The company reported an adjusted loss of 58 cents per share, 3 cents wider than analysts' estimates that called for a loss of 55 cents. Pretax losses from continuing operations widened 31% to $159 million due to investments in technology and marketing.
Revenue for the fiscal third quarter was $468 million, beating analysts' expectations of $465 million. Revenue declined 4.1% from the prior-year period of $488 due to less people using its assisted tax preparation, the company said.
The company was both positively and negatively affected by the new tax law passed in December 2017. Earnings continued to improve due to its new corporate tax rate, but revenue growth of 6.4% in do-it-yourself returns was offset by a decline of 6.5% in assisted returns.
"H&R Block is leading the way in the tax industry with offerings that span the full spectrum of tax preparation, whether clients want little to no help, complete in-person assistance, or anything in between," Jeff Jones, H&R Block's president and CEO, said in a statement.
The company noted it normally reports a loss in the fiscal third quarter due to the seasonality of the tax business.
H&R Block reiterated its financial outlook for the full fiscal year.