H&R Block, Inc. (HRB)

In the past six months, H&R Block's stock experienced an 11.1% year-over-year increase in revenue, reaffirming its full-year outlook, and declared a quarterly cash dividend of $0.42 per share. However, the stock price saw a significant decline due to factors such as a missed EPS guidance, the transition of CEO Jeffrey Jones, concerns about AI's impact, and poorly timed share buybacks. Despite this, Lodge Hill Capital initiated a new position in H&R Block during the fourth quarter of 2025.

H&R Block's business is highly seasonal, with demand peaking during the U.S. tax season around April, significantly impacting the company's earnings and cash flow. The company's hiring practices also reflect this seasonality. Diversification into small business services and financial products aims to create more year-round revenue streams.

H&R Block, Inc. provides tax preparation and financial services in the United States, Canada, and Australia, offering assisted income tax return preparation, DIY tax software, and virtual tax preparation services. The company also provides services for small businesses through Block Advisors and Wave platforms, and has expanded into financial products with its Spruce mobile banking app and the Emerald Card. Founded in 1955, H&R Block has prepared over 800 million tax returns worldwide and is investing in digital innovation and AI to enhance its services.

H&R Block's geographic footprint spans the United States, Canada, and Australia. As of January 2026, the company had 17,379 locations in the USA. Globally, as of 2018, H&R Block operated approximately 12,000 retail tax offices. The company also established its first Global Technology Center in India in October 2017.

H&R Block has received positive recognition for its services and technological advancements, including being named "Best Overall Tax Service 2026" and "Best Use of AI" by CNET. However, some users expressed dissatisfaction with the H&R Block 2025 software, citing difficulties with importing files, unclear questions, unhelpful support, and delays in finalizing forms. Despite these criticisms, H&R Block emphasizes its long-standing reputation as a trusted brand, its commitment to transparent pricing, and the expertise of its tax professionals.

H&R Block's ownership is predominantly institutional, with institutional investors and hedge funds holding between 90.14% and 95.17% of the company's stock. Major institutional owners include BlackRock, Inc., Fmr Llc (Fidelity), and Vanguard Group Inc. The largest individual shareholder is Richard C. Breeden, who holds a substantial 15.27% to 15.31% of the company's shares. Insider activity in November 2025 included CEO Jeffrey J. Jones II selling 128,818 shares.