H&R Block, Inc. (HRB) Stock Analysis
Consumer Cyclical · Personal Services
Hold if already holding. Not a fresh buy at $36.20, but acceptable to hold if already in. Reasons: Concentration risk — Counterparty: Pathward, N.A.; Concentration risk — Supplier: Microsoft Corporation.
H&R Block prepares taxes and offers related financial products for consumers in the U.S., Canada, and Australia through company-owned offices, franchise locations, and digital channels. In fiscal year 2025, the company filed 22.8 million returns and generated $3.8 billion in... Read more
Hold if already holding. Not a fresh buy at $36.20, but acceptable to hold if already in. Reasons: Concentration risk — Counterparty: Pathward, N.A.; Concentration risk — Supplier: Microsoft Corporation. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 5.9/10, moderate confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 56d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.
About H&R Block, Inc.
About H&R Block, Inc.
H&R Block filed 22.8 million tax returns in fiscal year 2025 — 11.3 million U.S. assisted returns and 3.8 million DIY online paid returns — generating $3.8 billion in consolidated revenues and $609.5 million in net income from continuing operations. The company operates in the U.S., Canada, and Australia through company-owned offices, franchise locations, and digital channels including mobile applications and desktop software. Seasonal staffing reached up to 70,100 associates during peak tax season, with roughly 4,300 regular full-time associates as of June 30, 2025.
H&R Block earns revenue from assisted tax preparation fees delivered in-person, virtually, and through Tax Pro Review; DIY digital products; and ancillary financial offerings including Refund Transfers, interest-free Refund Advance loans, H&R Block Emerald Advance term loans, and the Spruce mobile banking app. U.S. franchisees pay approximately 30% of gross tax return preparation and related service revenues as royalty. Small business solutions through Block Advisors and Wave add bookkeeping, payroll, and payment processing revenues. The business is highly seasonal: the substantial majority of revenues are earned from February through April, causing the company to operate at a loss through its first two fiscal quarters. Cloud computing services flow entirely through Microsoft Corporation (Azure), and financial product issuance — including RTs, EAs, RAs, Emerald Cards, and Spruce accounts — flows through Pathward, N.A. as single bank partner.
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Governmental encroachment in tax preparation has intensified: the IRS offered a limited free direct filing system in both tax seasons 2024 and 2025 and may continue or expand it, and the Free File, Inc. agreement under which private industry offers free DIY software to certain taxpayers is set to expire in October 2029. This structural threat could reduce demand for H&R Block's paid services if taxpayer adoption expands materially, a risk compounded by the highly seasonal revenue profile where disruption during the roughly three-month February-through-April window would be difficult to recover within the fiscal year.
See also: Consumer Cyclical · Personal Services
From H&R Block, Inc.'s most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-06-17Recent Developments — H&R Block, Inc.
Latest news
- NEWS HRB HR Block reports narrower Q1 2026 per share loss than estimates, dips 0.25 percent in today’s trading. - Newser — Newser neutral
- NEWS H&R Block (HRB) Projected to Post Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS H&R Block Q3 Preview: Price Correction Is A Blessing For The Long-Term Investor (NYSE:HRB) - Seeking Alpha — Seeking Alpha positive
- NEWS H&R Block (HRB) Q3 2026 Earnings Transcript - The Globe and Mail — The Globe and Mail neutral
- NEWS H&R Block (HRB) Tops Q3 Earnings and Revenue Estimates - Yahoo Finance — Yahoo Finance positive
Generated 2026-06-17T08:36:51Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHcounterpartyPathward, N.A.10-K Item 1A: 'contracted... with a single vendor or a limited number of vendors... Pathward®, N.A. (Pathward)... for the issuance of RTs, EAs, RAs, Emerald Cards, and Spruce accounts'
- HIGHSupplierMicrosoft Corporation10-K Item 1A: 'Our software and computer systems utilize cloud computing services provided by Microsoft Corporation'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $36.20, but acceptable to hold if already in. Reasons: Concentration risk — Counterparty: Pathward, N.A.; Concentration risk — Supplier: Microsoft Corporation. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Target $38.85 (+7.3%), stop $34.44 (−5.1%), A.R:R -1.1:1. Score 5.9/10, moderate confidence.
Take-profit target: $38.85 (+7.2% upside). Target $38.85 (+7.3%), stop $34.44 (−5.1%), A.R:R -1.1:1. Stop-loss: $34.44.
Concentration risk — Counterparty: Pathward, N.A.; Concentration risk — Supplier: Microsoft Corporation; Analyst target reached - limited upside remaining.
H&R Block, Inc. trades at a P/E of 6.5 (forward 6.2). TrendMatrix value score: 9.6/10. Verdict: Hold.
11 analysts cover HRB with a consensus score of 2.5/5. Average price target: $40.
What does H&R Block, Inc. do?H&R Block prepares taxes and offers related financial products for consumers in the U.S., Canada, and Australia through...
H&R Block prepares taxes and offers related financial products for consumers in the U.S., Canada, and Australia through company-owned offices, franchise locations, and digital channels. In fiscal year 2025, the company filed 22.8 million returns and generated $3.8 billion in revenue with $609.5 million net income from continuing operations. Revenue is concentrated in the February–April tax filing window.