5 Must-Read Analyst Questions From H&R Block’s Q2 Earnings Call

August 19, 2025 at 01:30 AM EDT

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H&R Block’s second quarter results showed steady revenue growth, with management attributing performance to increased traction among higher-income clients and continued growth in its small business and digital services. CEO Jeffrey Jones highlighted the company’s success in expanding its assisted and DIY tax offerings, noting a third consecutive year of client growth for households earning above $100,000. Despite these operational gains, non-GAAP profit fell below Wall Street expectations, a result CFO Tiffany Mason linked to higher operating expenses, including increased wages, elevated healthcare costs, and legal settlements.

Is now the time to buy HRB? Find out in our full research report (it’s free).

H&R Block (HRB) Q2 CY2025 Highlights:

Revenue: $1.11 billion vs analyst estimates of $1.09 billion (4.6% year-on-year growth, 1.6% beat)
Adjusted EPS: $2.27 vs analyst expectations of $2.83 (19.9% miss)
Adjusted EBITDA: $413.2 million vs analyst estimates of $419.1 million (37.2% margin, 1.4% miss)
Adjusted EPS guidance for the upcoming financial year 2026 is $4.93 at the midpoint, missing analyst estimates by 4.3%
EBITDA guidance for the upcoming financial year 2026 is $1.03 billion at the midpoint, in line with analyst expectations
Operating Margin: 33.4%, in line with the same quarter last year
Market Capitalization: $6.75 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From H&R Block’s Q2 Earnings Call

Kartik Mehta (Northcoast Research) asked about growth expectations for the assisted and DIY segments next year. CEO Jeffrey Jones responded that a similar shift toward assisted services is expected, using the prior year as a baseline due to ongoing regulatory changes.
Scott Schneeberger (Oppenheimer & Company) inquired about how leadership transition might impact strategy and long-term objectives. Jones emphasized continuity, stating Curtis has been integral to developing the current strategy and no major changes are planned.
Schneeberger (Oppenheimer & Company) also pressed CFO Tiffany Mason about elevated legal and healthcare costs and their impact on next year’s margin guidance. Mason explained that these costs have been included in the new outlook, with realignment actions expected to create additional cost savings.
Schneeberger (Oppenheimer & Company) followed up asking whether regulatory changes are a tailwind for assisted business. Mason agreed, describing ongoing changes as cautiously optimistic contributors already reflected in guidance.
Keen Fai Tong (Goldman Sachs) questioned Mason about achieving a healthier balance of volume, price, and mix, and the determinants of reaching the high or low end of guidance. Mason explained that further improvements in client conversion and driving qualified top-of-funnel demand are key swing factors.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) progress on converting more clients who start tax filings but do not complete them, (2) the impact of ongoing AI and digital enhancements on client retention and acquisition, and (3) execution on small business and franchise expansion strategies. The CEO transition and its effect on strategic continuity will also be an important marker for future performance.

H&R Block currently trades at $50.42, down from $51.44 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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5 Must-Read Analyst Questions From H&R Block’s Q2 Earnings Call

H&R Block (HRB) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From H&R Block’s Q2 Earnings Call

Catalysts in Upcoming Quarters

High-Quality Stocks for All Market Conditions

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