Q1 2026 H & R Block Inc Earnings Call Transcript
Key Points
- H&R Block Inc (HRB) achieved a 5% revenue growth in the first quarter of fiscal year 2026.
- The company reported a 9.4% improvement in EBITDA compared to the prior year.
- H&R Block Inc (HRB) returned approximately $455 million in capital to shareholders during the quarter.
- The company saw double-digit growth at Wave, particularly in its high-margin subscription product, ProTier.
- Operating expenses decreased by $12 million compared to the prior year, primarily due to lower legal fees and settlements.
- The first quarter consistently results in a net loss due to the seasonal nature of the business.
- The net loss from continuing operations was $165 million, despite a 3.5% improvement over the prior year.
- Loss per share from continuing operations was $1.26, with an adjusted loss per share of $1.20 compared to $1.17 last year.
- The effective tax rate decreased to 23.6% from 26.2% in the prior year, partly due to a larger excess tax benefit from stock-based compensation last year.
- The company faces challenges in capturing market share in the highly fragmented tax preparation industry.
Thank you for standing by. Welcome to H&R Block's first-quarter fiscal year 2026 earnings conference call.
(Operator Instructions)
I would now like to hand the call over to Jessica Hazel, Vice President, Investor relations. Please go ahead.
Thank you. Good afternoon and welcome to H&R Block's fiscal 2026 first-quarter financial results conference call.
Joining me today are Jeff Jones, our President and Chief Executive Officer; Tiffany Mason, our Chief Financial Officer; and Curtis Campbell, our CEO-Elect, current President of Global Consumer Tax, and Chief Product 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. 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
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