Strong Revenue Growth Continues
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: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
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 (Diluted)
-$0.03
+50.00% YoY
Gross Margin
79.8%
-1.8 pts YoY
Operating Income
-$18.08M
+16.74% YoY
Source: SEC XBRL
BILL Holdings (BILL) reported Q2 FY2026 revenue of $414.67M, up 14.4% year over year. Operating margin was -4.4%, against -6.0% a year earlier. BILL's fiscal Q2 FY2026 corresponds to calendar Q4 2025.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.84 | 0.72 | Beat +16.9% |
| Mar 2026 | 0.68 | 0.57 | Beat +19.8% |
| Dec 2025This filing | 0.64 | 0.57 | Beat +12.7% |
| Sep 2025 | 0.61 | 0.52 | Beat +17.2% |
Adjusted (non-GAAP) EPS of $0.64 versus the $0.57 analyst consensus — a +12.7% beat for Dec 2025. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.03.
Compiled by AI from this SEC 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: 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: 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: 10-Q Income Statement
Net income swung from a $33.5M gain in Q2 FY2025 to a -$2.6M loss in Q2 FY2026 — a 107.7% deterioration — likely driven by the absence of prior-year non-operating gains (e.g., investment income or mark-to-market items) rather than core business deterioration.
Source: 10-Q Income Statement
On a fiscal year-to-date basis, operating cash flow reached $202.2M, up 20.8% from $167.3M in the prior-year comparable period, indicating the business generates meaningful cash despite GAAP losses.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Cost 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: 10-Q Income Statement
BILL reported an operating loss of -$18.1M in Q2 FY2026 and remains unprofitable at the operating level. While the loss is narrowing, the company must continue to demonstrate a credible path to sustained profitability to maintain investor confidence.
Source: 10-Q Income Statement
Long-term debt increased 9.2% YoY to $1.83B, and the debt-to-equity ratio stands at 1.66x. Combined with a net loss position, elevated leverage increases financial risk if revenue growth slows or credit markets tighten.
Source: 10-Q Balance Sheet
Cash and equivalents fell 30.1% YoY to $1.09B from $1.57B, partly reflecting $215.8M in share buybacks year-to-date. While operating cash flow is positive, the pace of cash consumption warrants monitoring.
Source: 10-Q Balance Sheet & Cash Flow Statement
Net income swung from +$33.5M to -$2.6M YoY despite an improving operating loss, suggesting significant sensitivity to non-operating items such as interest income, investment gains/losses, or debt-related charges that can obscure underlying business trends.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 414.67 $M | 362.55 $M | +14.37% |
Cost of Revenue $M | 83.59 $M | 66.61 $M | +25.49% |
Gross Profit $M | 331.08 $M | 295.95 $M | +11.87% |
Operating Income $M | -18.08 $M | -21.71 $M | +16.74% |
Net Income $M | -2.59 $M | 33.55 $M | -107.71% |
EPS (Basic) $ | -0.03 $ | 0.33 $ | -109.09% |
EPS (Diluted) $ | -0.03 $ | -0.06 $ | +50.00% |
R&D Expense $M | 82.81 $M | 84.78 $M | -2.33% |
Answers draw on this SEC filing and the data on this page
BILL delivered strong Q3 FY2026 results with revenue up 13.5% YoY to $406.6M, swinging to net income of $12.8M from a prior-year loss, and operating margin nearly reaching breakeven at -0.1%.
In fiscal 2026, BILL expanded total payment volume 13% and revenue 13% but swung to a net loss as $90.9 million in restructuring costs and lower interest income outweighed improved operating leverage.