BILL Holdings, Inc. BILL 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 and StoneCo STNE. 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.
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