AI Takeaway
BILL delivered 14.4% revenue growth to $414.7M in Q2 FY2026, but net income swung to a loss of $2.6M (vs. a $33.5M gain a year ago) as cost of revenue surged 25.5% and the company continued to invest in its platform.
Revenue
$414.67M
++14.37% YoY
EPS (Basic)
$-0.03
-109.09% YoY
Gross Margin
79.8%
-1.79% YoY
Operating Income
$-18.08M
++16.74% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 14.4% year-over-year to $414.7M in Q2 FY2026, up from $362.6M in Q2 FY2025, demonstrating continued demand for BILL's financial automation solutions for SMBs.
Source: Source: 10-Q Income Statement
Gross margin declined approximately 1.8 percentage points to 79.8% as cost of revenue jumped 25.5% YoY to $83.6M — outpacing revenue growth and reflecting higher infrastructure and payment processing costs.
Source: Source: 10-Q Income Statement
Operating loss improved to -$18.1M from -$21.7M a year ago, with operating margin improving from -6.0% to -4.4%, suggesting incremental operating leverage even as the company remains unprofitable at the operating level.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockCost of revenue grew 25.5% YoY — nearly double the 14.4% revenue growth rate — compressing gross margin to 79.8% from 81.6%. If payment processing, infrastructure, or compliance costs continue to outpace revenue, profitability could be further delayed.
Source: Source: 10-Q Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.64 versus the $0.57 analyst consensus — a +12.7% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $414.67M | $362.55M | +14.37% |
Cost of Revenue | $83.59M | $66.61M | +25.49% |
Gross Profit | $331.08M | $295.95M | +11.87% |
Operating Income | $-18.08M | $-21.71M | +16.74% |
Net Income | $-2.59M | $33.55M | -107.71% |
EPS (Basic) | $-0.03 | $0.33 | -109.09% |
EPS (Diluted) | $-0.03 | $-0.06 | +50.00% |
R&D Expense | $82.81M | $84.78M | -2.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $10.13B | $9.67B | +4.67% |
Current Assets | $7.33B | $6.84B | +7.10% |
Total Liabilities | $6.32B | $5.86B | +7.75% |
Current Liabilities | $4.43B | $4.12B | +7.47% |
Stockholders' Equity | $3.81B | $3.81B | -0.07% |
Cash & Equivalents | $1.09B | $1.57B | -30.12% |
Long-Term Debt | $1.83B | $1.68B | +9.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $202.17M | $167.3M | +20.85% |
Investing Cash FlowYTD | $27.85M | $-129.7M | +121.48% |
Financing Cash FlowYTD | $-111.92M | $432.48M | -125.88% |
Share BuybacksYTD | $215.8M | $400M | -46.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 79.8% | 81.6% | -1.79% |
Operating Margin | -4.4% | -6.0% | +1.63% |
Net Margin | -0.6% | — | — |
ROE | -0.1% | — | — |
ROA | -0.0% | — | — |
Current Ratio | $1.654 | — | — |
Debt to Equity | $1.66 | — | — |
BILL reported Q2 FY2026 revenue of $414.7M, up 14.4% YoY, which represents strong top-line growth. However, the company posted a net loss of $2.6M (EPS of -$0.03), a significant reversal from the $33.5M net income gain in Q2 FY2025; whether this beat or missed consensus estimates would depend on Wall Street's specific forecasts, which are not included in the filing.
The headline takeaways are: revenue grew a solid 14.4% to $414.7M, but gross margin compressed to 79.8% as cost of revenue surged 25.5%. Net income swung to a -$2.6M loss from +$33.5M a year ago, though operating cash flow remained strong at $202.2M on a year-to-date basis.
BILL's revenue grew 14.4% year-over-year to $414.7M in Q2 FY2026, up from $362.6M in Q2 FY2025, reflecting continued demand for its financial automation and payment solutions targeting small and mid-sized businesses.
Based on the financial data, key risks include cost of revenue growing faster than revenue (25.5% vs. 14.4%), compressing gross margins; rising long-term debt up 9.2% YoY to $1.83B with a debt-to-equity ratio of 1.66x; and a 30.1% decline in cash and equivalents to $1.09B. The company also remains operationally unprofitable with a -$18.1M operating loss.
BILL's financial health is mixed: it has a solid current ratio of 1.65x and generates $202.2M in year-to-date operating cash flow, but carries $1.83B in long-term debt and reported a net loss of $2.6M in Q2 FY2026. Cash and equivalents declined 30.1% YoY to $1.09B, partly due to $215.8M in share buybacks year-to-date.