Shares of H&R Block (HRB) plummeted 5.15% on Thursday, November 8, after the tax preparation company reported mixed results for the first quarter of fiscal 2025.

While H&R Block delivered a 5% increase in revenue to $194 million, driven by higher company-owned volumes, increased international tax preparation revenues, and a higher net average charge in the Assisted category, the company reported a wider pretax loss of $232 million compared to $212 million in the prior year.

The higher loss was primarily attributed to an 8% increase in operating expenses, which rose to $422 million. The main contributors to the elevated expenses were higher tax professional wages due to increased volume, increased corporate wages, and a significant rise in legal fees and settlements related to an ongoing matter with the Federal Trade Commission (FTC) and a proposed settlement.