
(in 000s)
As of	December 31, 2025				June 30, 2025
	Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	19,476	$	14,773	$	7,386	$	16,402
Receivables for U.S. assisted and DIY tax preparation and related fees	11,157		6,696		15,896		6,361
H&R Block's Instant Refund® receivables	442		1,097		2,243		939
Emerald Advance®	287,316		24,081		13,899		22,816
Software receivables from retailers	2,409		—		2,582		—
Royalties and other receivables from franchisees	6,658		—		4,414		—
Wave payment processing receivables	7,513		—		1,533		—
Other	17,509		633		15,668		498
Total	$	352,480	$	47,280	$	63,621	$	47,016

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. Loans with a principal balance more than 90 days past due or on non-accrual status were $3.0 million and $3.1 million as of December 31, 2025 and June 30, 2025, 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, 2025 are as follows:


			(in 000s)

Tax return year of origination	Balance		More Than 60 Days Past Due
2024	$	978	$	918
2023 and prior	561		561

	1,539		$	1,479
Allowance	—
Net balance	$	1,539

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, 2025 are as follows:


(in 000s)
Fiscal year of origination	Balance		Non-Accrual
2026	$	294,761	$	—
2025 and prior	36,529		36,529

	331,290		$	36,529
Allowance	(19,893)
Net balance	$	311,397

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, 2025 and 2024 is as follows:


(in 000s)
	EAs		All Other		Total
Balances as of July 1, 2025	$	19,663	$	45,156	$	64,819
Provision for credit losses	19,893		1,251		21,144
Charge-offs, recoveries and other	(19,663)		(44,627)		(64,290)
Balances as of December 31, 2025	$	19,893	$	1,780	$	21,673
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

For the six months ended December 31, 2025, there were $19.7 million of gross charge-offs related to EAs which were originated in fiscal year 2025.