Average Life (in years) 3 years ===== BLAD: GOODWILL AND INTANGIBLE ASSET_5 ===== GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands 3 Months Ended 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Business Acquisition [Line Items] Payments made for business acquisitions, net of cash acquired 35323 43163 Amortization 11300 15000 36300 46200 Estimated amortization, 2022 47600 47600 Estimated amortization, 2023 41500 41500 Estimated amortization, 2024 34700 34700 Estimated amortization, 2025 26500 26500 Estimated amortization, 2026 18100 18100 Franchisee and competitor businesses Business Acquisition [Line Items] Payments made for business acquisitions, net of cash acquired 35300 43200 ===== BLAD: LONG-TERM DEBT (Components of L ===== LONG-TERM DEBT (Components of Long-Term Debt) (Details) - USD ($) $ in Thousands Mar. 31, 2025 Jun. 30, 2024 Debt Instrument [Line Items] Debt issuance costs and discounts -7323 -8905 Long-Term Debt -1492677 -1491095 Long-term Debt, Current Maturities -349787 0 Long-Term Debt and Lease Obligation 1142890 1491095 Estimated fair value of long-term debt 1422000 1391000 Senior Notes | Senior Notes, 5.250%, due October 2025 Debt Instrument [Line Items] Interest rate 0.0525 Senior notes 350000 350000 Senior Notes | Senior Notes, 2.500%, due July 2028 Debt Instrument [Line Items] Interest rate 0.025 Senior notes 500000 500000 Senior Notes | Senior Notes, 3.875%, due August 2030 Debt Instrument [Line Items] Interest rate 0.03875 Senior notes 650000 650000 ===== BLAD: LONG-TERM DEBT (Narrative) (Det ===== LONG-TERM DEBT (Narrative) (Details) Mar. 31, 2025 USD ($) Revolving credit facility Line of Credit Facility [Line Items] Maximum annual debt-to-EBITDA ratio 4.5 Maximum quarterly debt-to-EBITDA ratio 3.5 Minimum interest coverage ratio 2.5 Aggregate principal amount 1500000000 Line Of Credit Facility, Available Increase In Borrowing Capacity 500000000 Swingline Loans Line of Credit Facility [Line Items] Maximum borrowing capacity 175000000 Standby Letters of Credit Line of Credit Facility [Line Items] Maximum borrowing capacity 50000000 ===== BLAD: INCOME TAXES (Narrative) (Detai ===== INCOME TAXES (Narrative) (Details) - USD ($) 9 Months Ended Mar. 31, 2025 Mar. 31, 2024 Jun. 30, 2024 Income Tax Disclosure [Abstract] Unrecognized tax benefits 284000000 251800000 Change in tax benefits that are reasonably possible 148400000 Effective tax rate 0.253 0.176 Gross unrecognized tax benefits increase (decrease) 32.2 Increase in effective tax rate from discrete item, percent 0.9 6.3 Discrete income tax expense (benefit) 3.8 26000000 ===== BLAD: LITIGATION AND OTHER RELATED _2 ===== LITIGATION AND OTHER RELATED CONTINGENCIES (Details) - USD ($) Mar. 31, 2025 Jun. 30, 2024 Loss Contingencies [Line Items] Loss contingency accrual 5.5 7200000 ===== BLAD: Commitment and Contingencies (D ===== Commitment and Contingencies (Details) - USD ($) 9 Months Ended Mar. 31, 2025 Jun. 30, 2024 Mar. 31, 2024 Other Commitments [Line Items] POM maximum per tax return 10000 Standard guarantee accrual amount 11300000 14100000 Contingent business acquisition obligations 32400000 26900000 Lines of credit, total obligation 21000000 Remaining franchise equity lines of credit-undrawn commitment 9100000 Loss contingency accrual 5.5 7200000 Investment Tax Credit 22.9 Purchase Commitment, Remaining Minimum Amount Committed 75.1 Customer Advance, Line Of Credit, Outstanding Amount 260600000 Guarantor Obligations, Maximum Exposure, Undiscounted 18000000 Guarantor Obligations, Current Carrying Value 2400000 1400000