H&R Block reported a 10.2% increase in revenue for the first quarter of fiscal 2027, while its operating expenses rose faster and its losses widened. The tax-preparation company reaffirmed its full-year outlook and said it repurchased $100 million of shares during the quarter as part of its capital-return strategy.
The quarter ended September 30, 2026. H&R Block said first-quarter results are typically modest relative to the full year and usually include a net loss because of the seasonal nature of its business.
Key details
- Revenue grew to $224.3 million, up $20.8 million from a year earlier. The company attributed the increase to growth in international services, tax-protection and identity services, small-business services, and U.S. tax preparation.
- Operating expenses rose 11.1% to $456.2 million, an increase of $45.6 million. Higher field compensation and benefits, general corporate expenses, and occupancy and equipment costs were the main drivers.
- H&R Block recorded $8 million in severance and related costs tied to a previously announced seasonal office leadership transition. The charge was excluded from the company’s adjusted results.
- Net loss from continuing operations widened to $188.1 million, from a loss $22.8 million smaller a year earlier. Loss per share increased 21.4% to $1.53.
- On an adjusted basis, net loss from continuing operations was $172.1 million, up $14.9 million, or 9.5%, from the prior year. Adjusted loss per share increased 16.7% to $1.40.
- The company said it repurchased $100 million of shares during the quarter. It also declared a quarterly dividend of $0.46 per share, payable January 6, 2027, to shareholders of record on December 3, 2026.
- H&R Block reaffirmed its fiscal 2027 outlook. The announcement did not provide the outlook figures in the material presented here.
What it means
Revenue growth came alongside a faster increase in operating expenses, and both reported and adjusted losses widened. The company said the quarter’s losses fit its usual seasonal pattern. Its share repurchases and dividend reflect continued capital returns to shareholders while it also invests in the business.