BILL Holdings (BILL) investor relations material

Executive summary

• Q3 FY26 total revenue reached $406.6M, up 13% year-over-year, with core revenue up 16% to $371.1M, driven by both subscription and transaction fees.

• Net income was $12.8M, reversing a net loss of $11.6M in Q3 FY25; non-GAAP net income was $77.2M, up from $58.7M.

• Processed $89B in total payment volume (+12% YoY) and 34M transactions (+14% YoY); served nearly 500,000 businesses and 8.3M network members.

• Launched new AI-powered products, expanded embedded partnerships, and accelerated AI transformation as a top strategic priority.

• Announced a workforce reduction of up to 30% by end of Q4 to create a leaner, AI-native organization.

Financial highlights

• Non-GAAP gross margin was 85.1% for Q3 FY26; GAAP gross margin was 81.6%.

• Non-GAAP operating income reached $79.8M, up from $53.3M in Q3'25; non-GAAP net income was $77.2M, up 32% YoY.

• Free cash flow for Q3 was $84.7M; nine-month free cash flow was $258.1M.

• Subscription fees grew 9% YoY to $74.5M; transaction fees rose 18% YoY to $296.6M.

• Float revenue declined 7% YoY to $35.4M due to lower yields from decreased interest rates.

Outlook and guidance

• Q4 FY26 revenue guidance: $425M–$435M (+11–13% YoY); core revenue $392M–$402M (+13–16% YoY).

• Q4 non-GAAP net income expected at $78M–$82M ($0.69–$0.72 per diluted share).

• FY26 revenue guidance: $1.642B–$1.652B (+12–13% YoY); core revenue $1.496B–$1.506B (+15–16% YoY).

• FY26 non-GAAP net income expected at $298.7M–$302.7M ($2.61–$2.64 per diluted share).

• Major restructuring in Q4 2026 expected to incur $30–$60M in charges, with execution substantially complete by Q1 FY27.