📊 HRB Key Takeaways
Is H&R Block Inc. (HRB) a Good Investment?
H&R Block demonstrates solid operational profitability with 17.2% operating margins and exceptional free cash flow generation of $519.6M, but is hamstrung by a critically weak balance sheet featuring negative stockholders' equity of -$24.4M and tight liquidity at 1.00x current ratio. While the company generates sufficient cash to service its $1.5B debt load (7.4x interest coverage), the inverted capital structure—accumulated via aggressive share buybacks—leaves minimal financial flexibility for business disruptions.
While revenue is growing modestly and EPS shows YoY improvement, the latest fundamentals reflect deeply negative profitability, cash burn, and negative equity. Liquidity is serviceable, but high leverage and negative interest coverage heighten financial risk. A clear and sustained recovery in operating and free cash flow is needed before a more constructive stance is warranted.
Why Buy H&R Block Inc. Stock? HRB Key Strengths
- Strong FCF generation at $519.6M ($19.6M margin) with low capex requirements ($67.1M)
- Healthy operating margins at 17.2% and net margins at 15.7% demonstrating pricing power
- Adequate cash position of $867.0M and solid interest coverage at 7.4x to manage debt obligations
- Revenue growth (+4.2% YoY)
- EPS growth (+6.6% YoY) suggesting underlying earnings resilience
- Adequate near‑term liquidity (current ratio 1.29x; $349M cash)
HRB Stock Risks: H&R Block Inc. Investment Risks
- Negative stockholders' equity of -$24.4M indicates balance sheet insolvency despite operational profitability—unsustainable capital structure
- Minimal liquidity cushion with current and quick ratios both at 1.00x limits ability to weather revenue shocks
- Net income flat YoY despite 4.2% revenue growth signals margin compression and operational headwinds
- Negative stockholders’ equity with high long‑term debt ($2.44B) elevates balance‑sheet risk
- Severely negative operating and free cash flow (FCF -$1.02B; OCF -$970.79M)
- Deeply negative margins and interest coverage (-13.1x) indicate strained profitability
Key Metrics to Watch
- Operating cash flow sustainability and free cash flow generation to assess ability to cover debt and manage negative equity
- Net margin trends and revenue growth alignment to identify whether profitability contraction will accelerate
- Working capital and liquidity position to determine financial flexibility under stress scenarios
- Free cash flow and operating cash flow trajectory
- Interest coverage and total debt trend
H&R Block Inc. (HRB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HRB Profit Margin, ROE & Profitability Analysis
HRB vs Services Sector: How H&R Block Inc. Compares
How H&R Block Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is H&R Block Inc. Stock Overvalued? HRB Valuation Analysis 2026
Based on fundamental analysis, H&R Block Inc. has mixed fundamental signals relative to the Services 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.
H&R Block Inc. Balance Sheet: HRB Debt, Cash & Liquidity
HRB Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
HRB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $2.3B | -$165.8M | $2.21 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
H&R Block Inc. Dividends, Buybacks & Capital Allocation
HRB SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of SELL from Claude (HOLD) and ChatGPT (SELL) with 65% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRB's key strengths?
Claude: Strong FCF generation at $519.6M ($19.6M margin) with low capex requirements ($67.1M). Healthy operating margins at 17.2% and net margins at 15.7% demonstrating pricing power. ChatGPT: Revenue growth (+4.2% YoY). EPS growth (+6.6% YoY) suggesting underlying earnings resilience.
What are the risks of investing in HRB?
Claude: Negative stockholders' equity of -$24.4M indicates balance sheet insolvency despite operational profitability—unsustainable capital structure. Minimal liquidity cushion with current and quick ratios both at 1.00x limits ability to weather revenue shocks. ChatGPT: Negative stockholders’ equity with high long‑term debt ($2.44B) elevates balance‑sheet risk. Severely negative operating and free cash flow (FCF -$1.02B; OCF -$970.79M).
What is HRB's revenue and growth?
H&R Block Inc. reported revenue of $2.8B.
Does HRB pay dividends?
H&R Block Inc. pays dividends, with $157.8M 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 $3.38.
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 May 2026, H&R Block Inc. has a SELL rating with 65% 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: 16%), net margin of 15.7% (sector avg: 10%). 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 SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HRB's free cash flow?
H&R Block Inc.'s operating cash flow is $586.7M, with capital expenditures of $67.1M. FCF margin is 18.6%.
How does HRB compare to other Services stocks?
Vs Services sector averages: Net margin 15.7% (avg: 10%), ROE N/A (avg: 16%), current ratio 1.00 (avg: 1.5).