H&R Block (NYSE:HRB) reported fiscal 2026 second-quarter revenue of $199 million, up 11% year over year, as the company pointed to higher assisted tax preparation volume and net average charge (NAC), continued double-digit growth at Wave, and higher DIY software sales. Management reiterated that the business is highly seasonal and that the second quarter typically represents roughly 5% of annual revenue and usually produces a net loss.
New CEO outlines client-focused strategy and tax-season priorities
President and CEO Curtis Campbell, who said he stepped into the role in January, framed the company’s priorities around “expert-led, technology-enabled experiences” and reducing friction for clients across assisted, digital, and omnichannel offerings. Campbell said the company is focused on attracting and converting new clients, retaining existing ones, and ensuring the overall experience reinforces value for the price paid.
Experience updates: Second Look expansion, DIY enhancements, and AI tools
Management detailed multiple initiatives aimed at improving the client and tax pro experience during the 2026 tax season. A central theme was using technology and AI to improve consistency, reduce manual processes, and broaden access to services.
- Second Look: Campbell said the company has transformed its “Second Look” service—reviewing the last three years of a new client’s returns to identify errors or missed refunds—from a niche offering into a core part of new-client onboarding. He said H&R Block is scaling the service using technology to deepen engagement and improve retention.
- DIY product updates: Campbell said customers using the company’s paid online DIY products will see a stronger value proposition, including AI Tax Assist and access to human help. He noted that CNET named H&R Block the “best online tax product for 2026.” He also said new DIY clients can receive Second Look at no cost, and new early-season filers are being offered a free “Tax Pro Review,” which includes a professional review of a completed return and supporting documents.
- Assisted channel AI support: Campbell said the company has nationally launched an AI-enabled tax pro assistant that provides real-time guidance during client interactions. He positioned it as particularly relevant in a year of tax law change.
- Workflow and consistency tools: Campbell pointed to features such as “save-the-date,” two-year comparisons, and more consistent personalized product offerings, supported by automation.
Quarterly results: higher revenue, seasonal loss, and expense drivers
Chief Financial Officer Tiffany Mason said the revenue increase was “primarily driven” by higher assisted tax preparation volume and NAC, double-digit Wave growth, and higher DIY software sales. In company-owned offices, Mason said demand remained strong through the end of the extension season and conversion improved year over year. She added that NAC increased due to a favorable mix of more complex clients and “disciplined pricing actions.”
At Wave, Mason said results were driven by the high-margin subscription product Pro Tier and increased payments volume. She said the company remains committed to fully integrating Wave into H&R Block’s small business solution by year-end.
Mason also said the company completed its Emerald Advance offer period during the quarter, with applications exceeding expectations and average loan amounts above the prior year, resulting in favorable loan volume.
Total operating expenses were $498 million, up 5% year over year. Mason said the increase was primarily due to higher field wages associated with higher assisted revenue and increased consulting costs tied to a Strategic Sourcing and Cost Optimization Initiative, which she said is expected to drive sustainable savings over the next several years. In the Q&A, Mason said the consulting engagement was completed in the first half of the year and was contemplated in the company’s outlook.
Second-quarter EBITDA loss was $266 million compared with a $261 million loss a year ago. The effective tax rate was 24.3% versus 22.4% in the prior year. Net loss from continuing operations was $242 million, which Mason said represented a 40-basis-point improvement year over year. Loss per share from continuing operations was $1.91, while adjusted loss per share was $1.84 compared with $1.73 last year. Mason noted that in loss quarters, fewer shares outstanding can increase loss per share, even when the net loss improves.
Outlook reaffirmed; early-season commentary and share discussion
Management reaffirmed fiscal 2026 guidance: revenue of $3.875 billion to $3.895 billion, EBITDA of $1.015 billion to $1.035 billion, an effective tax rate of approximately 25%, and adjusted EPS of $4.85 to $5.00. Mason said key assumptions include industry growth of about 1%, continued focus on balancing volume, price, and mix, prioritization of assisted and paid DIY, and an expanding contribution from small business. She also cited continued franchise acquisitions at attractive EBITDA multiples as a potential use of capital.
On capital allocation, Mason said the company returned $508 million to shareholders in the first half through dividends and share repurchases and has about $700 million remaining under its current repurchase program.
In the Q&A, Campbell said the company saw no material impact from a partial government shutdown and that tax professionals were prepared to guide clients through uncertainty. He and Mason reiterated the expectation for roughly 1% industry growth and said tax law-driven complexity could be a tailwind for assisted filing. Campbell said the company still expects low single-digit price increases across assisted and DIY.
Asked about refund trends, Campbell said it was too early to confirm data, but he expects some taxpayers could see slightly higher refunds based on changes he cited, including a $750 increase in the standard deduction and other changes such as deductions related to tips income, overtime pay, a new senior deduction, and an increased SALT deduction.
In response to questions about assisted market share, Campbell said the company has historically lost too many clients in the “mid to lower funnel,” attributing part of the challenge to manual processes and inconsistent execution. He said the company is using technology to automate workflows and improve funnel management, but characterized it as a multi-year effort. He added that the high end of the company’s guidance range assumes H&R Block holds share in assisted.
Campbell also said the company does not view AI-enabled DIY tools as a long-term threat to assisted preparation, arguing that many clients seek confidence, trust, and judgment from a tax professional. He described the company’s long-term direction as enabling “blended experiences” where DIY clients can connect with tax pros when they need support.
About H&R Block (NYSE:HRB)
H&R Block (NYSE: HRB) is a leading provider of tax preparation services and software solutions, serving individual and small-business clients through a combination of retail offices, online platforms and mobile applications. The company offers assisted tax preparation at its network of retail offices, where clients work with trained tax professionals, as well as do-it-yourself (DIY) software and online filing services designed to guide users through the complexities of federal and state tax returns.
Founded in 1955 by brothers Henry W.
