H&R Block reported a net loss of $165.8 million for its fiscal first quarter of 2026, a figure that aligns with the majority of market sources and is slightly higher than the $165.4 million reported by one outlet. The company’s diluted earnings per share were $1.26, while the adjusted diluted EPS—excluding amortization and discontinued operations—was $1.20. Revenue reached $203.6 million, up 5.0 % year‑over‑year, surpassing consensus estimates of $199.44 million to $200.13 million and delivering a beat of roughly $3.5 million or 1.7 %.
Revenue growth was driven by a 5.0 % increase in the Assisted Consumer Tax segment, which benefited from higher average charges and increased volume, and a double‑digit rise in the Wave small‑business subscription business. The company’s core Assisted Tax Preparation and Small Business Tax services continued to expand, offsetting the seasonal dip typically seen in the first quarter. Operating expenses fell 2.7 % year‑over‑year, a result of disciplined cost management and a reduction in discretionary spending, which helped narrow the loss margin relative to the prior year.
The company’s EBITDA for the quarter was $1.02 billion, a 3.5 % improvement from the $985 million reported in the same period last year. The margin expansion reflects both the higher mix of high‑margin Wave revenue and the successful containment of cost inflation in the Assisted segment. Management highlighted that the adjusted loss per share of $1.20 was a better outcome than the consensus estimate of –$1.35 or –$1.40, attributing the beat to the combined effect of cost controls and a favorable product mix.
H&R Block reaffirmed its fiscal 2026 guidance, projecting revenue between $3.875 billion and $3.895 billion, EBITDA between $1.015 billion and $1.035 billion, and adjusted diluted EPS between $4.85 and $5.00. The guidance represents a slight upward revision from the prior year’s outlook and signals management’s confidence that the company’s strategic initiatives—particularly the expansion of Wave and the integration of AI‑driven services—will continue to drive growth and profitability.
CEO Jeff Jones emphasized that the quarter’s results “demonstrate the strength of our core business and the effectiveness of our cost‑control initiatives.” CFO Tiffany Mason added that the company returned $455 million to shareholders through dividends and share repurchases, underscoring its commitment to delivering value while maintaining a robust capital allocation strategy.
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