VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Wednesday, December 31, 2025
Intuit Inc.
INTU · NASDAQ
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Intuit is a financial technology platform serving small and mid-market businesses, consumers, and tax professionals. Global Business Solutions (QuickBooks + Mailchimp) is the core platform, benefiting from bundled workflows (accounting, payroll, payments, capital, marketing) and a large accountant and app ecosystem. Consumer (TurboTax) and ProTax benefit from brand trust plus operational and compliance advantages in incorporating tax law and form changes on a rigid annual timetable. Credit Karma adds a two-sided marketplace that matches members with financial products using data-driven underwriting and targeting capabilities. Key pressures include AI-enabled competitors, price sensitivity in tax software, government filing initiatives, and privacy or regulatory constraints.
Primary segment
Global Business Solutions
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
4 segments · 10 tags
Updated 2025-12-30
Segments
Global Business Solutions
Small and mid-market business financial management, payroll, payments/capital, and marketing automation software (QuickBooks ecosystem + Mailchimp)
Revenue
58.8%
Structure
Oligopoly
Pricing
strong
Share
—
Peers
Consumer
Consumer income tax preparation and electronic filing (DIY + assisted)
Revenue
25.9%
Structure
Oligopoly
Pricing
moderate
Share
26%-28% (implied)
Peers
Credit Karma
Consumer personal finance platform and financial product marketplace (credit scores/monitoring + recommendations/lead-gen)
Revenue
12%
Structure
Competitive
Pricing
moderate
Share
—
Peers
ProTax
Professional tax preparation software and e-filing for accounting firms and tax practitioners
Revenue
3.3%
Structure
Oligopoly
Pricing
moderate
Share
28%-33% (estimated)
Peers
Moat Claims
Global Business Solutions
Small and mid-market business financial management, payroll, payments/capital, and marketing automation software (QuickBooks ecosystem + Mailchimp)
FY2025 net revenue: $11,077M of $18,831M total; segment operating income: $8,467M of $13,621M total (per FY2025 Form 10-K segment disclosure).
Suite Bundling
Demand
Suite Bundling
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
An integrated all-in-one SMB platform (accounting, payroll, payments, marketing, capital) increases product attach and raises the cost or effort of moving to a stitched-together stack.
Erosion risks
- Best-of-breed point solutions and integrations reduce suite value
- Aggressive pricing from competitors (Xero, Sage, vertical SaaS)
- Data portability or interoperability initiatives lower switching friction
Leading indicators
- Multi-product attach rate within the QuickBooks base (payroll, payments, capital, marketing)
- Net revenue retention or churn for core QuickBooks Online cohorts
- ARPU growth vs customer acquisition cost
Counterarguments
- SMBs can assemble modular stacks (accounting, payroll, payments) with low upfront switching cost
- Vertical SaaS can outcompete broad suites in specific industries with deeper workflows
Ecosystem Complements
Network
Ecosystem Complements
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
A large accountant and bookkeeper channel plus an open app ecosystem increases platform utility and reinforces adoption in SMB workflows.
Erosion risks
- Competing platforms replicate accountant and app ecosystems
- Key partners prioritize cross-platform integrations (multi-homing)
- Policy changes (app store terms, partner economics) reduce developer incentives
Leading indicators
- Growth of the ProAdvisor and accountant network
- Number and usage of third-party app integrations in the QuickBooks ecosystem
- Share of new customers acquired via accounting and channel partners
Counterarguments
- Competitors (e.g., Xero) also have strong app marketplaces and accountant communities
- Ecosystem benefits weaken if customers standardize on cross-platform tools and APIs
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Embedded payments and financing use accounting and workflow data (invoices, cashflow) and are integrated inside QuickBooks, increasing switching and migration friction.
Erosion risks
- Open banking and accounting APIs increase data portability
- Embedded-finance competitors integrate into other SMB software
- Regulatory or privacy limits restrict data use for underwriting and recommendations
Leading indicators
- Payments take-rate and attach within QuickBooks Online
- Penetration of capital and financing products among eligible SMBs
- Gross retention for customers with two or more attached services vs one service
Counterarguments
- Data export and import tools and third-party connectors can reduce switching costs
- SMB churn can still be high due to business failures and price sensitivity
Consumer
Consumer income tax preparation and electronic filing (DIY + assisted)
FY2025 net revenue: $4,870M of $18,831M total; segment operating income: $3,786M of $13,621M total (per FY2025 Form 10-K segment disclosure).
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
TurboTax's advantage relies heavily on trust, security, ease of use, and reputation in handling sensitive tax data and filing accuracy.
Erosion risks
- Government-run filing options reduce willingness to pay (e.g., IRS Direct File expansion)
- Security or privacy incidents damage trust
- Feature parity and aggressive pricing from competitors
Leading indicators
- TurboTax units and mix (DIY vs assisted)
- Customer satisfaction or NPS and complaint rates during peak season
- Share of IRS returns processed (company-reported KPI in guidance or earnings)
Counterarguments
- Many taxpayers are price-sensitive and can switch annually with minimal friction
- Free or low-cost alternatives can be good enough for simpler returns
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Multi-channel distribution (direct plus partner channels and retail) helps reach taxpayers at the point of need and supports scale acquisition each filing season.
Erosion risks
- Partner channel renegotiations or reduced placements
- Rising paid-search and app-store acquisition costs
- Ad platform changes reduce conversion efficiency
Leading indicators
- Customer acquisition cost trend (paid search and affiliate)
- Partner-originated volume and conversion rate
- Retail channel contribution vs digital
Counterarguments
- Distribution is not exclusive; competitors can buy similar traffic and partner placements
- Government channels and free options can bypass commercial distribution entirely
Compliance Advantage
Legal
Compliance Advantage
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Tax software requires fast, accurate updates for changing tax laws and forms on a rigid annual timetable; process maturity and scale reduce error risk and time-to-update.
Erosion risks
- Simplification of tax codes reduces complexity advantage
- Regulatory changes to filing processes and e-file standards
- AI tools lower cost for competitors to update and validate forms
Leading indicators
- Number and severity of filing-season defects and update cadence
- Time-to-support for new or changed forms vs competitors
- Regulatory changes affecting e-file eligibility and requirements
Counterarguments
- Large competitors face similar compliance cycles and can meet the same deadlines
- Compliance complexity alone does not prevent switching if pricing or value is unfavorable
Credit Karma
Consumer personal finance platform and financial product marketplace (credit scores/monitoring + recommendations/lead-gen)
FY2025 net revenue: $2,263M of $18,831M total; segment operating income: $835M of $13,621M total (per FY2025 Form 10-K segment disclosure).
Two Sided Network
Network
Two Sided Network
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
A large member base attracts financial product partners; a broad set of offers and partner relationships increases member utility and monetization (classic marketplace flywheel).
Erosion risks
- Partners reduce marketing spend in downturns or shift budgets elsewhere
- Privacy regulation limits data use for targeting and matching
- Platform disintermediation (banks and issuers improve direct-to-consumer acquisition)
Leading indicators
- Member growth and engagement (MAUs or DAUs where disclosed)
- Number and diversity of partner offers and approval rates
- Revenue per member and conversion rates
Counterarguments
- Consumers multi-home across finance apps; network effects can be weaker than in single-home markets
- Lenders can source customers through many channels (search, affiliates, bureaus), limiting exclusivity
Data Network Effects
Network
Data Network Effects
Strength: 4/5 · Durability: medium · Confidence: 3/5 · 1 evidence
More member data can improve underwriting and matching quality, increasing partner conversion and user trust in recommendations.
Erosion risks
- Data sharing restrictions or reduced access to bureau data
- Model commoditization as competitors adopt similar AI and ML matching
- Reputational damage from poor recommendations or partner outcomes
Leading indicators
- Offer approval rates or approval certainty metrics where disclosed
- Partner ROI (funded accounts or loans per lead)
- Member trust signals (complaints, engagement, opt-outs)
Counterarguments
- Credit bureaus and large banks have comparable or superior datasets
- If users treat recommendations as interchangeable, data advantage may not translate to durable differentiation
ProTax
Professional tax preparation software and e-filing for accounting firms and tax practitioners
FY2025 net revenue: $621M of $18,831M total; segment operating income: $533M of $13,621M total (per FY2025 Form 10-K segment disclosure).
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Integration with QuickBooks Online Accountant and Workpapers links bookkeeping and tax workflows, increasing switching friction for firms standardized on integrated books and tax processes.
Erosion risks
- Firms adopt competing practice suites (Thomson Reuters, Wolters Kluwer) with comparable integrations
- Data portability standards and migration tooling improve switching
- AI automation reduces differentiation of prep workflows
Leading indicators
- Seats or returns prepared per firm (where disclosed) and renewal rates
- Adoption of Workpapers and other integrated workflow features
- Share of firms using both QuickBooks accountant tools and Intuit tax software
Counterarguments
- Some firms switch tax software periodically due to price or service dissatisfaction
- Integration benefits are less valuable for firms with heterogeneous client stacks
Compliance Advantage
Legal
Compliance Advantage
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Professional tax products face the same rigid annual tax law and form update requirements; operational maturity reduces risk of late updates or filing errors for practitioners.
Erosion risks
- Competitors match update cadence and reduce perceived differentiation
- Simplified filing regimes reduce complexity premium
- Regulatory changes to e-file standards increase cost for all vendors
Leading indicators
- Timeliness or quality of form updates during filing season
- Support satisfaction and issue resolution time in peak months
- Changes in e-file rules that affect vendor workflows
Counterarguments
- Several large incumbents have comparable compliance capabilities
- Switching barriers may be lower for smaller firms, increasing price competition
Evidence
Intuit's all-in-one business platform helps customers run and grow their business on our platform end-to-end, from lead to cash ...
Direct statement of suite breadth and end-to-end workflow intent, supporting bundling and attach economics.
QuickBooks Online has an extensive network of hundreds of thousands of accountants ...
Distribution and complements from accountants can drive adoption and retention for SMB financial workflows.
QuickBooks Online is also an open platform that enables third-party developers to integrate with the platform ...
Supports ecosystem complements via third-party apps that extend functionality.
payment processing solutions ... are deeply integrated into QuickBooks Online and QuickBooks Desktop.
Integration into the core ledger and workflow supports lock-in and higher attach.
quickly qualify to borrow and manage their capital using QuickBooks data.
Shows product features that rely on proprietary customer data inside the platform.
Showing 5 of 15 sources.
Risks & Indicators
Erosion risks
- Best-of-breed point solutions and integrations reduce suite value
- Aggressive pricing from competitors (Xero, Sage, vertical SaaS)
- Data portability or interoperability initiatives lower switching friction
- Competing platforms replicate accountant and app ecosystems
- Key partners prioritize cross-platform integrations (multi-homing)
- Policy changes (app store terms, partner economics) reduce developer incentives
Leading indicators
- Multi-product attach rate within the QuickBooks base (payroll, payments, capital, marketing)
- Net revenue retention or churn for core QuickBooks Online cohorts
- ARPU growth vs customer acquisition cost
- Growth of the ProAdvisor and accountant network
- Number and usage of third-party app integrations in the QuickBooks ecosystem
- Share of new customers acquired via accounting and channel partners
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.