NOTE 13: SEGMENT INFORMATION
We provide assisted and DIY tax preparation solutions through multiple channels (including in-person, online and mobile applications, virtual, and desktop software) and distribute H&R Block-branded services and products, including those of our bank partners, to the general public primarily in the U.S., Canada and Australia. We report a single segment that includes all of our continuing operations. The majority of our revenues are from our U.S. tax services business.
The Company's Chief Operating Decision Maker (CODM) is our chief executive officer, who regularly reviews consolidated financial information to evaluate financial performance and allocate resources. Specifically, the CODM uses revenues, operating expenses, net income and EBITDA at a consolidated level, as key financial metrics in deciding how to reinvest to grow the business through our strategic imperatives of Block Experience, Financial Products and Small Business. These financial metrics are used by the CODM to make operating decisions and identify growth opportunities. The measure of segment assets is total consolidated assets as presented on the consolidated balance sheet.
The following table presents the significant revenue and expense categories included in the segment's net income from continuing operations as regularly provided to the CODM on a consolidated basis and then reconciled to net income for the years ended June 30, 2025 , 2024 and 2023:
Consolidated – Financial Results   (in 000s, except per share amounts)
Year ended June 30,202520242023
Revenues:
U.S. tax preparation and related services:
Assisted tax preparation$2,413,229 $2,274,835 $2,167,138 
Royalties192,877 204,802 210,631 
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 
Compensation and benefits:
Field wages927,360 869,002 841,742 
Other wages306,999 298,819 273,850 
Benefits and other compensation250,729 228,723 220,530 
1,485,088 1,396,544 1,336,122 
Occupancy438,868 432,461 428,167 
Marketing and advertising285,800 277,747 286,255 
Depreciation and amortization116,827 121,784 130,501 
Bad debt74,584 91,523 60,401 
Other531,858 485,011 482,041 
Total operating expenses2,933,025 2,805,070 2,723,487 
Other income (expense), net31,546 36,125 35,492 
Interest expense on borrowings(78,113)(79,080)(72,978)
Income from continuing operations before income taxes781,403 762,322 711,212 
Income taxes171,953 164,359 149,412 
Segment net income from continuing operations$609,450 $597,963 $561,800 
Reconciliation of segment profit:
Reconciling items:
         Net loss from discontinued operations(3,677)(2,646)(8,100)
Net income$605,773 $595,317 $553,700 

Historical Timeline

Fiscal YearFiled
2025Aug 15, 2025Showing above
2018Jun 15, 2018
2017Jun 16, 2017
2016Jun 17, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.