Bill Turns a Year-Earlier Operating Loss Into Profit

The Tip Desk · November 8, 2026 · 3 min read

Core revenue was $316.4 million, up 14%, and non-GAAP operating income was $136.9 million as the company swung to GAAP operating profit.

BILL Holdings (BILL), the intelligent finance platform, reported GAAP operating income of $51.2 million for the fiscal first quarter ended September 30, 2026, versus an operating loss of $20.7 million a year earlier.

Non-GAAP operating income was $136.9 million, up 101% from $68.2 million. Non-GAAP net income was $119.1 million, or $1.18 a share, compared with $70.2 million, or $0.61 a share, a year earlier. GAAP net income was $60.3 million, or $0.61 a share, versus a net loss of $3.0 million, or $0.03 a share.

Chief Financial Officer Rohini Jain said the company delivered 14% core revenue growth, expanded its operating margin, and achieved a Rule of 40 score of 51.

Total revenue was $353.8 million, up 13% year-over-year, after a 14% year-over-year increase in the prior quarter. Core revenue, which consists of subscription and transaction fees, was $316.4 million, up 14%, after 16% year-over-year growth in the prior quarter. Subscription fees were $77.3 million, up 9%. Transaction fees were $239.1 million, up 16%. Float revenue was $37.4 million.

Those first-quarter figures were above the company’s August outlook, restated onto the new presentation, of $340.0 million to $350.0 million for total revenue and $305.5 million to $315.5 million for core revenue. Non-GAAP operating income and non-GAAP diluted earnings of $1.18 also exceeded August ranges of $112.5 million to $117.5 million and $0.96 to $1.00. The company said reported revenue is lower than the figures outlined in August under the prior presentation solely because of the presentation change, not because of any change in underlying business performance.

Effective July 1, 2026, BILL changed its accounting principle so rewards paid to spending businesses that use its Spend & Expense card products are recorded as a reduction of subscription and transaction fees rather than in sales and marketing expense. Prior periods were restated. The company said the change affects classification only and has no effect on operating income, net income, net income per share, the balance sheet, or cash flows. Revenue, gross profit, gross margin, and sales and marketing expense are not comparable with amounts reported before the quarter.

GAAP gross profit was $272.1 million, or a 76.9% gross margin, versus $237.4 million, or 75.5%, a year earlier. Non-GAAP gross profit was $286.9 million, or an 81.1% non-GAAP gross margin, versus $250.8 million, or 79.8%.

The company served 475,300 businesses as of quarter-end, processed $102 billion in total payment volume, up 14% year-over-year, and processed 38 million transactions, up 14%.

BILL repurchased approximately 7 million shares in the quarter for about $305 million.

For the fiscal second quarter ending December 31, 2026, the company guides to total revenue of $353.0 million to $363.0 million, or 8% to 11% year-over-year growth, and core revenue of $315.5 million to $325.5 million, or 10% to 13% growth. Full-year fiscal 2027 guidance is total revenue of $1,433.5 million to $1,463.5 million, or 10% to 12% growth, and core revenue of $1,283.5 million to $1,313.5 million, or 11% to 14% growth. Non-GAAP operating income is guided at $112.5 million to $117.5 million for the second quarter and $466.0 million to $486.0 million for the full year.

Chief Executive René Lacerte said AI is changing what is possible for the company and that it shows in product velocity, citing five new launches in the quarter and a Visa pilot built in four weeks.