Executive Summary
HR Block Inc, listed as 0HOB.L on the London Stock Exchange, reported QQ1 2025 results showing a sharp QoQ revenue pullback and a material swing to a net loss. Revenue of $193.81 million was accompanied by a gross loss of $75.77 million, resulting in an operating loss of $228.33 million and a net loss of $172.58 million (EPS -$1.23) for the quarter. The EBITDA print was negative at $-187.58 million, with EBITDA margin near -97%. Profitability metrics deteriorated meaningfully versus the prior period, while cash burn persisted with operating cash flow at $(328.58) million and free cash flow at $(347.32) million for QQ1 2025. The company finished the period with $439.0 million in cash and cash equivalents and a total debt load of $1.93 billion, yielding a net debt position of approximately $1.49 billion and a negative total stockholders’ equity of $(368.1) million. The liquidity profile remains tight (current ratio 0.77) and working capital dynamics were adverse, driven largely by sizable working capital effects and ongoing cost pressures. YoY improvements in revenue (+5.45%) juxtapose a pronounced QoQ slowdown (-81.76%), underscoring seasonality and the challenge of converting top-line strength into bottom-line profitability in the current operating environment. Management commentary for QQ1 2025 is not provided in the supplied transcript, limiting visibility into near-term guidance. Investors should monitor cost-control initiatives, balance sheet restructuring actions, and any updated guidance as the tax-season cycle evolves.
Key Performance Indicators
QoQ: -113.62% | YoY:-0.28%
QoQ: -165.08% | YoY:-10.67%
QoQ: -166.94% | YoY:-5.56%
QoQ: -167.58% | YoY:-9.82%
Key Insights
Revenue: $193.81m; YoY +5.45%, QoQ -81.76%; Gross Profit: -$75.77m; Gross Margin: -39.10%; YoY Gross Margin: -0.28%, QoQ: -113.62%; EBITDA: -$187.58m; EBITDA Margin (EBITDARatio): -0.97; Operating Income: -$228.33m; Operating Margin: -1.18%; Net Income: -$172.58m; Net Margin: -0.89%; EPS: -$1.23; Weighted avg shares: 139.9m; Operating cash flow: $(328.58)m; Free cash flow: $(347.32)m; Capex: $(18.74)m; Cash at end of period: $439.02m; Net change in cash: $(636.18)m; Total assets: $2.55b; Total l...
Financial Highlights
Revenue: $193.81m; YoY +5.45%, QoQ -81.76%; Gross Profit: -$75.77m; Gross Margin: -39.10%; YoY Gross Margin: -0.28%, QoQ: -113.62%; EBITDA: -$187.58m; EBITDA Margin (EBITDARatio): -0.97; Operating Income: -$228.33m; Operating Margin: -1.18%; Net Income: -$172.58m; Net Margin: -0.89%; EPS: -$1.23; Weighted avg shares: 139.9m; Operating cash flow: $(328.58)m; Free cash flow: $(347.32)m; Capex: $(18.74)m; Cash at end of period: $439.02m; Net change in cash: $(636.18)m; Total assets: $2.55b; Total liabilities: $2.92b; Total stockholders’ equity: $(368.07)m; Cash ratio: 0.52; Current ratio: 0.77; Quick ratio: 0.77; Long-term debt: $1.74b; Total debt: $1.93b; Net debt: $1.49b; Asset turnover: 0.076; Receivables turnover: 3.66; Inventory turnover: 0; Revenue efficiency and leverage metrics indicate elevated leverage with negative equity, coupled with significant cash burn in QQ1 2025. YoY and QoQ metric deltas (from incomeMetrics) show Revenue +5.45% YoY and -81.76% QoQ; Gross Profit Margin -39.1%; Operating Margin -1.18%; Net Margin -0.89%; EPS -$1.23.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
193.81M |
5.45% |
-81.76% |
| Gross Profit |
-75.77M |
-0.28% |
-113.62% |
| Operating Income |
-228.33M |
-10.67% |
-165.08% |
| Net Income |
-172.58M |
-5.56% |
-166.94% |
| EPS |
-1.23 |
-9.82% |
-167.58% |
Key Financial Ratios
operatingProfitMargin
-117.8%
operatingCashFlowPerShare
$-2.35
freeCashFlowPerShare
$-2.48
dividendPayoutRatio
-25.9%
priceEarningsRatio
-12.88
Management Commentary
Transcript availability: Not provided in the supplied data. As a result, no management quotes or thematic highlights from an earnings call can be cited. The synthesized view above relies on the reported QQ1 2025 financials and disclosed four-quarter flavor included in the dataset. If a transcript is supplied, I will extract themes by strategy, operations, and market conditions with direct quotes tied to each theme.
Transcript not provided in the supplied data.
— N/A
Transcript not provided in the supplied data.
— N/A
Forward Guidance
No explicit forward guidance is present in the provided materials for QQ1 2025. Given the liquidity strain (cash burn, negative equity) and a high debt burden, the near-term focus would logically center on (1) stabilizing operating cash flow and reducing the working capital drain, (2) cost containment and SG&A rationalization, (3) potential debt refinancing or maturity management, and (4) accelerating high-margin revenue opportunities within core tax services and ancillary financial solutions. Investors should monitor any updated guidance on tax-season expectations, changes to refund-related products, and management’s plan for capital allocation (dividends, buybacks, or debt reduction). Factors to watch include quarterly cadence of tax-season demand, the rate of cost-to-revenue alignment, and any strategic initiatives to restore profitability and balance-sheet health.