v3.25.4
Segment Reporting
 6 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Disclosure
NOTE 10: SEGMENT INFORMATION
We provide assisted and DIY tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded services and products, including those of our bank partners, to the general public primarily in the U.S., Canada and Australia. Tax returns are prepared by H&R Block tax professionals in one of our company-owned or franchise offices, virtually or via an online review, or they are prepared and filed by our clients through our DIY tax solutions. We also offer small business solutions through our company-owned and franchise offices (including in-person, online and virtual) and online through Wave. We report a single segment that includes all of our continuing operations. The majority of our revenues are from our U.S. tax services business.
The Company's Chief Operating Decision Maker (CODM) is our chief executive officer, who regularly reviews consolidated financial information to evaluate financial performance and allocate resources. Specifically, the CODM uses revenues, operating expenses, net income and EBITDA at a consolidated level, as key financial metrics in deciding how to reinvest to grow the business. These financial metrics are used by the CODM to make operating decisions and identify growth opportunities. The measure of segment assets is total consolidated assets as presented on the consolidated balance sheet.
The following table presents the significant revenue and expense categories included in the segment's net income from continuing operations as regularly provided to the CODM on a consolidated basis and then reconciled to net income for the three and six months ended December 31, 2025 and 2024.
Consolidated – Financial Results(in 000s, except per share amounts)
Three months ended December 31,Six months ended December 31,
2025202420252024
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation$55,919 $48,380 $104,563 $91,343 
Royalties5,108 3,499 10,957 9,351 
DIY tax preparation16,807 13,744 20,552 16,980 
Refund Transfers638 637 1,481 1,497 
Peace of Mind® Extended Service Plan16,231 16,145 39,740 39,242 
Tax Identity Shield®4,244 4,013 8,366 7,922 
Emerald Card® and SpruceSM
9,124 10,148 16,976 18,974 
Interest and fee income on Emerald Advance®13,446 12,308 13,446 12,308 
International34,718 31,811 100,379 96,666 
Wave29,785 26,561 59,635 52,964 
Other12,845 11,824 26,321 25,633 
Total revenues$198,865 $179,070 $402,416 $372,880 
Compensation and benefits:
Field wages94,177 81,565 163,892 149,659 
Other wages73,005 78,731 152,284 156,066 
Benefits and other compensation39,989 38,402 76,651 77,156 
207,171 198,698 392,827 382,881 
Occupancy109,592 104,999 212,388 206,317 
Marketing and advertising14,995 14,863 23,337 24,835 
Depreciation and amortization30,001 29,195 58,923 58,026 
Bad debt21,816 19,416 24,021 22,146 
Other114,169 105,190 196,830 200,297 
Total operating expenses497,744 472,361 908,326 894,502 
Other income (expense), net3,034 2,744 11,136 14,661 
Interest expense on borrowings(23,378)(21,752)(40,780)(37,599)
Loss from continuing operations before income taxes(319,223)(312,299)(535,554)(544,560)
Income tax benefit(77,657)(69,833)(128,620)(130,673)
Segment net loss from continuing operations(241,566)(242,466)(406,934)(413,887)
Reconciliation of segment profit:
Reconciling items:
Net loss from discontinued operations(600)(954)(1,051)(2,109)
Net loss$(242,166)$(243,420)$(407,985)$(415,996)