H&R Block(HRB) - 2025 Q1 - Quarterly Report

Revenue Performance - Total revenues increased by $10.0 million, or 5.4$193.8 million for the three months ended September 30, 2024, compared to the prior year[36] - U.S. assisted tax preparation revenues rose by $3.7 million, or 9.4$4.3 million, or 7.1%, primarily due to higher tax return volumes in Australia and favorable foreign currency exchange rates[38] Operating Expenses - Total operating expenses rose by $32.0 million, or 8.2$5.7 million, or 9.1%, due to higher tax professional wages[38] - Marketing and advertising expenses surged by $4.5 million, or 81.9$171.4 million, compared to a loss of $162.9 million in the prior year, reflecting an increase of$8.5 million, or 5.2%[36] - Basic and diluted loss per share for continuing operations was $(1.23), compared to$(1.11) in the prior year, representing a decrease of 10.8%[36] - Adjusted diluted loss per share from continuing operations was $(1.17) for the three months ended September 30, 2024, compared to$(1.05) in the prior year[56] Cash Flow and Financing Activities - Cash used in operating activities totaled $328.6 million for the three months ended September 30, 2024, compared to$335.0 million in the prior year[45] - Cash used in financing activities increased to $284.5 million, up from$195.2 million in the prior year, primarily due to higher repurchases of common stock[45] Tax and Dividends - The effective tax rate for the three months ended September 30, 2024, was 26.2%, compared to 23.3% in the prior year[40] - Dividends paid totaled $44.7 million for the three months ended September 30, 2024, compared to$43.0 million for the same period in 2023, reflecting a year-over-year increase of 3.95%[46] Share Repurchase and Capital Expenditures - The company repurchased $209.6 million of its common stock at an average price of$63.51 per share during the three months ended September 30, 2024, compared to $132.0 million at an average price of$40.43 per share in the prior year period, indicating a significant increase in repurchase activity[46] - Capital expenditures increased to $18.7 million for the three months ended September 30, 2024, up from$12.9 million in the same period of 2023, representing a 45% increase[47] Acquisitions and Commitments - The company acquired franchisee and competitor businesses totaling $5.9 million during the three months ended September 30, 2024, compared to$6.9 million in the prior year period[47] - The company has a remaining commitment to purchase additional federal Investment tax credits (ITCs) estimated to be $74.0 million, with the final payment anticipated by June 30, 2025[48] Cash Position - As of September 30, 2024, the company held cash and cash equivalents of$415.9 million, including $183.5 million held by foreign subsidiaries[48]