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H&R Block Inc. (HRB-0.21%) has submitted its Form 10-Q filing for the quarterly period ended December 31, 2024.
The filing details a net loss of $243.4 million for the quarter, compared to a net loss of $189.8 million in the same quarter the previous year. The company attributes this increase in net loss primarily to higher operating expenses.
Total revenues for the quarter remained relatively flat at $179.1 million, with slight variations across different service lines. U.S. tax preparation and related services revenue decreased by 1.2% to $98.2 million, while international revenues increased by 7.6% to $31.8 million.
Operating expenses increased by 5.8% to $472.4 million, driven by higher wages, occupancy costs, and marketing expenses. Field wages increased by 4.8%, and marketing expenses rose by 31.5%.
Interest and fee income on Emerald Advance® decreased by 19.2%, reflecting a reduction in loans originated during the quarter.
The company reported an income tax benefit of $69.8 million, compared to $93.8 million in the previous year, resulting in an effective tax rate of 22.4% for the quarter.
H&R Block's balance sheet shows total assets of $2.7 billion, with cash and cash equivalents of $320.1 million as of December 31, 2024.
The company continues to execute its share repurchase program, with $400.1 million of common stock repurchased during the six months ended December 31, 2024.
H&R Block maintains a committed line of credit with a capacity of $1.5 billion, with $790 million drawn as of the end of the quarter.
The filing also discusses various legal proceedings and contingencies, including a resolution with the Federal Trade Commission regarding allegations related to its DIY tax preparation services.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the H&R Block Inc. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.