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 - BILL Holdings reported earnings of 61 cents per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of 51 cents but down from 63 cents in the same quarter last year [1] - Revenues reached $395.7 million, surpassing the consensus by 1.3% and reflecting a year-over-year increase of 10.4%, driven by growth in subscription and transaction fees [2][10] - Core revenues, which include subscription and transaction fees, totaled $358.0 million, marking a 13.7% year-over-year increase [5] Revenue Breakdown - Subscription fees amounted to $70.8 million, up 5% due to increased software usage among small and midsize businesses [5] - Transaction fees surged 16% to $287.2 million, driven by strong payment volume growth [5] - Float revenues decreased by 13.3% to $37.7 million compared to the prior year [5] Operational Performance - Total payment volume (TPV) processed was $89 billion, reflecting a 12% year-over-year increase, with 33 million transactions processed, up approximately 16% [6][10] - Non-GAAP gross profit was $332.1 million, with a slight contraction in gross margin to 83.9% from 85.7% [7] - Non-GAAP operating income increased to $68.2 million, up from $67.1 million in the previous year [7] Financial Position - As of September 30, 2025, cash and short-term investments totaled $2.31 billion, an increase from $2.22 billion at the end of fiscal 2025 [8] - Cash flow from operations was $96.85 million, compared to $88.6 million a year ago, with free cash flow of $82.3 million reported [8] Future Guidance - For Q2 fiscal 2026, revenues are expected to be between $394.5 million and $404.5 million, indicating 9-12% year-over-year growth [9] - For the full fiscal 2026, revenues are projected between $1.596 billion and $1.626 billion, implying 9-11% growth, with core revenues expected to increase by 12-15% [11] - Non-GAAP EPS for fiscal 2026 is anticipated to be between $2.11 and $2.25 per share [11] Market Performance - Shares of BILL Holdings rose in after-market trading, with a 15.6% increase over the past three months, contrasting with a 9.2% decline in the Zacks Computer & Technology sector [4]