Q2 2025 H & R Block Inc Earnings Call Transcript
Key Points
- H&R Block Inc (HRB) successfully wrapped up the extension season and saw continued strength in small business services, with strong revenue growth in assisted small business tax and double-digit growth in bookkeeping and payroll services.
- The company achieved a 15% revenue growth at Wave, driven by strong adoption of high-margin subscription products.
- Spruce, the mobile banking platform, saw a 55% increase in total sign-ups and more than doubled customer deposits compared to the prior year.
- H&R Block Inc (HRB) introduced a smart tax refund feature and maintained a competitive 3.5% APY on savings accounts, enhancing client engagement and financial health.
- The company reaffirmed its fiscal '25 outlook, expecting revenue between $3.69 billion to $3.75 billion and adjusted diluted earnings per share between $5.15 to $5.35.
- Total revenue for the second quarter was flat year-over-year due to lower Emerald Advance volume.
- Operating expenses increased by 6% due to higher wages, increased healthcare costs, and marketing expenses.
- The company reported a pretax loss of $312 million for the second quarter, compared to $283 million in the prior year.
- The EBITDA loss was $261 million, up from $231 million last year, and the adjusted loss per share increased to $1.73 from $1.27.
- Lower interest and fee income on Emerald Advance was attributed to a decrease in loan volume, and the company is evaluating its performance in this area.
Thank you for standing by and welcome to H&R Block's second quarter fiscal year 2025 earnings conference call. (Operator Instructions)
I would now like to hand the call over to Kobe Brown, treasurer and interim Vice President investor relations. Please go ahead.
Thank you, Latif. Good afternoon, everyone, and welcome to H&R Block's fiscal 2025 Second Quarter Financial Results Conference Call. Joining me today are Jeff Jones, our President and Chief Executive Officer; and Tiffany Mason, our Chief Financial Officer. Earlier today, we issued a press release and presentation, which can be downloaded or viewed live on our website at investors.hrblock.com. Our call is being broadcast and webcast live, and a replay of the webcast will be available for 90 days.
Before we begin, I'd like to remind listeners that comments made by management may include forward-looking statements within the meaning of federal securities laws. These statements involve material risks and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
