About H&R Block

H&R Block, Inc. (H&R Block) provides global tax preparation services, financial products, and small business solutions. The company provides assisted and DIY tax preparation services and products, as well as small business financial solutions. The company is one of the largest providers of tax return preparation solutions and electronic filing services in the U.S., Canada, and Australia with 23.4 million returns filed by or through H&R Block in the year ended June 30, 2023 (fiscal year 2023). H&R Block 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 to help people get the best outcome at tax time and also be better with money by using the company’s mobile banking app, Spruce. During 2021, the company introduced Block Horizons, its five year strategy that will leverage its human expertise and technological infrastructure to deliver growth by driving tax solution innovation, helping small businesses to thrive, and support individuals where they need the most help with money. Small Business During fiscal year 2023, small business assisted tax improved client satisfaction metrics, and continued to focus on helping small business clients beyond tax. The company launched an entity formation tool to allow small business customers to take advantage of benefits that may come from incorporating, and while early, the company’s bookkeeping and payroll services are gaining traction. Wave is the company’s one-stop money management platform for small business owners. The company’s top two priorities at Wave are accelerating revenue growth and driving long term profitability. Financial Products In January 2023, the company introduced Spruce, its mobile banking platform, to the company’s assisted clients for the first time. Since the launch of Spruce through June 30, 2023, the company had 300 thousand signups. Spruce is committed to helping clients be better with money, and the company is seeing progress towards that goal. During the year, the company launched new features enabling clients to easily set up direct deposit within the app with just a few clicks and build healthy spending habits. Thousands of clients have engaged with the tools within the app, and feedback indicates that features give them the visibility and control they have been missing in their financial lives. From here, the company is working to improve how the company acquires clients both in and out of the tax season. Block Experience Block Experience is all about blending technology and digital tools with human expertise and care to serve clients however they want to be served: fully virtual to fully in person and everything in between. The company has been successful in driving digital adoption by leveraging the MyBlock app features, such as uploading documents, approving returns online, and utilizing virtual chat. This year, more than 30% of assisted clients used a virtual tool during their tax preparation experience within the company-owned offices. The company provides assisted and do-it-yourself (DIY) tax return preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distributes H&R Block-branded services and products, including those of the company’s bank partners, to the general public primarily in the U.S., Canada and Australia. The company also offers small business financial solutions through the company-owned and franchise offices and online through Wave. Major revenue sources include fees earned for tax preparation via the company’s assisted and DIY channels, royalties from franchisees, and fees from related services and products. Tax Preparation Services Assisted income tax return preparation and related services are provided by tax professionals via a system of retail offices operated directly by the company or its franchisees. These tax professionals provide assistance to the company’s clients either in person or virtually in a number of ways. Clients can come into an office, digitally ‘drop off’ their documents for their tax professional, approve their return online, have a tax professional review a return they prepared themselves through Tax Pro Review or get their questions answered as they complete their own return through Online Assist. The company’s online software may be accessed through its website at www.hrblock.com or in a mobile application, while the company’s desktop software may be purchased online and through third-party retail stores. The company offers franchises as a way to expand its presence in certain geographic areas. Other Offerings During fiscal year 2023, the company also offered the U.S. clients a number of additional services, including Refund Transfers (RT), the company’s Peace of Mind Extended Service Plan (POM), H&R Block Emerald Prepaid Mastercard (Emerald Card), H&R Block Emerald Advance Lines of Credit (EA), Tax Identity Shield (TIS), Refund Advances (RA), and small business financial solutions. For the company’s Canadian clients, the company also offers POM, H&R Block's Instant RefundSM, H&R Block Pay With Refund, and small business financial solutions. Refund Transfers: RTs enable clients to receive their tax refunds by their chosen method of disbursement and include a feature enabling clients to deduct tax preparation and related fees from their tax refunds. Depending on circumstances, clients may choose to receive their RT proceeds by a load to their Emerald Card, a deposit to their Spruce Spending Account, by receiving a check or by direct deposit to an existing account. RTs are available to the U.S. clients and are frequently obtained by those who do not have bank accounts into which the Internal Revenue Service (IRS) can direct deposit their refunds; like the convenience and benefits of a temporary account for receipt of their refund; and/or prefer to have their tax preparation fees paid directly out of their refunds. RTs are offered through the company’s relationship with its bank partner. The company offers a similar program, H&R Block Pay With Refund, to the company’s Canadian clients through a Canadian chartered bank. Peace of Mind Extended Service Plan: The company offers POM to the U.S. and Canadian clients who obtain assisted tax preparation services, whereby the company represents its clients if they are audited by a taxing authority; and assumes the cost, subject to certain limits, of additional taxes owed by a client resulting from errors attributable to H&R Block. H&R Block Emerald Prepaid Mastercard: The Emerald Card enables clients to receive their tax refunds from the IRS directly on a prepaid debit card, or to direct RT, EA or RA proceeds to the card. The card can be used for everyday purchases, bill payments and ATM withdrawals anywhere Debit Mastercard (Mastercard is a registered trademark of Mastercard International Incorporated) is accepted. Additional funds can be added to the card year-round, such as through direct deposit or at participating retail reload providers, and the Emerald Card can be added to clients' mobile wallets. The company distributes the Emerald Card issued by its bank partner. H&R Block Emerald Advance Lines of Credit: EAs are lines of credit offered to clients in the company’s offices, from mid-November through mid-January, in amounts up to $1,000. If the borrower meets certain criteria as agreed in the loan terms, the line of credit can be utilized year-round. In addition to the required monthly payments, borrowers may elect to pay down balances on EAs with their tax refunds. These lines of credit are offered by the company’s bank partner, and the company subsequently purchase a participation interest in all EAs originated by the company’s bank partner. Tax Identity Shield: The company’s TIS program offers clients assistance in helping protect their tax identity and access to services to help restore their tax identity, if necessary. Protection services include a daily scan of the dark web for personal information, a monthly scan for the client's social security number in credit header data, notifying clients if their information is detected on a tax return filed through H&R Block, and obtaining additional IRS identity protections when eligible. Refund Advance Loans: RAs are interest-free loans offered by the company’s bank partner, which are available to eligible U.S. assisted clients in company-owned and participating franchise locations, including virtual clients. H&R Block's Instant Refund: The company’s Canadian operations advance refunds due to certain clients from the Canada Revenue Agency (CRA), for a fee. The fee charged for this service is mandated by federal legislation, which is administered by the CRA. The client assigns to the company the full amount of the tax refund to be issued by the CRA and the refund amount is then sent by the CRA directly to the company. Small Business Financial Solutions: The company’s Block Advisors certified tax professionals provide small businesses with financial expertise in taxes, bookkeeping and payroll through the company’s office network. Wave provides small business owners with an online solution to manage their finances, including payment processing, payroll and bookkeeping services. Seasonality Of Business Because the majority of the company’s clients file their tax returns during the period from February through April in a typical year, a substantial majority of the company’s revenues from income tax return preparation and related services and products are earned during this period. As a result, the company generally operates at a loss through the first two quarters of the company’s fiscal year (year ended June 2023). Service Marks and Trademarks The company provides services and products under the ‘H&R Block’ brand. The initial duration of the U.S. federal trademark registrations is 10 years. History H&R Block, Inc. was founded in 1955 under the laws of the state of Missouri.