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HRB NYSE Russell 1000 Earnings call

H&R Block (HRB) · Q2 2026 results and valuation

Share price: $50.98 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 11 Aug 2026 and 6 May 2026

Net income down 65.4% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

−65.4%

Net income vs Q1 2026

Outlook given

Net income 293.7M vs 847.9M

Revenue −52.3%

Against the same quarter last year (Q2 2025) it is −1.9% — part of the move on last quarter is seasonal.

2 · How management spoke

Typical

More upbeat than 63% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

Guidance

HRB is guiding to an additional 80 basis points of margin expansion at the midpoint for fiscal 26 after delivering the same amount in the previous…

Valuation

Is H&R Block undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2026-06-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 4.4% growth a year (3-year revenue growth), the model's fair value is $92.93 a share — the stock trades 45% below it. Today's price assumes −4.0% growth a year.

Current price

$50.98

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

-4.0% for 10 yrs

Fair value / share

$92.93

Buy below

$69.70

Price vs fair value

Undervalued 45%

Price vs buy-below price

Undervalued 27%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    I think, obviously, H&R Block is very proud of the fact that it can maintain its long term algorithm and.

    Source quote
    “And I think, obviously, we are very proud of the fact that we can maintain our long term algorithm and, at the same time... I think a testament to the work that we are doing internally to drive cost out in other parts of the business and still be able to invest where we need to accelerate our strategy.”
  2. Guidance

    The company expects fiscal 2027 to be another year of free cash flow generation to be used for business investment.

    Source quote
    “And we expect fiscal 27 to be another strong year of free cash flow generation We will continue to use this cash flow to invest in the business...”
  3. Guidance

    Over the last few years, the percent of clients falling within H&R Block's target household AGI range of $50 thousand to $200...

  4. Fading

    Average refund amounts for H&R Block clients increased by approximately 11% and product attach grew by 550 basis points following recent tax law changes.

    Source quote
    “Recent tax law changes also contributed to positive client outcomes this season Coming out of the season, we saw a 550 basis point increase in product attach and clients reported greater comfort with the process. Average refund amounts for H&R Block clients increased by approximately 11%.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Typical (was typical)
Answers to analysts Typical (was restrained)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“Revenue and EBITDA growth as well as margin expansion all accelerated.”
“The growth we delivered this year was meaningfully stronger than what was achieved in recent years.”
“The progress we saw this year has increased our confidence that there are meaningful opportunities ahead, and we expect the pace of learning experimentation, and innovation to continue accelerating.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric Q2 2026period end 2026-06-30 Q1 2026period end 2026-03-31 Change Q2 2025 YoY
Revenue 1.14B 2.40B −52.3% 1.11B +3.0%
Gross profit — 1.37B 578.1M
Operating income 373.0M 1.02B −63.3% 367.8M +1.4%
Net income 293.7M 847.9M −65.4% 299.4M −1.9%
EPS 2.28 6.60 −65.5% 2.15 +6.0%
P/E today 7.4 6.7 5.7 +1.0 12.5 −5.8

Topics

Most discussed now

  • The results H&R Block delivered this year and the evidence behind them give us greater confidence that it can further accelerate...
  • H&R Block also generated strong cash flow, and returned $714 million to shareholders through dividends and share repurchases.
  • This marked Wave's second consecutive year of double digit revenue growth driven by H&R Block's paid Pro-Tier subscriptions and higher…
  • This was supported by higher conversion, better retention, and a mixed shift towards more complex clients who value confidence and...
  • This increase was primarily driven by higher net average charge or NAC and company owned volume in US assisted tax...

Faded since Q1 2026

  • Dropped There could be an adjustment back to a normal, and H&R Block might see refund amounts decrease and balance dues increase.
  • Fading Those outcomes reflect capabilities H&R Block built steadily over the last year and that it further sharpened this season through…
  • Fading A key question surrounding H&R Block's performance has been when H&R Block stabilizes assisted channel market share.
  • Fading While H&R Block's assisted volume growth outpaced DIY, key underlying health metrics improved across the business.

Latest announcements

Official filings, newest first.

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