RECEIVABLES

6 Months Ended

Dec. 31, 2024

Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]

NOTE 4: RECEIVABLES

Receivables, net of their related allowance, consist of the following:


(in 000s)
As of	December 31, 2024				June 30, 2024
	Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	19,764	$	20,861	$	5,917	$	16,498
Receivables for U.S. assisted and DIY tax preparation and related fees	9,823		5,440		18,440		5,332
H&R Block's Instant Refund® receivables	1,375		184		2,947		207
Emerald Advance®	266,110		23,643		17,867		21,360
Software receivables from retailers	2,073		—		1,029		—
Royalties and other receivables from franchisees	6,955		—		5,808		—
Wave payment processing receivables	693		—		1,078		—
Other	14,378		659		15,989		427
Total	$	321,171	$	50,787	$	69,075	$	43,824

Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets.

LOANS TO FRANCHISEES – Franchisee loan balances consist of term loans made primarily to finance the purchase of franchises and revolving lines of credit primarily for the purpose of funding working capital needs. As of December 31, 2024 and June 30, 2024, loans with a principal balance more than 90 days past due or on non-accrual status were $2.2 million and $1.1 million, respectively.

H&R BLOCK'S INSTANT REFUND® – H&R Block's Instant Refund® amounts are generally received from the Canada Revenue Agency within 60 days of filing the client's return, with the remaining balance collectible from the client.

We review the credit quality of our Instant Refund receivables based on pools, which are segregated by the tax return year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year, we charge-off the receivables and the related allowance to an amount we believe represents the net realizable value.

Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of December 31, 2024 are as follows:


			(in 000s)

Tax return year of origination	Balance		More Than 60 Days Past Due
2023	$	375	$	316
2022 and prior	1,184		1,184

	1,559		$	1,500
Allowance	—
Net balance	$	1,559

EMERALD ADVANCE® – We review the credit quality of our purchased participation interests in Emerald Advance® (EA) receivables based on pools, which are segregated by the fiscal year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. Typically, in December of each year, we charge-off the receivables and the related allowance for EAs to an amount we believe represents the net realizable value.

Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination, as of December 31, 2024 are as follows:


(in 000s)
Fiscal year of origination	Balance		Non-Accrual
2025	$	270,393	$	—
2024 and prior	38,469		38,469

	308,862		$	38,469
Allowance	(19,109)
Net balance	$	289,753

ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the six months ended December 31, 2024 and 2023 is as follows:


(in 000s)
	EAs		All Other		Total
Balances as of July 1, 2024	$	33,536	$	45,327	$	78,863
Provision for credit losses	19,109		1,618		20,727
Charge-offs, recoveries and other	(33,536)		(45,552)		(79,088)
Balances as of December 31, 2024	$	19,109	$	1,393	$	20,502
Balances as of July 1, 2023	$	27,386	$	35,108	$	62,494
Provision for credit losses	17,885		3,651		21,536
Charge-offs, recoveries and other	(27,714)		(37,613)		(65,327)
Balances as of December 31, 2023	$	17,557	$	1,146	$	18,703