H&R Block Q2 2026 H&R Block Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q2 2026 H&R Block Inc Earnings Call
Operator: Good day, and thank you for standing by. Welcome to the H&R Block Second Quarter Fiscal 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jessica Hazel, Vice President, Investor Relations. Please go ahead.
Operator: Good day, and thank you for standing by. Welcome to the H&R Block Second Quarter Fiscal 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jessica Hazel, Vice President, Investor Relations. Please go ahead.
Speaker #1: After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone.
Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded.
Speaker #1: Oh, and I'd like to hand the conference over to your speaker today, Jessica Hazel, Vice President, Investor Relations. Please go ahead.
Speaker #2: Thank you. Good afternoon, and welcome to H&R Block's fiscal 2026 second quarter financial results conference call. Joining me today are Curtis Campbell, our President and Chief Executive Officer, and Tiffany Mason, our Chief Financial Officer.
Jessica Hazel: Thank you. Good afternoon, and welcome to H&R Block's Fiscal 2026 Q2 Financial Results Conference Call. Joining me today are Curtis Campbell, 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.
Jessica Hazel: Thank you. Good afternoon, and welcome to H&R Block's Fiscal 2026 Q2 Financial Results Conference Call. Joining me today are Curtis Campbell, 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.
Speaker #2: 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.
Speaker #2: 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.
Speaker #2: 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.
Jessica Hazel: 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, 3 February 2026. 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 Curtis.
Jessica Hazel: 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, 3 February 2026. 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 Curtis.
Speaker #2: Please note some metrics we'll discuss today are presented on a non-GAAP basis. We've reconciled non-GAAP figures in the appendix to their comparable GAAP presentation.
Speaker #2: Finally, the content of this call contains time-sensitive information accurate only as of today, February 3, 2026. H&R Block undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call.
Speaker #2: I will now turn it over to Curtis.
Speaker #3: Thank you, Jessica. Good afternoon, everyone, and thank you for joining us. In January, I stepped into the role of President and CEO with a deep sense of responsibility and optimism about the future of our company.
Curtis Campbell: Thank you, Jessica. Good afternoon, everyone, and thank you for joining us. In January, I stepped into the role of President and CEO with a deep sense of responsibility and optimism about the future of our company. This is a pivotal moment for us, given the opportunities ahead to strengthen our core business and accelerate H&R Block's growth. My focus is clear: build on what works, challenge what needs to evolve, and ensure every decision begins and ends with the client. Today, I'll organize our discussion into three parts. First, we'll focus on core tax season fundamentals, the table stakes that remain critical for H&R Block. Next, I'll highlight the improvements clients and tax professionals will see and feel firsthand this year.
Curtis Campbell: Thank you, Jessica. Good afternoon, everyone, and thank you for joining us. In January, I stepped into the role of President and CEO with a deep sense of responsibility and optimism about the future of our company. This is a pivotal moment for us, given the opportunities ahead to strengthen our core business and accelerate H&R Block's growth. My focus is clear: build on what works, challenge what needs to evolve, and ensure every decision begins and ends with the client. Today, I'll organize our discussion into three parts. First, we'll focus on core tax season fundamentals, the table stakes that remain critical for H&R Block. Next, I'll highlight the improvements clients and tax professionals will see and feel firsthand this year.
Speaker #3: This is a pivotal moment for us, given the opportunities ahead to strengthen our core business and accelerate H&R Block's growth. My focus is clear: build on what works, challenge what needs to evolve, and ensure every decision begins and ends with the client.
Speaker #3: Today, I'll organize our discussion into three parts. First, we'll focus on core tax season fundamentals—the table stakes that remain critical for H&R Block.
Speaker #3: Next, I'll highlight the improvements clients and tax professionals will see and feel firsthand this year. And finally, I'll touch on some of the ways we're positioning the company for long-term growth, laying the foundation for the strategy that will guide us in the years ahead.
Curtis Campbell: And finally, I'll touch on some of the ways we're positioning the company for long-term growth, laying the foundation for the strategy that will guide us in the years ahead. Tiffany will then walk you through our quarterly results, factors shaping our performance, and the momentum they bring to our full-year outlook. Let's start with the fundamentals that matter. Our strategy begins and ends with the client. We deliver meaningful value through expert-led, technology-enabled experiences. This season, we're focused on reducing friction and creating confidence-building moments for every client, whether they choose to engage in person, online, or through any of the options in our omni-channel model, including access to our broader financial services offering. That means attracting and converting new clients, and retaining existing clients with a compelling value for the price they pay, and ensuring every experience reinforces why H&R Block is the right choice.
Curtis Campbell: And finally, I'll touch on some of the ways we're positioning the company for long-term growth, laying the foundation for the strategy that will guide us in the years ahead. Tiffany will then walk you through our quarterly results, factors shaping our performance, and the momentum they bring to our full-year outlook. Let's start with the fundamentals that matter. Our strategy begins and ends with the client. We deliver meaningful value through expert-led, technology-enabled experiences. This season, we're focused on reducing friction and creating confidence-building moments for every client, whether they choose to engage in person, online, or through any of the options in our omni-channel model, including access to our broader financial services offering. That means attracting and converting new clients, and retaining existing clients with a compelling value for the price they pay, and ensuring every experience reinforces why H&R Block is the right choice.
Speaker #3: Tiffany will then walk you through our quarterly results, factors shaping our performance, and the momentum they bring to our full-year outlook. Let's start with the fundamentals that matter.
Speaker #3: Our strategy begins and ends with the client. We deliver meaningful value through expert-led, technology-enabled experiences. This season, we're focused on reducing friction and creating confidence-building moments for every client, whether they choose to engage in person, online, or through any of the options in our omnichannel model, including access to a broader financial services offering.
Speaker #3: That means attracting and converting new clients, retaining existing clients with a compelling value for the price they pay, and ensuring every experience reinforces why H&R Block is the right choice.
Speaker #3: This season also brings meaningful tax law changes due to the One Big Beautiful Bill Act. And while the impact varies widely across taxpayers, the net effect is greater complexity, more questions, and a heightened desire for confidence as clients navigate new deductions and exemptions, and eligibility rules.
Curtis Campbell: This season also brings meaningful tax law changes due to the One Big Beautiful Bill Act. While the impact varies widely across taxpayers, the net effect is greater complexity, more questions, and a heightened desire for confidence as clients navigate new deductions, exemptions, and eligibility rules. These shifts reinforce the essential role our tax pros play in helping people feel informed and supported at a time when confidence and accuracy matter more than ever. With nearly 9,000 offices nationwide and more than 60,000 highly trained tax pros, we offer scale and expertise that cannot be matched. Our tax pros average 10 years of tenure with H&R Block, combining deep knowledge with empathy to navigate complex tax situations and provide experiences beyond what digital-only solutions can offer. This human connection gives clients reassurance that their returns are handled with care and backed by our accuracy guarantee.
Curtis Campbell: This season also brings meaningful tax law changes due to the One Big Beautiful Bill Act. While the impact varies widely across taxpayers, the net effect is greater complexity, more questions, and a heightened desire for confidence as clients navigate new deductions, exemptions, and eligibility rules. These shifts reinforce the essential role our tax pros play in helping people feel informed and supported at a time when confidence and accuracy matter more than ever. With nearly 9,000 offices nationwide and more than 60,000 highly trained tax pros, we offer scale and expertise that cannot be matched. Our tax pros average 10 years of tenure with H&R Block, combining deep knowledge with empathy to navigate complex tax situations and provide experiences beyond what digital-only solutions can offer. This human connection gives clients reassurance that their returns are handled with care and backed by our accuracy guarantee.
Speaker #3: The essential role our tax pros play—these shifts reinforce—in helping people feel informed and supported at a time when confidence and accuracy matter more than ever.
Speaker #3: With nearly 9,000 offices nationwide, and more than 60,000 highly trained tax pros, we offer scale and expertise that cannot be matched. Our tax pros average 10 years of tenure with H&R Block, combining deep knowledge with empathy to navigate complex tax situations and provide experiences beyond what digital-only solutions can offer.
Speaker #3: This human connection gives clients reassurance that their returns are handled with care and backed by our accuracy guarantee. Rooted in local presence and trusted expertise, we deliver results clients expect and deserve.
Curtis Campbell: Rooted in local presence and trusted expertise, we deliver results clients expect and deserve. Creating confidence and convenience is at the heart of our approach. Clients trust us with what is often their largest financial outcome of the year, and we deliver through accuracy, expertise, and solutions designed to reduce friction at every step. Whether clients choose to work with a tax pro or file on their own using our award-winning online tax product, our focus is on experiences that make engagement effortless and build loyalty from day one. Our goal is clear: Every client completes their tax journey confident in their outcome and convinced H&R Block is the partner they want for the future. We know that reaching the right clients is fundamental to our success.
Curtis Campbell: Rooted in local presence and trusted expertise, we deliver results clients expect and deserve. Creating confidence and convenience is at the heart of our approach. Clients trust us with what is often their largest financial outcome of the year, and we deliver through accuracy, expertise, and solutions designed to reduce friction at every step. Whether clients choose to work with a tax pro or file on their own using our award-winning online tax product, our focus is on experiences that make engagement effortless and build loyalty from day one. Our goal is clear: Every client completes their tax journey confident in their outcome and convinced H&R Block is the partner they want for the future. We know that reaching the right clients is fundamental to our success.
Speaker #3: Creating confidence and convenience is at the heart of our approach. Clients trust us with what is often their largest financial outcome of the year, and we deliver through accuracy, expertise, and solutions designed to reduce friction at every step.
Speaker #3: Whether clients choose to work with a tax pro or file on their own using our award-winning online tax product, our focus is on experiences that make engagement an effortless one.
Speaker #3: Our goal is clear: Every client completes their tax journey confident in their outcome and convinced H&R Block is the partner they want for the future.
Speaker #3: We know that reaching the right clients is fundamental to our success. Our marketing must connect with those who value trust, accuracy, and personalized service, including consumers and small businesses with more complex needs, who represent our greatest opportunity for long-term value creation.
Curtis Campbell: Our marketing must connect with those who value trust, accuracy, and personalized service, including consumers and small businesses with more complex needs, who represent our greatest opportunity for long-term value creation. This means showing up where they are with messages that resonate and build confidence. Because the landscape is evolving rapidly from our consumer search to where they engage, we're committed to testing new approaches and learning in real time to help ensure our strategy stays effective. By targeting the right audiences and managing our pipeline thoughtfully, we aim to drive engagement and loyalty while staying agile in a changing environment. Our clients expect more than promises. They expect progress they can see and feel, and a process that makes filing easy.
Curtis Campbell: Our marketing must connect with those who value trust, accuracy, and personalized service, including consumers and small businesses with more complex needs, who represent our greatest opportunity for long-term value creation. This means showing up where they are with messages that resonate and build confidence. Because the landscape is evolving rapidly from our consumer search to where they engage, we're committed to testing new approaches and learning in real time to help ensure our strategy stays effective. By targeting the right audiences and managing our pipeline thoughtfully, we aim to drive engagement and loyalty while staying agile in a changing environment. Our clients expect more than promises. They expect progress they can see and feel, and a process that makes filing easy.
Speaker #3: This means showing up where they are with messages that resonate and build confidence. And because the landscape is evolving rapidly, from our consumer search to where they engage, we're committed to testing new approaches and learning in real time to help ensure our strategy stays effective.
Speaker #3: By targeting the right audiences and managing our pipeline thoughtfully, we aim to drive engagement and loyalty while staying agile in a changing environment. Our clients expect more than promises.
Speaker #3: They expect progress they can see and feel, and a process that makes filing easy. This season, we're introducing meaningful improvements designed to make the experience—whether with a tax professional or through our digital channels—more seamless, more outcome-oriented, and more valuable.
Curtis Campbell: This season, we're introducing meaningful improvements designed to make the experience, whether with a tax professional or through our digital channels, more seamless, more outcome-oriented, and more valuable. From onboarding that builds trust from day one to tools that reduce friction and instill confidence, these changes reflect our commitment to elevating the client experience while equipping our tax pros to perform with greater consistency and efficiency. Second Look, a service where we review the last three years of a new client's tax returns to find errors or see if any refund dollars were left on the table, has been a part of Block's offering for years. This year, we transformed it from a niche offering into a core component of the new client experience. We're significantly scaling this industry-leading service and embedding it as a standard part of how we serve new clients.
Curtis Campbell: This season, we're introducing meaningful improvements designed to make the experience, whether with a tax professional or through our digital channels, more seamless, more outcome-oriented, and more valuable. From onboarding that builds trust from day one to tools that reduce friction and instill confidence, these changes reflect our commitment to elevating the client experience while equipping our tax pros to perform with greater consistency and efficiency. Second Look, a service where we review the last three years of a new client's tax returns to find errors or see if any refund dollars were left on the table, has been a part of Block's offering for years. This year, we transformed it from a niche offering into a core component of the new client experience. We're significantly scaling this industry-leading service and embedding it as a standard part of how we serve new clients.
Speaker #3: From onboarding that builds trust from day one, to tools that reduce friction and instill confidence, these changes reflect our commitment to elevating the client experience while equipping our tax pros to perform with greater consistency and efficiency.
Speaker #3: Review the last three years of a new client's second look, a service where we review tax returns to find errors or see if any refund dollars were left on the table, has been a part of Block's offering for years.
Speaker #3: This year, we've transformed it from a niche offering into a core component of the new client experience. We're significantly scaling this industry-leading service and embedding it as a standard part of how we serve new clients.
Speaker #3: By integrating Second Look into onboarding and using technology to meaningfully scale, we expect a deepened engagement, improved retention, and foster longer-term loyalty. At the same time, we're further elevating our DIY solutions.
Curtis Campbell: By integrating Second Look into onboarding and using technology to meaningfully scale, we expect to deepen engagement, improve retention, and foster longer-term loyalty. At the same time, we're further elevating our DIY solutions. Customers who use our top-rated online DIY pay products will experience an even stronger value proposition designed to build confidence at every step. Earlier this season, CNET named H&R Block the best online tax product for 2026, and the enhancements we're introducing this year build on that strong foundation. Our paid SKUs feature AI Tax Assist and human help, providing real-time guidance to help clients navigate complexity with ease. This year, new clients can also receive Second Look at no cost, and for new early season filers, we're providing Tax Pro Review free of charge. This service includes a professional review of the completed return and supporting documents.
Curtis Campbell: By integrating Second Look into onboarding and using technology to meaningfully scale, we expect to deepen engagement, improve retention, and foster longer-term loyalty. At the same time, we're further elevating our DIY solutions. Customers who use our top-rated online DIY pay products will experience an even stronger value proposition designed to build confidence at every step. Earlier this season, CNET named H&R Block the best online tax product for 2026, and the enhancements we're introducing this year build on that strong foundation. Our paid SKUs feature AI Tax Assist and human help, providing real-time guidance to help clients navigate complexity with ease. This year, new clients can also receive Second Look at no cost, and for new early season filers, we're providing Tax Pro Review free of charge. This service includes a professional review of the completed return and supporting documents.
Speaker #3: Customers who use our top-rated online DIY pay products will experience an even stronger value proposition designed to build confidence at every step. Earlier this season, CNET named H&R Block the best online tax product for 2026, and the enhancements we're introducing this year build on that strong foundation.
Speaker #3: Our paid SKUs feature AI Tax Assist and human help, providing real-time guidance to help clients navigate complexity with ease. This year, new clients can also receive Second Look at no cost.
Speaker #3: And for new early-season filers, we're providing Tax Pro Review free of charge. This service includes a professional review of the completed return and supporting documents.
Speaker #3: This unique offering gives DIY clients a bridge to professional insight, creating a distinctive way to sample human expertise that Block has delivered for 70 years.
Curtis Campbell: This unique offering gives DIY clients a bridge to professional insight, creating a distinctive way to sample human expertise that Block has delivered for 70 years. Just as technology is strengthening the value of our DIY products, it's also transforming how our tax pros deliver for our clients. Our tax pros have entered the season with enhanced training and advanced AI tools, positioning them to be more effective than ever. At the center is our nationally launched AI-enabled tax pro assistant, which provides real-time guidance during client interactions. This empowers our tax pros to quickly surface the insights clients need to achieve their best possible results on the spot. In a year of significant tax law change, when complexity is rising and clients are seeking assurance and clarity more than ever, these capabilities underscore our commitment to leading the assisted channel through expert-led, technology-enabled services.
Curtis Campbell: This unique offering gives DIY clients a bridge to professional insight, creating a distinctive way to sample human expertise that Block has delivered for 70 years. Just as technology is strengthening the value of our DIY products, it's also transforming how our tax pros deliver for our clients. Our tax pros have entered the season with enhanced training and advanced AI tools, positioning them to be more effective than ever. At the center is our nationally launched AI-enabled tax pro assistant, which provides real-time guidance during client interactions. This empowers our tax pros to quickly surface the insights clients need to achieve their best possible results on the spot. In a year of significant tax law change, when complexity is rising and clients are seeking assurance and clarity more than ever, these capabilities underscore our commitment to leading the assisted channel through expert-led, technology-enabled services.
Speaker #3: Just as technology is strengthening the value of our DIY products, it's also transforming how our tax pros deliver for our clients. Our tax pros have entered the season with enhanced training and advanced AI tools, positioning them to be more effective than ever.
Speaker #3: We launched our AI-enabled Tax Pro Assistant, which provides real-time guidance during client interactions. At the center is our nationally recognized team. This empowers our tax pros to quickly surface the insights clients need to achieve their best possible results on the spot.
Speaker #3: In a year of significant tax law change, when complexity is rising and clients are seeking assurance and clarity more than ever, these capabilities underscore our commitment to leading the assisted channel through expert-led, technology-enabled services.
Speaker #3: Because the real advantage comes when technology enhances, not replaces, the judgment of tax pros, giving clients both a seamless experience and the confidence that only expert insight can provide.
Curtis Campbell: Because the real advantage comes when technology enhances, not replaces, the judgment of tax pros, giving clients both a seamless experience and the confidence that only expert insight can provide. We've also introduced tools and workflows that make the experience more consistent and outcome-oriented. Features such as Save the Date, two-year comparisons, and personalized product offerings will be delivered more consistently, supported by automation, so clients feel informed, confident, and cared for throughout the process. I'm optimistic about the plans we've put in place and the discipline guiding every decision. As we move through the season, we're staying closely connected to the metrics that help us understand how our work is resonating, especially new client acquisition, conversion through the funnel, and retention of clients we've served before.
Curtis Campbell: Because the real advantage comes when technology enhances, not replaces, the judgment of tax pros, giving clients both a seamless experience and the confidence that only expert insight can provide. We've also introduced tools and workflows that make the experience more consistent and outcome-oriented. Features such as Save the Date, two-year comparisons, and personalized product offerings will be delivered more consistently, supported by automation, so clients feel informed, confident, and cared for throughout the process. I'm optimistic about the plans we've put in place and the discipline guiding every decision. As we move through the season, we're staying closely connected to the metrics that help us understand how our work is resonating, especially new client acquisition, conversion through the funnel, and retention of clients we've served before.
Speaker #3: We've also introduced tools and workflows that make the experience more consistent and outcome-oriented. Features such as Save the Date, two-year comparisons, and personalized product offerings will be delivered more consistently, supported by automation, so clients feel informed, confident, and cared for throughout the process.
Speaker #3: I'm optimistic about the plans we've put in place and the discipline guiding every decision. As we move into the season, we're staying closely connected to the metrics that help us understand how our work is resonating, especially new client acquisition, conversion through the funnel, and retention of clients we served before.
Speaker #3: We're also watching the elements that strengthen satisfaction and loyalty, including offerings like Second Look and Save the Date, along with consistent delivery of what clients value most.
Curtis Campbell: We're also watching the elements that strengthen satisfaction and loyalty, including offerings like Second Look and Save the Date, along with consistent delivery of what clients value most. In small business, we anticipate continued momentum in tax preparation services, bookkeeping, payroll, payments, and invoicing, combining human expertise with digital-first offerings. These insights help refine our roadmap and prioritization. Lastly, I want to share how we think about the future. Block has a proud legacy, but we also have meaningful opportunities to improve, deepening customer centricity, strengthening our learning mindset, harnessing technology to accelerate progress, operating with significantly higher velocity. Historically, our season-to-season approach limited experimentation, speed, and long-term thinking. We've developed a multiyear client-centered strategy focused on delivering confidence, convenience, and transformative experiences.
Curtis Campbell: We're also watching the elements that strengthen satisfaction and loyalty, including offerings like Second Look and Save the Date, along with consistent delivery of what clients value most. In small business, we anticipate continued momentum in tax preparation services, bookkeeping, payroll, payments, and invoicing, combining human expertise with digital-first offerings. These insights help refine our roadmap and prioritization. Lastly, I want to share how we think about the future. Block has a proud legacy, but we also have meaningful opportunities to improve, deepening customer centricity, strengthening our learning mindset, harnessing technology to accelerate progress, operating with significantly higher velocity. Historically, our season-to-season approach limited experimentation, speed, and long-term thinking. We've developed a multiyear client-centered strategy focused on delivering confidence, convenience, and transformative experiences.
Speaker #3: In small business, we anticipate continued momentum. In tax preparation services, bookkeeping, payroll, payments, and invoicing, we're combining human expertise with digital-first offerings. These insights help refine our roadmap and prioritization.
Speaker #3: Lastly, I want to share how we think about the future. Block has a proud legacy, but we also have meaningful opportunities to improve: deepening customer centricity, strengthening our learning mindset, harnessing technology to accelerate progress, and operating with significantly higher velocity.
Speaker #3: Historically, our season-to-season approach limited experimentation, speed, and long-term thinking. We've developed a multi-year, client-centered strategy focused on delivering confidence, convenience, and transformative experiences. Shifting from
Curtis Campbell: Shifting from a short-term seasonal lens to a clear long-term view of the ideal client and tax pro experience allows us to test and learn continuously, move faster with sharper hypotheses, and increase our pace of delivery and transformation. This is a fundamental change in how I intend to lead. As we experiment and test, not every test will succeed, but each one creates insight. By embedding disciplined experimentation into our operating rhythm, we'll identify opportunities sooner, adapt more quickly, and create greater value for all stakeholders over time. As we begin to bring this strategy to life, with more to come in the quarters ahead, the first area of focus is elevating our role as trusted advisors. When clients engage with us, they're looking for confidence and convenience, and we're transforming our organization to ensure experiences are grounded in both.
Curtis Campbell: Shifting from a short-term seasonal lens to a clear long-term view of the ideal client and tax pro experience allows us to test and learn continuously, move faster with sharper hypotheses, and increase our pace of delivery and transformation. This is a fundamental change in how I intend to lead. As we experiment and test, not every test will succeed, but each one creates insight. By embedding disciplined experimentation into our operating rhythm, we'll identify opportunities sooner, adapt more quickly, and create greater value for all stakeholders over time. As we begin to bring this strategy to life, with more to come in the quarters ahead, the first area of focus is elevating our role as trusted advisors. When clients engage with us, they're looking for confidence and convenience, and we're transforming our organization to ensure experiences are grounded in both.
Speaker #1: From a short-term seasonal lens to a clear, long-term view of the ideal client and tax experience allows us to test and learn continuously.
Speaker #1: Move faster with test and learn continuously . Move faster with sharper hypotheses , and increase our pace of delivery transformation . This and how I intend to lead fundamental is a .
Speaker #1: As we and test . Not every test experiment will succeed , but each one creates insight by embedding discipline , experimentation into our operating rhythm will identify opportunities sooner , adept more quickly , and create greater value for all stakeholders .
Speaker #1: Over time , as we begin to bring this strategy to life , with more to come in the quarters ahead . The first area of is focus elevating our role as trusted advisors and clients engage with us .
Speaker #1: They're looking for confidence convenience , and and we're transforming our organization to ensure in grounded both our technology enabled experiences are human expertise positions us to deliver insights that matter , helping clients feel informed and empowered while turning a once a year into a meaningful task opportunity to support their broader financial lives .
Curtis Campbell: Our technology-enabled human expertise positions us to deliver insights that matter, helping clients feel informed and empowered while turning a once-a-year task into a meaningful opportunity to support their broader financial lives. While we're early in this work, we're committed in our vision to combine the judgment and empathy of our tax pros with technology to create personalized guidance that goes beyond tax filing. This approach reinforces what sets H&R Block apart and lays the groundwork for deeper, lasting client relationships. To enable this, we're piloting automation capabilities that streamline work behind the scenes, freeing tax pros to focus on insights that matter. By embedding AI into workflows, we can extract data from documents, pre-populate returns, and automate repetitive back-office tasks. These efficiencies should reduce manual effort, create greater consistency across the network, and enable more time for meaningful client interactions.
Curtis Campbell: Our technology-enabled human expertise positions us to deliver insights that matter, helping clients feel informed and empowered while turning a once-a-year task into a meaningful opportunity to support their broader financial lives. While we're early in this work, we're committed in our vision to combine the judgment and empathy of our tax pros with technology to create personalized guidance that goes beyond tax filing. This approach reinforces what sets H&R Block apart and lays the groundwork for deeper, lasting client relationships. To enable this, we're piloting automation capabilities that streamline work behind the scenes, freeing tax pros to focus on insights that matter. By embedding AI into workflows, we can extract data from documents, pre-populate returns, and automate repetitive back-office tasks. These efficiencies should reduce manual effort, create greater consistency across the network, and enable more time for meaningful client interactions.
Speaker #1: While we're early in this work, we're committed in our combining the judgment, vision, and empathy of our tax pros with technology to create personalized guidance that goes beyond tax filing.
Speaker #1: This approach reinforces what sets H&R block apart and lays the groundwork for deeper , lasting client relationships . To enable this . We're piloting automation capabilities that streamline behind the scenes , for taxpayers to focus on insights that matter by embedding AI into workflows , we can extract data from documents Pre-populate returns and automate repetitive back office tasks .
Speaker #1: These efficiencies should reduce effort, create greater manual consistency across the network, and enable more time for meaningful client interactions. While early in testing, this represents an important step towards combining human judgment with technology to significantly improve the client experience.
Curtis Campbell: While early in testing, this represents an important step towards combining human judgment with technology to significantly elevate the client experience. Turning to small business, we continue to see substantial long-term opportunity, including the chance to grow our share in a very large market and deepen the value we provide through more year-round engagement with each client. As we advance this strategy, we're also taking thoughtful near-term steps to strengthen our foundation, including integrating Wave into H&R Block small business in ways that combine our scale and brand trust with Wave's SaaS capability. This integration enhances our ability to tackle complexity for small business owners today while supporting the broader vision we see ahead.... Lastly, AI is a critical enabler of our long-term vision.
Curtis Campbell: While early in testing, this represents an important step towards combining human judgment with technology to significantly elevate the client experience. Turning to small business, we continue to see substantial long-term opportunity, including the chance to grow our share in a very large market and deepen the value we provide through more year-round engagement with each client. As we advance this strategy, we're also taking thoughtful near-term steps to strengthen our foundation, including integrating Wave into H&R Block small business in ways that combine our scale and brand trust with Wave's SaaS capability. This integration enhances our ability to tackle complexity for small business owners today while supporting the broader vision we see ahead.... Lastly, AI is a critical enabler of our long-term vision.
Speaker #1: Turning to small business, we continue to see substantial long-term opportunity, including the chance to grow our share in a large and very attractive market and deepen the value we provide through more year-round engagement with each client.
Speaker #1: As we advance this strategy, we're also taking thoughtful near-term steps to strengthen our foundation, including integrating Wave into H&R Block Small Business in ways that combine our scale and brand trust with Wave's SaaS capability.
Speaker #1: This integration enhances our ability to tackle complexity for small business owners. Today, while supporting the broader vision we see ahead. Lastly, AI is an enabler, critical to our long-term vision.
Curtis Campbell: Having spent my career building technology platforms and leading product and engineering teams, I've seen firsthand how technology can unlock step-change improvements in the client experience, productivity, and growth when applied with discipline and purpose. Our approach is intentional, disciplined, and responsible, not focused on using AI for its own sake, but on applying it to real client and associate challenges at scale. We evaluate every opportunity through our framework, how technology elevates the client experience, how it strengthens our associates' expertise, and how it drives productivity across the organization. Throughout today's remarks, I've highlighted several initiatives made possible by advances in AI, technology, and innovation. I'm optimistic about the speed and possibilities this will unlock as we move forward on our journey, and I look forward to sharing more progress in the future. I'll now hand the call over to Tiffany.
Curtis Campbell: Having spent my career building technology platforms and leading product and engineering teams, I've seen firsthand how technology can unlock step-change improvements in the client experience, productivity, and growth when applied with discipline and purpose. Our approach is intentional, disciplined, and responsible, not focused on using AI for its own sake, but on applying it to real client and associate challenges at scale. We evaluate every opportunity through our framework, how technology elevates the client experience, how it strengthens our associates' expertise, and how it drives productivity across the organization. Throughout today's remarks, I've highlighted several initiatives made possible by advances in AI, technology, and innovation. I'm optimistic about the speed and possibilities this will unlock as we move forward on our journey, and I look forward to sharing more progress in the future. I'll now hand the call over to Tiffany.
Speaker #1: Having spent career building technology my platforms and leading product and engineering teams , firsthand I've seen how unlock step change technology can in the improvements client experience , productivity , and growth .
Speaker #1: When applied with discipline and purpose . Our approach is intentional , disciplined , and responsible , not focused on using AI for its own sake , but on applying it to real client and associate challenges at scale .
Speaker #1: We evaluate every opportunity through our framework: how technology elevates the client experience, how it strengthens our associates' expertise, and how it drives productivity across the organization.
Speaker #1: Throughout today's remarks, I've highlighted several initiatives made possible by advances in AI technology and innovation. I'm optimistic about the speed and possibilities this will unlock as we move forward on our journey, and look forward to sharing more progress in the future.
Tiffany Mason: Thank you, Curtis, and good afternoon, everyone. We are pleased with our results for the first half of the fiscal year, and as Curtis shared, believe we are well-positioned for the tax season, which gives us the confidence to reaffirm our fiscal 2026 outlook. Before I get into the details of the quarter, I'd like to remind everyone that our business is highly seasonal, and historically, Q2 contributes approximately 5% of our annual total revenue and typically results in a net loss. For the second quarter, we delivered revenue of $199 million, an increase of 11% over the prior year. This increase was primarily driven by higher assisted tax prep volume and net average charge, or NAC, continued double-digit Wave growth, and higher DIY software sales.
Tiffany Mason: Thank you, Curtis, and good afternoon, everyone. We are pleased with our results for the first half of the fiscal year, and as Curtis shared, believe we are well-positioned for the tax season, which gives us the confidence to reaffirm our fiscal 2026 outlook. Before I get into the details of the quarter, I'd like to remind everyone that our business is highly seasonal, and historically, Q2 contributes approximately 5% of our annual total revenue and typically results in a net loss. For the second quarter, we delivered revenue of $199 million, an increase of 11% over the prior year. This increase was primarily driven by higher assisted tax prep volume and net average charge, or NAC, continued double-digit Wave growth, and higher DIY software sales.
Speaker #1: I'll now hand the call over to Tiffany . Thank you . and good afternoon , Curtis , everyone . We are pleased with results for the first half of the fiscal year .
Speaker #1: And as shared , believe we Curtis are well positioned for the tax season , which gives us the confidence to reaffirm our fiscal 2026 outlook .
Speaker #1: Before I get into the details of the quarter, I'd like to remind everyone that our business is highly seasonal, and Q2 historically contributes approximately 5% of our annual total revenue and results typically in a net loss quarter.
Speaker #1: We delivered revenue of $199 million, an increase of 11% over the year prior. This increase was primarily driven higher, assisted by tax prep net volume and charge, or NAC.
Speaker #1: Continued double average digit wage growth and higher DIY sales software in our owned offices . We saw strong demand for tax prep services through the end of the extension season and drove improved conversion year over year .
Tiffany Mason: In our company-owned offices, we saw strong demand for tax prep services through the end of the extension season and drove improved conversion year over year. NAC also improved, reflecting a favorable mix of more complex clients and disciplined pricing actions. At Wave, we were pleased to once again deliver strong results in our high-margin subscription product, Pro Tier, as well as increased payments volume. This reinforces our commitment to fully integrate Wave into H&R Block's small business solution by year-end. In Q2, we also completed our Emerald Advance offer period. Applications exceeded our expectations, and the average loan amount was above the prior year, resulting in favorable loan volume. Total operating expenses for the quarter were $498 million, a 5% increase over the prior year.
Tiffany Mason: In our company-owned offices, we saw strong demand for tax prep services through the end of the extension season and drove improved conversion year over year. NAC also improved, reflecting a favorable mix of more complex clients and disciplined pricing actions. At Wave, we were pleased to once again deliver strong results in our high-margin subscription product, Pro Tier, as well as increased payments volume. This reinforces our commitment to fully integrate Wave into H&R Block's small business solution by year-end. In Q2, we also completed our Emerald Advance offer period. Applications exceeded our expectations, and the average loan amount was above the prior year, resulting in favorable loan volume. Total operating expenses for the quarter were $498 million, a 5% increase over the prior year.
Speaker #1: NAC also improved , reflecting a favorable mix of more complex clients and disciplined pricing actions at wave , pleased we were once again to deliver our high strong results in margin subscription product Tier , , Pro as well as payments volume increased .
Speaker #1: This reinforces our commitment to fully wave into H&R block's small business solution by year end . In Q2 , we also completed our Emerald Advance offer period .
Speaker #1: exceeded our Applications expectations , and the average loan amount was above the prior year , resulting in favorable loan volume . Total operating expenses for the quarter were $498 million , a 5% increase over the prior year .
Tiffany Mason: This increase was primarily due to higher field wages as a result of higher assisted revenue and increased consulting costs associated with the strategic sourcing and cost optimization initiative. We expect this initiative to drive sustainable savings over the next several years. These operating expense increases were expected and contemplated in our full-year outlook. Our second quarter EBITDA loss was $266 million, compared to a prior-year loss of $261 million. The effective tax rate was 24.3%, compared to 22.4% in the prior year. Our net loss from continuing operations was $242 million, representing a 40 basis point improvement over the prior year.
Tiffany Mason: This increase was primarily due to higher field wages as a result of higher assisted revenue and increased consulting costs associated with the strategic sourcing and cost optimization initiative. We expect this initiative to drive sustainable savings over the next several years. These operating expense increases were expected and contemplated in our full-year outlook. Our second quarter EBITDA loss was $266 million, compared to a prior-year loss of $261 million. The effective tax rate was 24.3%, compared to 22.4% in the prior year. Our net loss from continuing operations was $242 million, representing a 40 basis point improvement over the prior year.
Speaker #1: This increase primarily due to higher was wages field as a result of higher assisted revenue and increased consulting costs associated with the strategic sourcing and cost optimization initiative .
Speaker #1: We expect this initiative to drive sustainable savings over the next several years. These operating expense increases were expected and contemplated in our full-year outlook.
Speaker #1: Our second quarter EBITDA loss was $266 million , compared to a prior year loss of $261 million . effective tax The rate was 24.3% , compared to 22.4% in the prior year .
Speaker #1: Our net loss from continuing operations was $242 million, representing a 40 basis point improvement over the prior year. Loss per share from continuing operations was $1.00, compared to $0.91.
Tiffany Mason: Loss per share from continuing operations was $1.91, while adjusted loss per share was $1.84, compared to $1.73 last year. As a reminder, in quarters with a loss, having fewer shares outstanding increases the loss per share. However, this is accretive as we generate earnings for the full year. This dynamic is reflected in the 11-cent year-over-year increase in adjusted loss per share, even as our net loss improved. Our disciplined approach to capital allocation continues to drive meaningful value for our shareholders. We generate significant, stable cash flow and expect this year to be no different. We then invest in the business, grow the dividend, and return excess capital to shareholders through share repurchases.
Tiffany Mason: Loss per share from continuing operations was $1.91, while adjusted loss per share was $1.84, compared to $1.73 last year. As a reminder, in quarters with a loss, having fewer shares outstanding increases the loss per share. However, this is accretive as we generate earnings for the full year. This dynamic is reflected in the 11-cent year-over-year increase in adjusted loss per share, even as our net loss improved. Our disciplined approach to capital allocation continues to drive meaningful value for our shareholders. We generate significant, stable cash flow and expect this year to be no different. We then invest in the business, grow the dividend, and return excess capital to shareholders through share repurchases.
Speaker #1: While adjusted loss per share was $1.84 , compared to $1.73 last year . As a reminder , quarters in with the loss having fewer shares outstanding increases the loss per share .
Speaker #1: However , this is generate earnings for the full year accretive as we . This dynamic is reflected in the 11 cent year over year increase in adjusted loss per share , even as our net loss improved disciplined Our to .
Speaker #1: approach allocation continues to drive capital value for meaningful shareholders our . We generate significant , stable cash flow and expect this year to be no different .
Speaker #1: We then invest in the business , grow the dividend and return excess capital to shareholders through share repurchases . In the first half of fiscal this year , we have returned $508 million to shareholders in the form of and share dividends repurchases have .
Tiffany Mason: In the first half of this fiscal year, we have returned $508 million to shareholders in the form of dividends and share repurchases. We have approximately $700 million remaining on our current share repurchase program. Turning to our full-year outlook, we are reaffirming the following ranges as provided in today's earnings release. Revenue between $3.875 and 3.895 billion, EBITDA between $1.015 and 1.035 billion, an effective tax rate of approximately 25%, and adjusted EPS between $4.85 and $5. Our outlook continues to contemplate certain key assumptions. First, industry growth in line with historical norms, or about 1%. A continued emphasis on achieving a healthier balance of volume, price, and mix over time.
Tiffany Mason: In the first half of this fiscal year, we have returned $508 million to shareholders in the form of dividends and share repurchases. We have approximately $700 million remaining on our current share repurchase program. Turning to our full-year outlook, we are reaffirming the following ranges as provided in today's earnings release. Revenue between $3.875 and 3.895 billion, EBITDA between $1.015 and 1.035 billion, an effective tax rate of approximately 25%, and adjusted EPS between $4.85 and $5. Our outlook continues to contemplate certain key assumptions. First, industry growth in line with historical norms, or about 1%. A continued emphasis on achieving a healthier balance of volume, price, and mix over time.
Speaker #1: Approximately $700 million remains on our current share repurchase program. Turning to our full year outlook, we are reaffirming the following ranges as provided in today's earnings release: between $3.875 and...
Speaker #1: $3.895 billion . EBITDA Revenue between 1.015 and an $1.035 billion , effective tax rate of approximately 25% , and adjusted EPs between $4.85 and Our outlook $5 .
Speaker #1: continues to contemplate certain key assumptions . First , industry growth in line with the strong norms or about 1% a continued emphasis on healthier achieving a balance of price and volume , mix over time .
Tiffany Mason: The strategic prioritization of assisted and paid DIY, the two areas that deliver the strongest lifetime value for H&R Block. An expanding contribution from small business as a meaningful revenue driver in fiscal 2026 and beyond, and continued franchise acquisitions when opportunities arise at attractive EBITDA multiples, which remains a prudent and value-accretive use of capital. Taken together, these inputs underpin our fiscal 2026 outlook and reinforce our focus on disciplined execution of our strategy, which we believe positions us well to continue delivering meaningful value for our shareholders.
Tiffany Mason: The strategic prioritization of assisted and paid DIY, the two areas that deliver the strongest lifetime value for H&R Block. An expanding contribution from small business as a meaningful revenue driver in fiscal 2026 and beyond, and continued franchise acquisitions when opportunities arise at attractive EBITDA multiples, which remains a prudent and value-accretive use of capital. Taken together, these inputs underpin our fiscal 2026 outlook and reinforce our focus on disciplined execution of our strategy, which we believe positions us well to continue delivering meaningful value for our shareholders.
Speaker #1: The prioritization assisted of and paid DIY, two areas that deliver the strongest lifetime block value for us, and expanding from small H&R contribution as a meaningful business revenue driver.
Speaker #1: In fiscal 2026 and beyond . And continued franchise acquisitions . When opportunities arise at attractive EBITDA multiples , remains a prudent and which .
Speaker #1: Taken together, these inputs underpin our fiscal 2026 outlook and reinforce our focus on disciplined execution of our strategy, which positions us well to believe delivering meaningful value for our shareholders.
Jessica Hazel: ... With that, I'll turn it back over to Curtis for closing remarks.
Tiffany Mason: ... With that, I'll turn it back over to Curtis for closing remarks.
Speaker #1: With that , I'll turn it back over to Curtis for closing . remarks Thanks , Tiffany . Our priorities are clear . We're focused on the client equipping our tax proposal to build trust and deliver outcomes at meaningful every turn , products coupled with designed for clarity , confidence and convenience .
Curtis Campbell: Thanks, Tiffany. Our priorities are clear. We're focused on the client, equipping our tax pros to build trust and deliver meaningful outcomes at every turn. Coupled with products designed for clarity, confidence, and convenience, we focus on meeting clients where they are, on their terms. By combining disciplined execution with a commitment to progress, we're positioning H&R Block for lasting growth. I am confident in our team's ability to adapt, deliver, and strengthen our company for the future. Thank you for your continued trust and partnership. Now, operator, we will open up the line for questions.
Curtis Campbell: Thanks, Tiffany. Our priorities are clear. We're focused on the client, equipping our tax pros to build trust and deliver meaningful outcomes at every turn. Coupled with products designed for clarity, confidence, and convenience, we focus on meeting clients where they are, on their terms. By combining disciplined execution with a commitment to progress, we're positioning H&R Block for lasting growth. I am confident in our team's ability to adapt, deliver, and strengthen our company for the future. Thank you for your continued trust and partnership. Now, operator, we will open up the line for questions.
Speaker #1: We focus on meeting clients where they are, on their terms, combining disciplined execution with a commitment to progress. We're positioning H&R Block for lasting growth.
Speaker #1: I am confident in our team's ability to adapt , deliver and strengthen our the future . company for Thank you continued trust and Now , for your partnership .
Speaker #1: We will take questions line by line.
Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Alex Paris with Barrington Research. Your line is open.
Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Alex Paris with Barrington Research. Your line is open.
Speaker #2: As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced.
Speaker #2: To withdraw your question , please press star one . One again . Please stand by while we the compile Q&A roster . Our first question comes from Alex Paris with Barrington Research .
[Analyst] (Barrington Research): Hi, guys. Thanks for taking my questions, and congrats on the better-than-expected off-season quarter.
Alex Paris: Hi, guys. Thanks for taking my questions, and congrats on the better-than-expected off-season quarter.
Speaker #2: Your line is open .
Speaker #3: guys . Thanks for taking my questions and congrats on Hi , better than expected off season quarter .
Jessica Hazel: Thanks, Alex.
Jessica Hazel: Thanks, Alex.
Curtis Campbell: Thank you.
Curtis Campbell: Thank you.
[Analyst] (Barrington Research): I just wanted to ask the typical first question. The IRS opened for e-files about a week ago, last Monday. First off, was there any impact of this partial government shutdown in the last few days?
Alex Paris: I just wanted to ask the typical first question. The IRS opened for e-files about a week ago, last Monday. First off, was there any impact of this partial government shutdown in the last few days?
Speaker #1: Alex . Thanks ,
Speaker #3: Thank you, wanted to. I just ask the typical first question. The IRS opened for e-files about a week ago, last Monday.
Speaker #3: First off, was there any impact of this government partial shutdown in the last few?
Curtis Campbell: Yeah. How are you doing, Alex? Thank you for the question. So,
Curtis Campbell: Yeah. How are you doing, Alex? Thank you for the question. So,
[Analyst] (Barrington Research): Yeah.
Alex Paris: Yeah.
Curtis Campbell: I'll go ahead and jump in. We don't see any material impact from the government shutdown. I'll remind everybody that Block has been in business for 70 years, so we are not unfamiliar with government shutdowns. So our tax pros are prepared to guide our clients through any uncertainty, especially any connected to the One Big Beautiful Bill.
Curtis Campbell: I'll go ahead and jump in. We don't see any material impact from the government shutdown. I'll remind everybody that Block has been in business for 70 years, so we are not unfamiliar with government shutdowns. So our tax pros are prepared to guide our clients through any uncertainty, especially any connected to the One Big Beautiful Bill.
Speaker #1: are you doing , Alex ? Yeah . How Thank you for the question . So I'll go ahead and jump in . We don't see any material impact from the government shutdown .
Speaker #1: And I'll remind that Block has been in everybody's business for 70 years. So we are not unfamiliar with government shutdowns. So our tax laws are prepared to guide our clients through any uncertainty, connected to the one big beautiful bill.
[Analyst] (Barrington Research): Gotcha. And then, you know, again, the data is limited. It's very, very early in the tax season, but any trends to note out of the first 10 days or so?
Alex Paris: Gotcha. And then, you know, again, the data is limited. It's very, very early in the tax season, but any trends to note out of the first 10 days or so?
Speaker #3: Gotcha . And then . You know , again limited . It's very , , the data is very early tax season . But any trends to note out of the first ten days or so .
Curtis Campbell: It's early in the tax season, without a doubt, but e-file opened up last Monday. Tiffany talked about this, but we expect the industry to grow at approximately 1% this year. I'll tell you, I'm confident in the work the teams have done to prepare for this season. As I mentioned in my prepared remarks, we're focused on executing not just for the season, but we're also focused on testing and experimenting on new capabilities and experiences that are connected to our multi-year strategy that we'll share more about as we go throughout the year. I also want to highlight, Alex, a couple other things that are important.
Curtis Campbell: It's early in the tax season, without a doubt, but e-file opened up last Monday. Tiffany talked about this, but we expect the industry to grow at approximately 1% this year. I'll tell you, I'm confident in the work the teams have done to prepare for this season. As I mentioned in my prepared remarks, we're focused on executing not just for the season, but we're also focused on testing and experimenting on new capabilities and experiences that are connected to our multi-year strategy that we'll share more about as we go throughout the year. I also want to highlight, Alex, a couple other things that are important.
Speaker #1: It's early in the tax season , without a doubt . So you opened up you Monday . Tiffany last talked about this . we But expect the to grow at industry approximately 1% this year .
Speaker #1: I'll tell you, I'm confident in the work the teams have done to prepare for this season. As I mentioned in my prepared remarks, we're focused on executing not just for the season, but also we're focused on testing and experimenting on new capabilities and experiences that are connected to our multiyear strategy. We'll share more about that as we go through the year.
Speaker #1: I also want to highlight Alex a couple other things that are important . The changes that we made to second look to scale it , the work that we've done to embed enabled AI text for into the tools of our tax pros , the advancements we've made to TPR , the work we've done to optimize our assisted virtual experience , and especially the training our taxpayers have to help clients navigate any uncertainty due to the one big , beautiful bill .
Curtis Campbell: The changes that we made to Second Look to scale it, the work that we've done to embed AI-enabled taxpayer assistance into the tools of our tax pros, the advancements we've made to TPR, the work we've done to optimize our assisted virtual experience, and especially the training our tax pros have to help clients navigate any uncertainty due to the One Big Beautiful Bill. I'm just. I feel like we're well positioned for the season.
Curtis Campbell: The changes that we made to Second Look to scale it, the work that we've done to embed AI-enabled taxpayer assistance into the tools of our tax pros, the advancements we've made to TPR, the work we've done to optimize our assisted virtual experience, and especially the training our tax pros have to help clients navigate any uncertainty due to the One Big Beautiful Bill. I'm just. I feel like we're well positioned for the season.
Speaker #1: I'm just—I feel like we're positioned for the season.
[Analyst] (Barrington Research): Yeah, no, sounds like it. One of the other things I think we talked about on the last call is you expect not only normal growth, one percent-ish, you know, for tax filing this year, but also that assisted should take some share from DIY again, say, to the tune of about 20 basis points. Any change in that expectation? You know, perhaps driven by one big, beautiful bill and increased complexity.
Alex Paris: Yeah, no, sounds like it. One of the other things I think we talked about on the last call is you expect not only normal growth, one percent-ish, you know, for tax filing this year, but also that assisted should take some share from DIY again, say, to the tune of about 20 basis points. Any change in that expectation? You know, perhaps driven by one big, beautiful bill and increased complexity.
Speaker #1: Yeah, no, it
Speaker #3: like sounds it . And one of the other things about on the call is I think we talked you expect not only normal growth 1% ish for tax filing this year , but also that assisted should take take some share from DIY again say to the tune of about 20 basis points .
Speaker #3: Any change in expectation? You know, perhaps driven by one big, beautiful bill and increased complexity?
Curtis Campbell: No, we'd expect a tailwind from the One Big Beautiful Bill. What we historically see is when there's significant tax complexity, it drives clients to seek assistance.
Curtis Campbell: No, we'd expect a tailwind from the One Big Beautiful Bill. What we historically see is when there's significant tax complexity, it drives clients to seek assistance.
Speaker #1: No, we'd expect a tailwind from the one big, beautiful bill. What we have seen is when there is significant tax complexity, it leads clients to seek assistance.
[Analyst] (Barrington Research): You're still thinking low single digit price increases across both assisted and DIY?
Alex Paris: You're still thinking low single digit price increases across both assisted and DIY?
Speaker #3: still
Speaker #3: Thinking low single- and you're seeing digit price increases across both Assisted and DIY.
Curtis Campbell: That's correct.
Curtis Campbell: That's correct.
[Analyst] (Barrington Research): Great. All right, well, thank you for that. I appreciate it. Good luck on the balance of the season. We'll have checkpoints between now and then, and I'll get back in the queue.
Alex Paris: Great. All right, well, thank you for that. I appreciate it. Good luck on the balance of the season. We'll have checkpoints between now and then, and I'll get back in the queue.
Speaker #1: That's correct .
Speaker #3: Great . All right . Well thank you for that . I appreciate it . Good luck . On the balance of the season , we'll have checkpoints between now and then and I'll get back in the queue .
Curtis Campbell: Thank you, Alex.
Curtis Campbell: Thank you, Alex.
Speaker #1: Thank you Alex .
Operator: Thank you. Our next question comes from Kartik Mehta with Northcoast Research. Your line is open.
Operator: Thank you. Our next question comes from Kartik Mehta with Northcoast Research. Your line is open.
Speaker #2: Thank you. Our next question comes from Kartik Mehta with Northcoast Research. Your line is open.
[Analyst] (Northcoast Research): Hey, good evening. Curtis, as you look at this tax season, are you anticipating similar behavior to last year in terms of the peaks, or do you think the One Big Beautiful Bill will change that in any way?
Kartik Mehta: Hey, good evening. Curtis, as you look at this tax season, are you anticipating similar behavior to last year in terms of the peaks, or do you think the One Big Beautiful Bill will change that in any way?
Speaker #4: Good Hey . evening . As you this tax look at season , are you anticipating similar behavior to last year in terms of the peaks , or do you think the one big beautiful bill will change that in any way ?
Curtis Campbell: Hey, Kartik, how are you doing? Thanks for your question. You know this, what we've seen over the last several years is slower starts to the season from an industry perspective. I wouldn't expect that to change. Without a doubt, the One Big Beautiful Bill will drive uncertainty. I don't think that it's gonna dramatically change taxpayer behavior, other than the fact that they may reach out for assistance more, but I don't think that's gonna change the timing of which they reach out to get their taxes done.
Curtis Campbell: Hey, Kartik, how are you doing? Thanks for your question. You know this, what we've seen over the last several years is slower starts to the season from an industry perspective. I wouldn't expect that to change. Without a doubt, the One Big Beautiful Bill will drive uncertainty. I don't think that it's gonna dramatically change taxpayer behavior, other than the fact that they may reach out for assistance more, but I don't think that's gonna change the timing of which they reach out to get their taxes done.
Speaker #1: Hey doing ? Thanks for your , how are you question . And you what we've seen over the last several years is know this slower starts to the season from an industry perspective .
Speaker #1: I wouldn't expect to expect that to change . Without a doubt , the one big beautiful bill will drive uncertainty . don't think that I it's going to dramatically change taxpayer behavior , other than the fact that they may reach out for assistance more , but I don't think that's going to change the timing of which they reach out to get their taxes done .
[Analyst] (Northcoast Research): And then, Curtis, I know it's early in 10 days, but have you seen a change in the refund amount? Is that... You know, the expectation is that it will be larger than last year. Has that come to fruition, even though it might be early?
Kartik Mehta: And then, Curtis, I know it's early in 10 days, but have you seen a change in the refund amount? Is that... You know, the expectation is that it will be larger than last year. Has that come to fruition, even though it might be early?
Speaker #4: And then , Curtis , I know it's early in ten days , but have you a change in the refund amount ? Is that , you is that it expectation will be know , the larger than last .
Speaker #4: Have you—is this the year it comes to fruition? It might even be that it comes early, though.
Curtis Campbell: Yes, it's really, really early, but I would say that I would expect, depending on the client, there to be a portion of our client base that does receive a bigger refund. And you know this, when we look at the standard deduction, that's up $750. We look at the other incremental changes with the tips income deduction, the overtime pay deduction, the new senior deduction, and the increase in default deduction, those are, in some cases, pretty big moves. So I would expect, depending on who you are as a taxpayer, you could see a slightly higher refund.
Curtis Campbell: Yes, it's really, really early, but I would say that I would expect, depending on the client, there to be a portion of our client base that does receive a bigger refund. And you know this, when we look at the standard deduction, that's up $750. We look at the other incremental changes with the tips income deduction, the overtime pay deduction, the new senior deduction, and the increase in default deduction, those are, in some cases, pretty big moves. So I would expect, depending on who you are as a taxpayer, you could see a slightly higher refund.
Speaker #1: Yeah . It's really , really early . But I would say that I would expect depending on the client , there to be a portion of their client base that does receive a bigger refund .
Speaker #1: And you know, when we look at the standard deduction, that's up $750. We look at the other incremental changes with the tips income deduction.
Speaker #1: The overtime pay deduction, the new senior, and the increase in the SALT deduction. Those are, in some cases, pretty big moves.
Speaker #1: So, depending on who you are as a taxpayer, you could see a slightly higher refund.
[Analyst] (Northcoast Research): Perfect. Thank you very much.
Kartik Mehta: Perfect. Thank you very much.
Curtis Campbell: But it's too early for us to share data that confirms what we're seeing. It's too early for that, but I would expect that to be the case.
Curtis Campbell: But it's too early for us to share data that confirms what we're seeing. It's too early for that, but I would expect that to be the case.
Speaker #4: Perfect. Thank you very much.
Speaker #1: It's too early for us to share data that confirms what we're seeing. It's too early for that. But I would expect that to be the case.
[Analyst] (Northcoast Research): Okay. Well, thank you. I appreciate that.
Kartik Mehta: Okay. Well, thank you. I appreciate that.
Speaker #4: Okay .
Speaker #4: Well, thank you. I case appreciate that.
Curtis Campbell: Thanks, Kartik.
Curtis Campbell: Thanks, Kartik.
Speaker #1: Thanks , Karthik .
Operator: Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.
Operator: Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.
Speaker #2: Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.
[Analyst] (Goldman Sachs): ... Hi, this is Sammy Yon from George. Given expectations for greater complexity and a shift towards assisted filing this tax season, what's driving your outlook for assisted share loss rather than stabilization or even gain, since this type of environment plays to your strength?
[Analyst] (Goldman Sachs): ... Hi, this is Sammy Yon from George. Given expectations for greater complexity and a shift towards assisted filing this tax season, what's driving your outlook for assisted share loss rather than stabilization or even gain, since this type of environment plays to your strength?
Speaker #5: is Sammy
Speaker #5: on for George . Given . Hi . expectations for This greater complexity and a shift towards assisted filing this tax season , what's driving your outlook for assisted share ?
Speaker #5: Loss rather than stabilization or even gain? Since this type of environment placed strength?
Curtis Campbell: Yeah, let me, let me jump in on this one. So first, what's important to understand is why our market share hasn't consistently grown in Assisted. So I start there from a CEO perspective. We've got millions of clients that choose to start with us every year, and we lose far too many in our mid to lower funnel. This comes down to, at the end of the day, us understanding why. And we've spent quite a bit of time over the last six months examining every aspect of the client journey in our Assisted business, and the same thing for our tax pros, examining every step of the journey for our tax pros as they work to engage with our clients.
Curtis Campbell: Yeah, let me, let me jump in on this one. So first, what's important to understand is why our market share hasn't consistently grown in Assisted. So I start there from a CEO perspective. We've got millions of clients that choose to start with us every year, and we lose far too many in our mid to lower funnel. This comes down to, at the end of the day, us understanding why. And we've spent quite a bit of time over the last six months examining every aspect of the client journey in our Assisted business, and the same thing for our tax pros, examining every step of the journey for our tax pros as they work to engage with our clients.
Speaker #1: Yeah , let me let me jump in on this one . So for us , what's important to understand is why our market share hasn't consistently grown in assisted .
Speaker #1: I’ll start. So, from a CEO perspective, we've got millions of clients that choose to start with us every year, and we lose far too many in our mid to lower funnel.
Speaker #1: This comes down to, at the end of the day, us understanding why. And we spent quite a bit of time over the last six months examining every aspect of the client journey in our assisted business.
Speaker #1: And the same thing for our tax growth. Examining every step of the journey for our tax pros as they engage, work with our clients, and a large portion of the reason why they had some challenges is a significant amount of manual processes that are dependent on tax, our operate consistently at a high level.
Curtis Campbell: A large portion of the reason why we've had some challenges is a significant amount of manual processes that are dependent on our tax pros to operate consistently at a high level. As I mentioned in my prepared remarks, right, we're focused on leveraging technology to reduce that manual, non-value-added work. We believe this is gonna help automate workflows, ensure consistent funnel management, and, at the end of the day, deliver better client experiences. Our clients care about confidence, convenience, and the belief that they're getting every dollar they deserve, and us enabling tax pros to lean into that via technology enables that. This is not gonna be an overnight transformation at H&R Block. This will be a, you know, multi-year journey, but we believe this is the best journey for us at Block to best improve that client experience.
Curtis Campbell: A large portion of the reason why we've had some challenges is a significant amount of manual processes that are dependent on our tax pros to operate consistently at a high level. As I mentioned in my prepared remarks, right, we're focused on leveraging technology to reduce that manual, non-value-added work. We believe this is gonna help automate workflows, ensure consistent funnel management, and, at the end of the day, deliver better client experiences. Our clients care about confidence, convenience, and the belief that they're getting every dollar they deserve, and us enabling tax pros to lean into that via technology enables that. This is not gonna be an overnight transformation at H&R Block. This will be a, you know, multi-year journey, but we believe this is the best journey for us at Block to best improve that client experience.
Speaker #1: As I prepared my mentioned in remarks, we're focused on leveraging technology to reduce that manual to non-value-added work. We believe this is going to help automate workflows, ensure consistent funnel management.
Speaker #1: At the end of the day , deliver better client experiences . Our clients care about confidence belief that they're , convenience , and a getting every dollar they deserve .
Tiffany Mason: And I just wanna make one, two points of clarification, really. So we've been chipping away at the Assisted share, loss over the last couple of tax seasons, and we're making progress. That's point number one. I think point number two is when you think about our full year outlook, the high end of our range assumes that we hold share in the Assisted category. So that's the top end of our guidance range, and I just wanna make sure we make that point very clearly on the call today.
Tiffany Mason: And I just wanna make one, two points of clarification, really. So we've been chipping away at the Assisted share, loss over the last couple of tax seasons, and we're making progress. That's point number one. I think point number two is when you think about our full year outlook, the high end of our range assumes that we hold share in the Assisted category. So that's the top end of our guidance range, and I just wanna make sure we make that point very clearly on the call today.
Speaker #1: want to experience make client 1 or 2 points of clarification , really . So we've been chipping away at the assisted loss over couple of tax the last making seasons , progress .
Speaker #1: That's point number one. I think point number two is, when you think about our full-year outlook, the high end of our range assumes that we hold share in the Assisted category.
Speaker #1: The top end of our guidance, just one range. And I—we make today very that point on the call clearly.
[Analyst] (Goldman Sachs): Got it. And as you implement AI tools that make DIY filing easier, such as the AI Tax Assist, is that a long-term threat to your Assisted business as customers start to find it easier to use the DIY channel?
[Analyst] (Goldman Sachs): Got it. And as you implement AI tools that make DIY filing easier, such as the AI Tax Assist, is that a long-term threat to your Assisted business as customers start to find it easier to use the DIY channel?
Speaker #5: it . Got And as you implement AI tools that make DIY filing easier , such as the AI Tax Assist , is that a long term threat to your assisted business as customers start to find easier to it use DIY the channel ?
Curtis Campbell: Thank you for the question. We don't think so. It's important for us to meet clients where they are, and we envision a future where there's blended experiences. A part of our multi-year strategy is to ensure that our DIY clients, clients do have the ability to connect with tax pros, especially when they run into fear, uncertainty, and doubt. So we don't think that that's gonna be a challenge or headwind to our business. We think that's a core part of our multi-year strategy.
Curtis Campbell: Thank you for the question. We don't think so. It's important for us to meet clients where they are, and we envision a future where there's blended experiences. A part of our multi-year strategy is to ensure that our DIY clients, clients do have the ability to connect with tax pros, especially when they run into fear, uncertainty, and doubt. So we don't think that that's gonna be a challenge or headwind to our business. We think that's a core part of our multi-year strategy.
Speaker #1: Thank you for the don't think so . It's question . us to meet We they are , and we envision a future where there's blended experiences and a part of our multi-year strategy is to ensure that our DIY clients , clients do have the ability to connect tax with pros , especially when they run uncertainty , into fear , and doubt .
Speaker #1: So, we don't think that that's going to be a challenge or headwind to our business. We think that's a core part of our multiyear strategy.
[Analyst] (Goldman Sachs): Got it. Helpful. Thank you.
[Analyst] (Goldman Sachs): Got it. Helpful. Thank you.
Curtis Campbell: Thank you.
Curtis Campbell: Thank you.
Speaker #5: Got it. Thank you.
Speaker #1: Thank you .
Operator: Thank you. As a reminder, to ask a question or reenter the queue, please press star one one. Again, that is star one one to ask a question. Our next question comes from Scott Schneeberger with Oppenheimer. Your line is open.
Operator: Thank you. As a reminder, to ask a question or reenter the queue, please press star one one. Again, that is star one one to ask a question. Our next question comes from Scott Schneeberger with Oppenheimer. Your line is open.
Speaker #2: Thank you . As a reminder to ask a or question reenter the queue , please press star one . again , One that is star one .
Speaker #2: One to ask a question. Our next question comes from Scott with Oppenheimer. Your line is open.
[Analyst] (Oppenheimer): Thanks very much. Good afternoon. Curtis, and/or Tiffany, just curious, with the 1% industry volume growth that you anticipate and, you've been carrying that view for a while, what are some drivers that may lead to upside or downside as you contemplate that, as you look out over the season? Thanks.
Scott Schneeberger: Thanks very much. Good afternoon. Curtis, and/or Tiffany, just curious, with the 1% industry volume growth that you anticipate and, you've been carrying that view for a while, what are some drivers that may lead to upside or downside as you contemplate that, as you look out over the season? Thanks.
Speaker #6: Thanks very much . Good afternoon , Curtis and or I'm just Tiffany . curious with the 1% industry volume growth that that that you anticipate and you've been carrying that view for a while , what are some drivers that may lead to upside or downside as you as you contemplate that , as you look out over the season ?
Speaker #6: Thanks .
Tiffany Mason: Hi, Scott. Thanks for the question. So certainly, the 1%, industry growth is historically what we've seen. That's total industry growth. As we talked about earlier in the call today, we think as we look between the two channels, Assisted and DIY, we certainly think there's an opportunity, given the tailwind from one big, beautiful bill, that we could see benefit to the Assisted channel. So we expect to see some movement from DIY to Assisted, and we've seen that three out of the last four years. To the extent that we see, you know, potentially larger refund sizes, there might be some upside to industry growth overall as a result, but we don't expect that to be outsized.
Tiffany Mason: Hi, Scott. Thanks for the question. So certainly, the 1%, industry growth is historically what we've seen. That's total industry growth. As we talked about earlier in the call today, we think as we look between the two channels, Assisted and DIY, we certainly think there's an opportunity, given the tailwind from one big, beautiful bill, that we could see benefit to the Assisted channel. So we expect to see some movement from DIY to Assisted, and we've seen that three out of the last four years. To the extent that we see, you know, potentially larger refund sizes, there might be some upside to industry growth overall as a result, but we don't expect that to be outsized.
Speaker #1: Hi , Scott , thanks for the question . So certainly the 1% industry growth is historically what we've seen . That's total industry growth as as we talked about call today , earlier in the we think as we look between the two channels , assisted and DIY , we certainly think there's an opportunity given the tailwind from one big beautiful bill that we could see benefit to the to see So we assisted channel .
Speaker #1: expect movement some DIY to assisted . And we've seen that three out of last four years the , to the extent that we see , you potentially larger refund sizes , there might be some upside to industry growth overall as a result .
Tiffany Mason: So, you know, I think 1% is the right place to be, and that's certainly what we've embedded in our guidance.
Speaker #1: to expect that don't But we be outsized . So , you know , I think I think 1% is the right place to be .
Tiffany Mason: So, you know, I think 1% is the right place to be, and that's certainly what we've embedded in our guidance.
Speaker #1: And that's certainly what we've embedded in our guidance.
[Analyst] (Oppenheimer): Okay. Thanks, Tiffany. Appreciate that. On your marketing approach this year, just maybe some discussion on timing on a year-over-year basis, and magnitude of spending. Obviously, it's all captured in guidance, but just some nuances there as you care to share. Thanks.
Scott Schneeberger: Okay. Thanks, Tiffany. Appreciate that. On your marketing approach this year, just maybe some discussion on timing on a year-over-year basis, and magnitude of spending. Obviously, it's all captured in guidance, but just some nuances there as you care to share. Thanks.
Speaker #6: Okay . Thanks , Tiffany . Appreciate that . on your On approach . This . Just maybe year some discussion on timing on a year over year basis and magnitude of spending .
Speaker #6: Obviously , it's all captured in guidance , just but some some nuances there as you care to share . Thanks .
Curtis Campbell: Yeah, thank you for your question. We don't see any incremental changes in our historical marketing spend, but what I do wanna talk about from a marketing perspective is our focus this season. As I mentioned a couple of times, it's on meeting customers where they are with a specific focus on our highest lifetime value customers. And our focus this year from a theme perspective is leveraging the expertise of our tax pros to navigate complexity. You'll see that in our TV commercials. You'll see that in our digital display ads. Let me talk a little bit about connecting AI to marketing. Without a doubt, you guys probably see that consumer behavior is changing in how they search, and we're responding to that from an H&R Block perspective.
Curtis Campbell: Yeah, thank you for your question. We don't see any incremental changes in our historical marketing spend, but what I do wanna talk about from a marketing perspective is our focus this season. As I mentioned a couple of times, it's on meeting customers where they are with a specific focus on our highest lifetime value customers. And our focus this year from a theme perspective is leveraging the expertise of our tax pros to navigate complexity. You'll see that in our TV commercials. You'll see that in our digital display ads. Let me talk a little bit about connecting AI to marketing. Without a doubt, you guys probably see that consumer behavior is changing in how they search, and we're responding to that from an H&R Block perspective.
Speaker #1: Yeah. Thank you for the question. We don’t see any incremental changes in our historical marketing spend. But what I do want to focus on from a perspective is our focus this season.
Speaker #1: As I couple of times , it's mentioned a on meeting customers where they are specific with a focus on our lifetime value customers highest .
Speaker #1: And our focus this year from a theme leveraging perspective , is the expertise of our tax pros to navigate complexity . You will see that in our TV You'll see commercials .
Speaker #1: That in display ads, me talk a little, let bit connecting AI to marketing. Without a probably doubt, you guys, consumer behavior is changing in how they search.
Speaker #1: responding to that from an or block perspective . And from evolving We're SEO search to AI engine optimization to ensure that we've got the right content , the right visibility , and the right measurement in place .
Curtis Campbell: We're evolving from SEO search to AI engine optimization to ensure that we've got the right content, the right visibility, and the right measurement in place. But I think more about AI, I do wanna talk about AI specific to H&R Block. You know, from an H&R Block perspective, we see AI as an enabler. It's an opportunity to help us significantly improve the client and tax pro experience. And once again, as I mentioned in prepared remarks, I shared numerous examples of how we're leveraging AI to drive improved experiences. First being AI-enabled tax pro assistance embedded in the tools for our tax pros... The second one being leveraging AI to enable us to be able to scale Second Look. Historically, Second Look was a very manual process. It required a lot of work by our tax pros.
Curtis Campbell: We're evolving from SEO search to AI engine optimization to ensure that we've got the right content, the right visibility, and the right measurement in place. But I think more about AI, I do wanna talk about AI specific to H&R Block. You know, from an H&R Block perspective, we see AI as an enabler. It's an opportunity to help us significantly improve the client and tax pro experience. And once again, as I mentioned in prepared remarks, I shared numerous examples of how we're leveraging AI to drive improved experiences. First being AI-enabled tax pro assistance embedded in the tools for our tax pros... The second one being leveraging AI to enable us to be able to scale Second Look. Historically, Second Look was a very manual process. It required a lot of work by our tax pros.
Speaker #1: I think, more broadly, about what we want AI to do. I want to talk specifically about AI at H&R Block, and from H&R Block's perspective, we see AI as an enabler.
Speaker #1: think more about do want AI . to talk I about I specific to AI H&R block , and from H&R block see AI as an perspective .
Speaker #1: It's an opportunity to help us significantly improve the client and tax pro experience. And once again, as I experience prepared remarks numerous times, we see how we're using AI to drive improved experiences.
Speaker #1: First being leveraging AI-enabled tax pro assistance, the tools for tax pros. Embedded in, second one being AI to enable us to be able to scale.
Speaker #1: The second, historically, leveraging looked like a very manual process that required a lot of work by our tax pros, so because it was not manual.
Curtis Campbell: Because it was so manual, not all of our tax pros were eager to offer that to our clients. Leveraging AI and technology, we've streamlined that to an extent where it's going to be available to the bulk of our clients in our assisted business this year. The third thing is leveraging AI to reduce the manual work of our tax pros. Today, our tax pros spend a large majority of their time on data collection and data entry. Our focus in our multi-year strategy is our tax pros spend more time on relationship building, guidance, and coaching, helping their clients get their financial success versus tactical work. The other thing that I want to call out that I think is important to understand is why clients choose to work with a tax pro. Now, technically, most clients could choose to use DIY solutions.
Curtis Campbell: Because it was so manual, not all of our tax pros were eager to offer that to our clients. Leveraging AI and technology, we've streamlined that to an extent where it's going to be available to the bulk of our clients in our assisted business this year. The third thing is leveraging AI to reduce the manual work of our tax pros. Today, our tax pros spend a large majority of their time on data collection and data entry. Our focus in our multi-year strategy is our tax pros spend more time on relationship building, guidance, and coaching, helping their clients get their financial success versus tactical work. The other thing that I want to call out that I think is important to understand is why clients choose to work with a tax pro. Now, technically, most clients could choose to use DIY solutions.
Speaker #1: tax pros eager to were that to our offer all of our . Leveraging AI and technology , we've streamlined clients that to an extent available to of our going to be clients and the bulk assisted our This year .
Speaker #1: third thing is business . The AI to the reduce manual work of our tax pros . Today , our tax pros spend a large majority of their time on data collection and data Our focus in entry .
Speaker #1: our multiyear strategy our tax pro . Spend more time on , guidance and relationship coaching , helping their clients get the financial success versus tactical work that I want to call that I think is important to is why .
Speaker #1: clients choose to understand work with a pro tax . Now , technically , most choose to use clients could DIY However , there's solutions .
Curtis Campbell: However, there's a reason out of the almost 150 million people in the US that do taxes today, 55% seek assistance. And it's not because they're looking for an answer to a math problem. They're looking for confidence, trust, and judgment with the personal connection that comes from working with a tax pro. And that 55% of the population that leverages the assistance of a tax pro, that's been pretty consistent through multiple technology innovations, from paper to desktop software to online software to mobile. So we don't think about AI as a disruptor. We absolutely think about it as an opportunity.
Curtis Campbell: However, there's a reason out of the almost 150 million people in the US that do taxes today, 55% seek assistance. And it's not because they're looking for an answer to a math problem. They're looking for confidence, trust, and judgment with the personal connection that comes from working with a tax pro. And that 55% of the population that leverages the assistance of a tax pro, that's been pretty consistent through multiple technology innovations, from paper to desktop software to online software to mobile. So we don't think about AI as a disruptor. We absolutely think about it as an opportunity.
Speaker #1: a reason The other thing of the almost 150 million people in the do US that today out taxes assistance . And it's 55% seek not because they're looking for an answer to , a math problem .
Speaker #1: They're looking for trust , and confidence , judgment with the connection that comes from working with a pro and that tax population personal the assistance of a tax that pro , that's been pretty consistent multiple through technology innovations paper to desktop 55% of the software to online software to mobile don't think about .
Speaker #1: disruptor . We absolutely think about it as an opportunity So we .
Jessica Hazel: Great. Thank you, Curtis. And then, just last one, Tiffany, real quick, I saw in the release, increased consulting costs year-over-year. Just curious, what that is, if that's something that's going to perpetuate. Thanks.
Jessica Hazel: Great. Thank you, Curtis. And then, just last one, Tiffany, real quick, I saw in the release, increased consulting costs year-over-year. Just curious, what that is, if that's something that's going to perpetuate. Thanks.
Speaker #6: Thank you Curtis . Great . And then just last one , Tiffany , real quick , I saw on the release increased consulting costs year over year .
Speaker #6: Just curious what that is . If something that's perpetuate . Thanks .
Tiffany Mason: Yeah, Scott, thanks for the question. So, we entered into an arrangement with a consulting firm to take a look at some strategic sourcing opportunities as a way to drive cost out of the organization. As we think about funding growth going forward, we have to look for ways to self-fund that growth, because obviously, we're committed to our long-term growth algorithm. So we completed that exercise in the first half of this year. That initiative, that consulting engagement that we entered into, is going to create some savings for us, sustainable savings going forward, that we'll be able to reinvest in some of the work that we need to do from a strategy perspective. That was all contemplated in our outlook, by the way, so no step change.
Tiffany Mason: Yeah, Scott, thanks for the question. So, we entered into an arrangement with a consulting firm to take a look at some strategic sourcing opportunities as a way to drive cost out of the organization. As we think about funding growth going forward, we have to look for ways to self-fund that growth, because obviously, we're committed to our long-term growth algorithm. So we completed that exercise in the first half of this year. That initiative, that consulting engagement that we entered into, is going to create some savings for us, sustainable savings going forward, that we'll be able to reinvest in some of the work that we need to do from a strategy perspective. That was all contemplated in our outlook, by the way, so no step change.
Speaker #7: Scott , thanks for Yeah . the question . So we had we entered into an arrangement with a consulting firm to take a some sourcing strategic opportunities as a look at way to drive cost out of the organization .
Speaker #7: As we think about funding growth going forward , we have to look ways to for self-fund that growth , because obviously we're committed to our long term growth algorithm .
Speaker #7: So we exercise in completed that the last first half of this year . Those that initiative that that consulting engagement that we entered into is going to create some savings for us .
Speaker #7: Sustainable savings the going that will be reinvest some of the work able to that we need to do a strategy perspective from contemplated in our outlook .
Speaker #7: By the way . So so no step change .
Jessica Hazel: Understood. All right. Thanks very much.
Scott Schneeberger: Understood. All right. Thanks very much.
Speaker #6: Understood . All right . very Thanks much .
Tiffany Mason: Thanks, Scott.
Tiffany Mason: Thanks, Scott.
Curtis Campbell: Thank you, Scott.
Curtis Campbell: Thank you, Scott.
Speaker #7: Thanks ,
Operator: Thank you. I'm showing no further questions at this time. I would now like to turn it back to Jessica Hazel for closing remarks.
Operator: Thank you. I'm showing no further questions at this time. I would now like to turn it back to Jessica Hazel for closing remarks.
Speaker #1: Scott
Speaker #1: .
Speaker #2: Thank you . I'm Scott .
Speaker #2: showing no further Thank questions at this time . I would now like to turn it Jessica Hazel for back to closing remarks .
Jessica Hazel: Thank you, everyone, for joining us today. We look forward to reconnecting with you again soon.
Jessica Hazel: Thank you, everyone, for joining us today. We look forward to reconnecting with you again soon.
Speaker #8: everyone Thank you , for joining us We look forward to with you today . again soon .
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
