We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Quarterly revenues of $406.6 million topped the consensus mark of $403.1 million by 0.9% and rose 13.5% year over year. The quarter reflected continued expansion across BILL’s financial operations platform, highlighted by total payment volume of $89 billion, up 12% from the prior-year period.
BILL’s Core Revenue Mix Drove Quarterly Momentum
A key feature of the quarter was the continued outperformance of core revenue, which consists of subscription and transaction fees. Core revenue climbed 16% year over year to $371.1 million, reflecting growing adoption across the platform and steady engagement from existing customers.
Within core revenue, subscription fees increased 9% to $74.5 million, supported by broader platform usage. Transaction fees rose 18% to $296.6 million, aided by higher activity levels across BILL’s payment and spend workflows. Float revenues, which consist of interest on funds held for customers, were $35.4 million in the quarter, declining 6.6% year over year.
BILL Scale Gains Remained Broad-Based
Operationally, BILL Holdings continued to show expanding ecosystem scale. The company served 493,800 businesses using its solutions at quarter-end, underscoring steady customer demand across integrated workflows.
Engagement indicators also remained favorable. Transactions processed increased to 34 million, up 14% year over year, indicating growing usage intensity across the platform as customers consolidate payment and spend activity in a single system.
BILL’s Margin Profile Improved on Operating Leverage
Profitability metrics showed meaningful progress in the quarter. Gross profit totaled $331.9 million, translating to an 81.6% gross margin compared with an 81.2% gross margin in the year-ago period.
On a non-GAAP basis, gross profit was $346 million and non-GAAP gross margin expanded to 85.1% from 84.9% a year earlier. Non-GAAP operating income increased to $79.8 million from $53.3 million in the prior-year quarter, reflecting improved operating leverage.
BILL’s Cash Position Supported Share Repurchases
BILL Holdings ended the quarter with cash and cash equivalents of $994.7 million and short-term investments of $1.18 billion, providing meaningful balance-sheet flexibility. Funds held for customers were $4.00 billion at quarter-end, reflecting the scale of money movement processed through the platform.
Cash generation remained solid. Net cash provided by operating activities was $102.7 million in the quarter, while free cash flow was $84.7 million. Capital return was also a focus: BILL repurchased roughly 1.0 million shares during the quarter for approximately $52 million and announced a new $1.0 billion share repurchase authorization.
BILL’s Outlook Called for Continued Double-Digit Growth
Management’s guidance pointed to ongoing growth in the near term. For the fiscal fourth quarter, BILL expects total revenue of $425-$435 million, representing 11-13% growth year over year and core revenue of $392-$402 million, suggesting 13-16% growth. Non-GAAP net income per share is anticipated in the range of 69-72 cents. This is above the Zacks Consensus Estimate of 56 cents.
For fiscal 2026, the company guided total revenues of $1.642-$1.652 billion, representing a 12-13% rise year over year and core revenues of $1.4963-$1.5063 billion, indicating a 15-16% increase. Non-GAAP net income per share is expected to be $2.61-$2.64. The consensus mark for the same is currently pegged at $2.39.
We now look forward to the earnings release of other stocks in the Internet- Software industry — Audioeye (AEYE - Free Report) and StoneCo (STNE - Free Report) . Both companies are scheduled to report earnings on May 12 and May 14, respectively.
The consensus mark for Audioeye’s first-quarter EPS is pegged at 17 cents, implying a 13.3% increase year over year.
The Zacks Consensus Estimate for StoneCo’s first-quarter 2026 EPS stands at 42 cents, indicating a 23.5% increase year over year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
BILL Holdings Q3 Earnings Beat Estimates on Core Revenue Strength
Key Takeaways
BILL Holdings, Inc. (BILL - Free Report) posted third-quarter fiscal 2026 non-GAAP net income of 68 cents per share, beating the Zacks Consensus Estimate of 55 cents by 23.6%. The figure increased 36% from the year-ago quarter.
Quarterly revenues of $406.6 million topped the consensus mark of $403.1 million by 0.9% and rose 13.5% year over year. The quarter reflected continued expansion across BILL’s financial operations platform, highlighted by total payment volume of $89 billion, up 12% from the prior-year period.
BILL’s Core Revenue Mix Drove Quarterly Momentum
A key feature of the quarter was the continued outperformance of core revenue, which consists of subscription and transaction fees. Core revenue climbed 16% year over year to $371.1 million, reflecting growing adoption across the platform and steady engagement from existing customers.
Within core revenue, subscription fees increased 9% to $74.5 million, supported by broader platform usage. Transaction fees rose 18% to $296.6 million, aided by higher activity levels across BILL’s payment and spend workflows. Float revenues, which consist of interest on funds held for customers, were $35.4 million in the quarter, declining 6.6% year over year.
BILL Scale Gains Remained Broad-Based
Operationally, BILL Holdings continued to show expanding ecosystem scale. The company served 493,800 businesses using its solutions at quarter-end, underscoring steady customer demand across integrated workflows.
Engagement indicators also remained favorable. Transactions processed increased to 34 million, up 14% year over year, indicating growing usage intensity across the platform as customers consolidate payment and spend activity in a single system.
BILL’s Margin Profile Improved on Operating Leverage
Profitability metrics showed meaningful progress in the quarter. Gross profit totaled $331.9 million, translating to an 81.6% gross margin compared with an 81.2% gross margin in the year-ago period.
On a non-GAAP basis, gross profit was $346 million and non-GAAP gross margin expanded to 85.1% from 84.9% a year earlier. Non-GAAP operating income increased to $79.8 million from $53.3 million in the prior-year quarter, reflecting improved operating leverage.
BILL’s Cash Position Supported Share Repurchases
BILL Holdings ended the quarter with cash and cash equivalents of $994.7 million and short-term investments of $1.18 billion, providing meaningful balance-sheet flexibility. Funds held for customers were $4.00 billion at quarter-end, reflecting the scale of money movement processed through the platform.
Cash generation remained solid. Net cash provided by operating activities was $102.7 million in the quarter, while free cash flow was $84.7 million. Capital return was also a focus: BILL repurchased roughly 1.0 million shares during the quarter for approximately $52 million and announced a new $1.0 billion share repurchase authorization.
BILL’s Outlook Called for Continued Double-Digit Growth
Management’s guidance pointed to ongoing growth in the near term. For the fiscal fourth quarter, BILL expects total revenue of $425-$435 million, representing 11-13% growth year over year and core revenue of $392-$402 million, suggesting 13-16% growth. Non-GAAP net income per share is anticipated in the range of 69-72 cents. This is above the Zacks Consensus Estimate of 56 cents.
For fiscal 2026, the company guided total revenues of $1.642-$1.652 billion, representing a 12-13% rise year over year and core revenues of $1.4963-$1.5063 billion, indicating a 15-16% increase. Non-GAAP net income per share is expected to be $2.61-$2.64. The consensus mark for the same is currently pegged at $2.39.
Currently, BILL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings release of other stocks in the Internet- Software industry — Audioeye (AEYE - Free Report) and StoneCo (STNE - Free Report) . Both companies are scheduled to report earnings on May 12 and May 14, respectively.
The consensus mark for Audioeye’s first-quarter EPS is pegged at 17 cents, implying a 13.3% increase year over year.
The Zacks Consensus Estimate for StoneCo’s first-quarter 2026 EPS stands at 42 cents, indicating a 23.5% increase year over year.