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H&R Block HRB

H&R Block scores good on business quality (6.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$44.05Oct 9, 2026
Business qualityGood
Next earningsNov 5, 2026
Insiders, 90 daysSelling

Why it matters

  1. What H&R Block does

    H&R Block makes money by providing assisted and do-it-yourself tax preparation services, generating $3.9B in revenue from millions of individual filers. The company is leaning into its digital DIY offerings and expanded financial products to capture year-round engagement from its client base.

  2. What it does best

    H&R Block dominates assisted tax preparation through massive physical scale and proprietary software. Its operating margin of 23.0% easily outpaces peer SCI at 22.4%, locked in by decades of brand trust and dense retail footprints that are costly to replicate.

  3. The main risk

    Heavy reliance on seasonal tax volume exposes the company to regulatory shifts by the IRS, such as direct-file initiatives. This threatens the core assisted filing revenue stream that drives its $756.0M free cash flow.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Gross margin stands at 44.3% with an operating margin of 23.0%, both expanding on steady volume. The business generates high cash conversion, with free cash flow margin ranking in the top quartile of its sector.

MoatStrong

The brand and proprietary tax network lock in millions of retail consumers, earning an operating margin ranking in the 83rd sector percentile. Rivals cannot easily replicate this physical and digital tax ecosystem within years.

GrowthSlow

Revenue grew 4.9% to reach $3.9B, marking a steady continuation from historical annual figures. This top-line expansion is slowly accelerating compared to prior stagnation periods.

Financial healthFair

Debt-to-equity sits at 12.7x alongside $959.0M in cash, supported by an interest coverage ratio of 11.3x. Free cash flow reached $756.0M, showing stable conversion despite moderate financial leverage getting softer.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $110K outside pre-planned sales.

Our sealed record on HRB

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is HRB a good business?

H&R Block scores good on the Cluenex quality check (6.1 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health fair.

Are insiders buying HRB?

In the last 90 days of SEC Form 4 filings: 1 sold $110K outside pre-planned sales.

When does HRB report earnings?

Nov 5, 2026.

For members

See HRB today

  • Today's verdict on HRB, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “H&R Block (HRB)”, https://cluenex.com/stocks/hrb/, data as of Oct 10, 2026.