H&R Block Stock Down 40% as One Investor Builds a $35 Million Position
Key Points
Lodge Hill Capital bought 800,000 shares of H&R Block in the fourth quarter.
The quarter-end position value rose by $34.86 million as a result.
The new position represents 6.59% of Lodge Hill Capital’s 13F reportable AUM.
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Lodge Hill Capital initiated a new position in H&R Block (NYSE:HRB) during the fourth quarter, acquiring 800,000 shares worth $34.86 million, according to a February 17, 2026, SEC filing.
What happened
According to a SEC filing dated February 17, 2026, Lodge Hill Capital initiated a new position in H&R Block, purchasing 800,000 shares. The quarter-end value of the stake increased by $34.86 million as a result.
What else to know
- This was a new position; H&R Block represents 6.59% of Lodge Hill Capital’s 13F reportable AUM as of December 31, 2025.
- Top five holdings after the filing:
- NYSE: RKT: $42.71 million (8.1% of AUM)
- NYSE: APO: $42.40 million (8.0% of AUM)
- NYSE: BCO: $39.69 million (7.5% of AUM)
- NYSE: OC: $35.65 million (6.7% of AUM)
- NYSE: HRB: $34.86 million (6.6% of AUM)
- As of February 17, 2026, H&R Block shares were priced at $30.53, down a staggering 40% over the past year and significantly underperforming the S&P 500, which is instead up about 20%.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.79 billion |
| Net Income (TTM) | $613.78 million |
| Dividend Yield | 5.21% |
| Price (as of market close 2/17/26) | $30.53 |
Company snapshot
- H&R Block offers assisted and DIY tax preparation services, refund-related products, prepaid cards, and small business financial solutions across the United States, Canada, and Australia.
- The firm generates revenue primarily through service fees for tax preparation, financial products, and franchise operations, leveraging a network of company-owned and franchised retail offices as well as digital channels.
- It targets individual taxpayers and small businesses seeking professional assistance with tax compliance, refund management, and related financial services.
H&R Block is a leading provider of tax preparation services, operating at scale through both physical retail locations and digital platforms. The company combines a broad geographic footprint with a diversified suite of financial products tailored to individual and small business clients. Its established brand and integrated service offerings support a resilient business model within the consumer financial services sector.
What this transaction means for investors
Tax preparation is not a flashy business, but it can be a durable one, and that might be what Lodge Hill is betting on.
The company’s latest results suggest that demand for those services remains healthy. In its fiscal second quarter, H&R Block reported revenue of $198.9 million, up about 11% year over year, driven by stronger assisted tax preparation volumes, higher average charges, and continued growth in its Wave small-business platform and digital DIY products.
The business is highly seasonal, of course, with losses typical in the December quarter before the tax season drives most annual profits. On that front, management reaffirmed its full-year outlook, expecting revenue of roughly $3.88 billion to $3.90 billion and EBITDA of about $1.02 billion to $1.04 billion. The company also continues to return capital aggressively, sending more than $507 million back to shareholders this fiscal year through dividends and buybacks.
For H&R Block and investors keen on the stock, the key question is whether the firm’s mix of assisted services and digital tools can continue capturing tax filers who still value expertise, even as automation reshapes the industry.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Companies. The Motley Fool recommends Brunswick and Owens Corning. The Motley Fool has a disclosure policy.
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