H&r Block (HRB) risk factors, FY2026 10-K

H&r Block's FY2026 10-K, filed Aug 14, 2026, lists 26 risk factors in 4 groups. Against the prior year's 27: 2 new, 3 dropped, 10 substantially reworded.

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Risk factors listed
264 groups
New this year
2vs 27 last year
Dropped
3since the prior 10-K
Substantially reworded
10of those kept
Section length
10k wordsItem 1A

What the changes say

  • Artificial intelligence is now a distinct risk because inaccurate outputs, breaches, misuse, competition, and evolving laws could affect H&R Block.
  • Liquidity risk now includes potentially unavailable or expensive funding to repay or refinance debt.
  • Tax-product changes, fraud, regulation, economic weakness, and competition remain central threats to demand and operations.

What changed since the prior 10-K

New

  • NewOPERATIONAL AND EXECUTION RISKS

    Artificial intelligence and emerging technologies may expose us to operational, regulatory, competitive, and reputational risks

    AI, machine learning, automation, and third-party systems could produce errors, breaches, misuse, regulatory costs, reputational damage, or reduced demand for H&R Block.

  • NewFINANCIAL RISKS

    under the indenture governing our Senior Notes. There can be no assurance that we will be able to obtain sufficient funds to enable us to repay or refinance our debt obligations on commercially reasonable terms, or at all

    If liquidity sources disappear, H&R Block may be unable to repay or refinance debt, or may face unfavorable funding terms.

Dropped

  • DroppedOPERATIONAL AND EXECUTION RISKS

    with such offerings or the manner in which we provide them to our clients may harm our revenue, results of operations, and reputation

  • DroppedLEGAL AND REGULATORY RISKS

    Furthermore, 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

  • DroppedFINANCIAL RISKS

    program may be suspended or terminated at any time, and there can be no assurance that our repurchase program will enhance long-term shareholder value

Reworded

  • 100% rewrittenSTRATEGIC AND INDUSTRY RISKS

    2026 Form 10-K | H&R Block, Inc

    The focus shifts from account takeover and first-party tax fraud to competition and possible loss of regulated financial and tax-related offerings.

    Was: 2025 Form 10-K | H&R Block, Inc

  • 100% rewrittenSTRATEGIC AND INDUSTRY RISKS

    H&R Block, Inc. | 2026 Form 10-K

    The emphasis shifts from reputation damage and IRS resource reductions to economic weakness reducing demand, pricing, and small-business revenue.

    Was: H&R Block, Inc. | 2025 Form 10-K

  • 95% rewrittenOPERATIONAL AND EXECUTION RISKS

    The 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

    The risk now expressly includes problems with tax offerings and incorporating unpredictable annual tax-law and tax-form changes into products.

  • 77% rewrittenSTRATEGIC AND INDUSTRY RISKS

    Our businesses may be adversely affected by difficult economic, geopolitical or public health conditions

    The excerpt continues to describe broad economic, geopolitical, public-health, and market threats, but ends before showing a specific change.

  • 61% rewrittenOPERATIONAL AND EXECUTION RISKS

    Our failure to effectively address fraud could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows

    The wording now says fraud may target H&R Block itself or its offerings, without materially changing the artificial-intelligence and social-engineering threat.

    Was: Our 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

  • 55% rewrittenLEGAL AND REGULATORY RISKS

    Laws 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

    The excerpt is substantively unchanged, continuing to describe IRS requirements, preparer penalties, monitoring, and possible electronic-filing suspension.

  • 53% rewrittenOPERATIONAL AND EXECUTION RISKS

    Our business depends on our strong reputation and the value of our brands

    The text adds potential reputation damage from social or political issues and reduced government spending affecting the IRS.

  • 45% rewrittenFINANCIAL RISKS

    The 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

    The excerpt is substantively unchanged: dividends and repurchases require liquidity, legal authorization, and consideration of seasonal negative GAAP net worth.

  • 41% rewrittenSTRATEGIC AND INDUSTRY RISKS

    Increased competition for clients could adversely affect our current market share and profitability

  • 26% rewrittenFINANCIAL RISKS

    Our 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

All 26 risk factors

Headings as the filing states them, in filing order.

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 profitability41% rewritten
  3. 032026 Form 10-K | H&R Block, Inc100% rewritten
  4. 04We may not be effective in achieving our strategic and operating objectives
  5. 05Offers of free services or products could adversely affect our revenues and profitability
  6. 06Our businesses may be adversely affected by difficult economic, geopolitical or public health conditions77% rewritten
  7. 07H&R Block, Inc. | 2026 Form 10-K100% rewritten

OPERATIONAL AND EXECUTION RISKS

  1. 08Our failure to effectively address fraud could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows61% rewritten
  2. 09An interruption in our information systems, or those of our franchisees or a third party on which we rely, or an interruption in our or a third party's connection to the internet, could have a material adverse effect on our business and our consolidated financial position, results of operations, and cash flows
  3. 10The 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 flows95% rewritten
  4. 11The specialized and highly seasonal nature of our business presents financial risks and operational and human capital challenges
  5. 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
  6. 13Artificial intelligence and emerging technologies may expose us to operational, regulatory, competitive, and reputational risksNew
  7. 14Our business depends on our strong reputation and the value of our brands53% rewritten
  8. 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
  9. 16Our international operations are subject to risks that may harm our business and our consolidated financial position, results of operations, and cash flows
  10. 17Compliance with 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
  11. 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 flows55% rewritten
  3. 21We 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
  4. 22Failure 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. 23Our 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 earnings26% rewritten
  2. 24under the indenture governing our Senior Notes. There can be no assurance that we will be able to obtain sufficient funds to enable us to repay or refinance our debt obligations on commercially reasonable terms, or at allNew
  3. 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 assured45% rewritten
  4. 26Changes 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

Other H&r Block 10-Ks

  • FY2025 10-K risk factors
    27 risks

    H&R Block faces heavy operational risks from tax law changes, severe tax season seasonality, and heightened cyber fraud threats. The company relies heavily on intellectual property, franchisee networks, and uninterrupted IT infrastructure during peak months.

    Filed Aug 15, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.