Pathward extends H&R Block partnership through 2030, reaffirms earnings outlook
Key Facts
Pathward announced the renewal of its partnership agreement with H&R Block, extending the relationship through mid-2030, while reaffirming its fiscal 2027 earnings per share outlook. Chief Executive Brett Pharr said during the earnings call for the fiscal fourth quarter ended in September 2026 that the renewal includes "extending our relationship through mid-2030," according to a transcript published by Investing.com. The partnership links Pathward with the U.S. tax preparation company through a program that includes providing loans to some of its customers. The previous amendment to the program management agreement, dated October 18, 2024, and filed with the U.S. Securities and Exchange Commission, had set the agreement's expiration at June 30, 2027. The new endpoint for the relationship therefore extends beyond the expiration date specified in the previous amendment. The renewal announcement comes as the company presents its fiscal year-end results and confirms its target earnings range for the coming year.
On earnings, Pathward reported earnings per share of $1.85 for the fiscal fourth quarter ended in September 2026, according to an earnings report published by Investing.com. Revenue for the same period totaled $183.11 million, exceeding analysts' consensus forecast of $179.1 million. In its comparison, the website said "quarterly revenue was $183.11 million, against a consensus estimate of $179.1 million." The report published after the earnings announcement said Pathward shares closed the regular session at $74.08. That price represents the closing price for the session on the day of the earnings announcement, before measuring any subsequent share-price movement.
The partnership's operations include tax refund advance loans issued by Pathward to eligible H&R Block customers, according to the latter's annual report filed with the U.S. Securities and Exchange Commission. These loans are offered to some customers using assisted tax preparation services in the United States, with Pathward determining borrowers' eligibility. In its previous results, Pathward reported tax services product revenue of $107.7 million for the nine months ended June 30, 2026. That represents an increase of 13% from the same period of the previous fiscal year, according to its third-quarter earnings release filed with the U.S. regulator. The company attributed the growth to higher fees from two products, saying in its statement that the increase "was driven by higher fees from refund advance and refund transfer products."
For fiscal 2027, Pathward reaffirmed its earnings per share range of $9.50 to $10, according to the earnings call transcript, retaining its previously announced outlook. Its earlier investor presentation, filed with the U.S. Securities and Exchange Commission, had included assumptions relating to taxes and share repurchases in its outlook for that fiscal year. Those assumptions included an effective tax rate of between 18% and 22%, the range the company included in its presentation when setting targets for the coming year. The presentation also included expected share repurchases equivalent to about 70% to 80% of net income as one of the assumptions underpinning that outlook. On the latest earnings call, the chief financial officer said the fiscal 2027 outlook assumes "no additional changes in interest rates."