H&r Block (HRB) risk factors, FY2025 10-K

STRATEGIC AND INDUSTRY RISKS

1. 01Changes in applicable tax laws have had, and may in the future have, a negative impact on the demand for and pricing of our services. Government changes in tax filing or IRS processes may adversely affect our business and our consolidated financial position, results of operations, and cash flows
2. 02Increased competition for clients could adversely affect our current market share and profitability
3. 03We may not be effective in achieving our strategic and operating objectives
4. 04Offers of free services or products could adversely affect our revenues and profitability
5. 05Our businesses may be adversely affected by difficult economic, geopolitical or public health conditions

OPERATIONAL AND EXECUTION RISKS

1. 06Our failure to effectively address fraud within our offerings could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows
2. 072025 Form 10-K | H&R Block, Inc
3. 08An interruption in our information systems, or those of our franchisees or a third party on which we rely, or an interruption in our access to the internet, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows
4. 09The occurrence of any systems or internet failure, or other business interruption, could negatively impact our ability to serve our clients, which in turn could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows
5. 10with such offerings or the manner in which we provide them to our clients may harm our revenue, results of operations, and reputation
6. 11The specialized and highly seasonal nature of our business presents financial risks and operational and human capital challenges
7. 12We rely on the performance of key personnel, including our executive leadership and other key associates, and we may be unable to attract and retain key personnel or fully control or accurately predict our labor costs
8. 13Our business depends on our strong reputation and the value of our brands
9. 14H&R Block, Inc. | 2025 Form 10-K
10. 15Failure to maintain sound business relationships with our franchisees may have a material adverse effect on our business and we may be subject to legal and other challenges resulting from our franchisee relationships
11. 16Our international operations are subject to risks that may harm our business and our consolidated financial position, results of operations, and cash flows
12. 17Compliance with the complex and evolving laws, regulations, standards, and contractual requirements regarding privacy and data protection could require changes in our business practices and increase costs of operation; failure to comply could result in significant claims, fines, penalties, and damages
13. 18A security breach of our systems, or third-party systems on which we rely, resulting in unauthorized access to personal information of our clients or employees or other sensitive, nonpublic information, may adversely affect the demand for our services and products, our reputation, and financial performance

LEGAL AND REGULATORY RISKS

1. 19Regulations promulgated by federal and state regulators may affect our financial services and products businesses in new or unexpected ways, which may impact our ability to offer certain financial services or products or require changes to certain financial services or products
2. 20Laws and regulations or other regulatory actions could have an adverse effect on our business and our consolidated financial position, results of operations, and cash flows
3. 21Furthermore, certain of our services and product offerings may require licenses to operate, and if we fail or are unable to comply with existing or new license requirements, we may be subject to fines or penalties and our ability to operate in certain jurisdictions may be materially restricted or prohibited entirely
4. 22We face legal actions in connection with our various business activities, both past and present, and current or future legal actions may damage our reputation, impair our product offerings, or result in material liabilities and losses
5. 23Failure to protect our intellectual property rights may harm our competitive position and litigation to protect our intellectual property rights or defend against third party allegations of infringement may be costly

FINANCIAL RISKS

1. 24Our access to liquidity may be negatively impacted by disruptions in credit markets, downgraded credit ratings, increased interest rates or our failure to meet certain covenants. Our funding costs could increase, further impacting earnings
2. 25The continued payment of dividends on our common stock and repurchases of our common stock are dependent on a number of factors, and cannot be assured
3. 26program may be suspended or terminated at any time, and there can be no assurance that our repurchase program will enhance long-term shareholder value
4. 27Changes in corporate tax laws or regulations, or in the interpretations of tax laws or regulations, could materially affect our financial condition, cash flows, and operating results