H&R Block, Inc. (HRB) Business Profile

What it does

H&R Block helps individuals and small businesses prepare tax returns and offers financial products and small business services. Founded in 1955, the company is headquartered in Kansas City. Curtis A. Campbell is its president and chief executive officer.

Customers can have a tax professional prepare a return in an office or virtually, or they can prepare and file it themselves using online, mobile or desktop software. A customer who prepares a return can also have a professional review and sign it. The office network includes both company-owned and franchised locations.

The company offers products connected to tax filing, including refund transfers, which let customers receive a refund and authorize payment of preparation fees from it. Other offerings include an extended service plan that provides audit representation and covers certain additional taxes resulting from H&R Block errors, subject to limits. Bank partners provide some of the financial products H&R Block distributes.

Outside individual tax preparation, Block Advisors provides small businesses with tax, bookkeeping and payroll services. Wave offers online bookkeeping, payroll and payment processing. H&R Block also distributes Spruce, a mobile banking app through which customers can receive tax refunds and use a debit card.

The company reports its continuing operations as a single segment.

How it makes money

Fiscal 2026 revenue: $3.95 billion. A quarterly revenue total is not provided here.

H&R Block earns fees when its professionals prepare tax returns and when customers use paid do-it-yourself products. Service revenues were $3.7 billion in fiscal 2026, representing 92.9% of revenue. Royalty, product and other revenues include payments from franchisees: in the U.S., franchisees pay approximately 30% of gross tax return preparation and related service revenues as a royalty.

The price and mix of returns affect revenue as well as the number prepared. U.S. assisted tax preparation revenue increased in fiscal 2026 as the net average charge and company-owned return volumes rose. H&R Block also bought franchise offices during the year; after an acquisition, the returns and associated revenue become company-owned rather than generating franchise royalties.

Customers can purchase services alongside tax preparation. Refund transfers allow fees to be paid from a customer’s refund, while the Peace of Mind plan provides audit representation and protection against certain additional taxes arising from company errors. In Canada, H&R Block advances refunds to some customers for a fee and receives the assigned refund from the tax authority.

Small business services provide revenue beyond the annual individual filing event. Wave earns subscription revenue and processes payments, while Block Advisors offers bookkeeping and payroll alongside tax services. These offerings can be used year-round, although tax preparation remains seasonal: a substantial majority of income tax preparation and related product revenue is earned from February through April in a typical year.

Customers and how it sells

H&R Block serves the general public, including individual taxpayers and small business owners. Its tax services and products are distributed primarily in the United States, Canada and Australia. Customers can choose an office visit, virtual assistance or self-service software, and some can combine self-preparation with a professional review.

In fiscal 2026, H&R Block prepared 11.3 million U.S. assisted tax returns, while clients filed 3.6 million paid DIY online returns. An assisted return is signed by a tax professional and accepted by the client; a paid DIY online return is prepared by the client using a paid product.

As of March 31, 2026, the network had 6,802 company-owned offices and 1,814 franchise offices. Desktop software is also sold through third-party retail stores. Wave serves small business owners online, while Block Advisors serves them through the office network and online and virtual channels.

H&R Block targets customers with more complex financial needs. The company says the portion of its clients in its target household adjusted gross income range of $50,000 to $200,000 increased from 38% to 50% over the last few years. Its customers include people with investment income and small business or sole proprietor needs.

Suppliers and costs

H&R Block depends on a seasonal workforce, including tax professionals, and on its ability to hire, train and supervise them. It had approximately 4,600 regular full-time associates as of June 30, 2026; its peak employment during fiscal 2026, including seasonal associates, was approximately 73,400. Tax professionals receive annual training on tax changes, filing practices, products and office practices.

The company also depends on office space and technology. Fiscal 2026 operating expenses increased $104.7 million, or 3.6%, with higher compensation and benefits, occupancy and technology costs. Field wages rose as tax professional wages increased alongside higher U.S. assisted preparation revenue. Occupancy costs rose with more leased offices, higher rent and office-related expenses; technology expenses increased with cloud spending.

Bank partners provide refund transfers and loans and issue the Emerald Card and Spruce debit card that H&R Block distributes. The company also incurs transaction-related costs: credit card and bank charges increased in fiscal 2026, partly because of higher small business payments transaction fees and card fees associated with tax preparation revenue.

Competitive position

H&R Block competes across assisted tax preparation, DIY products and small business financial solutions. Its competitors include tax preparation firms, software providers, accounting firms, independent preparers, certified public accountants and government organizations, including the IRS and state and foreign tax authorities. No individual competing company is identified.

Customers can use H&R Block’s tax professionals in offices or virtually, prepare their own returns, or request a professional review of a self-prepared return. H&R Block says it maintained its share of the assisted category in 2026 after two years of improving trends. That is a statement about its position within assisted preparation, not a numerical estimate of its share.

Our reading: The office and franchise network is a substantial source of reach, giving customers access to tax professionals across many locations, although independent preparers and accounting firms also offer human assistance. The company’s brand and recurring tax relationships support that reach, but customers have alternatives in both assisted and DIY preparation.

Our reading: The combination of digital tools and professional help provides a differentiated range of ways to serve customers, rather than an exclusive capability. The company also offers small business services beyond tax season, though those services face competition from other financial solution providers.

Growth opportunities

H&R Block’s growth initiatives include improving the assisted customer experience, using technology in tax preparation, expanding small business services and purchasing franchise offices. In fiscal 2026, revenue increased $184.4 million, or 4.9%, largely because of a higher net average charge and higher company-owned U.S. tax return volume. Wave revenue also increased as subscription revenue and payment volume rose.

The company is automating parts of tax preparation and prior-year return review. Its AI Tax Assist is offered with paid DIY online returns, and its Sidekick tool assists tax professionals. H&R Block says new clients who received Second Look returned at a rate more than 600 basis points higher than those who did not; it has automated and expanded that service.

H&R Block plans to expand a consultative client experience from pilot offices to a full designated market area for tax season 2027. It is also moving from seasonal office leadership to year-round leadership, with area experience leaders responsible for coaching and developing associates across a small number of offices.

For small businesses, the company is integrating Wave into a broader strategy that brings together advice, products and digital capabilities. It expects growth in small business services as that work continues. H&R Block also plans to keep acquiring franchise locations when opportunities arise. It expects tax preparation industry growth to moderate relative to its historical norm, citing slower job growth.

Structural risks

• Tax law and demand: Changes in applicable tax laws have affected, and may again affect, demand for H&R Block’s services and the prices it can charge. Government agencies also compete in tax preparation and filing.
• Seasonality and liquidity: Most tax preparation revenue arrives from February through April in a typical year. The company generally operates at a loss through the first two fiscal quarters and uses cash or borrowing to cover working capital needs outside tax season.
• Fraud, privacy and security: Failure to address fraud could materially affect the business. Evolving privacy and data-protection requirements could force changes to practices and increase costs, while noncompliance could lead to claims, fines and damages.
• Regulation and technology: Financial-services regulation could change the products the company can offer or its arrangements with partners. Evolving AI laws may add compliance requirements or limit how it develops and deploys technology.
• Workforce and execution: The business depends on recruiting and supervising seasonal tax professionals. Major technology defects or delays could lead to lost clients, delayed revenue, litigation or higher operating expenses.

Bottom line

Our reading

H&R Block is a tax-season business built around professional assistance and self-service filing, with small business and financial products extending its customer relationships. Its office network and range of channels provide reach, while recurring demand depends on clients returning and the company executing each filing season. Exposure to tax law, regulation, seasonal staffing and competition remains central to how the business operates.