H&R Block reported higher fiscal first-quarter revenue but a larger loss, with expense growth outpacing sales as the tax preparer maintained its full-year 2027 outlook.
Revenue for the quarter ended Sept. 30 rose 10.2% from a year earlier to $224.3 million, according to the company's fiscal 2027 first-quarter earnings release, submitted as an exhibit to a Nov. 9 Form 8-K filing with the Securities and Exchange Commission. Loss from continuing operations widened 13.8% to $188.1 million. Operating expenses increased 11.1% to $456.2 million, ahead of the revenue gain.
H&R Block said higher field compensation and benefits, general corporate expenses, and occupancy and equipment costs contributed to the expense increase. The quarter included $8 million in severance and related costs tied to an earlier announced change in leadership for seasonal offices. H&R Block excluded the charge from its adjusted results.
Adjusted loss per share was $1.40, compared with $1.20 a year earlier. The reported loss from continuing operations was $1.53 per share, up from $1.26. H&R Block said a net loss is typical in the first quarter because its business is seasonal and the period accounts for only a modest portion of annual revenue.
The company credited growth to international services, tax protection and identity services, small business services, and U.S. tax preparation. For fiscal 2027, it maintained its revenue outlook of $4.11 billion to $4.16 billion and adjusted EBITDA range of $1.11 billion to $1.14 billion. It also reaffirmed an effective tax rate of about 23% and adjusted diluted earnings per share of $6.04 to $6.24.
H&R Block repurchased 2.2 million shares for $100.3 million during the quarter, an average of $45.68 per share. Its board declared a quarterly dividend of 46 cents per share, payable Jan. 6 to shareholders of record Dec. 3.
