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BILL Holdings Tops Q1 Earnings Estimates on Core Strength & Higher TPV
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Key Takeaways
BILL topped Q1 EPS and revenue estimates on higher subscription and transaction fees.
Total payment volume rose 12% to $89B, with 16% more transactions and 498,100 businesses served.
BILL expects 9-11% fiscal 2026 revenue growth and stronger EPS amid expanding core revenues.
BILL Holdings (BILL - Free Report) reported earnings of 61 cents per share in the first quarter of fiscal 2026, surpassing the Zacks Consensus Estimate of 51 cents. However, the figure declined from 63 cents reported in the year-ago quarter.
Revenues of $395.7 million exceeded the consensus mark by 1.3% and increased 10.4% year over year. This was driven by continued growth in subscription and transaction fees. The quarter benefited from strong customer adoption and rising payment volumes, though float revenues normalized relative to last year.
Core revenues, comprising subscription and transaction fees, remained the primary growth driver, supported by higher platform activity and expanded network reach. Management highlighted ongoing progress across partnerships, including that with NetSuite, Paychex and Acumatica, and automation initiatives, reinforcing BILL’s strategic focus on driving long-term operating efficiency and customer engagement.
Shares rose in the after-market trading session yesterday. BILL shares have rallied 15.6% in the past three months against the Zacks Computer & Technology sector’s 9.2% decline.
BILL Holdings’ First Quarter in Detail
In the first quarter of fiscal 2026, core revenues totaled $358.0 million, up 13.7% year over year. Subscription fees of $70.8 million increased 5%, benefiting from steady expansion in software usage across small and midsize businesses. Transaction fees surged 16% to $287.2 million, reflecting strong payment volume growth and deeper adoption of BILL’s financial operations platform. Float revenues, which consist of interest on funds held for customers, were $37.7 million, down 13.3% from the prior-year quarter.
The company processed $89 billion in total payment volume (TPV), an increase of approximately 12% year over year. BILL also processed 33 million transactions during the quarter, up roughly 16% from the prior-year period. Its platform served 498,100 businesses, underscoring broad-based customer adoption and ecosystem growth.
Operating Details of BILL Holdings
In the quarter under review, non-GAAP gross profit was $332.1 million compared with $307.0 million in the year-ago quarter. However, the non-GAAP gross margin contracted slightly to 83.9% from 85.7%. Non-GAAP operating income totaled $68.2 million, up from $67.1 million in the prior-year period, marking a 1.7% increase.
BILL’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, cash, cash equivalents and short-term investments totaled $2.31 billion, up from $2.22 billion at the end of fiscal 2025. The company generated $96.85 million in cash flow from operations in the first quarter compared with $88.6 million a year ago. BILL generated free cash flow of $82.3 million in the reported quarter.
BILL Provides Q2 & Fiscal 2026 Guidance
For the second quarter of fiscal 2026, BILL expects revenues between $394.5 million and $404.5 million, indicating 9-12% year-over-year growth. Core revenues are projected between $359.0 million and $369.0 million, suggesting a 12-15% increase year over year. Non-GAAP EPS is anticipated in the range of 54-57 cents. This is above the Zacks Consensus Estimate of 52 cents.
For fiscal 2026, the company projects revenues between $1.596 billion and $1.626 billion, implying 9-11% year-over-year growth. Core revenues are expected to range between $1.462 billion and $1.492 billion, calling for a 12-15% increase year over year. Non-GAAP earnings are forecast between $2.11 and $2.25 per share. The consensus mark for the same is currently pegged at $2.14.
PayPal Holdings (PYPL - Free Report) reported third-quarter 2025 non-GAAP earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate of $1.19 and jumped 11.7% year over year.
PayPal witnessed an uptick in both TPV and revenues year over year, along with another quarter of high single-digit growth in transaction margin dollars. With such results, PayPal raised its full-year guidance for non-GAAP EPS and transaction margin dollars. However, its total number of payment transactions declined in the reported quarter. PayPal has a Zacks Rank #3 (Hold).
Block (XYZ - Free Report) reported third-quarter 2025 adjusted earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 63 cents. However, the figure compared favorably with prior-year quarter’s 53 cents per share. Net revenues of $6.11 billion missed the consensus mark of $6.34 billion. However, the top line increased 2.3% year over year.
XYZ continues to launch new products across Square and Cash App, accelerating Gross Payment Volume (“GPV”) growth in Square and gross profit per monthly transacting active in Cash App. Based on strong execution, the company also raised its full-year guidance. XYZ has a Zacks Rank #3.
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BILL Holdings Tops Q1 Earnings Estimates on Core Strength & Higher TPV
Key Takeaways
BILL Holdings (BILL - Free Report) reported earnings of 61 cents per share in the first quarter of fiscal 2026, surpassing the Zacks Consensus Estimate of 51 cents. However, the figure declined from 63 cents reported in the year-ago quarter.
Revenues of $395.7 million exceeded the consensus mark by 1.3% and increased 10.4% year over year. This was driven by continued growth in subscription and transaction fees. The quarter benefited from strong customer adoption and rising payment volumes, though float revenues normalized relative to last year.
Core revenues, comprising subscription and transaction fees, remained the primary growth driver, supported by higher platform activity and expanded network reach. Management highlighted ongoing progress across partnerships, including that with NetSuite, Paychex and Acumatica, and automation initiatives, reinforcing BILL’s strategic focus on driving long-term operating efficiency and customer engagement.
Shares rose in the after-market trading session yesterday. BILL shares have rallied 15.6% in the past three months against the Zacks Computer & Technology sector’s 9.2% decline.
BILL Holdings’ First Quarter in Detail
In the first quarter of fiscal 2026, core revenues totaled $358.0 million, up 13.7% year over year. Subscription fees of $70.8 million increased 5%, benefiting from steady expansion in software usage across small and midsize businesses. Transaction fees surged 16% to $287.2 million, reflecting strong payment volume growth and deeper adoption of BILL’s financial operations platform. Float revenues, which consist of interest on funds held for customers, were $37.7 million, down 13.3% from the prior-year quarter.
The company processed $89 billion in total payment volume (TPV), an increase of approximately 12% year over year. BILL also processed 33 million transactions during the quarter, up roughly 16% from the prior-year period. Its platform served 498,100 businesses, underscoring broad-based customer adoption and ecosystem growth.
Operating Details of BILL Holdings
In the quarter under review, non-GAAP gross profit was $332.1 million compared with $307.0 million in the year-ago quarter. However, the non-GAAP gross margin contracted slightly to 83.9% from 85.7%. Non-GAAP operating income totaled $68.2 million, up from $67.1 million in the prior-year period, marking a 1.7% increase.
BILL’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, cash, cash equivalents and short-term investments totaled $2.31 billion, up from $2.22 billion at the end of fiscal 2025. The company generated $96.85 million in cash flow from operations in the first quarter compared with $88.6 million a year ago. BILL generated free cash flow of $82.3 million in the reported quarter.
BILL Provides Q2 & Fiscal 2026 Guidance
For the second quarter of fiscal 2026, BILL expects revenues between $394.5 million and $404.5 million, indicating 9-12% year-over-year growth. Core revenues are projected between $359.0 million and $369.0 million, suggesting a 12-15% increase year over year. Non-GAAP EPS is anticipated in the range of 54-57 cents. This is above the Zacks Consensus Estimate of 52 cents.
For fiscal 2026, the company projects revenues between $1.596 billion and $1.626 billion, implying 9-11% year-over-year growth. Core revenues are expected to range between $1.462 billion and $1.492 billion, calling for a 12-15% increase year over year. Non-GAAP earnings are forecast between $2.11 and $2.25 per share. The consensus mark for the same is currently pegged at $2.14.
Currently, BILL carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Fintechs
PayPal Holdings (PYPL - Free Report) reported third-quarter 2025 non-GAAP earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate of $1.19 and jumped 11.7% year over year.
PayPal witnessed an uptick in both TPV and revenues year over year, along with another quarter of high single-digit growth in transaction margin dollars. With such results, PayPal raised its full-year guidance for non-GAAP EPS and transaction margin dollars. However, its total number of payment transactions declined in the reported quarter. PayPal has a Zacks Rank #3 (Hold).
Block (XYZ - Free Report) reported third-quarter 2025 adjusted earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 63 cents. However, the figure compared favorably with prior-year quarter’s 53 cents per share. Net revenues of $6.11 billion missed the consensus mark of $6.34 billion. However, the top line increased 2.3% year over year.
XYZ continues to launch new products across Square and Cash App, accelerating Gross Payment Volume (“GPV”) growth in Square and gross profit per monthly transacting active in Cash App. Based on strong execution, the company also raised its full-year guidance. XYZ has a Zacks Rank #3.