H&R Block Inc

H&R Block delivered a clean beat across the board in fiscal Q3 2025, as the tax services giant posted adjusted diluted EPS of $5.38, clearing the $5.17 consensus estimate by 4.06%, while revenue climbed 4.2% year over year to $2.28 billion against expectations of $2.25 billion. The outperformance was anchored by strength in the company's Assisted tax preparation segment, which grew to $1.64 billion from $1.53 billion in the prior-year period, driven by higher net average charge and increased company-owned return volumes, a reflection of the redesigned client experience CEO Jeff Jones has credited with improved satisfaction scores and market share gains. DIY tax preparation added to the momentum, rising to $214.67 million, though international revenue softened to $60.44 million. Notably, free cash flow has significantly exceeded reported profit in recent periods, suggesting statutory earnings may understate underlying earning power. Management reaffirmed its full-year fiscal 2025 outlook, projecting revenue of $3.69 billion to $3.75 billion and adjusted diluted EPS of $5.15 to $5.35, with a favorable tax rate of approximately 13% expected to contribute roughly $0.50 in one-time EPS benefit.