H&R Block Reports Fiscal 2026 Third Quarter Results
Rhea-AI Summary
H&R Block (NYSE: HRB) reported fiscal 2026 third quarter results for the period ending March 31, 2026, with total revenue of $2.4 billion (up 5.3%) and net income from continuing operations of $848.8 million (up 17.4%). The company recognized an $84.1 million one-time tax benefit, raised full-year outlook, and authorized an incremental $100 million share repurchase.
Management also announced a quarterly dividend of $0.42 per share and expects fiscal 2026 revenue of $3.910–3.920 billion, EBITDA of $1.025–1.035 billion, and adjusted diluted EPS of $5.10–5.20.
AI-generated analysis. Not financial advice.
Positive
- Revenue +5.3% to $2.4 billion in Q3 FY2026
- Net income from continuing operations +17.4% to $848.8 million
- Adjusted net income +5.8% to $773.7 million
- Adjusted diluted EPS guidance raised to $5.10–$5.20 for FY2026
- Board authorized incremental $100 million share repurchase
Negative
- Operating expenses +4.8% to $1.4 billion in Q3 FY2026
- Q3 results benefited from a one-time $84.1 million tax benefit, reducing comparability
News Market Reaction – HRB
On the day this news was published, HRB gained 23.77%, reflecting a significant positive market reaction. Argus tracked a peak move of +17.2% during that session. Argus tracked a trough of -3.2% from its starting point during tracking. Our momentum scanner triggered 81 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $900M to the company's valuation, bringing the market cap to $4.69B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HRB is down 3.41% while key personal-services peers like BFAM, FTDR, and SCI show gains between 0.95% and 2.28%, pointing to a stock-specific move rather than a sector-wide trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 04 | Dividend declaration | Positive | -3.4% | Announced $0.42 quarterly dividend and long-term growth in shareholder returns. |
| Apr 22 | Earnings date notice | Neutral | -1.5% | Scheduled release and call for fiscal 2026 Q3 results on May 6. |
| Mar 19 | Tax relief support | Positive | +1.3% | Tools and expertise to help hourly workers use new 2025 tax relief. |
| Mar 17 | AI platform awards | Positive | +1.8% | Recognition as Best Overall Tax Service and Best Use of AI for tax tools. |
| Feb 11 | Product launch | Positive | -8.6% | Launch of Creator Suite platform targeting the $250B creator economy. |
Recent news shows mixed price reactions: several positive strategic and product updates aligned with gains, while shareholder-return and product-launch headlines sometimes coincided with notable declines.
Over the last six months, H&R Block has combined product innovation, AI recognition, and capital returns. In February 2026 it launched the Creator Suite for the $250 billion creator economy, which saw a -8.58% reaction. AI tax-platform awards on March 17 and expanded help for hourly workers on March 19 aligned with modest gains of 1.8% and 1.28%. A dividend declaration on May 4 and an earnings-date announcement on April 22 coincided with declines, suggesting investor sensitivity around capital returns and event timing.
Market Pulse Summary
The stock surged +23.8% in the session following this news. A strong positive reaction aligns with the report’s combination of revenue growth, margin expansion, and raised full-year guidance. Q3 revenue reached $2.4 billion, while EPS from continuing operations climbed to $6.61, supported by an $84.1 million tax benefit and buybacks. Historically, product and technology announcements have not always produced sustained gains, so investors could watch how sentiment evolves as the higher $3.910–$3.920 billion revenue outlook and planned buybacks are digested.
Key Terms
adjusted net income financial
EBITDA financial
effective tax rate financial
AI-generated analysis. Not financial advice.
— Maintains Assisted Channel Market Share, Marking Third Consecutive Year of Improvement —
— Revenue Increased
— Announces Plans for Incremental Fiscal 2026 Share Repurchases —
— Raises Fiscal 2026 Outlook —
KANSAS CITY, Mo., May 06, 2026 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results1 for its fiscal 2026 third quarter ended March 31, 2026.
"This season marked an important inflection point, demonstrating that our strategy is driving higher-quality business outcomes," said Curtis Campbell, president and chief executive officer. "Our assisted market share trend improved meaningfully after several years of pressure, reflecting stronger execution across the season. Clients are choosing H&R Block for confidence, trust, and expert help, and our disciplined, expert-led, technology-enabled approach is delivering meaningful value."
Fiscal 2026 Third Quarter Results and Key Financial Metrics
"This quarter demonstrates strong execution across the business, with solid revenue growth and enhanced profitability," said Tiffany Mason, chief financial officer. "Progress this tax season with higher complexity clients underscores the durability of our financial model, and our year‑to‑date performance reinforces our confidence as we raise our full year outlook."
For the third quarter, the Company delivered total revenue of
Total operating expenses of
During the quarter, the Company recognized a one-time non-cash tax benefit related to the resolution of an IRS examination. This
Net income from continuing operations increased by
Adjusted net income from continuing operations2 increased by
Capital Allocation
The Company reported the following related to its capital structure:
- As previously announced, a quarterly cash dividend of
$0.42 per share will be paid on July 7th to shareholders of record as of June 3rd. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962. Since 2016, the Company has grown the dividend110% 3. - The Company has approximately
$700 million remaining on its previously announced$1.5 billion share repurchase program. The Company's board of directors has authorized management to repurchase an incremental$100 million of common stock in the fourth quarter of fiscal 2026 under that repurchase program, which has been reflected in the updated outlook below. - Year-to-date, the Company has returned
$560.9 million to shareholders in the form of dividends and share repurchases.
Fiscal Year 2026 Outlook
As a result of year-to-date performance, including a strong tax season, the Company now expects:
- Revenue to be in the range of
$3.910 t o$3.920 billion , representing a4.1% year-over-year increase at the midpoint. - EBITDA4 to be in the range of
$1.025 t o$1.035 billion , a5.5% year-over-year increase at the midpoint. - Effective tax rate to be approximately
14% . - Adjusted Diluted Earnings Per Share4 to be in the range of
$5.10 t o$5.20 , a10.5% year-over-year increase at the midpoint.
Conference Call
The Company will host a conference call for analysts and investors to discuss third quarter 2026 results at 4:30 p.m. ET on Wednesday, May 6, 2026. To join live, participants must register at https://register-conf.media-server.com/register/BI154683d0918449469ffebfc9d427b4b3. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.
The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/ygejpbdc/lan/en and will be available for replay 2 hours after the call is concluded and continuing for 90 days.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.
About Non-GAAP Financial Information
This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled "Non-GAAP Financial Information."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
2All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted net income, adjusted earnings per share (EPS) and earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See "About Non-GAAP Financial Information" below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
3Dividend growth is calculated as percentage growth from the April 2016 dividend.
4Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.
TABLES FOLLOW
| FINANCIAL RESULTS | (unaudited, in 000s - except per share amounts) | |||||||||||||||
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| REVENUES: | ||||||||||||||||
| U.S. tax preparation and related services: | ||||||||||||||||
| Assisted tax preparation | $ | 1,742,135 | $ | 1,635,877 | $ | 1,846,698 | $ | 1,727,220 | ||||||||
| Royalties | 128,182 | 133,961 | 139,139 | 143,312 | ||||||||||||
| DIY tax preparation | 215,245 | 214,666 | 235,797 | 231,646 | ||||||||||||
| Refund Transfers | 119,935 | 113,732 | 121,416 | 115,229 | ||||||||||||
| Peace of Mind® Extended Service Plan | 14,347 | 15,625 | 54,087 | 54,867 | ||||||||||||
| Tax Identity Shield® | 8,485 | 7,025 | 16,851 | 14,947 | ||||||||||||
| Other | 15,000 | 14,582 | 41,321 | 40,215 | ||||||||||||
| Total U.S. tax preparation and related services | 2,243,329 | 2,135,468 | 2,455,309 | 2,327,436 | ||||||||||||
| Financial services: | ||||||||||||||||
| Emerald Card® and SpruceSM | 39,590 | 40,195 | 56,566 | 59,169 | ||||||||||||
| Interest and fee income on Emerald Advance® | 15,198 | 14,286 | 28,644 | 26,594 | ||||||||||||
| Total financial services | 54,788 | 54,481 | 85,210 | 85,763 | ||||||||||||
| International | 70,119 | 60,438 | 170,498 | 157,104 | ||||||||||||
| Wave | 29,871 | 26,717 | 89,506 | 79,681 | ||||||||||||
| Total revenues | $ | 2,398,107 | $ | 2,277,104 | $ | 2,800,523 | $ | 2,649,984 | ||||||||
| Compensation and benefits: | ||||||||||||||||
| Field wages | 577,513 | 532,916 | 741,405 | 682,575 | ||||||||||||
| Other wages | 78,703 | 74,621 | 230,987 | 230,687 | ||||||||||||
| Benefits and other compensation | 118,151 | 111,575 | 194,802 | 188,731 | ||||||||||||
| 774,367 | 719,112 | 1,167,194 | 1,101,993 | |||||||||||||
| Occupancy | 127,312 | 119,709 | 339,700 | 326,026 | ||||||||||||
| Marketing and advertising | 185,388 | 196,667 | 208,725 | 221,502 | ||||||||||||
| Depreciation and amortization | 31,519 | 29,221 | 90,442 | 87,247 | ||||||||||||
| Bad debt | 39,806 | 40,479 | 63,827 | 62,625 | ||||||||||||
| Other | 202,891 | 193,603 | 399,721 | 393,900 | ||||||||||||
| Total operating expenses | 1,361,283 | 1,298,791 | 2,269,609 | 2,193,293 | ||||||||||||
| Other income (expense), net | 3,941 | 4,554 | 15,077 | 19,215 | ||||||||||||
| Interest expense on borrowings | (24,307 | ) | (24,686 | ) | (65,087 | ) | (62,285 | ) | ||||||||
| Pretax income | 1,016,458 | 958,181 | 480,904 | 413,621 | ||||||||||||
| Income taxes | 167,678 | 235,253 | 39,058 | 104,580 | ||||||||||||
| Net income from continuing operations | 848,780 | 722,928 | 441,846 | 309,041 | ||||||||||||
| Net loss from discontinued operations | (879 | ) | (598 | ) | (1,930 | ) | (2,707 | ) | ||||||||
| Net income | $ | 847,901 | $ | 722,330 | $ | 439,916 | $ | 306,334 | ||||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||||||
| Continuing operations | $ | 6.61 | $ | 5.32 | $ | 3.40 | $ | 2.23 | ||||||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | ||||||||
| Consolidated | $ | 6.60 | $ | 5.31 | $ | 3.38 | $ | 2.21 | ||||||||
| WEIGHTED AVERAGE DILUTED SHARES | 127,813 | 135,329 | 129,489 | 137,944 | ||||||||||||
| Adjusted diluted EPS(1) | $ | 6.02 | $ | 5.38 | $ | 2.95 | $ | 2.41 | ||||||||
| EBITDA(1) | $ | 1,072,284 | $ | 1,012,088 | $ | 636,433 | $ | 563,153 | ||||||||
(1) All non-GAAP measures are results from continuing operations. See "Non-GAAP Financial Information" for a reconciliation of non-GAAP measures.
| CONSOLIDATED BALANCE SHEETS | (unaudited, in 000s - except per share data) | |||||||
| As of | March 31, 2026 | June 30, 2025 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 867,008 | $ | 983,277 | ||||
| Cash and cash equivalents - restricted | 19,737 | 19,862 | ||||||
| Receivables, net | 297,636 | 63,621 | ||||||
| Prepaid expenses and other current assets | 104,102 | 95,788 | ||||||
| Total current assets | 1,288,483 | 1,162,548 | ||||||
| Property and equipment, net | 147,694 | 135,068 | ||||||
| Operating lease right of use assets | 522,885 | 521,215 | ||||||
| Intangible assets, net | 275,966 | 259,412 | ||||||
| Goodwill | 815,620 | 802,053 | ||||||
| Deferred tax assets and income taxes receivable | 270,090 | 317,691 | ||||||
| Other noncurrent assets | 70,980 | 65,911 | ||||||
| Total assets | $ | 3,391,718 | $ | 3,263,898 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| LIABILITIES: | ||||||||
| Accounts payable and accrued expenses | $ | 303,595 | $ | 144,046 | ||||
| Accrued salaries, wages and payroll taxes | 299,695 | 107,375 | ||||||
| Accrued income taxes and reserves for uncertain tax positions | 262,533 | 296,244 | ||||||
| Current portion of long-term debt | — | 349,893 | ||||||
| Operating lease liabilities | 209,269 | 209,203 | ||||||
| Deferred revenue and other current liabilities | 219,321 | 191,849 | ||||||
| Total current liabilities | 1,294,413 | 1,298,610 | ||||||
| Long-term debt | 1,490,933 | 1,143,305 | ||||||
| Deferred tax liabilities and reserves for uncertain tax positions | 187,707 | 306,134 | ||||||
| Operating lease liabilities | 325,561 | 322,847 | ||||||
| Deferred revenue and other noncurrent liabilities | 117,476 | 104,106 | ||||||
| Total liabilities | 3,416,090 | 3,175,002 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, no par, stated value $.01 per share | 1,565 | 1,644 | ||||||
| Additional paid-in capital | 776,872 | 766,998 | ||||||
| Accumulated other comprehensive loss | (55,346 | ) | (47,755 | ) | ||||
| Retained earnings (deficit) | (110,471 | ) | 12,061 | |||||
| Less treasury shares, at cost | (636,992 | ) | (644,052 | ) | ||||
| Total stockholders' equity (deficiency) | (24,372 | ) | 88,896 | |||||
| Total liabilities and stockholders' equity | $ | 3,391,718 | $ | 3,263,898 | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | (unaudited, in 000s) | |||||||
| Nine months ended March 31, | 2026 | 2025 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 439,916 | $ | 306,334 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 90,442 | 87,247 | ||||||
| Provision for credit losses | 57,523 | 56,042 | ||||||
| Deferred taxes | 3,044 | (12,503 | ) | |||||
| Stock-based compensation | 22,177 | 25,420 | ||||||
| Changes in assets and liabilities, net of acquisitions: | ||||||||
| Receivables | (289,209 | ) | (335,605 | ) | ||||
| Prepaid expenses, other current and noncurrent assets | (17,548 | ) | (7,504 | ) | ||||
| Accounts payable, accrued expenses, salaries, wages and payroll taxes | 340,925 | 240,246 | ||||||
| Deferred revenue, other current and noncurrent liabilities | 41,186 | 20,684 | ||||||
| Income tax receivables, accrued income taxes and income tax reserves | (99,767 | ) | 50,049 | |||||
| Other, net | (1,972 | ) | (1,088 | ) | ||||
| Net cash provided by operating activities | 586,717 | 429,322 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (67,144 | ) | (71,784 | ) | ||||
| Payments made for business acquisitions, net of cash acquired | (55,047 | ) | (35,323 | ) | ||||
| Franchise loans funded | (18,201 | ) | (21,455 | ) | ||||
| Payments from franchisees | 16,503 | 11,478 | ||||||
| Other, net | 1,329 | 6,194 | ||||||
| Net cash used in investing activities | (122,560 | ) | (110,890 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayments of line of credit borrowings | (2,375,000 | ) | (1,950,000 | ) | ||||
| Proceeds from line of credit borrowings | 2,375,000 | 1,950,000 | ||||||
| Repayments of long-term debt | (350,000 | ) | — | |||||
| Proceeds from issuance of long-term debt | 346,980 | — | ||||||
| Dividends paid | (157,766 | ) | (147,136 | ) | ||||
| Repurchase of common stock, including shares surrendered | (412,686 | ) | (436,516 | ) | ||||
| Other, net | (6,009 | ) | (11,854 | ) | ||||
| Net cash used in financing activities | (579,481 | ) | (595,506 | ) | ||||
| Effects of exchange rate changes on cash | (1,070 | ) | (8,429 | ) | ||||
| Net decrease in cash and cash equivalents, including restricted balances | (116,394 | ) | (285,503 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 1,003,139 | 1,075,193 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 886,745 | $ | 789,690 | ||||
| SUPPLEMENTARY CASH FLOW DATA: | ||||||||
| Income taxes paid, net (includes payments for purchased investment tax credits) | $ | 135,460 | $ | 65,505 | ||||
| Interest paid on borrowings | 76,480 | 63,251 | ||||||
| Accrued additions to property and equipment | 2,020 | 2,448 | ||||||
| New operating right of use assets and related lease liabilities | 182,343 | 135,372 | ||||||
| Accrued dividends payable to common shareholders | 53,239 | 50,194 | ||||||
| (in 000s) | ||||||||||||
| Three months ended March 31, | Nine months ended March 31, | |||||||||||
| NON-GAAP FINANCIAL MEASURE - EBITDA | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net income - as reported | $ | 847,901 | $ | 722,330 | $ | 439,916 | $ | 306,334 | ||||
| Discontinued operations, net | 879 | 598 | 1,930 | 2,707 | ||||||||
| Net income from continuing operations - as reported | 848,780 | 722,928 | 441,846 | 309,041 | ||||||||
| Add back: | ||||||||||||
| Income taxes | 167,678 | 235,253 | 39,058 | 104,580 | ||||||||
| Interest expense | 24,307 | 24,686 | 65,087 | 62,285 | ||||||||
| Depreciation and amortization | 31,519 | 29,221 | 90,442 | 87,247 | ||||||||
| 223,504 | 289,160 | 194,587 | 254,112 | |||||||||
| EBITDA from continuing operations | $ | 1,072,284 | $ | 1,012,088 | $ | 636,433 | $ | 563,153 | ||||
| (in 000s, except per share amounts) | ||||||||||||||||
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||
| NON-GAAP FINANCIAL MEASURES - ADJUSTED NET INCOME AND ADJUSTED EPS | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income from continuing operations - as reported | $ | 848,780 | $ | 722,928 | $ | 441,846 | $ | 309,041 | ||||||||
| Adjustments: | ||||||||||||||||
| Amortization of intangibles related to acquisitions (pretax) | 12,170 | 11,278 | 34,401 | 33,316 | ||||||||||||
| Discrete tax impact of IRS examination settlements | (84,113 | ) | — | (84,113 | ) | — | ||||||||||
| Tax effect of pretax adjustments(1) | (3,145 | ) | (2,927 | ) | (8,381 | ) | (8,111 | ) | ||||||||
| Adjusted net income from continuing operations | $ | 773,692 | $ | 731,279 | $ | 383,753 | $ | 334,246 | ||||||||
| Diluted earnings per share from continuing operations - as reported | $ | 6.61 | $ | 5.32 | $ | 3.40 | $ | 2.23 | ||||||||
| Adjustments, net of tax | (0.59 | ) | 0.06 | (0.45 | ) | 0.18 | ||||||||||
| Adjusted diluted earnings per share from continuing operations | $ | 6.02 | $ | 5.38 | $ | 2.95 | $ | 2.41 | ||||||||
(1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.
Non-GAAP Financial Information
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.
We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to material discrete tax impacts of IRS examination settlements, amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted net income from continuing operations, and adjusted diluted earnings per share from continuing operations. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.
For Further Information Investor Relations: Jessica Hazel, (816) 854-4214, jessica.hazel@hrblock.com Media Relations: Media Desk, mediadesk@hrblock.com