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H&R Block (HRB) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed May 7, 2025
H&R Block (HRB) reported revenue of $2.3B for the third quarter fiscal 2025 (Q3 FY25), +4% from a year earlier and up 13-fold from the quarter before. Operating margin was 43.0%, net earnings $722M (31.7% of revenue).
H&R Block, Q3 FY25: revenue $2.3B (+4% year over year), operating margin 43.0%, net earnings $722M, operating cash flow $1.3B. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.3B | 13× | +4% |
| Operating profit | $978M | — | +5% |
| Net earnings | $722M | — | +5% |
| Operating cash flow | $1.3B | — | -3% |
| Free cash flow | $1.3B | — | -3% |
What changed
Revenue was $2.3B in Q3 FY25, up 4% year over year and up 1172% from the previous quarter. Assisted tax preparation was the largest line at 72% of revenue. Assisted tax preparation added $0.10B year over year (up 7%), 110% of the total change. Interest and fee income on Emerald Advance® declined 33%.
Operating profit was $1.0B, a 43.0% margin (up 0.5 points year over year). Of the extra revenue versus a year earlier, 54% reached operating profit, above the 42% margin then. Total costs grew 3% against revenue growth of 4%. Net earnings were $0.72B, up 5% year over year. The effective tax rate was 24.6%.
Operating cash flow was $1.3B (down 3% year over year), 183% of net earnings. Non-cash charges added back $0.03B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items added $0.57B. Capital expenditures of $0.02B left free cash flow of $1.3B.
Questions
What was H&R Block's revenue in the third quarter fiscal 2025?
H&R Block (HRB) reported revenue of $2.3B for the third quarter fiscal 2025 (Q3 FY25), +4% from a year earlier and up 13-fold from the quarter before.
Was H&R Block profitable in the third quarter fiscal 2025?
Operating profit was $978M (43.0% of revenue) and net earnings $722M.
Source: H&R Block 10-Q on SEC EDGAR.