GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 5: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the six months ended December 31, 2025 are as follows:


(in 000s)
	Goodwill		Accumulated Impairment Losses		Net
Balances as of July 1, 2025	$	940,350	$	(138,297)	$	802,053

Acquisitions(1)	15,720		—		15,720
Disposals and foreign currency changes, net	(2,155)		—		(2,155)
Impairments	—		—		—
Balances as of December 31, 2025	$	953,915	$	(138,297)	$	815,618

(1) All goodwill added during the period is expected to be tax-deductible for federal income tax reporting.

We test goodwill for impairment annually as of February 1, or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

Components of intangible assets are as follows:


(in 000s)
	Gross Carrying Amount		Accumulated Amortization		Net
As of December 31, 2025:
Reacquired franchise rights	$	429,290	$	(250,627)	$	178,663
Customer relationships	372,444		(298,667)		73,777
Internally-developed software	121,282		(117,768)		3,514
Noncompete agreements	23,774		(20,660)		3,114
Purchased technology	68,100		(58,144)		9,956
Trade name	5,800		(3,770)		2,030

	$	1,020,690	$	(749,636)	$	271,054
As of June 30, 2025:
Reacquired franchise rights	$	415,700	$	(243,330)	$	172,370
Customer relationships	354,107		(287,067)		67,040
Internally-developed software	119,959		(117,604)		2,355
Noncompete agreements	23,070		(20,188)		2,882

Purchased technology	68,100		(55,655)		12,445
Trade name	5,800		(3,480)		2,320
	$	986,736	$	(727,324)	$	259,412

We made payments to acquire businesses totaling $35.4 million and $28.0 million during the six months ended December 31, 2025 and 2024, respectively. The amounts and weighted-average lives of intangible assets acquired during the six months ended December 31, 2025, including amounts capitalized related to internally-developed software, are as follows:


(dollars in 000s)
	Amount		Weighted-Average Life (in years)
Customer relationships	$	18,426	5
Reacquired franchise rights	13,669		6
Internally-developed software	1,348		3
Noncompete agreements	712		5
Total	$	34,155	5

Amortization of intangible assets for the three and six months ended December 31, 2025 was $11.3 million and $22.4 million respectively, compared to $12.1 million and $25.0 million for the three and six months ended December 31, 2024. Estimated amortization of intangible assets for fiscal years ending June 30, 2026, 2027, 2028, 2029, and 2030 is $47.3 million, $45.0 million, $36.6 million, $27.7 million and $17.8 million, respectively.

H&R BLOCK INC 10-Q