Slide 1: Q2 FY25 Financial Results Conference Call
H&RBLOCK — Q2 FY25 Financial Results Conference Call Q2 FY25 Financial Results Conference Call February 4, 2025
Slide 2: Colby Brown, Treasurer, Interim VP Investor Relations
H&@RBLOCK —Q2 FY25 Financial Results Conference Call Colby Brown Treasurer, Interim VP Investor Relations
Slide 3: Safe Harbor Statement: Forward-Looking Statement
H&R BLOCK Q2 FY25 Financial Results Conference Call Safe Harbor Statement Forward-Looking Statement This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical
Slide 4: Safe Harbor Statement: Non-GAAP Measures
H&R BLOCK Q2 FY25 Financial Results Conference Call Safe Harbor Statement Non-GAAP Measures We refer to certain Non-GAAP financial measures in this presentation, including adjusted earnings per share (EPS), earnings before interest, taxes, depreciation, and amortization (EBITDA), and free cash flow,
Slide 5: Jeff Jones, President & Chief Executive Officer
H&@RBLOCK —Q2 FY25 Financial Results Conference Call Jeff Jones President & Chief Executive Officer
Slide 6: Results
H&R BLOCK Q2 FY25 Financial Results Conference Call Results In Q2: Successfully wrapped up the extension season; continued strength in SMB Reaffirming FY25 outlook
Slide 7: Block Horizons
H&RBLOCK — Q2 FY25 Financial Results Conference Call Block Horizons
Slide 8: Small Business and Wave
H&RBLOCK — Q2 FY25 Financial Results Conference Call Small Business BLOCK Advisors In Q2: Assisted Small Business tax delivered strong revenue growth Launched new custom experiences for clients in DIY Favorable trends in bookkeeping and payroll services, which together delivered double-digit revenue
Slide 9: Financial Products
H&@RBLOCK — Q2 FY25 Financial Results Conference Call Financial Products Enhancing the total financial health of our clients Refund Advance Spruce built by HER BLOCK Highest loan tier = Smart Tax Refund raised to $4K Sign ups: Deposits: feature allows clients One of the largest es to commit savings
Slide 10: Block Experience
H&R BLOCK Q2 FY25 Financial Results Conference Call Block Experience Blending digital tools with human expertise and care Combining innovative technology with human help to empower clients to get their maximum refund at tax time Well positioned to serve clients however they want to be served OF TAX
Slide 11: DIY Channel
H&R BLOCK Q2 FY25 Financial Results Conference Call DIY Channel Executing and making progress in the category Significant Switch to Al Tax Assist improvements SigINsw las tool a to user minutes strong experience competitive Tax Pro differentiator Review has grown Aggressive double PA marketing to di
Slide 12: Assisted Channel
H&R BLOCK Q2 FY25 Financial Results Conference Call Assisted Channel Strong Value Proposition Transparent pricing, . flexible filing options, expert tax pros ' Local, extensive retail footprint; get taxes . done in <1 hour Price Match guarantee Second Look Strategic Improvements Personalized interac
Slide 13: Tiffany Mason, Chief Financial Officer
H&@RBLOCK —Q2 FY25 Financial Results Conference Call Tiffany Mason Chief Financial Officer
Slide 14: H&R Block's Investment Thesis
H&@RBLOCK — Q2 FY25 Financial Results Conference Call H&R Block’s Investment Thesis National Scale & Compelling Strong Brand Recognition Financial Profile » ~QK company and = Generated >$650M franchise offices FCF' in each of the 60K expert tax pros last 3 years and robust DIY = Strong balance sheet
Slide 15: Q2 FY25 Financial Results
H&RBLOCK — Q2 FY25 Financial Results Conference Call Q2 FY25 Financial Results For the three months ended For the three months ended foluiionstexceotpensnercameunts December 31, 2024 December 31, 2023 Change Q2 FY25 Q2FY24 2 Revenue - Operating Expenses (5.8%) Interest Expense (1.8%) Pretax Loss ($2
Slide 16: FY25 Outlook Reaffirmed
H&RBLOCK — Q2 FY25 Financial Results Conference Call FY25 Outlook Reaffirmed Assumptions: = Typical industry growth of ~1% Maintain market share in overall tax category Low single digit price increases Wave and Small Business contribute to revenue growth Opportunistic franchise Revenue $3.69 - $3.75
Slide 17: Strong Capital Allocation Practices
H&RBLOCK — Q2 FY25 Financial | Results Conference call Strong Capital Allocation Practices Yielding meaningful results In Q2 FY25: Repurchased 3.2M shares for $190M at an average price of $58.65 In 1H FY25: Repurchased $400M shares, or about 5% of the float
Slide 18: Jeff Jones, President & Chief Executive Officer
H&@RBLOCK —Q2 FY25 Financial Results Conference Call Jeff Jones President & Chief Executive Officer
Slide 19: Q&A
H&@RBLOCK — QI FY25 Financial Results Conference Call
Slide 20: Appendix
H&@RBLOCK — QI FY25 Financial Results Conference Call Appendix
Slide 21: Non-GAAP Measure: EBITDA
Non-GAAP Measure: EBITDA The following is a reconciliation of net loss to EBITDA from continuing operations, which is a non-GAAP financial measure: {in 000s) Three months ended Three months ended EBITDA December 31, 2024 December 31, 2023 Net loss - as reported $ (243,420) $ (189,755) Discontinued o
Slide 22: Non-GAAP Measure: Adjusted EPS
Non-GAAP Measure: Adjusted EPS The following is a reconciliation of our results from continuing operations to our adjusted results from continuing operations, which is a non-GAAP financial measure: (in 000s, except per share amounts) Three s ended Three months ended ADJUSTED EPS December 31, 2024 De
Slide 23: Non-GAAP Measure: Free Cash Flow
Non-GAAP Measure: Free Cash Flow The following is a reconciliation of net cash provided by operating activities to free cash flow, which is a non-GAAP financial measure: {in 000s) Year ended Year ended Year ended FREE CASH FLOW June 30, 2024 June 30, 2023 June 30, 2022 Operating cash flow-asreported