📊 HRB Key Takeaways
Is HRB a Good Investment? Thesis Analysis
H&R Block is in severe financial distress with negative stockholders' equity of -$823.1M, operating losses consuming 133% of revenue, and negative free cash flow of -$1.0B annually. The company is unsustainable at current burn rates and cannot service its $2.4B debt burden from operations, creating imminent solvency risk.
Why Buy HRB? Key Strengths
- Modest revenue growth of 4.2% YoY shows core business demand persists
- Current ratio of 1.29x provides near-term liquidity buffer
- Cash position of $349.2M allows some operational flexibility
HRB Investment Risks to Consider
- Negative equity of -$823.1M indicates technical insolvency and balance sheet deterioration
- Operating cash flow of -$970.8M is structurally unsustainable without external capital
- Negative interest coverage of -13.1x means inability to service debt from operations
- Operating margin of -133.1% and net margin of -101.4% reflect fundamental unprofitability
- Free cash flow of -$1.0B annually with $349.2M cash reserves implies 4-5 months of runway
Key Metrics to Watch
- Operating cash flow trajectory - must turn positive for viability
- Stockholders' equity - recovery essential to avoid insolvency
- Operating margin - path to profitability must stabilize at minimum
- Debt refinancing success - access to capital markets critical for survival
HRB Financial Metrics
💡 AI Analyst Insight
H&R BLOCK INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HRB Profitability Ratios
HRB vs Default Sector
How H&R BLOCK INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HRB Overvalued or Undervalued?
Based on fundamental analysis, H&R BLOCK INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HRB Balance Sheet & Liquidity
HRB 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: H&R BLOCK INC's revenue has grown significantly by 10% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.51 reflects profitable operations.
HRB Growth Metrics (YoY)
HRB Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $179.1M | -$165.8M | N/A |
| Q3 2025 | $2.2B | -$163.5M | $2.21 |
| Q2 2025 | $179.1M | -$163.5M | N/A |
| Q1 2025 | $183.8M | -$163.5M | N/A |
| Q3 2024 | $2.1B | -$163.5M | $1.58 |
| Q2 2024 | $166.4M | -$163.5M | N/A |
| Q1 2024 | $180.0M | -$163.5M | N/A |
| Q3 2023 | $2.1B | -$151.6M | $1.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HRB Capital Allocation
HRB SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for H&R BLOCK INC (CIK: 0000012659)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HRB
What is the AI rating for HRB?
H&R BLOCK INC (HRB) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRB's key strengths?
Claude: Modest revenue growth of 4.2% YoY shows core business demand persists. Current ratio of 1.29x provides near-term liquidity buffer.
What are the risks of investing in HRB?
Claude: Negative equity of -$823.1M indicates technical insolvency and balance sheet deterioration. Operating cash flow of -$970.8M is structurally unsustainable without external capital.
What is HRB's revenue and growth?
H&R BLOCK INC reported revenue of $402.4M.
Does HRB pay dividends?
H&R BLOCK INC pays dividends, with $104.6M distributed to shareholders in the trailing twelve months.
Where can I find HRB SEC filings?
Official SEC filings for H&R BLOCK INC (CIK: 0000012659) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HRB's EPS?
H&R BLOCK INC has a diluted EPS of $4.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HRB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, H&R BLOCK INC has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HRB stock overvalued or undervalued?
Valuation metrics for HRB: ROE of N/A (sector avg: 15%), net margin of -101.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HRB stock in 2026?
Our dual AI analysis gives H&R BLOCK INC a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HRB's free cash flow?
H&R BLOCK INC's operating cash flow is $-970.8M, with capital expenditures of $48.7M. FCF margin is -253.4%.
How does HRB compare to other Default stocks?
Vs Default sector averages: Net margin -101.4% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.29 (avg: 1.8).