H&R BLOCK INCHRB

H&R BLOCK INC Revenue Disclosure

10-KFiled Aug 15, 20252 min read
NOTE 2: REVENUE RECOGNITION
The majority of our revenues are from our U.S. tax services business. The following table disaggregates our U.S. revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:
(in 000s)
Year ended June 30,202520242023
Revenues:
U.S. assisted tax preparation$2,413,229 $2,274,835 $2,167,138 
U.S. royalties192,877 204,802 210,631 
U.S. DIY tax preparation383,738 349,812 314,758 
Refund Transfers137,526 142,249 143,310 
Peace of Mind® Extended Service Plan87,326 93,087 95,181 
Tax Identity Shield®29,920 33,386 38,265 
Emerald Card® and SpruceSM
72,888 76,093 84,651 
Interest and fee income on Emerald Advance®28,958 40,933 47,554 
International 246,993 247,123 235,131 
Wave109,222 96,472 90,314 
Other58,318 51,555 45,252 
Total revenues$3,760,995 $3,610,347 $3,472,185 
Changes in the balances of deferred revenue and wages for POM are as follows:
(in 000s)
POMDeferred RevenueDeferred Wages
Year ended June 30, 2025202420252024
Balance, beginning of the year$156,610 $167,257 $20,212 $21,828 
Amounts deferred94,888 97,125 12,755 11,819 
Amounts recognized on previous deferrals(102,196)(107,772)(13,083)(13,435)
Balance, end of the year$149,302 $156,610 $19,884 $20,212 
As of June 30, 2025, deferred revenue related to POM was $149.3 million. We expect that $87.4 million will be recognized over the next twelve months, while the remaining balance will be recognized over the following five years. POM deferred revenues are included in deferred revenue and other liabilities in the consolidated balance sheets. POM deferred wages are included in prepaid expenses and other current assets and other noncurrent assets.
As of June 30, 2025 and 2024, TIS deferred revenue was $22.6 million and $21.4 million, respectively. The related liabilities are included in deferred revenue and other current liabilities in the consolidated balance sheets. All deferred revenue related to TIS as of June 30, 2025 will be recognized by April 2026.
A significant portion of our accounts receivable balances arise from services and products that we provide to our customers, with the exception of those related to EAs which arise from purchased participation interests with our bank partner. The majority of our receivables are related to RTs. Generally the prices of our services and products are fixed and determinable at the time of sale. For RTs, we record a receivable for our fees which is then collected at the time the IRS issues the client’s refund. Our receivables from customers are generally collected on a periodic basis during and subsequent to the tax season. See note 4 for our accounts receivable balances.

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

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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