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H&R Block’s Results Beat Forecasts as Tax Season Starts

H&R Block, which typically loses money outside of tax season, lost less than expected last quarter.

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David Paul Morris/Bloomberg

H&R Block
‘s fiscal second-quarter results topped expectations as the tax-prep company enters its busy season, showing Wall Street that its turnaround plans are working.

H&R Block (ticker: HRB) posted a loss of $1.43 per share from $166 million in revenue for the quarter ending Dec. 31. Analysts surveyed by FactSet forecast a loss of $1.51 per share on $149 million in revenue. That lower-than-expected loss is a sign that the company, which typically loses money outside of tax season, is making strides toward smoothing out its finances year round as it builds out its offerings of services for small businesses.

“Our second quarter results demonstrate ongoing momentum across our business, and I am pleased with the path we are on,” said Chief Executive Jeff Jones. “We continue to make progress in our Block Horizons journey and feel well positioned for the 2023 tax season.”

Revenue increased 5% from a year earlier, coming in toward the higher end of the range of 3% to 6% annual growth management said it was targeting at an investor day in December 2020. Management credited a strong end to the 2022 tax season for the revenue gain.

During the quarter, HRB repurchased 2% of its shares outstanding, leaving $900 million remaining on its share purchase reauthorization through fiscal 2025. HRB also said that it will be paying a quarterly dividend of $0.29 per share on April 5. The company currently has a 3% dividend yield.

While investors can celebrate HRB’s capital return plans, they were also likely encouraged to see that management reiterated its full-year financial forecasts. HRB expects full-year revenue to be roughly $3.5 billion with adjusted earnings of between $3.70 and $3.95 per share.

HRB shares climbed as much as 1% in after-hours trading. They are up 8% so far this year.

Write to Carleton English at


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