BILL Q1 Revenue Rises 13% as Core Growth Drives GAAP Profit

BILL Holdings Inc. (NYSE: BILL) reported stronger fiscal first-quarter results as higher transaction revenue and growth across its integrated financial operations platform lifted total revenue 13% year over year. The company also moved to a GAAP operating profit, even as the total number of businesses using its solutions declined because of a contraction in Embedded Solutions & Other customers.

For the quarter ended September 30, 2026, total revenue rose to $353.8 million from $314.5 million a year earlier. Core revenue, which comprises subscription and transaction fees, increased 14% to $316.4 million and represented about 89% of total revenue. Float revenue slipped 1% to $37.4 million.

Transaction fees were the main contributor to growth, rising to $239.1 million from $205.9 million. Subscription revenue increased to $77.3 million from $70.8 million.

BILL generated GAAP operating income of $51.2 million, compared with a $20.7 million operating loss in the prior-year quarter. GAAP net income was $60.3 million, versus a $3.0 million loss. Non-GAAP operating income doubled to $136.9 million from $68.2 million, while non-GAAP net income increased to $119.1 million from $70.2 million.

GAAP gross margin expanded to 76.9% from 75.5%, and non-GAAP gross margin reached 81.1%, up from 79.7%. The company reported lower operating expenses across sales and marketing, research and development, and general and administrative functions. Its non-GAAP results exclude items including stock-based compensation, amortization and restructuring costs.

Integrated platform drives core growth

Core revenue from BILL’s Integrated Platform, which includes BILL AP/AR and BILL Spend & Expense, rose 15% to $292.9 million. BILL AP/AR core revenue increased to $200.4 million from $178.6 million, while Spend & Expense revenue climbed to $92.5 million from $76.0 million. Embedded Solutions & Other revenue was $23.5 million, compared with $22.1 million a year earlier.

The number of Integrated Platform businesses increased to 233,400 from 216,000. That gain was offset by a decline in Embedded Solutions & Other customers to 241,900 from 282,500, leaving total businesses using BILL’s solutions at 475,300, down 5% year over year. Businesses using more than one solution are counted separately for each product.

Platform activity continued to increase despite the lower total customer count. Total payment volume rose 14% to $101.8 billion, including $85.0 billion from BILL AP/AR, $6.9 billion from Spend & Expense and $9.9 billion from Embedded Solutions & Other. Transactions processed increased 14% to 38.1 million, driven in part by 22.3 million Spend & Expense transactions.

BILL said its platform served nearly 500,000 businesses and had 9.2 million network members. Based on first-quarter activity, the company reported a $407 billion annualized total payment volume run rate.

Strategy and accounting change

BILL identified customer acquisition, broader adoption among existing customers, network expansion, platform development and international expansion as its principal future growth drivers. Its platform combines accounts payable, accounts receivable, spend and expense management, and cash management for small and midsize businesses.

Effective July 1, 2026, BILL changed its accounting treatment for rewards paid to businesses using its Spend & Expense card products. Those rewards are now recorded as a reduction of interchange revenue within subscription and transaction fees rather than as sales and marketing expense. Prior periods presented in the deck were retrospectively adjusted for comparability.

The presentation did not provide detailed guidance figures. BILL cautioned that its forward-looking expectations remain subject to macroeconomic conditions, interest-rate and foreign-exchange movements, political and regulatory developments, tariffs and other trade barriers. The company also cited payment-processing errors and fraud, credit exposure associated with Divvy Cards and invoice financing, competition, changes in card-network rules and interchange rates, and uncertainty surrounding the development and adoption of AI-enabled products among its principal risks.