At a glance
H&R Block Inc is worth $5.89B, about 8 times its fiscal 2026 earnings. Revenue grew 4.9% to $3.95B in fiscal 2026, with 18.6% kept as profit; over 5 years it has grown 2.9% a year. It pays a 3.6% dividend yield, raised every year for at least 5 years, and returned $952.5M to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned −2.6% over the past year with dividends reinvested and +19.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 46.9% in the 2020 crash (S&P 500: 33.7%) and 20.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months and 14 months after the lows.
The business in plain English
H&R Block prepares income tax returns for individuals and small businesses, mainly in the US, Canada and Australia. Clients can use a tax professional, in a company-owned or franchise office or virtually, or prepare the return themselves with its online, mobile or desktop software. In fiscal 2026 (ended June 30, 2026), it prepared 11.3 million US assisted returns, clients filed 3.6 million paid do-it-yourself online returns, and revenue was $3.95 billion.
Revenue comes from preparation fees and related products. US franchisees pay about 30% of their tax preparation revenue as a royalty. Refund Transfers let clients pay fees out of their refund. The Peace of Mind plan adds audit help and covers up to $6,000 of extra US taxes from H&R Block errors. A partner bank makes the Refund Advance and Emerald Advance loans and provides the Emerald prepaid card and Spruce mobile banking accounts. Block Advisors and Wave sell bookkeeping, payroll and payment processing to small businesses.
It reports one segment and gives no clean revenue split by product or country. The business is highly seasonal. Most clients file from February to April, so the company generally loses money from July to December, the first half of its fiscal year. Staff grows from about 4,600 full-time associates to a peak of about 73,400 including seasonal workers.
Price history
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HRB -2.6% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q4 FY2026 (ended Jun 30, 2026), revenue was $1.14B, up 3% from a year earlier, and net income was $293.7M (-1.9%).
- For fiscal 2026, revenue was $3.95B (+4.9% year over year; +2.9% a year from FY2021 to FY2026) with a 18.6% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +2.9% watch |
|---|---|
| Free cash flow margin | 19.2% good |
| Return on equity (FY2026) | Not meaningful: shareholders’ equity is very small, often the result of years of buybacks |
| Return on assets (FY2026) | 22.5% good |
| Net cash (cash minus debt) | $-532.8M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.41B | $583.8M | $573.1M |
| FY2022 | $3.46B | $553.7M | $746.6M |
| FY2023 | $3.47B | $553.7M | $752.1M |
| FY2024 | $3.61B | $595.3M | $657.2M |
| FY2025 | $3.76B | $605.8M | $598.8M |
| FY2026 | $3.95B | $733.6M | $756.1M |
Valuation snapshot
| Market value | $5.89B |
|---|---|
| P/E ratio | 8.4 |
| Dividend yield | 3.6% |
Rank among 1514 US companies
Market value at each year end
H&R Block’s market value went from $4.76B at the end of 2016 to $5.89B on Oct 28, 2026, up 24%; since the end of 2025 it is up 7%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.89B | +6.9% |
| 2025 | $5.51B | -23.9% |
| 2024 | $7.24B | +4.0% |
| 2023 | $6.96B | +22.7% |
| 2022 | $5.68B | +37.2% |
| 2021 | $4.14B | +42.2% |
| 2020 | $2.91B | -36.5% |
| 2019 | $4.58B | -12.1% |
| 2018 | $5.21B | -4.9% |
| 2017 | $5.48B | +15.1% |
| 2016 | $4.76B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| HRB price data to Oct 28, 2026 | +13.4% | -2.6% | +8.8% | +19.3% | +12.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +13.4% |
| 2025 | -14.9% |
| 2024 | +12.0% |
| 2023 | +36.8% |
| 2022 | +60.0% |
| 2021 | +55.5% |
| 2020 | -27.8% |
| 2019 | -3.6% |
| 2018 | +0.5% |
| 2017 | +18.1% |
| 2016 | -28.4% |
| 2015 | +1.3% |
| 2014 | +18.9% |
| 2013 | +60.9% |
| 2012 | +19.3% |
| 2011 | +43.2% |
| 2010 | -45.1% |
| 2009 | +3.0% |
| 2008 | +25.8% |
| 2007 | -17.2% |
| 2006 | -4.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 16.2% over that stretch · deepest drop along the way 41.3%, back to its old high 51 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 45.5% over that stretch · deepest drop along the way 46.9%, back to its old high 12.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 62.6% over that stretch · deepest drop along the way 20.9%, back to its old high 13.5 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 3 sales ($14.0M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Nov 12, 2025 | Jeffrey J II Jones President & CEO, Director | sell | $8.2M |
| Nov 19, 2025 | Jeffrey J II Jones President & CEO, Director | sell | $5.7M |
| Sep 30, 2026 | Mark J. Darling Chief Retail Officer | sell | $110K |
Who owns it
Large shareholders (13G filings)
| FMR LLC | 11.5% | Dec 31, 2025 |
| AQR Capital Management, LLC | 7.59% | Jun 30, 2026 |
| Vanguard Capital Management | 5.22% | Mar 31, 2026 |
| Vanguard Portfolio Management | 4.97% | Jun 30, 2026 |
ETFs with the most weight in HRB
| LSAT Leadershares Alphafactor Tactical Focused ETF | 3.62% |
| UDI USCF Dividend Income Fund | 2.89% |
| QVAL Alpha Architect U.S. Quantitative Value ETF | 2.31% |
| MBOX Freedom Day Dividend ETF | 2.19% |
| OUSM ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF | 1.92% |
| RFDA RiverFront Dynamic US Dividend Advantage ETF | 1.85% |
| VLLU Harbor AlphaEdge Large Cap Value ETF | 1.82% |
| SOVF Sovereign's Capital Flourish Fund | 1.3% |
What could go wrong
- Government could make tax filing simpler. If the IRS or states pre-fill and calculate returns, change refund timing or rewrite tax laws, fewer people may need paid preparers or refund products, and prices could fall.
- Competition, free products and AI. Software firms, accountants and independent preparers compete hard on price, and free offers can pull clients away. The 10-K also flags artificial intelligence as a competitive, operational and reputational risk.
- A short, high-stakes tax season. Most revenue arrives from February to April. A systems outage, IRS processing problems, or trouble hiring and training tens of thousands of seasonal staff in that window could hurt a whole year.
- Dependence on a partner bank and vendors. Refund Transfers, Refund Advance loans and the Emerald card all run through a bank partner. Losing a key vendor, or errors by one, could materially hurt results.
- Data breaches and refund fraud. H&R Block holds sensitive personal and financial data for millions of clients. A breach, privacy lapses or failure to stop fraud could bring fines, lawsuits and damage to a trusted brand.
- Debt and funding costs. Total debt of $1.49 billion exceeded cash and investments of $959 million as of June 30, 2026. Higher rates or credit downgrades could raise funding costs, and payouts are not assured.
Recent events
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Quarterly results released
- Quarterly results released
- Executive or board change
- Shareholder vote results
- Quarterly results released
For income and retirement investors
Dividends per share rose every year from $1.08 in fiscal 2022 to $1.68 in fiscal 2026 (ended June 30, 2026), a 12.0% increase on the prior year. Fiscal 2026 dividends used 28.8% of earnings and 27.9% of free cash flow (cash left after running and investing in the business). The yield was 3.6% as of October 28, 2026. The company also repurchased 10.5 million shares in fiscal 2026, and its share count fell 29.8% from October 2021 to July 2026. Debt of $1.49 billion exceeded cash and investments of $959 million at June 30, 2026.
The shares fell 41.3% in the 2008 financial crisis and took 51 months to recover, and fell 46.9% in the 2020 COVID crash, recovering in about 12 months. In the 2022 bear market they rose 62.6% while the market fell. Their worst drop in the year to October 28, 2026 was 45.6%. Single stocks such as H&R Block carry more risk than diversified funds.
Questions investors ask
How does H&R Block make money?
By charging fees to prepare tax returns and selling related products. In fiscal 2026 (ended June 30, 2026), it prepared 11.3 million US assisted returns and clients filed 3.6 million paid do-it-yourself online returns, for total revenue of $3.95 billion. US franchisees pay it about 30% of their tax preparation revenue as a royalty. It also earns from add-ons such as Refund Transfers, the Peace of Mind extended service plan and Tax Identity Shield, and from small-business bookkeeping and payroll through Block Advisors and Wave.
Does H&R Block raise its dividend every year?
It raised it every year from fiscal 2022 through fiscal 2026, though future increases are not guaranteed. Dividends per share went from $1.08 to $1.68, including a 12.0% rise from $1.50 in fiscal 2026, which ended June 30, 2026. Fiscal 2026 dividends used 28.8% of earnings and 27.9% of free cash flow, which leaves some cushion. The yield was 3.6% as of October 28, 2026. The 10-K warns that dividends depend on several factors and cannot be assured.
What is H&R Block's P/E ratio?
It was 8.4 as of October 28, 2026, based on fiscal 2026 earnings, with a market value of about $5.9 billion. The price-to-earnings (P/E) ratio compares the share price with profit per share, and a low figure can signal doubts about growth. Revenue grew 2.9% a year on average over the five years to fiscal 2026. The share price fell 2.6% in the year to October 28, 2026, while its five-year return was 19.3% a year.
Why does H&R Block lose money in some quarters?
Because most of its business is packed into tax season. Most clients file between February and April, so a substantial majority of tax preparation revenue is earned then. The company generally operates at a loss in the first two quarters of its fiscal year, July through December. Its workforce grows from about 4,600 regular full-time associates to a peak of about 73,400 including seasonal workers, so hiring and training each season is a major operational task.
Could free government tax filing hurt H&R Block?
Yes, and the company lists government changes to tax filing first among its risk factors. Federal and state governments have considered proposals to use data from employers, financial institutions and other payers to pre-fill and calculate returns for taxpayers. H&R Block also names the IRS and other tax authorities as competitors and warns that free products could cut its revenue and profits. Wider simplification could reduce demand for paid preparation and refund-related products.