BILL Holdings, Inc. Q3 FY2026 earnings

BILL reported total revenue of $406.6 million for FY2026 Q3, up 13.5% year over year. Core revenue, which consists of subscription and transaction fees, was $371.1 million, an increase of 16%. Subscription fees were $74.5 million, up 9%, and transaction fees were $296.6 million, up 18%. Float revenue, or interest on funds held for customers, was $35.4 million, down 7% from the prior-year quarter. Gross profit was $331.9 million, up 14.0%, and gross margin rose 0.4 percentage points to 81.6%. The company posted an operating loss of $0.4 million, and that loss narrowed from the prior-year quarter. Net income was $12.8 million, up 210.3%, and diluted EPS was $0.12, up 209.1%.

Non-GAAP results were stronger. Non-GAAP gross profit was $346.0 million, with an 85.1% non-GAAP gross margin. Non-GAAP operating income was $79.8 million, up 50% from $53.3 million in the prior-year quarter. Non-GAAP net income was $77.2 million, or $0.68 per diluted share. The company served 493,800 businesses at the end of FY2026 Q3, up 1% from 488,600 a year earlier. Total payment volume was $89 billion in the quarter, up 12%, and transactions processed were 34 million, up 14%. BILL said its member network exceeds 8 million, and its platform processes about 1% of U.S. GDP annually. BILL repurchased about 1.0 million shares for roughly $52 million during the quarter. In May 2026, it announced a new share repurchase authorization of up to $1.0 billion with a 24-month term.

Operating cash flow was $102.7 million in FY2026 Q3, up 3.2%. Year-to-date operating cash flow was $304.8 million, up 14.2%. Capital expenditures were $0.17 million in the quarter, down 85.4%, while year-to-date capital expenditures were $2.96 million, up 91.4%. Deferred revenue was $21.3 million, down 2.1%. Remaining performance obligations were $60.0 million, down 19.4%. On a year-to-date basis, gross margin slipped to 80.7%, down 0.9 percentage points, and net income fell to $7.2 million, down 76.6%. Operating margin for the quarter improved to negative 0.1%, up 8.0 percentage points.

Guidance points to continued growth. For FY2026 Q4, BILL expects year-over-year growth of 11% to 13%, and for the full fiscal year ending June 30, 2026 it expects growth of 12% to 13%. Q4 core revenue growth is guided to 13% to 16%, while full-year core revenue growth is guided to 15% to 16%. Non-GAAP operating income guidance is $81.5 million to $86.5 million for Q4 and $303.6 million to $308.6 million for the full year. Non-GAAP net income guidance is $78.0 million to $82.0 million for Q4 and $298.7 million to $302.7 million for the full year. Non-GAAP diluted EPS guidance is $0.69 to $0.72 for Q4 and $2.61 to $2.64 for the full year. The outlook assumes a non-GAAP provision for income taxes of 20%.

Management flagged several risks. Macroeconomic conditions, changes in interest rates, inflation, foreign exchange rates, tariffs, and geopolitical conflict could pressure the SMBs BILL serves. Lower interest rates reduce float revenue, which declined 7% in the quarter. The company also faces credit risk on BILL Divvy Cards and invoice financing, fraud losses, competition, and execution risk on new AI tools. BILL has undertaken reductions in force, including a RIF affecting about 6% of employees in October 2025, a smaller RIF in March 2026, and in May 2026 an announced additional RIF impacting up to 30% of its workforce. Those actions may improve efficiency but carry restructuring and operational risk. The $1.0 billion repurchase authorization gives BILL flexibility to return capital, though the timing and amount of buybacks depend on market and business conditions. Management also noted that a sustained downturn could require a quantitative goodwill impairment test.