H&R Block (HRB) Q3 FY2024 earnings: revenue $2.2 billion, up 4.4% on the year

H&R Block Inc. (HRB) reported revenue of $2.2 billion for Q3 FY2024, the quarter ended 31 March 2024, up 4.4% on the same quarter a year earlier. Net income was $691 million, up 7.4% on the year, and diluted earnings per share $4.86. The figures are the company's own, from the 10-Q it filed with the SEC on 9 May 2024.

Revenue$2.2 billionup 4.4%

Net income$691 millionup 7.4%

Diluted EPS$4.86

QuarterQ3 FY2024ended 31 March 2024

The quarter, against the one before and a year earlier

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Revenue	2,185	179	n/a	n/a
Cost of revenue	926	300	n/a	n/a
Gross profit	1,259	-121	n/a	n/a
Gross margin	57.6%	-67.4%	n/a
Selling, general and administrative	331	147	n/a	n/a
Operating income	928	-267	n/a	n/a
Operating margin	42.5%	-149.3%	n/a
Interest expense	26.1	21.4	n/a	n/a
Pre-tax income	907	-283	n/a	n/a
Income tax	216	-93.8	n/a	n/a
Effective tax rate	23.8%	n/a	n/a
Net income	691	-190	n/a	n/a
Net margin	31.6%	-106.0%	n/a
Diluted EPS	$4.86	-$1.33	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Operating cash flow	1,362	-607	n/a	n/a
Capital expenditure	21.1	19.8	n/a	n/a
Free cash flow	1,341	-627	n/a	n/a
Free cash flow margin	61.4%	-350.1%	n/a
Cash from investing	-28.6	-47.2	n/a	n/a
Cash from financing	-856	531	n/a	n/a
Depreciation and amortisation	30.7	30.1	n/a	n/a
Share-based compensation	7.8	9.9	n/a	n/a
Dividends paid	45.3	46.9	n/a	n/a
Dividend per share	$0.32	$0.32	n/a	n/a
Diluted shares, weighted	142m	142m	n/a	n/a
Shares outstanding at period end	140m	140m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Shareholders' equity	-130	-773	n/a	n/a
Debt	1,491	2,290	n/a	n/a
Operating lease liabilities	215	209	n/a	n/a
Other liabilities	1,638	1,050	n/a	n/a
Total liabilities and equity	3,213	2,776	n/a	n/a
Fixed assets	140	137	n/a	n/a
Goodwill	788	789	n/a	n/a
Intangible assets	277	275	n/a	n/a
Cash and equivalents	795	321	n/a	n/a
Receivables	347	397	n/a	n/a
Other assets	868	856	n/a	n/a
Total assets	3,213	2,776	n/a	n/a

Quarterly results, the last 12 quarters

	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *
Revenue	184	179	2,185	1,063	194	179	2,277	1,111	204	199	2,398	1,145
Cost of revenue	259	300	926	506	270	314	969	533	274	340	1,032	551
Gross profit	-75.6	-121	1,259	556	-75.8	-135	1,308	578	-70.5	-141	1,366	594
Gross margin	-41%	-67%	58%	52%	-39%	-75%	57%	52%	-35%	-71%	57%	52%
SG&A	131	147	331	205	153	158	329	207	137	158	329	218
Operating income	-206	-267	928	351	-228	-293	978	371	-207	-299	1,037	377
Operating margin	-112%	-149%	42%	33%	-118%	-164%	43%	33%	-102%	-150%	43%	33%
Interest expense	15.9	21.4	26.1	15.8	15.8	21.8	24.7	15.8	17.4	23.4	24.3	15.5
Pre-tax income	-212	-283	907	350	-232	-312	958	368	-216	-319	1,016	373
Tax rate	n/a	n/a	24%	26%	n/a	n/a	25%	18%	n/a	n/a	16%	21%
Net income	-163	-190	691	258	-173	-243	722	299	-166	-242	848	294
Net margin	-89%	-106%	32%	24%	-89%	-136%	32%	27%	-81%	-122%	35%	26%
Diluted EPS	-$1.12	-$1.33	$4.86	$1.81	-$1.24	-$1.80	$5.31	$2.20	-$1.26	-$1.92	$6.60	$2.30
Operating cash flow	-335	-607	1,362	301	-329	-567	1,325	252	-357	-614	1,558	252
Capital expenditure	12.9	19.8	21.1	9.8	18.7	30.4	22.7	10.2	13.2	35.5	18.4	15.5
Free cash flow	-348	-627	1,341	291	-347	-597	1,302	241	-370	-649	1,539	237
Dividends paid	43.0	46.9	45.3	44.6	44.7	52.3	50.2	50.2	50.2	54.3	53.2	53.2
Shares outstanding	144m	140m	140m	140m	137m	134m	134m	134m	126m	127m	127m	123m
Filing	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2024, filed 9 May 2024, accession 0001838862-24-000021: the filing on EDGAR. All of H&R Block Inc.'s filings: EDGAR company page.

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