BILL (US:BILL)2026-02-05 21:02Financial Performance - Q2 total revenue was $414.7 million, an increase of 14% year-over-year[6] - Q2 core revenue, consisting of subscription and transaction fees, was $375.1 million, up 17% year-over-year[6] - Subscription fees were $72.1 million, a 6% increase year-over-year, while transaction fees reached $303.1 million, up 20% year-over-year[6] - Gross profit was $331.1 million, representing a gross margin of 79.8%, compared to 81.6% in Q2 FY25[6] - Non-GAAP operating income was $74.1 million, an 18% increase year-over-year[6] - Net loss was $2.6 million, or $(0.03) per share, compared to net income of $33.5 million in Q2 FY25[6] - Total revenue for the three months ended December 31, 2025, was $414.671 million, a 14.4% increase from $362.554 million in the same period of 2024[33] - Subscription and transaction fees contributed $375.128 million to revenue, up from $319.616 million year-over-year, representing a 17.4% increase[33] - Gross profit for the six months ended December 31, 2025, was $649.821 million, compared to $589.701 million in 2024, reflecting a 10.2% growth[33] - Operating loss for the three months ended December 31, 2025, was $(18.076) million, an improvement from $(21.710) million in the same period of 2024[33] - The company reported a net loss of $(2.588) million for the three months ended December 31, 2025, compared to a net income of $33.548 million in the same period of 2024[33] Cash Flow and Assets - Net cash provided by operating activities for the six months ended December 31, 2025, was $202.172 million, compared to $167.298 million in 2024, indicating a 20.8% increase[36] - Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period totaled $3,669,067,000, compared to $3,820,707,000 at the end of Q4 2024[37] - Net cash provided by financing activities was $(113,016,000) for Q4 2025, compared to $537,631,000 in Q4 2024[37] - Net cash provided by operating activities for Q4 2025 was $105,317 thousand, an increase from $78,716 thousand in Q4 2024[44] Guidance and Projections - Guidance for Q3 FY26 total revenue is projected between $397.5 million and $407.5 million, with year-over-year growth of 11% to 14%[7] - Non-GAAP net income for FY26 is expected to be between $267.5 million and $277.5 million, with non-GAAP net income per diluted share projected at $2.33 to $2.41[7] Liabilities and Equity - Total assets as of December 31, 2025, were $10.126 billion, slightly up from $10.064 billion as of June 30, 2025[31] - Total liabilities increased to $6.320 billion as of December 31, 2025, compared to $6.150 billion as of June 30, 2025[31] - Stockholders' equity decreased to $3.807 billion from $3.914 billion over the same period, reflecting a decline of 2.7%[31] Expenses - Research and development expenses for the three months ended December 31, 2025, were $82.806 million, slightly down from $84.784 million in 2024[33] - Sales and marketing expenses increased to $155,439,000 in Q4 2025 from $132,534,000 in Q4 2024, a rise of 17.2%[39] - The company incurred $64,449 thousand in stock-based compensation in Q4 2025, slightly down from $66,348 thousand in Q4 2024[40] - Depreciation and amortization expenses for Q4 2025 were $22,779 thousand, up from $18,168 thousand in Q4 2024[40] - Research and development expenses for Q4 2025 were $82,806,000, slightly down from $84,784,000 in Q4 2024[39] Profitability Metrics - GAAP gross profit for Q4 2025 was $331,083,000, up from $295,946,000 in Q4 2024, representing an 11.8% increase[39] - Non-GAAP gross profit for Q4 2025 was $347,779,000, compared to $308,910,000 in Q4 2024, reflecting a 12.6% growth[39] - GAAP gross margin decreased to 79.8% in Q4 2025 from 81.6% in Q4 2024, while non-GAAP gross margin decreased to 83.9% from 85.2%[39] - GAAP operating loss for Q4 2025 was $18,076,000, an improvement from a loss of $21,710,000 in Q4 2024[39] - Non-GAAP operating income for Q4 2025 was $74,085,000, up from $62,806,000 in Q4 2024, indicating a 17.9% increase[39] - GAAP net income for Q4 2025 was $(2,588) thousand, compared to $33,548 thousand in Q4 2024, representing a significant decline[40] - Non-GAAP net income for Q4 2025 was $73,376 thousand, up from $62,910 thousand in Q4 2024, indicating a year-over-year increase of 19.5%[40] Other Financial Metrics - Free cash flow for the six months ended December 31, 2025, was $173,395 thousand, compared to $153,140 thousand for the same period in 2024, reflecting a growth of 13.2%[44] - The non-GAAP provision for income taxes for Q4 2025 was $(18,344) thousand, compared to $(15,728) thousand in Q4 2024[40] - The company reported a restructuring cost of $412 thousand in Q4 2025, while there were no such costs in Q4 2024[40] - Capitalization of internal-use software costs for the six months ended December 31, 2025, was $25,986 thousand, compared to $13,759 thousand in the same period of 2024[44]