BILL Holdings (NYSE: BILL) boosts non-GAAP EPS as GAAP turns to loss
Rhea-AI Filing Summary
BILL Holdings, Inc. (BILL) reported solid fourth quarter and fiscal 2026 growth with expanding non-GAAP profitability but modest GAAP losses. For Q4 FY26, total revenue was $436.2 million, up 14% year-over-year, driven by core revenue of $400.5 million (subscription and transaction fees), which grew 16%. Float revenue contributed $35.7 million. Q4 GAAP gross margin was 81.7%, while non-GAAP gross margin was 84.9%. Non-GAAP operating income rose to $101.6 million, up 80% year-over-year, and non-GAAP net income was $94.0 million or $0.84 per diluted share, versus $0.53 a year ago, though GAAP net loss widened to $18.5 million.
For FY26, total revenue reached $1.65 billion, up 13%, with core revenue of $1.50 billion growing 16% (subscription fees up 8%, transaction fees up 18%). Non-GAAP operating income increased 35% to $323.7 million, and non-GAAP diluted EPS rose to $2.77. GAAP net loss was $11.2 million versus GAAP net income of $23.8 million in FY25. BILL generated FY26 free cash flow of $354.7 million and ended with $3.77 billion in cash, cash equivalents and restricted cash. In Q4, the company repurchased about 8.4 million shares for roughly $300 million and processed $98.2 billion in payment volume across 37.4 million transactions.
For FY27, BILL guides to total revenue of $1.81–$1.86 billion (up 9–12%) and core revenue of $1.67–$1.72 billion (up 11–14%), with projected non-GAAP operating income of $421–$451 million and non-GAAP diluted EPS of $3.56–$3.79. Management highlights a clear path to “meaningful GAAP profitability” and plans a voluntary change to net rewards expense against revenue to better reflect its Spend and Expense economics.
Positive
- FY26 total revenue grew 13% to $1.65 billion, with core revenue up 16% to $1.50 billion, showing sustained top-line expansion.
- Non-GAAP operating income rose 35% year-over-year to $323.7 million, indicating strong improvement in underlying operating profitability.
- Q4 non-GAAP operating income increased 80% year-over-year to $101.6 million, with non-GAAP diluted EPS up to $0.84 from $0.53.
- BILL generated $354.7 million in FY26 free cash flow and ended with $3.77 billion in cash and restricted cash, supporting a robust liquidity position.
- The company repurchased approximately 8.4 million shares for about $300 million in Q4, returning capital to shareholders while reducing share count.
- Total Payment Volume reached $98.2 billion and transactions 37.4 million in Q4, each up 14% year-over-year, reflecting healthy platform usage growth.
- FY27 guidance calls for 9–12% total revenue growth and $421–$451 million non-GAAP operating income, implying continued margin expansion.
Negative
- FY26 GAAP net income swung to an $11.2 million loss from $23.8 million profit in FY25, despite strong non-GAAP performance.
- Q4 GAAP net loss widened to $18.5 million from $7.1 million a year earlier, even as revenue and non-GAAP profitability increased.
- Total businesses using solutions declined to 479,300 at June 30, 2026 from 493,700 a year earlier, driven by fewer Embedded Solutions and Other customers.
Filing Explained
BILL plans—not yet reports—a voluntary presentation change beginning with its quarterly report for
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q4 2026 Total Revenue: $436.2 million
FY26 Total Revenue: $1,653.2 million
FY26 Non-GAAP Operating Income: $323.7 million
+5 more
8 metrics
Q4 2026 Total Revenue
$436.2 million
Quarter ended June 30, 2026; up 14% year-over-year
FY26 Total Revenue
$1,653.2 million
Fiscal year ended June 30, 2026; up 13% year-over-year
FY26 Non-GAAP Operating Income
$323.7 million
Non-GAAP operating income for fiscal 2026; 35% year-over-year increase
FY26 Non-GAAP Diluted EPS
$2.77 per share
Non-GAAP net income per diluted share for fiscal 2026
FY26 GAAP Net Income (Loss)
$(11.2) million
GAAP net loss for fiscal 2026 versus $23.8 million profit in prior year
Q4 2026 Share Repurchases
$300 million
Approximate cost to repurchase about 8.4 million common shares in Q4 2026
Q4 2026 Total Payment Volume
$98.2 billion
Total Payment Volume processed in the quarter; up 14% year-over-year
FY26 Free Cash Flow
$354.7 million
Free cash flow for fiscal 2026 based on operating cash flow minus capex and capitalized software
Key Terms
Core revenue, Float revenue, Total Payment Volume, Free cash flow, +2 more
6 terms
Core revenue financial
"Core revenue, which consists of subscription and transaction fees, was $1,504.7 million"
Revenue from a company’s regular, ongoing business activities after stripping out one-time items, unusual gains or losses, and revenue from unrelated side businesses. Like a shopkeeper counting only the money from everyday sales rather than a one-off auction or a temporary rental, core revenue shows the steady income that is most likely to continue and helps investors judge the company’s underlying sales health and future earnings power.
Float revenue financial
"Float revenue, which consists of interest on funds held for customers, was $148.4 million"
Float revenue is the income a company earns by temporarily holding cash between when it receives money and when it must pay it out, such as premiums, customer payments, or transaction funds; during that brief period the company can invest the cash and collect interest or other returns. For investors it matters because it boosts reported profits and cash flow without reflecting core business sales, and it can fluctuate with interest rates and a company’s cash-management practices—like earning a little extra by parking money in a short-term account.
Total Payment Volume financial
"Processed $98 billion in total payment volume in the fourth quarter"
The total payment volume is the sum of all money that flows through a payment platform or service over a given period, including purchases, transfers, and other transactions. Like measuring the total gallons of water running through a pipe to gauge how busy it is, TPV shows how much business a payments provider or marketplace handles and helps investors assess scale, growth, market share and potential fee-based revenue.
Free cash flow financial
"Free cash flow is a non-GAAP measure defined as net cash provided by operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Non-GAAP gross margin financial
"Non-GAAP gross profit was $1,396.2 million, representing an 84.5% non-GAAP gross margin"
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
Rewards expense financial
"We are additionally providing guidance for our rewards expense for the fiscal first quarter"
Offering Details
earnings
Offering
Offering Type
earnings
FAQ
How did BILL (BILL) perform financially in Q4 2026?
BILL reported Q4 2026 revenue of $436.2 million, up 14% year-over-year, with core revenue of $400.5 million, up 16%. Non-GAAP operating income was $101.6 million and non-GAAP net income was $94.0 million, or $0.84 per diluted share.
What were BILL (BILL)’s key results for fiscal year 2026?
For FY26, BILL generated $1.65 billion in total revenue, up 13%, and core revenue of $1.50 billion, up 16%. Non-GAAP operating income was $323.7 million and non-GAAP diluted EPS was $2.77, while GAAP net loss was $11.2 million.
What guidance did BILL (BILL) provide for fiscal 2027?
BILL guides FY27 total revenue to $1.81–$1.86 billion, implying 9–12% growth, and core revenue to $1.67–$1.72 billion, up 11–14%. Non-GAAP operating income is projected at $421–$451 million and non-GAAP diluted EPS at $3.56–$3.79.
How strong is BILL (BILL)’s cash flow and balance sheet?
BILL produced $415.8 million in FY26 operating cash flow and $354.7 million in free cash flow. It ended June 30, 2026 with $3.77 billion in cash, cash equivalents and restricted cash, and total assets of $10.22 billion.
What platform usage metrics did BILL (BILL) report for Q4 2026?
In Q4 2026, BILL processed $98.2 billion in Total Payment Volume and 37.4 million transactions, each up 14% year-over-year. The company served 479,300 businesses and had 9.2 million standalone network members who have sent or received electronic payments.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________________
FORM 8-K
____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 19, 2026
____________________________________
(Exact name of Registrant as Specified in Its Charter)
____________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s Telephone Number, Including Area Code: (650 ) 621-7700
(Former Name or Former Address, if Changed Since Last Report)
____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 19, 2026, BILL Holdings, Inc. (the “Company”) issued a press release and will hold a conference call regarding its financial results for the fourth quarter and fiscal year ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The Company makes reference to certain non-GAAP financial information in both the press release and the conference call. A reconciliation of GAAP to non-GAAP results is provided in the press release attached as Exhibit 99.1 hereto.
The information furnished with Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
Exhibit Number | Description | |||||||
| 99.1 | Press release entitled “BILL Reports Fourth Quarter and Fiscal Year 2026 Financial Results.” | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| BILL HOLDINGS, INC. | |||||||||||
| Date: | August 19, 2026 | By: | /s/ Rohini Jain | ||||||||
Rohini Jain Chief Financial Officer | |||||||||||
Exhibit 99.1
BILL Reports Fourth Quarter and Fiscal Year 2026 Financial Results
•FY26 Total Revenue was $1.7 Billion and Increased 13% Year-Over-Year
•FY26 Core Revenue was $1.5 Billion and Increased 16% Year-Over-Year
•Q4 Total Revenue Increased 14% Year-Over-Year
•Q4 Core Revenue Increased 16% Year-Over-Year
SAN JOSE, Calif.--(BUSINESS WIRE) – August 19, 2026 – BILL (NYSE: BILL), the financial operations platform trusted by nearly half a million businesses to manage, move, and maximize their money, today announced financial results for the fourth quarter and fiscal year ended June 30, 2026.
“Our results for the year demonstrate the durability of our business. We continue to see strong demand for BILL’s integrated platform, with increasing adoption of our AI capabilities,” said René Lacerte, BILL CEO and Founder. “The structural changes we’ve implemented position us well to develop and deliver AI-native solutions for the Fortune 5 million.”
“In Q4, we delivered 16% core revenue growth with strong non-GAAP profitability — demonstrating that growth and margin expansion are not a trade-off at BILL,” said Rohini Jain, BILL Chief Financial Officer. “We enter FY’27 on a clear path to meaningful GAAP profitability, with the focus, accountability, and alignment to sustain it.”
Financial Highlights for the Fourth Quarter of Fiscal 2026:
•Total revenue was $436.2 million, an increase of 14% year-over-year.
•Core revenue, which consists of subscription and transaction fees, was $400.5 million, an increase of 16% year-over-year. Subscription fees were $76.2 million, up 11% year-over-year. Transaction fees were $324.3 million, up 17% year-over-year.
•Float revenue, which consists of interest on funds held for customers, was $35.7 million.
•Gross profit was $356.2 million, representing an 81.7% gross margin, compared to $309.8 million, or an 80.8% gross margin, in the fourth quarter of fiscal 2025. Non-GAAP gross profit was $370.3 million, representing an 84.9% non-GAAP gross margin, compared to $322.7 million, or an 85.0% non-GAAP gross margin, in the fourth quarter of fiscal 2025.
•Operating loss was $34.3 million, compared to an operating loss of $22.3 million in the fourth quarter of fiscal 2025. Non-GAAP operating income was $101.6 million, compared to $56.4 million in the fourth quarter of fiscal 2025, an increase of 80% year-over-year.
•Net loss was $18.5 million, or $0.19 per share, basic and diluted, compared to a net loss of $7.1 million, or $0.07 per share, basic and diluted, in the fourth quarter of fiscal 2025. Non-GAAP net income was $94.0 million, or $0.84 per diluted share, compared to non-GAAP net income of $61.6 million, or $0.53 per diluted share in the fourth quarter of fiscal 2025.
Financial Highlights for Fiscal Year 2026:
•Total revenue was $1,653.2 million, an increase of 13% year-over-year.
•Core revenue, which consists of subscription and transaction fees, was $1,504.7 million, an increase of 16% year-over-year. Subscription fees were $293.5 million, up 8% year-over-year. Transaction fees were $1,211.2 million, up 18% year-over-year.
•Float revenue, which consists of interest on funds held for customers, was $148.4 million.
•Gross profit was $1,337.9 million, representing an 80.9% gross margin, compared to $1,190.5 million, or an 81.4% gross margin, in the prior fiscal year. Non-GAAP gross profit was $1,396.2 million, representing an 84.5% non-GAAP gross margin, compared to $1,242.7 million, or an 85.0% non-GAAP gross margin, in the prior fiscal year.
•Operating loss was $73.4 million, compared to an operating loss of $80.6 million in the prior fiscal year. Non-GAAP operating income was $323.7 million, compared to $239.5 million in the prior fiscal year, an increase of 35% year-over-year.
•Net loss was $11.2 million, or $0.11 per share, basic and diluted, compared to net income of $23.8 million, or $0.23 and $(0.07) per share, basic and diluted, respectively, in the prior fiscal year. Non-GAAP net income was $314.8 million, or $3.15 and $2.77 per basic and diluted share, respectively, compared to non-GAAP net income of $251.8 million, or $2.43 and $2.21 per basic and diluted share, respectively, in the prior fiscal year.
Business Highlights and Recent Developments:
•Served 479,300 businesses using our solutions as of the end of the fourth quarter.1
•Processed $98 billion in total payment volume in the fourth quarter, an increase of 14% year-over-year.
•Processed 37 million transactions during the fourth quarter, an increase of 14% year-over-year.
•As of June 30, 2026, 9.2 million BILL standalone network members have originated or received an electronic payment using our platform, an increase of 11% year-over-year.
•Welcomed Jonathan Leaf as Chief Revenue Officer to lead BILL’s global revenue organization, spanning sales, marketing, embedded partnerships, and customer experience.
•Repurchased approximately 8.4 million shares of BILL common stock in the fourth quarter for a total cost of approximately $300 million.
Financial Outlook
We are providing the following guidance for the fiscal first quarter ending September 30, 2026 and the full fiscal year ending June 30, 2027.
Q1 FY27 Guidance | FY27 Guidance | ||||||||||
| Total revenue (millions) | $432.5 - $442.5 | $1,807.0 - $1,857.0 | |||||||||
| Year-over-year total revenue growth | 9% - 12% | 9% - 12% | |||||||||
| Core revenue (millions) | $398.0 - $408.0 | $1,669.0 - $1,719.0 | |||||||||
| Year-over-year core revenue growth | 11% - 14% | 11% - 14% | |||||||||
| Rewards expense (millions) | $92.5 | $401.5 | |||||||||
| Non-GAAP operating income (millions) | $112.5 - $117.5 | $421.0 - $451.0 | |||||||||
| Non-GAAP net income (millions) | $98.0 - $102.0 | $370.5 - $394.5 | |||||||||
| Non-GAAP net income per diluted share | $0.96 - $1.00 | $3.56 - $3.79 | |||||||||
The outlook for non-GAAP net income and non-GAAP net income per diluted share includes a non-GAAP provision for income taxes of 20%. The outlook for non-GAAP net income per diluted share does not take any future repurchases of BILL shares into account, as the impact of such repurchases on a per diluted share basis is not reasonably estimable.
This quarter, we are additionally providing guidance for our rewards expense for the fiscal first quarter ending September 30, 2026 and the fiscal year ending June 30, 2027. We are providing such guidance in anticipation of a planned voluntary change in our revenue presentation, beginning with our quarterly report for the fiscal quarter ending September 30, 2026, pursuant to which we will net rewards expense directly from core revenue (and total revenue) rather than recording it as an operating expense under sales and marketing. We believe this presentation will better represent the economic substance of our Spend and Expense offering and will align with prevailing industry practice, facilitating better comparability of our financial results for investors. The total revenue and core revenue guidance above is presented before deducting rewards expense and does not reflect the planned change described here.
These statements are forward-looking and actual results may differ materially. Refer to the “Note on Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Refer to “Non-GAAP Financial Measures” below for additional information on our non-GAAP financial measures and to the
reconciliation tables at the end of this press release for the reconciliation of GAAP and non-GAAP results. BILL has not provided a reconciliation of its non-GAAP operating income, non-GAAP net income or non-GAAP net income per diluted share guidance to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.
Conference Call and Webcast Information
In conjunction with this announcement, BILL will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal fourth quarter and fiscal year 2026 results and our outlook for the fiscal first quarter ending September 30, 2026 and
1 Businesses using more than one of our solutions are included separately in the total for each solution utilized.
fiscal year ending June 30, 2027. The live webcast and a replay of the webcast will be available at the Investor Relations section of BILL’s website: https://investor.bill.com/events-and-presentations/default.aspx.
About BILL
BILL (NYSE: BILL) the intelligent finance platform trusted by nearly half a million businesses and their accountants to manage, move, and maximize their money. BILL powers businesses ranging from fast-moving startups to growing companies with complex operations. We use AI to deliver strategic finance capabilities in one integrated platform that includes AP, AR, expenses, forecasting, procurement and more. With a member network of more than 9 million, BILL’s platform processes ~1% of US GDP annually. Headquartered in San Jose, California, BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and software providers. For more information, visit bill.com.
Note on Forward-Looking Statements
This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations of future performance, including guidance for our total revenue, core revenue, rewards expense, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per diluted share for the fiscal first quarter ending September 30, 2026 and full fiscal year ending June 30, 2027, our expectations for GAAP profitability and stock-based compensation expense, our planned investments in fiscal year 2027, our revenue growth and profitability profile in future years, activity under our share repurchase program, including the timing, manner, amount, and impact of any repurchases, our expectations for the growth of demand for our platform and the expansion of our customers’ utilization of our services, our planned voluntary change in revenue presentation and the development, deployment and adoption of AI-enabled products and capabilities. These risks and uncertainties include, but are not limited to macroeconomic factors, including changes in interest rates, significant political and regulatory developments or changes in trade policy, including government budget cuts, government shutdowns, the imposition of tariffs and other trade barriers, inflationary, recessionary, and volatile market environments, as well as fluctuations in foreign exchange rates, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, credit risk related to our BILL Divvy Cards and our invoice financing offering, our ability to attract new customers and convert trial customers into paying customers, our ability to develop, deploy, commercialize and realize expected benefits from AI agents and other AI-enabled tools, our ability to invest in our business and develop new products and services, increased competition or new entrants in the marketplace, potential impacts of acquisitions, investments and other strategic transactions, changes to card network rules and interchange fee rates, our relationships with accounting firms, financial institutions and software providers, the global impacts of ongoing geopolitical conflicts, the actual and expected impacts of the above factors on the SMBs we serve and other risks detailed in the registration statements and periodic reports we file with the Securities and Exchange Commission (SEC), including our quarterly and annual reports, which may be obtained on the Investor Relations section of BILL’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, basic and diluted, and free cash flow. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.
We exclude the following items from non-GAAP gross profit and non-GAAP gross margin:
•stock-based compensation and related payroll taxes
•depreciation and amortization
We exclude the following items from non-GAAP operating expenses and non-GAAP operating income:
•stock-based compensation and related payroll taxes
•depreciation and amortization
•restructuring
•acquisition and integration-related expenses
•professional advisory fees related to shareholders' activism
We exclude the following items from non-GAAP net income and non-GAAP net income per share:
•stock-based compensation expense and related payroll taxes
•depreciation and amortization
•restructuring
•acquisition and integration-related expenses
•professional advisory fees related to shareholders' activism
•gain on debt extinguishment
•amortization of debt discount and issuance costs
•non-GAAP provision for income taxes
It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. We also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise, including our blended U.S. statutory tax rate.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
We adjust the following items from one or more of our non-GAAP financial measures:
Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses. We exclude stock-based compensation, which is a non-cash expense, and related payroll taxes from certain of our non-GAAP financial measures because we believe that excluding these items provide meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expenses using a variety of valuation methodologies and subjective assumptions while the related payroll taxes are dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business.
Depreciation and amortization. We exclude depreciation and amortization from certain of our non-GAAP financial measures because we believe that excluding this non-cash charge provides meaningful supplemental information regarding operational performance. Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash.
Restructuring. We exclude costs incurred in connection with formal restructuring plans and reductions-in-force from certain of our non-GAAP financial measures because these costs are atypical and would have not otherwise been incurred in the normal course of our business operations.
Professional advisory fees related to shareholders' activism. We exclude costs associated with incremental professional advisory fees incurred in connection with activist shareholders, as these costs are atypical and do not reflect costs incurred from our regular engagement with shareholders.
Gain on debt extinguishment. We exclude gain on debt extinguishment associated with our repurchases of certain of our outstanding convertible senior notes because we believe that excluding this non-cash gain provides better insight regarding our operational performance.
Amortization of debt discount and issuance costs. We exclude amortization of debt discount and issuance costs associated with our issuance of our convertible senior notes and credit arrangement from certain of our non-GAAP financial measures because we
believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance.
Non-GAAP provision for income taxes. Consists of assumed provision for income taxes based on the statutory tax rate taking into consideration the nature of the taxed item and the relevant taxing jurisdiction.
In addition, free cash flow is a non-GAAP measure defined as net cash provided by operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs. We believe free cash flow is an important liquidity measure of the cash that is generated, after incurring operating expenses, purchases of property and equipment and capitalization of internal-use software costs, for future operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in the ordinary course of business. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain strong balance sheets and invest in future growth.
There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this press release for the reconciliation of GAAP and non-GAAP results.
IR Contact:
Jack Andrews
investor@ir.bill.com
Press Contact:
Lauren Johns
pr@hq.bill.com
Source: BILL
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
| June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 1,031,053 | $ | 1,038,346 | ||||||||||
| Short-term investments | 906,456 | 1,180,110 | ||||||||||||
| Accounts receivable, net | 30,995 | 32,341 | ||||||||||||
| Acquired card receivables, net | 811,807 | 685,108 | ||||||||||||
| Prepaid expenses and other current assets | 302,158 | 258,418 | ||||||||||||
| Funds held for customers | 4,352,633 | 4,044,470 | ||||||||||||
| Total current assets | 7,435,102 | 7,238,793 | ||||||||||||
| Non-current assets: | ||||||||||||||
| Operating lease right-of-use assets, net | 47,821 | 56,086 | ||||||||||||
| Property and equipment, net | 144,945 | 116,611 | ||||||||||||
| Intangible assets, net | 162,146 | 222,805 | ||||||||||||
| Goodwill | 2,396,509 | 2,396,509 | ||||||||||||
| Other assets | 31,616 | 33,178 | ||||||||||||
| Total assets | $ | 10,218,139 | $ | 10,063,982 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 9,637 | $ | 16,293 | ||||||||||
| Accrued compensation and benefits | 32,930 | 39,581 | ||||||||||||
| Deferred revenue | 19,377 | 22,435 | ||||||||||||
| Other accruals and current liabilities | 387,259 | 252,455 | ||||||||||||
| Borrowings from credit facilities | — | 180,005 | ||||||||||||
| Convertible senior notes, net | 123,057 | 33,421 | ||||||||||||
| Customer fund deposits | 4,352,633 | 4,044,470 | ||||||||||||
| Total current liabilities | 4,924,893 | 4,588,660 | ||||||||||||
| Non-current liabilities: | ||||||||||||||
| Deferred revenue | 333 | 285 | ||||||||||||
| Operating lease liabilities | 48,468 | 58,372 | ||||||||||||
| Borrowings from credit facilities | 330,000 | — | ||||||||||||
| Convertible senior notes, net | 1,383,066 | 1,501,044 | ||||||||||||
| Other long-term liabilities | 777 | 1,581 | ||||||||||||
| Total liabilities | 6,687,537 | 6,149,942 | ||||||||||||
| Stockholders' equity: | ||||||||||||||
| Common stock | 2 | 2 | ||||||||||||
| Additional paid-in capital | 5,626,327 | 5,414,645 | ||||||||||||
| Accumulated other comprehensive income (loss) | (6,415) | 10,197 | ||||||||||||
| Accumulated deficit | (2,089,312) | (1,510,804) | ||||||||||||
| Total stockholders' equity | 3,530,602 | 3,914,040 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 10,218,139 | $ | 10,063,982 | ||||||||||
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
| Three months ended June 30, | Year ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
Subscription and transaction fees (1) | $ | 400,482 | $ | 345,947 | $ | 1,504,749 | $ | 1,300,804 | ||||||||||||||||||
| Interest on funds held for customers | 35,704 | 37,402 | 148,411 | 161,766 | ||||||||||||||||||||||
| Total revenue | 436,186 | 383,349 | 1,653,160 | 1,462,570 | ||||||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||||
Service costs (1) | 67,825 | 63,172 | 265,808 | 229,805 | ||||||||||||||||||||||
Depreciation and amortization (2) | 12,170 | 10,416 | 49,487 | 42,298 | ||||||||||||||||||||||
| Total cost of revenue | 79,995 | 73,588 | 315,295 | 272,103 | ||||||||||||||||||||||
| Gross profit | 356,191 | 309,761 | 1,337,865 | 1,190,467 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
Research and development (1) | 63,090 | 90,050 | 300,571 | 340,059 | ||||||||||||||||||||||
Sales and marketing (1) | 158,331 | 148,098 | 616,211 | 543,711 | ||||||||||||||||||||||
General and administrative (1) | 70,710 | 70,169 | 299,410 | 281,913 | ||||||||||||||||||||||
| Provision for expected credit losses | 13,503 | 15,785 | 71,056 | 72,749 | ||||||||||||||||||||||
Depreciation and amortization (2) | 8,241 | 7,909 | 33,169 | 32,637 | ||||||||||||||||||||||
Restructuring (1) | 76,569 | — | 90,895 | — | ||||||||||||||||||||||
| Total operating expenses | 390,444 | 332,011 | 1,411,312 | 1,271,069 | ||||||||||||||||||||||
| Operating loss | (34,253) | (22,250) | (73,447) | (80,602) | ||||||||||||||||||||||
| Other income, net | 14,226 | 19,180 | 63,316 | 111,012 | ||||||||||||||||||||||
| Income (loss) before provision for income taxes | (20,027) | (3,070) | (10,131) | 30,410 | ||||||||||||||||||||||
| Provision for (benefit from) income taxes | (1,551) | 4,004 | 1,110 | 6,611 | ||||||||||||||||||||||
| Net income (loss) | $ | (18,476) | $ | (7,074) | $ | (11,241) | $ | 23,799 | ||||||||||||||||||
| Net income (loss) per share attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | $ | (0.19) | $ | (0.07) | $ | (0.11) | $ | 0.23 | ||||||||||||||||||
| Diluted | $ | (0.19) | $ | (0.07) | $ | (0.11) | $ | (0.07) | ||||||||||||||||||
| Weighted-average number of common shares used to compute net income (loss) per share attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | 97,896 | 103,231 | 99,918 | 103,568 | ||||||||||||||||||||||
| Diluted | 97,896 | 103,231 | 99,918 | 103,912 | ||||||||||||||||||||||
(1) Includes stock-based compensation charged to revenue and expenses as follows (in thousands): | ||
| Three months ended June 30, | Year ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenue - subscription and transaction fees | $ | 607 | $ | 632 | $ | 2,449 | $ | 2,329 | ||||||||||||||||||
| Cost of revenue - service costs | 1,879 | 2,480 | 8,554 | 9,627 | ||||||||||||||||||||||
| Research and development | 13,192 | 27,338 | 92,456 | 107,603 | ||||||||||||||||||||||
| Sales and marketing | 4,749 | 9,211 | 32,752 | 39,992 | ||||||||||||||||||||||
| General and administrative | 17,774 | 20,100 | 78,082 | 82,981 | ||||||||||||||||||||||
| Restructuring | 14,579 | — | 15,485 | — | ||||||||||||||||||||||
Total stock-based compensation | $ | 52,780 | $ | 59,761 | $ | 229,778 | $ | 242,532 | ||||||||||||||||||
(2) Depreciation and amortization does not include amortization of capitalized internal-use software costs paid in cash of $8.9 million and $33.9 million during the three and twelve months ended June 30, 2026, respectively, and $3.6 million and $14.5 million during the three and twelve months ended June 30, 2025, respectively, which are included in service costs and general and administrative in the condensed consolidated statements of operations.
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
| Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||
| Net income (loss) | $ | (18,476) | $ | (7,072) | $ | (11,241) | $ | 23,799 | ||||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||
| Stock-based compensation | 52,780 | 59,761 | 229,778 | 242,532 | ||||||||||||||||||||||
| Amortization of intangible assets | 15,165 | 15,165 | 60,659 | 61,925 | ||||||||||||||||||||||
| Depreciation of property and equipment | 5,246 | 3,160 | 21,997 | 13,010 | ||||||||||||||||||||||
| Amortization of capitalized internal-use software costs paid in cash | 8,858 | 3,561 | 33,896 | 14,508 | ||||||||||||||||||||||
| Amortization of debt discount and issuance costs | 1,608 | 1,459 | 6,434 | 4,739 | ||||||||||||||||||||||
| Accretion of discount on investments in marketable debt securities | (4,749) | (7,590) | (23,893) | (37,000) | ||||||||||||||||||||||
| Accretion of discount on loans held for investment | (7,478) | (5,976) | (28,238) | (21,215) | ||||||||||||||||||||||
| Gain on debt extinguishment | — | — | — | (40,550) | ||||||||||||||||||||||
| Provision for expected credit losses on acquired card receivables and other financial assets | 10,050 | 10,869 | 54,588 | 45,708 | ||||||||||||||||||||||
| Provision for expected credit losses on loans held for investment | 3,452 | 4,916 | 16,468 | 27,041 | ||||||||||||||||||||||
| Non-cash operating lease expense | 2,115 | 1,990 | 8,265 | 8,164 | ||||||||||||||||||||||
| Other | (825) | (515) | 124 | 395 | ||||||||||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||||||||||||||
| Accounts receivable | 1,008 | (5,740) | 1,418 | (4,458) | ||||||||||||||||||||||
| Prepaid expenses and other current assets | (8,264) | (8,780) | 3,135 | (26,986) | ||||||||||||||||||||||
| Other assets | 1,093 | 19 | 1,167 | 8,417 | ||||||||||||||||||||||
| Accounts payable | 2,604 | 6,453 | (5,871) | 8,213 | ||||||||||||||||||||||
| Other accruals and current liabilities | 53,449 | 15,841 | 61,190 | 30,222 | ||||||||||||||||||||||
| Operating lease liabilities | (2,439) | (2,225) | (9,950) | (9,412) | ||||||||||||||||||||||
| Other long-term liabilities | (2,250) | (2,215) | (1,084) | 46 | ||||||||||||||||||||||
| Deferred revenue | (1,961) | 734 | (3,010) | 1,546 | ||||||||||||||||||||||
| Net cash provided by operating activities | 110,986 | 83,815 | 415,832 | 350,644 | ||||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||
| Purchases of corporate and customer fund short-term investments | (283,835) | (532,761) | (1,617,044) | (2,847,736) | ||||||||||||||||||||||
| Proceeds from maturities and sales of corporate and customer fund short-term investments | 543,531 | 487,261 | 1,790,861 | 2,214,628 | ||||||||||||||||||||||
| Purchase of intangible assets | — | — | — | (2,868) | ||||||||||||||||||||||
| Purchases of loans held for investment | (281,557) | (222,041) | (1,041,055) | (798,926) | ||||||||||||||||||||||
| Principal repayments of loans held for investment | 284,594 | 223,218 | 1,051,637 | 787,513 | ||||||||||||||||||||||
| Acquired card receivables, net | (3,388) | 16,949 | (150,032) | (129,439) | ||||||||||||||||||||||
| Purchases of property and equipment | (375) | (2,789) | (3,334) | (4,335) | ||||||||||||||||||||||
| Capitalization of internal-use software costs | (14,062) | (12,548) | (57,822) | (33,767) | ||||||||||||||||||||||
| Other | (371) | (878) | (1,809) | (2,460) | ||||||||||||||||||||||
| Net cash provided by (used in) investing activities | 244,537 | (43,589) | (28,598) | (817,390) | ||||||||||||||||||||||
| Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||
| Proceeds from issuance of convertible senior notes | — | — | — | 1,400,000 | ||||||||||||||||||||||
| Cash paid for convertible senior notes issuance costs | — | — | — | (24,006) | ||||||||||||||||||||||
| Payments for repurchase and settlement of convertible senior notes | — | — | (33,463) | (539,403) | ||||||||||||||||||||||
| Purchase of capped calls | — | — | — | (92,960) | ||||||||||||||||||||||
| Customer fund deposits liability and other | 344,664 | 380,539 | 285,549 | 318,683 | ||||||||||||||||||||||
| Prepaid card deposits | (4,432) | (14,956) | 27,125 | 28,517 | ||||||||||||||||||||||
| Repurchase of common stock | (287,827) | (30,001) | (560,485) | (430,002) | ||||||||||||||||||||||
| Proceeds from line of credit borrowings | — | — | 150,000 | — | ||||||||||||||||||||||
| Cash paid for line of credit issuance costs | (811) | (1,721) | (811) | (1,721) | ||||||||||||||||||||||
| Proceeds from exercise of stock options | 1,428 | 929 | 2,945 | 3,701 | ||||||||||||||||||||||
| Tax withholdings related to net share settlements of equity awards | (11,652) | (1,424) | (55,616) | (7,840) | ||||||||||||||||||||||
| Proceeds from issuance of common stock under the employee stock purchase plan | 7,273 | 6,251 | 11,921 | 11,553 | ||||||||||||||||||||||
| Net cash provided by (used in) financing activities | 48,643 | 339,617 | (172,835) | 666,522 | ||||||||||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (193) | (109) | (50) | (290) | ||||||||||||||||||||||
| Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 403,973 | 379,734 | 214,349 | 199,486 | ||||||||||||||||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 3,361,260 | 3,171,150 | 3,550,884 | 3,351,398 | ||||||||||||||||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 3,765,233 | $ | 3,550,884 | $ | 3,765,233 | $ | 3,550,884 | ||||||||||||||||||
| Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,031,053 | $ | 1,038,346 | ||||||||||||||||||||||
| Restricted cash included in other current assets | 137,635 | 101,620 | ||||||||||||||||||||||||
| Restricted cash included in other assets | 3,304 | 4,885 | ||||||||||||||||||||||||
| Restricted cash and restricted cash equivalents included in funds held for customers | 2,593,241 | 2,406,033 | ||||||||||||||||||||||||
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | $ | 3,765,233 | $ | 3,550,884 | ||||||||||||||||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||||||||||||||||
| Cash paid for interest during the period | $ | 18,963 | $ | 13,782 | ||||||||||||||||||||||
| Cash paid for income taxes during the period | $ | 1,108 | $ | 6,321 | ||||||||||||||||||||||
| Noncash investing and financing activities: | ||||||||||||||||||||||||||
| Payable on purchases of property and equipment and internal-use software costs | $ | 3,407 | $ | 5,234 | ||||||||||||||||||||||
| Payable on purchases of acquired card receivables | $ | 40,397 | $ | 9,213 | ||||||||||||||||||||||
| Payable on repurchase of common stock | $ | 9,998 | $ | 5,000 | ||||||||||||||||||||||
| Payable on excise tax | $ | 4,437 | $ | 2,653 | ||||||||||||||||||||||
| Issuance and exercise of warrants | $ | — | $ | 13,125 | ||||||||||||||||||||||
BILL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands except percentages and per share amounts)
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Reconciliation of gross profit: | |||||||||||||||||||||||
| GAAP gross profit | $ | 356,191 | $ | 309,761 | $ | 1,337,865 | $ | 1,190,467 | |||||||||||||||
| Add: | |||||||||||||||||||||||
Depreciation and amortization (1) | 12,170 | 10,416 | 49,487 | 42,298 | |||||||||||||||||||
| Stock-based compensation and related payroll taxes charged to cost of revenue | 1,938 | 2,553 | 8,834 | 9,920 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 370,299 | $ | 322,730 | $ | 1,396,186 | $ | 1,242,685 | |||||||||||||||
| GAAP gross margin | 81.7 | % | 81.0 | % | 80.9 | % | 81.4 | % | |||||||||||||||
| Non-GAAP gross margin | 84.9 | % | 85.0 | % | 84.5 | % | 85.0 | % | |||||||||||||||
_____________________________ (1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash of $7.8 million and $31.3 million during the three and twelve months ended June 30, 2026, respectively, and $3.6 million and $14.5 million during the three and twelve months ended June 30, 2025, respectively, which are included in service costs in the condensed consolidated statements of operations. | |||||||||||||||||||||||
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Reconciliation of operating expenses: | |||||||||||||||||||||||
| GAAP research and development expenses | $ | 63,090 | $ | 90,050 | $ | 300,571 | $ | 340,059 | |||||||||||||||
| Less - stock-based compensation and related payroll taxes | (13,872) | (27,952) | (95,252) | (110,255) | |||||||||||||||||||
| Non-GAAP research and development expenses | $ | 49,218 | $ | 62,098 | $ | 205,319 | $ | 229,804 | |||||||||||||||
| GAAP sales and marketing expenses | $ | 158,331 | $ | 148,098 | $ | 616,211 | $ | 543,711 | |||||||||||||||
| Less - stock-based compensation and related payroll taxes | (4,928) | (9,382) | (33,646) | (40,801) | |||||||||||||||||||
| Non-GAAP sales and marketing expenses | $ | 153,403 | $ | 138,716 | $ | 582,565 | $ | 502,910 | |||||||||||||||
| GAAP general and administrative expenses | $ | 70,710 | $ | 70,169 | $ | 299,410 | $ | 281,913 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Stock-based compensation and related payroll taxes | (18,147) | (20,390) | (79,523) | (84,329) | |||||||||||||||||||
| Restructuring | — | — | — | 92 | |||||||||||||||||||
| Professional advisory fees related to shareholders' activism | — | — | (6,365) | — | |||||||||||||||||||
| Non-GAAP general and administrative expenses | $ | 52,563 | $ | 49,779 | $ | 213,522 | $ | 197,676 | |||||||||||||||
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Reconciliation of operating loss: | |||||||||||||||||||||||
| GAAP operating loss | $ | (34,253) | $ | (22,250) | $ | (73,447) | $ | (80,602) | |||||||||||||||
| Add: | |||||||||||||||||||||||
Depreciation and amortization (1) | 20,411 | 18,325 | 82,656 | 74,935 | |||||||||||||||||||
Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses (2) | 38,885 | 60,277 | 217,255 | 245,305 | |||||||||||||||||||
| Acquisition and integration-related expenses | — | — | — | — | |||||||||||||||||||
| Restructuring | 76,569 | — | 90,895 | (92) | |||||||||||||||||||
| Professional advisory fees related to shareholders' activism | — | — | 6,365 | — | |||||||||||||||||||
| Non-GAAP operating income | $ | 101,612 | $ | 56,352 | $ | 323,724 | $ | 239,546 | |||||||||||||||
| GAAP operating margin | (8) | % | (6) | % | (4) | % | (6) | % | |||||||||||||||
| Non-GAAP operating margin | 23 | % | 15 | % | 20 | % | 16 | % | |||||||||||||||
_____________________________ (1) Excludes amortization of capitalized internal-use software costs paid in cash of $8.9 million and $33.9 million during the three and twelve months ended June 30, 2026, respectively, and $3.6 million and $14.5 million during the three and twelve months ended June 30, 2025, respectively, which are included in service costs and general and administrative in the condensed consolidated statements of operations. (2) Excludes stock-based compensation charged to Restructuring, shown separately below. | |||||||||||||||||||||||
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Reconciliation of net income (loss): | |||||||||||||||||||||||
| GAAP net income (loss) | $ | (18,476) | $ | (7,074) | $ | (11,241) | $ | 23,799 | |||||||||||||||
| Add - GAAP provision for (benefit from) income taxes | (1,551) | 4,004 | 1,110 | 6,611 | |||||||||||||||||||
| Income (loss) before taxes | (20,027) | (3,070) | (10,131) | 30,410 | |||||||||||||||||||
| Add (less): | |||||||||||||||||||||||
Depreciation and amortization (1) | 20,411 | 18,325 | 82,656 | 74,935 | |||||||||||||||||||
Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses (2) | 38,885 | 60,277 | 217,255 | 245,305 | |||||||||||||||||||
| Acquisition and integration-related expenses | — | — | — | — | |||||||||||||||||||
| Restructuring | 76,569 | — | 90,895 | (92) | |||||||||||||||||||
| Professional advisory fees related to shareholders' activism | — | — | 6,365 | — | |||||||||||||||||||
| Amortization of debt discount and issuance costs | 1,608 | 1,459 | 6,434 | 4,739 | |||||||||||||||||||
| Gain on debt extinguishment | — | — | — | (40,550) | |||||||||||||||||||
| Non-GAAP net income before non-GAAP tax adjustments | $ | 117,446 | $ | 76,991 | $ | 393,474 | $ | 314,747 | |||||||||||||||
Non-GAAP provision for income taxes (3) | (23,489) | (15,398) | (78,695) | (62,949) | |||||||||||||||||||
| Non-GAAP net income | $ | 93,957 | $ | 61,593 | $ | 314,779 | $ | 251,798 | |||||||||||||||
_____________________________ (1) Excludes amortization of capitalized internal-use software costs paid in cash of $8.9 million and $33.9 million during the three and twelve months ended June 30, 2026, respectively, and $3.6 million and $14.5 million during the three and twelve months ended June 30, 2025, respectively, which are included in service costs and general and administrative in the condensed consolidated statements of operations. (2) Excludes stock-based compensation charged to Restructuring, shown separately below. (3) The non-GAAP provision for income taxes is calculated using a blended tax rate of 20%, taking into consideration the nature of the taxed item and the applicable statutory tax rate in each relevant taxing jurisdiction. | |||||||||||||||||||||||
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Reconciliation of net income (loss) per share attributable to common stockholders, basic and diluted: | |||||||||||||||||||||||
| GAAP net income (loss) per share attributable to common stockholders, basic and diluted | $ | (0.19) | $ | (0.07) | $ | (0.11) | $ | 0.23 | |||||||||||||||
| Add - GAAP provision for income taxes | (0.02) | 0.04 | 0.01 | 0.06 | |||||||||||||||||||
| Income (loss) before taxes | (0.21) | (0.03) | (0.10) | 0.29 | |||||||||||||||||||
| Add (less): | |||||||||||||||||||||||
Depreciation and amortization (1) | 0.21 | 0.18 | 0.83 | 0.72 | |||||||||||||||||||
| Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses | 0.40 | 0.58 | 2.18 | 2.37 | |||||||||||||||||||
| Restructuring | 0.78 | — | 0.91 | (0.00) | |||||||||||||||||||
| Professional advisory fees related to shareholders' activism | — | — | 0.06 | — | |||||||||||||||||||
| Amortization of debt discount and issuance costs | 0.02 | 0.01 | 0.06 | 0.05 | |||||||||||||||||||
| Gain on debt extinguishment | — | — | — | (0.39) | |||||||||||||||||||
| Non-GAAP net income before non-GAAP tax adjustments per share attributable to common stockholders, basic | $ | 1.20 | $ | 0.75 | $ | 3.94 | $ | 3.04 | |||||||||||||||
| Non-GAAP net income before non-GAAP tax adjustments per share attributable to common stockholders, diluted | $ | 1.06 | $ | 0.66 | $ | 3.46 | $ | 2.76 | |||||||||||||||
| Less - Non-GAAP provision for income taxes | (0.24) | (0.15) | (0.79) | (0.61) | |||||||||||||||||||
| Non-GAAP net income per share attributable to common stockholders, basic | $ | 0.96 | $ | 0.60 | $ | 3.15 | $ | 2.43 | |||||||||||||||
| Non-GAAP net income per share attributable to common stockholders, diluted | $ | 0.84 | $ | 0.53 | $ | 2.77 | $ | 2.21 | |||||||||||||||
___________________ (1) Excludes amortization of capitalized internal-use software costs paid in cash of $8.9 million and $33.9 million during the three and twelve months ended June 30, 2026, respectively, and $3.6 million and $14.5 million during the three and twelve months ended June 30, 2025, respectively, which are included in service costs and general and administrative in the condensed consolidated statements of operations. | |||||||||||||||||||||||
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Shares used to compute GAAP and non-GAAP net income (loss) per share attributable to common stockholders, basic | 97,896 | 103,231 | 99,918 | 103,568 | |||||||||||||||||||
| Shares used to compute GAAP net income (loss) per share attributable to common stockholders, diluted | 97,896 | 103,231 | 99,918 | 103,912 | |||||||||||||||||||
| Shares used to compute non-GAAP net income per share attributable to common stockholders, diluted | 111,206 | 116,754 | 113,601 | 114,034 | |||||||||||||||||||
BILL HOLDINGS, INC.
FREE CASH FLOW
(Unaudited, in thousands)
| Three months ended June 30, | Year ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 110,986 | $ | 83,815 | $ | 415,832 | $ | 350,644 | |||||||||||||||
| Purchases of property and equipment | (375) | (2,789) | (3,334) | (4,335) | |||||||||||||||||||
| Capitalization of internal-use software costs | (14,062) | (12,548) | (57,822) | (33,767) | |||||||||||||||||||
| Free cash flow | $ | 96,549 | $ | 68,478 | $ | 354,676 | $ | 312,542 | |||||||||||||||
BILL HOLDINGS, INC.
SUPPLEMENTAL FINANCIAL AND OPERATING METRICS
(Unaudited, in millions)
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subscription fees | $ | 65.8 | $ | 67.4 | $ | 67.7 | $ | 68.2 | $ | 68.8 | $ | 70.8 | $ | 72.1 | $ | 74.5 | $ | 76.2 | |||||||||||||||||||||||||||||||||||
| Transaction fees | 235.5 | 247.5 | 251.9 | 252.1 | 277.1 | 287.2 | 303.1 | 296.6 | 324.3 | ||||||||||||||||||||||||||||||||||||||||||||
Total subscription and transaction fees (1) | 301.3 | 314.9 | 319.6 | 320.3 | 345.9 | 358.0 | 375.1 | 371.1 | 400.5 | ||||||||||||||||||||||||||||||||||||||||||||
Interest on funds held for customers (2) | 42.4 | 43.5 | 42.9 | 37.9 | 37.4 | 37.7 | 39.5 | 35.4 | 35.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 343.7 | $ | 358.5 | $ | 362.6 | $ | 358.2 | $ | 383.3 | $ | 395.7 | $ | 414.7 | $ | 406.6 | $ | 436.2 | |||||||||||||||||||||||||||||||||||
| Revenue by solution | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BILL AP/AR | $ | 154.9 | $ | 162.3 | $ | 166.8 | $ | 163.8 | $ | 174.9 | $ | 178.6 | $ | 185.9 | $ | 183.2 | $ | 192.4 | |||||||||||||||||||||||||||||||||||
| BILL Spend and Expense | 126.4 | 132.6 | 133.9 | 137.9 | 150.6 | 157.3 | 166.5 | 167.2 | 184.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Integrated Platform | 281.3 | 294.9 | 300.7 | 301.7 | 325.5 | 335.9 | 352.3 | 350.4 | 377.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Embedded Solutions and Other | 20.0 | 20.1 | 18.9 | 18.6 | 20.4 | 22.1 | 22.8 | 20.7 | 23.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Total subscription and transaction fees | $ | 301.3 | $ | 314.9 | $ | 319.6 | $ | 320.3 | $ | 345.9 | $ | 358.0 | $ | 375.1 | $ | 371.1 | $ | 400.5 | |||||||||||||||||||||||||||||||||||
___________________ (1) The sum of subscription fees and transaction fees is also referred to as “Core Revenue” in this release. (2) The interest on funds held for customers is also referred to as “Float Revenue” in this release. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||
| Subscription fees | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BILL AP/AR | $ | 51.3 | $ | 53.1 | $ | 54.5 | $ | 55.2 | $ | 55.4 | $ | 56.1 | $ | 57.7 | $ | 60.9 | $ | 61.4 | |||||||||||||||||||||||||||||||||||
| Embedded Solutions and Other | 14.5 | 14.3 | 13.2 | 12.9 | 13.4 | 14.8 | 14.4 | 13.5 | 14.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Total subscription fees | $ | 65.8 | $ | 67.4 | $ | 67.7 | $ | 68.2 | $ | 68.8 | $ | 70.8 | $ | 72.1 | $ | 74.5 | $ | 76.2 | |||||||||||||||||||||||||||||||||||
| Transaction fees | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BILL AP/AR | $ | 103.6 | $ | 109.1 | $ | 112.4 | $ | 108.5 | $ | 119.4 | $ | 122.5 | $ | 128.2 | $ | 122.3 | $ | 131.1 | |||||||||||||||||||||||||||||||||||
| BILL Spend and Expense | 126.4 | 132.6 | 133.9 | 137.9 | 150.6 | 157.3 | 166.5 | 167.2 | 184.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Integrated Platform | 230.0 | 241.8 | 246.2 | 246.4 | 270.1 | 279.8 | 294.7 | 289.5 | 315.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Embedded Solutions and Other | 5.5 | 5.8 | 5.7 | 5.7 | 7.0 | 7.4 | 8.4 | 7.1 | 8.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Total transaction fees | $ | 235.5 | $ | 247.5 | $ | 251.9 | $ | 252.1 | $ | 277.1 | $ | 287.2 | $ | 303.1 | $ | 296.6 | $ | 324.3 | |||||||||||||||||||||||||||||||||||
| Supplemental Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rewards expense | $ | 60.5 | $ | 62.1 | $ | 64.7 | $ | 68.4 | $ | 76.8 | $ | 81.3 | $ | 87.0 | $ | 85.3 | $ | 94.0 | |||||||||||||||||||||||||||||||||||
| Rewards expense as a percentage of revenue from BILL Spend and Expense interchange fees | 48 | % | 47 | % | 48 | % | 50 | % | 51 | % | 52 | % | 52 | % | 51 | % | 51 | % | |||||||||||||||||||||||||||||||||||
___________________ “BILL AP/ARˮ and “BILL Spend and Expenseˮ exclude revenue contributed by customers referred through financial institutions (“FI Channelˮ). “Embedded Solutions and Otherˮ include revenue contributed from the FI Channel, Invoice2go, and other solutions. Note: Totals may not sum due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||
| Businesses using solutions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BILL AP/AR customers | 151,200 | 156,100 | 160,600 | 164,800 | 169,500 | 173,500 | 177,500 | 181,500 | 183,300 | ||||||||||||||||||||||||||||||||||||||||||||
| BILL Spend and Expense spending businesses | 34,800 | 36,400 | 37,800 | 39,500 | 41,100 | 42,500 | 44,000 | 45,600 | 46,500 | ||||||||||||||||||||||||||||||||||||||||||||
| Integrated Platform | 186,000 | 192,500 | 198,400 | 204,300 | 210,500 | 216,000 | 221,400 | 227,100 | 229,800 | ||||||||||||||||||||||||||||||||||||||||||||
| Embedded Solutions and Other customers | 288,500 | 283,800 | 282,900 | 284,300 | 283,200 | 282,500 | 277,000 | 266,700 | 249,500 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Businesses Using Solutions | 474,600 | 476,200 | 481,300 | 488,600 | 493,700 | 498,500 | 498,500 | 493,800 | 479,300 | ||||||||||||||||||||||||||||||||||||||||||||
___________________ “BILL AP/ARˮ and “BILL Spend and Expenseˮ exclude revenue contributed by customers referred through our FI Channel. “Embedded Solutions and Otherˮ includes revenue contributed from our FI Channel, Invoice2go, and other solutions. Note: Totals may not sum due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Payment Volume (TPV, in billions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BILL AP/AR | $ | 64.4 | $ | 67.7 | $ | 71.9 | $ | 66.9 | $ | 72.5 | $ | 74.7 | $ | 79.9 | $ | 73.9 | $ | 82.0 | |||||||||||||||||||||||||||||||||||
| BILL Spend and Expense | 4.8 | 5.1 | 5.2 | 5.3 | 5.8 | 6.2 | 6.5 | 6.6 | 7.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Integrated Platform | 69.2 | 72.8 | 77.1 | 72.3 | 78.4 | 80.9 | 86.4 | 80.5 | 89.0 | ||||||||||||||||||||||||||||||||||||||||||||
| Embedded Solutions and Other | 6.7 | 7.1 | 7.4 | 7.1 | 7.8 | 8.4 | 8.7 | 8.2 | 9.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Payment Volume | $ | 75.9 | $ | 79.8 | $ | 84.5 | $ | 79.4 | $ | 86.1 | $ | 89.3 | $ | 95.1 | $ | 88.7 | $ | 98.2 | |||||||||||||||||||||||||||||||||||
| Transactions processed (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BILL AP/AR | 11.5 | 11.7 | 12.2 | 11.5 | 12.4 | 12.5 | 12.8 | 12.1 | 12.9 | ||||||||||||||||||||||||||||||||||||||||||||
| BILL Spend and Expense | 14.8 | 15.3 | 16.1 | 16.5 | 18.5 | 18.8 | 19.8 | 19.5 | 21.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Integrated Platform | 26.3 | 27.0 | 28.3 | 28.0 | 30.9 | 31.3 | 32.6 | 31.6 | 34.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Embedded Solutions and Other | 1.6 | 1.6 | 1.7 | 1.8 | 2.0 | 2.0 | 2.1 | 2.4 | 2.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Transactions | 27.8 | 28.6 | 30.0 | 29.7 | 32.9 | 33.3 | 34.7 | 34.0 | 37.4 | ||||||||||||||||||||||||||||||||||||||||||||
___________________ “BILL AP/ARˮ and “BILL Spend and Expenseˮ exclude revenue contributed by customers referred through our FI Channel. “Embedded Solutions and Otherˮ includes revenue contributed from our FI Channel, Invoice2go, and other solutions. Note: Totals may not sum due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||