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
Fiscal 2026 was a year of continued top-line expansion for BILL, with total payment volume rising 13% and transactions processed up 15% as customer adoption of BILL AP/AR and BILL Spend & Expense deepened. Management attributes the revenue growth primarily to higher transaction fee revenue from increased payment volume and subscription fee gains, partially offset by lower interest on funds held for customers as interest rates declined. However, the company swung to a net loss as restructuring charges of $90.9 million tied to multiple workforce reductions, including a 30% reduction in May 2026, outweighed operating improvements. The result leaves BILL balancing growth investments and efficiency actions against a still-uncertain small-business spending environment.
Revenue
$1.65B
+13.03% YoY
EPS (Diluted)
-$0.11
-57.14% YoY
Gross Margin
80.9%
-0.5 pts YoY
Operating Income
-$73.45M
+8.88% YoY
Filed · Source: SEC EDGAR 10-K filing · Audit Opinion: Unqualified (Source: Report of Independent Registered Public Accounting Firm)
Next BILL earnings expected
Source: SEC XBRL
BILL Holdings (BILL) reported FY2026 revenue of $1.65B, up 13.0% year over year. Operating margin was -4.4%, against -5.5% a year earlier. Operating cash flow was $415.83M, up 18.6% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.84 | 0.72 | Beat +16.9% |
| Mar 2026 | 0.68 | 0.57 | Beat +19.8% |
| Dec 2025 | 0.64 | 0.57 | Beat +12.7% |
| Sep 2025 | 0.61 | 0.52 | Beat +17.2% |
Reported EPS of $0.84 versus the $0.72 analyst consensus — a +16.9% beat for Jun 2026.
Compiled by AI from 10-K Item 7 of this filing
BILL launched BILL AI, its first suite of AI agents for SMB workflows such as W-9 filings and invoice coding, and launched embed partnerships with Paychex, Oracle NetSuite, and Acumatica under its Embed 2.0 initiative to deploy platform capabilities through third-party platforms.
Source: 10-K Item 7 MD&A
The net dollar-based retention rate rose to 95% in fiscal 2026 from 94% in fiscal 2025, driven by increased revenue from financial institution partners and pricing changes on existing customers.
Source: 10-K Item 7 MD&A
BILL recorded $90.9 million of restructuring costs in fiscal 2026 from multiple workforce reductions, including a 30% reduction in May 2026; the majority of charges were incurred in June 2026 and are expected to be substantially completed by September 30, 2026.
Source: 10-K Item 7 MD&A
Interest on funds held for customers decreased $13.4 million, or 8%, to $148.4 million, primarily due to lower yield driven by decreases in interest rates.
Source: 10-K Item 7 MD&A
Sales and marketing expenses rose $72.5 million, or 13%, primarily due to a $75.6 million increase in rewards expense tied to BILL Divvy Cards transaction volume; rewards expense increased from 49% to 51% of spend and expense interchange fee revenue due to higher reward rates.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
BILL generated a net loss of $11.2 million in fiscal 2026 after net income of $23.8 million in fiscal 2025, and had an accumulated deficit of $2.1 billion as of June 30, 2026. The company may not sustain or expand profitability, particularly as it continues to invest in AI and new products.
Source: 10-K Item 1A Risk Factors
A significant portion of BILL's revenue comes from small and medium-sized businesses, which are more susceptible to economic downturns, inflation, interest rate volatility, and banking instability. Recent SMB budget tightening and shifts to lower-cost payment methods have already adversely impacted operating results.
Source: 10-K Item 1A Risk Factors
BILL bears the entire credit risk on participation interests in receivables generated by BILL Divvy Card purchases and also extends credit through invoice financing. Defaults could increase due to underwriting model inaccuracies or economic decline, and the company does not file UCC liens on card balances, limiting collection ability in bankruptcy.
Source: 10-K Item 1A Risk Factors
BILL processes a large volume of payments and is responsible for verifying identities and monitoring transactions for fraud, including fraud potentially augmented by AI. Ineffective risk management could expose the company to material financial losses and liabilities, harming its financial results.
Source: 10-K Item 1A Risk Factors
The BILL Divvy Card funding model relies on partner banks and warehouse facilities; underperformance of the participation interests could increase financing costs, trigger modification or termination of funding arrangements, or impair BILL's ability to procure funding.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.65 $B | 1.46 $B | +13.03% |
Cost of Revenue $M | 315.30 $M | 272.10 $M | +15.87% |
Gross Profit $B | 1.34 $B | 1.19 $B | +12.38% |
Operating Income $M | -73.45 $M | -80.60 $M | +8.88% |
Net Income $M | -11.24 $M | 23.80 $M | -147.23% |
EPS (Basic) $ | -0.11 $ | 0.23 $ | -147.83% |
EPS (Diluted) $ | -0.11 $ | -0.07 $ | -57.14% |
R&D Expense $M | 300.57 $M | 340.06 $M | -11.61% |
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%.
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.