Core Insights - BILL Holdings is a cloud-based software provider focused on financial operations for small and medium-sized businesses, competing in the financial technology sector [1] Financial Performance - BILL Holdings reported second-quarter earnings for fiscal 2026 with an EPS of 64 cents, exceeding the Zacks Consensus Estimate of 56 cents and up from 56 cents in the same quarter last year [3][6] - The company's revenues reached $414.7 million, surpassing the consensus forecast of $399.8 million, reflecting a year-over-year growth of 14.4% [3][6] Revenue Drivers - Revenue growth was driven by strong customer adoption and increased payment volumes, with core revenues, including subscription and transaction fees, rising by 17.4% [4][6] - Total payment volume (TPV) grew by 13% to $95 billion, and the number of transactions increased by 16%, indicating the platform's resilience and user attraction [4] Future Outlook - Despite a decline in float revenues, the company anticipates third-quarter revenues between $397.5 million and $407.5 million, with non-GAAP EPS expected to range from 53 to 57 cents, both above current consensus estimates [5] - BILL is valued at 2.2 times its enterprise value to FY26 revenue and 16.9 times its FY26 price-to-earnings ratio, suggesting potential for future growth [5]

Core Insights - BILL Holdings reported earnings of 64 cents per share in Q2 FY2026, exceeding the Zacks Consensus Estimate of 56 cents and up from 56 cents in the same quarter last year [1][9] - Revenues reached $414.7 million, surpassing the consensus mark of $399.8 million and reflecting a 14.4% year-over-year increase, driven by growth in subscription and transaction fees [1][9] Revenue Breakdown - Core revenues totaled $375.1 million, marking a 17.4% increase year over year, with subscription fees at $72.1 million (up 6%) and transaction fees at $303.1 million (up 20%) [3] - Float revenues, which consist of interest on funds held for customers, decreased to $39.5 million, down 7.9% from the prior-year quarter [3] Customer Metrics - The company processed $95 billion in total payment volume (TPV), an increase of approximately 13% year over year, and handled 35 million transactions, up roughly 16% from the previous year [4] Profitability and Margins - Non-GAAP gross profit was $347.8 million, compared to $308.9 million in the year-ago quarter, although the non-GAAP gross margin slightly contracted to 83.9% from 85.2% [5] - Non-GAAP operating income rose to $74.1 million, an 18% increase from $62.8 million in the prior-year period [5] Cash Flow and Balance Sheet - As of December 31, 2025, cash, cash equivalents, and short-term investments totaled $2.24 billion, up from $2.22 billion at the end of fiscal 2025 [6] - The company generated $105.3 million in cash flow from operations in Q2, compared to $78.7 million a year ago, with free cash flow of $91.1 million in the reported quarter [6] Future Guidance - For Q3 FY2026, BILL expects revenues between $397.5 million and $407.5 million, indicating 11-14% year-over-year growth, with core revenues projected between $364.5 million and $374.5 million [7] - For FY2026, the company projects revenues between $1.631 billion and $1.651 billion, implying 12-13% year-over-year growth, with core revenues expected to range between $1.4895 billion and $1.5095 billion [8]

Core Insights - The bank is projecting higher revenue and lower costs, indicating a positive outlook for future financial performance [1] Group 1 - The bank reported a stronger net profit for the fourth quarter, suggesting improved financial health [1]

Group 1 - The article emphasizes the rapid advancements in AI technology, moving beyond simple chatbots to more sophisticated agents that can integrate into daily workflows and automate repetitive tasks [1] - The author, Gary Alexander, has extensive experience in the technology sector, having worked on Wall Street and in Silicon Valley, and advises startups, which provides him with insights into current industry trends [1] - Alexander has been a contributor to Seeking Alpha since 2017 and his work is featured in various trading applications, indicating his influence and reach within the investment community [1]

Core Insights - BILL Holdings reported revenue of $414.67 million for the quarter ended December 2025, reflecting a year-over-year increase of 14.4% and surpassing the Zacks Consensus Estimate by 3.73% [1] - The company's EPS for the quarter was $0.64, up from $0.56 in the same quarter last year, resulting in an EPS surprise of 14.96% compared to the consensus estimate [1] Financial Performance Metrics - Total Payment Volume for BILL AP/AR reached $79.9 billion, exceeding the average estimate of $79.38 billion [4] - Total Payment Volume for BILL Spend & Expense was $6.5 billion, above the $6.26 billion average estimate [4] - Overall Total Payment Volume amounted to $95.1 billion, surpassing the average estimate of $93.86 billion [4] - The number of businesses using BILL Spend & Expense solutions was 44,000, slightly above the average estimate of 43,868 [4] - The total number of businesses using BILL solutions was 498,500, which was below the average estimate of 503,904 [4] - Embedded Solutions & Other customers totaled 277,000, exceeding the average estimate of 236,650 [4] - Total Payment Volume for Embedded Solutions & Other was $8.7 billion, higher than the estimated $8.07 billion [4] - Transactions for BILL Spend & Expense reached 19.8 million, compared to the average estimate of 19.45 million [4] - Transactions for BILL AP/AR were 12.8 million, below the average estimate of 13.64 million [4] - Revenue from subscription and transaction fees was $375.13 million, exceeding the average estimate of $364.64 million and representing a 17.4% increase year-over-year [4] - Revenue from interest on funds held for customers was $39.54 million, slightly above the average estimate of $35.97 million, but showed a year-over-year decline of 7.9% [4] Stock Performance - Shares of BILL Holdings have decreased by 33.9% over the past month, while the Zacks S&P 500 composite has increased by 0.5% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

分组1 - BILL Holdings reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing an increase from $0.56 per share a year ago, resulting in an earnings surprise of +14.96% [1] - The company achieved revenues of $414.67 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.73%, and up from $362.55 million year-over-year [2] - BILL Holdings has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - Despite the positive earnings report, BILL Holdings shares have declined approximately 31.7% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.52 on revenues of $396.5 million, and for the current fiscal year, it is $2.22 on revenues of $1.62 billion [7] 分组3 - The Internet - Software industry, to which BILL Holdings belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - BILL Holdings currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-Q _____________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-39149 _____________________ BILL HOLDINGS, I ...

Financial Data and Key Metrics Changes - In Q2 2026, the company reported $375 million in core revenue, reflecting a 17% year-over-year growth and exceeding guidance [26][30] - Non-GAAP operating margin was 18%, showing a sequential and year-over-year expansion [26][29] - AP/AR transaction revenue reached $128 million, up 14% year-over-year, with TPV per customer increasing modestly [27][28] Business Line Data and Key Metrics Changes - AP/AR core revenue grew 11% year-over-year, with approximately 4,000 net new customers added in Q2 [26][27] - Spend and expense revenue totaled $166 million, representing a 24% year-over-year growth, driven by card volume growth [28] - The number of businesses using both AP/AR and spend and expense solutions grew 28% year-over-year [9][19] Market Data and Key Metrics Changes - The company observed strong spend growth in manufacturing and a rebound in construction, reversing previous trends [27][55] - Card payment volume increased by 25% year-over-year, particularly in advertising, retail, and healthcare services [28] - The same-store sales growth for the AP/AR platform was 4%, an acceleration from the previous quarter [55] Company Strategy and Development Direction - The company aims to drive growth from its integrated platform, expand its addressable market, and innovate with AI to create value [19][25] - The Embed 2.0 strategy is designed to extend reach with SMBs and enhance distribution through partnerships [11][24] - The company is focused on optimizing pricing to align with the value delivered to customers, particularly in the AP/AR segment [22][63] Management's Comments on Operating Environment and Future Outlook - Management noted resilience among SMBs and the importance of innovation in creating stickiness with the platform [51][55] - The company expects to see continued growth in invoice financing, with a 50% year-over-year increase in customers [10][66] - Management expressed confidence in the company's unique position and the ability to leverage AI for future growth [41][62] Other Important Information - The company repurchased $133 million of stock during the quarter, maintaining a disciplined approach to share repurchases [29] - The company expects core revenue for fiscal 2026 to be in the range of $1.490 billion to $1.510 billion, reflecting 15%-16% growth year-over-year [31][32] Q&A Session Summary Question: How at risk is BILL from AI disruption? - Management believes the impact of AI is overplayed and emphasizes the company's unique expertise and data assets as competitive advantages [36][38] Question: What is the attribution for growth acceleration? - Management attributes growth to a strong platform, customer value delivery, and resilience in SMBs, alongside innovation [51][55] Question: What are the risks to pricing algorithms in the context of AI? - Management asserts that pricing is based on the value created for customers and sees AI as a tool to enhance efficiency and value [62][63] Question: What is the update on the strategic process review? - Management is focused on optimizing costs and enhancing efficiency, with a roadmap for opportunities identified [77][78] Question: How does the company view its ability to win in the move-up market? - Management believes in the unique value of its platform for larger businesses and is seeing positive signals in adoption and ARPU growth [80][82]

Financial Data and Key Metrics Changes - In Q2, the company reported $375 million in core revenue, representing a 17% year-over-year growth, exceeding guidance expectations [26] - Non-GAAP operating margin was 18%, showing a sequential and year-over-year expansion [26][29] - AP/AR transaction revenue reached $128 million, up 14% year-over-year, with TPV per customer increasing modestly [27] - Spend & Expense revenue totaled $166 million, reflecting a 24% year-over-year growth driven by card volume growth [28] Business Line Data and Key Metrics Changes - AP/AR core revenue grew 11% year-over-year, with approximately 4,000 net new customers added in Q2 [27] - Spend & Expense revenue growth was primarily driven by a 25% year-over-year increase in card payment volume [28] - The number of businesses using both AP/AR and Spend & Expense grew 28% year-over-year in Q2 [9] Market Data and Key Metrics Changes - The company observed continued strength in manufacturing and an uptick in construction, reversing previous trends [27] - Spend growth was noted in advertising, retail, and healthcare services, indicating a resurgence in discretionary spending [55] Company Strategy and Development Direction - The company aims to drive growth from its integrated platform, expand its addressable market, and innovate with AI to create value [19] - The Embed 2.0 growth strategy is designed to extend reach with SMBs and complement existing go-to-market channels [11] - The company is focused on enhancing its offerings for accountants and leveraging AI to automate workflows [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of SMBs and the value created through innovation, which is expected to enhance stickiness with the platform [51] - The company anticipates continued growth in core revenue and profitability, with a focus on larger customers and improved pricing alignment [26][30] - Management highlighted the importance of trust and data as key differentiators in the competitive landscape [39][40] Other Important Information - The company repurchased $133 million of stock during the quarter, indicating a disciplined approach to capital allocation [29] - The company expects core revenue for fiscal 2026 to be in the range of $1.490 billion to $1.510 billion, reflecting 15%-16% growth year-over-year [31] Q&A Session Summary Question: How at risk is BILL from AI disruption? - Management believes the impact of AI is overplayed and emphasizes the unique expertise and data the company possesses, which cannot be easily replicated [36][41] Question: What is the attribution for growth acceleration? - Management attributes growth to a strong platform, customer value delivery, and resilience in SMBs, alongside innovation creating stickiness [51][55] Question: How sustainable is the growth in Spend & Expense? - Management notes recent positive trends in discretionary spending but remains cautious about long-term sustainability, indicating a need for continued observation [56] Question: What are the risks to pricing algorithms in the context of AI? - Management asserts that pricing is tied to the value delivered to customers and sees opportunities for growth through AI-driven efficiencies [62] Question: What is the status of the strategic process review? - Management indicates ongoing efforts to optimize costs and improve efficiency, with initial benefits expected in fiscal 2027 [77][78] Question: How does the company view its position in the move-up market? - Management expresses confidence in its differentiated platform and the ability to deliver value to larger businesses, with expectations for increased ARPU and retention [80][82]

Financial Data and Key Metrics Changes - In Q2 2026, the company reported $375 million in core revenue, reflecting a 17% year-over-year growth and exceeding guidance expectations [23] - Non-GAAP operating margin was 18%, showing both sequential and year-over-year expansion [23][26] - The company repurchased $133 million of stock during the quarter, indicating a disciplined approach to share repurchases [26] Business Line Data and Key Metrics Changes - AP/AR core revenue grew 11% year-over-year, with transaction revenue reaching $128 million, up 14% year-over-year [23][24] - Spend and expense revenue totaled $166 million, representing a 24% year-over-year growth, driven by a 25% increase in card payment volume [24][25] - The number of businesses using both AP/AR and spend and expense solutions grew 28% year-over-year in Q2 [7] Market Data and Key Metrics Changes - The company observed strong spend trends in manufacturing and a rebound in construction, reversing previous trends [24][51] - There was a resurgence in spending in advertising and retail sectors, which had been muted in prior quarters [51] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving growth from its integrated platform, expanding its addressable market, and innovating with AI to create value [16] - The Embed 2.0 growth strategy aims to extend reach with SMBs and enhance distribution through partnerships, unlocking potential to reach close to 1 million businesses [9][10] - The company is enhancing its offerings for accountants and larger businesses, indicating a shift towards targeting larger clients [18][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of SMBs and the value created through innovation, which is expected to drive stickiness and growth [49] - The company anticipates continued momentum in invoice financing, with a nearly 50% year-over-year growth in customers using this service [8][64] - Management highlighted the importance of trust and unique data assets as competitive advantages against potential AI disruptions [33][36] Other Important Information - The company expects core revenue for fiscal 2026 to be in the range of $1.490 billion to $1.510 billion, reflecting a 15%-16% growth year-over-year [29] - Stock-based compensation expenses are projected to be approximately $255 million, below previous guidance [31] Q&A Session Summary Question: How at risk is BILL from AI disruption? - Management believes the impact of AI is overplayed and emphasizes the company's unique expertise and data assets as competitive advantages [33][36] Question: What contributed to the growth acceleration? - Management attributes growth to the durability of the business model and the resilience of SMBs, alongside innovation creating more value opportunities [49][51] Question: How sustainable is the growth in spend and expense? - Management sees encouraging signs in recent spending trends but remains cautious about baking in these trends into future guidance [55] Question: What is the outlook for invoice financing? - Management notes strong demand for invoice financing, with repeat usage and significant impact on cash flow for SMBs [64][66]