H&R Block (HRB) Stock Forecast & Price Target

H&R Block Inc experienced a 5.5% increase in revenues for the first quarter, reaching $193.8 million, largely driven by higher volumes in company-owned locations and a rise in net average charges in the assisted tax preparation segment. The company’s management expressed confidence in achieving long-term revenue growth of 3-6%, supported by initiatives such as franchise acquisitions and the Wave digital platform, alongside projections for EBITDA growth at 1.5 times revenue growth and double-digit adjusted EPS growth annually. Despite an 8.2% rise in operating expenses, the overall outlook remains strong, with fiscal year 2026 estimates maintaining revenue at $3.837 billion and adjusted EPS anticipated to increase by 8.4% from the previous year.

H&R Block's Q2/25 revenues remained flat year-over-year at $179.1 million, falling slightly short of both internal estimates and market consensus, indicating stagnation in revenue growth. A significant decline of 53.7% in other income, coupled with lower interest and fee income from Emerald Advance, highlights challenges in the company's financial performance. Despite minor adjustments to the full-year guidance, the forecasts for revenue, EBITDA, and adjusted EPS reflect a reliance on narrow growth margins, which could raise concerns about the company's overall financial health and sustainability.