H&R BLOCK INCHRB

H&R BLOCK INC Earnings Per Share Disclosure

10-KFiled Aug 15, 20251 min read
NOTE 3: EARNINGS PER SHARE
Basic and diluted earnings per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period.
The computations of basic and diluted earnings per share from continuing operations are as follows:
(in 000s, except per share amounts)
Year ended June 30,202520242023
Net income from continuing operations attributable to shareholders$609,450 $597,963 $561,800 
Amounts allocated to participating securities (2,771)(2,390)(2,272)
Net income from continuing operations attributable to common shareholders$606,679 $595,573 $559,528 
Basic weighted average common shares135,629 141,932 154,044 
Potential dilutive shares1,711 1,958 3,204 
Dilutive weighted average common shares137,340 143,890 157,248 
Earnings per share from continuing operations attributable to common shareholders:
Basic$4.47 $4.20 $3.63 
Diluted4.42 4.14 3.56 
Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 0.3 million, 0.1 million and 0.6 million shares of stock for fiscal years 2025, 2024 and 2023, respectively, as the effect would be antidilutive.

Historical Timeline

Fiscal YearFiled
2025Aug 15, 2025Showing above
2024Aug 15, 2024
2023Aug 17, 2023
2022Aug 16, 2022
2021Jun 15, 2021
2020Jun 17, 2020
2019Jun 14, 2019
2018Jun 15, 2018
2017Jun 16, 2017
2016Jun 17, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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