H & R Block Inc (NYSE:HRB) stock fell 5.98% (As on August 13, 11:15:42 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that fell short of analyst expectations, despite slightly beating revenue forecasts and gave weaker-than-expected guidance for the coming fiscal year. For the full fiscal year 2025, H&R Block reported total revenue of $3.8 billion, representing a 4.2% increase YoY, driven by higher net average charge and increased company-owned return volumes. The company’s operating expenses rose 4.6% to $2.9 billion in the quarter, primarily due to higher compensation, benefits, marketing, consulting, technology and legal costs. Net income from continuing operations increased by 1.9% to $609.5 million. During the fourth quarter of fiscal 2025, the Company expected to recognize a one-time tax benefit related to the closure of various matters under examination that would have increased the Company’s earnings per share by approximately $0.50. Due to external factors beyond the Company’s control, the completion of these matters was delayed beyond fiscal 2025.

HRB in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.27, missing the analysts’ estimates for the adjusted earnings per share of $2.98. The company had reported the adjusted revenue growth of 4 percent to $1.11 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.10 billion.

Additionally, the company has approved a 12% increase in the quarterly dividend to $0.42 per share, marking the eighth consecutive annual increase. During fiscal 2025, the company repurchased approximately 6.5 million shares, representing 4.7% of shares outstanding, at an average price of $61.10 per share. The Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program.

Looking ahead, H&R Block provided fiscal 2026 guidance with revenue projected between $3.875 billion and $3.895 billion, above analyst expectations of $3.83 billion. However, the company’s earnings forecast of $4.85 to $5.00 per share fell short of the $5.14 consensus estimate. FY26 EBITDA is expected to be in the range of $1.015 to $1.035 billion.

On the other hand, HRB announced that Jeffrey J. Jones II has informed the Board of Directors of his intention to retire as President and CEO of H&R Block on December 31, 2025, and will remain on the Board until such time. He will continue as a Strategic Advisor at the Company through September 2026. He will be succeeded by Curtis Campbell, currently H&R Block’s President of Global Consumer Tax and Chief Product Officer, starting January 1, 2026.