BILL (US:BILL) 247Wallst·2025-11-06 22:05Core Insights - Bill.com Holdings (NYSE: BILL) exceeded profitability expectations in Q1 FY26 despite a slight revenue miss, indicating a strategic focus on bottom-line performance over revenue growth [3][5][6] Financial Performance - Non-GAAP EPS was reported at $0.61, surpassing the consensus estimate of $0.52 by 17% [4][11] - Revenue reached $395.7 million, falling short of the expected $398.9 million by approximately 0.8% [4][11] - Core revenue, excluding certain pass-through costs, grew by 14% year over year to $358.0 million [7][11] - Transaction fees increased to $287.2 million, up 16% year over year, with payment volume processed totaling $89 billion, a 12% annual increase [7][11] Cash Flow and Profitability - Operating cash flow was $78.7 million, and free cash flow stood at $71.7 million, despite a GAAP operating loss of $20.7 million and a GAAP net loss of $3.0 million [8][11] - The divergence between cash generation and accounting results highlights the operational strength of the company [8] Strategic Initiatives - New partnerships with NetSuite, Paychex, and Acumatica were announced, expanding the company's reach into larger enterprise workflows [9] - The introduction of "BILL AI Agents" aims to enhance automation in B2B transactions, reflecting industry trends towards intelligent workflows [10] Future Guidance - For Q2 FY26, revenue guidance is set between $394.5 million and $404.5 million, with core revenue growth expected between 12% and 15% year over year [12][13] - The guidance indicates a stabilization in growth rather than acceleration, suggesting a cautious approach moving forward [13]