BILL Reports Fourth Quarter and Fiscal Year 2026 Financial Results

SAN JOSE, Calif.--( BUSINESS WIRE)--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:

Financial Highlights for Fiscal Year 2026:

Business Highlights and Recent Developments:

Businesses using more than one of our solutions are included separately in the total for each solution utilized.

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%

Core revenue (millions)

$398.0 - $408.0

$1,669.0 - $1,719.0

Year-over-year core revenue growth

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 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:

We exclude the following items from non-GAAP operating expenses and non-GAAP operating income:

We exclude the following items from non-GAAP net income and non-GAAP net income per share:

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.

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

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

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

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

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

)

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

)

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

—

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

Non-GAAP operating margin

(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)

(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)

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

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

“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

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

1.7

1.8

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

Note: Totals may not sum due to rounding.