H&R Block, Inc.

Thank you for standing by, and welcome to H&R Block's fourth quarter fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. I would now like to hand the call over to Jessica Hazel, Vice President, Investor Relations. Please go ahead.

Thank you. Good afternoon, and welcome to H&R Block's fiscal year 2025 financial results conference call. Joining me today are Jeff Jones, our President and Chief Executive Officer, and Tiffany Mason, our Chief Financial Officer. Earlier today, we issued a press release and presentation, which can be downloaded or viewed live on our website at investors.hrblock.com. Our call is being broadcast and webcast live, and a replay of the webcast will be available for 90 days. Before we begin, I'd like to remind listeners that comments made by management may include forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties, and actual results could differ from those projected in any forward-looking statement due to numerous factors. For a description of these risks and uncertainties, please see H&R Block's annual report on Form 10-K and quarterly reports on Form 10-Q as updated periodically with our other SEC filings. Please note some metrics we'll discuss today are presented on a non-GAAP basis. We've reconciled the comparable GAAP and non-GAAP figures in the appendix of our presentation. Finally, the content of this call contains time-sensitive information, accurate only as of today, August 12, 2025. H&R Block undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call. I will now turn it over to Jeff.

Thank you, Jessica. Good afternoon, everyone. We appreciate you joining us for our year-end earnings call. Today, Tiffany and I will discuss the consistent growth H&R Block has delivered as we remain focused on strengthening the company, generating ongoing meaningful cash flow, and increasing the value we create for shareholders. We will also outline how we are positioning the company for success in fiscal 2026. Beginning with our fiscal 2025 results, we are pleased to report total revenue growth of 4.2% compared to the prior year. Additionally, we delivered $976 million of EBITDA, which was within our outlook range, though we had anticipated stronger year-over-year results. Tiffany will provide details of the operating expense headwinds we faced in a few minutes. On the capital allocation front, today we announced a 12% increase to our quarterly dividend. With this increase, we have more than doubled our dividend since 2016. Combined with share repurchases, we have returned over $4.5 billion to shareholders during this period. I am proud of our continued commitment to discipline capital allocation practices. Now let's dive into our operating performance. In fiscal 2025, assisted revenue grew by 6.1% and DIY revenue grew by 9.7%. We increased company-owned assisted filing volume and improved our market share trend year over year. Our assisted offering highlights H&R Block's expertise and continues to resonate well, particularly among higher income earners, which is an important customer segment for our long-term growth strategy. For the third consecutive year, we have seen client growth in every segment $80,000 in income and above, with our fastest growing segment being clients with over $100,000 in income. In our retail offices, we continue to focus on improving conversion among those clients who begin tax prep with us but do not finish. This year, improvements in how we welcome clients, match their needs with the best tax pro, and manage their expectations led to higher client conversion for the second consecutive year. In DIY, Significant improvements to the quality and accuracy of AI TaxAssist supported a 13-point increase in our conversion rate among new clients. With our award-winning DIY product, our MyBlock mobile app, our expert review product, TaxPro Review, and our unmatched retail footprint, we remain well positioned to serve clients from fully virtual to fully in person and everything in between. And of course, driving greater demand for H&R Block among the highest value prospects remains our marketing team's top priority. In small business, we delivered double digit top line growth resulting in fiscal 2025 being a record revenue year. I am proud to see this multi-year success continue. Assisted small business tax performed well, and our DIY strategy to expand the number of client experiences customized by occupation proved highly effective, resulting in meaningful client growth. We also continue to see favorable trends in bookkeeping and payroll through the successful conversion of tax clients to other service offerings. These results reflect the expertise and strong value proposition that we're delivering for small businesses compared to independent providers. WAVE, an important component of our small business imperative, also had a very productive year. With the full year benefit of paid products like ProTier, Wave delivered a 13% annual revenue increase. This is one of many ways that Wave is demonstrating its expanding role as a significant growth lever for small business. Our Spruce mobile banking platform continues to support our customers in managing their finances and encouraging prudent savings habits. We're pleased with the ongoing customer growth and engagement during fiscal 2025. Last year at this time, I spoke to the team's focus on acquiring SPRUCE users both during and outside of tax season. In 2025, we delivered on that objective. Newly created SPRUCE accounts rose by nearly 40%, and we continue to see almost half of all deposits coming from non-tax sources, predominantly from recurring payroll deposits and transfers from other accounts. These achievements have helped drive total customer deposits in Spruce to $1.75 billion since its launch. As we look ahead to fiscal 2026 and beyond and finalize our plans for the upcoming tax season, we are excited about the opportunities to continue building on the progress we're making. Consistent with what we've shared on previous calls, We remain committed to the financial algorithm and capital allocation priorities that have helped H&R Block deliver meaningful outcomes for customers and create significant value for shareholders. We operate within a stable industry that serves a large total addressable market of consumers and small businesses. We continue to see significant opportunity to capture market share by building products and experiences that delight our customers, leveraging the growing role of AI and driving even greater efficiency across the business. For example, small businesses remain the backbone of the economy, and we've proven our ability to generate growth by serving them in multiple ways, from tax to bookkeeping and payroll to pure play digital and SaaS services. The combination of Block Advisors and Wave enables us to offer a broad range of products and to deliver significant value to small business owners. They trust our expertise and advice and value the breadth of services that we provide. We are also building on our multi-year success of serving higher value, more complex assisted and DIY clients, and gaining more surgical precision for how we attract and acquire free DIY clients who have a greater propensity to become paying clients over time. These customer segments have higher loyalty and lifetime value, which greatly benefits MIX and translates into stronger financial results for H&R Block and our shareholders. We know that the advantage of our expansive retail presence combined with our award-winning DIY product and our MyBlock mobile app represents a unique opportunity for consumers and small business owners to be served by H&R Block however they choose. And it is evident that AI and automation more broadly will support an improved experience for clients and expert advisors and will drive greater productivity in the business. Our marketing and product teams remain focused on generating and capturing market demand and on effectively converting clients who choose H&R Block regardless of the channel. Finally, continued franchise acquisitions remain important to our overall financial algorithm. We believe there is a meaningful runway for franchise and independent office acquisitions and that these represent a great use of capital. As in prior years, we will use our first quarter earnings call to share more details on our tax season plans. We look forward to that opportunity and to providing additional perspective on the key strategies we believe will drive H&R Block's continued success. I will now turn it over to Tiffany to discuss our financial results and 2026 outlook.