BILL Holdings 2026 Q1 Earnings Sharp Net Loss Deteriorates 133.2%

BILL Holdings (BILL) reported fiscal 2026 Q1 earnings on Nov 6, 2025, with revenue rising 10.4% to $395.74 million but swinging to a net loss of $2.96 million. The company exceeded revenue estimates while guiding for $359–$369 million in core revenue for Q2 2026.

Revenue

Subscription and transaction fees accounted for the largest portion at $358 million, while interest on funds held for customers contributed $37.74 million, bringing the total revenue to $395.74 million. This 10.4% year-over-year growth reflects strong performance in core segments despite the net loss.

Earnings/Net Income

BILL Holdings swung to a loss of $0.03 per share in Q1 2026 from a profit of $0.08 per share in Q1 2025, marking a 137.5% negative change. The net loss of $2.96 million reflects a 133.2% deterioration from the prior year’s net income of $8.91 million. The EPS decline highlights the company’s current profitability challenges.

Post-Earnings Price Action Review

The strategy of holding BILL shares for 30 days post-earnings release shows resilience, as evidenced by a 11.16% rally over 90 days despite a 1-year total shareholder return of -6.5%. While the stock typically dips after earnings, strategic initiatives like AI-driven automation and embedded partnerships may drive recovery. Quarterly earnings releases have historically caused volatility, but Q1 2026’s non-GAAP operating income beat of $68 million suggests potential for post-dip gains. Investors should balance short-term dips with long-term strategic momentum.

CEO Commentary

René Lacerte emphasized core revenue growth of $358 million (14% YoY) and a 17% non-GAAP operating margin, driven by cost management and automation. Strategic partnerships with NetSuite, Paychex, and Acumatica expanded BILL’s reach to 1 million SMBs, while AI agents aim to streamline workflows. Lacerte expressed confidence in the platform’s essential role for SMBs and long-term value creation.

Guidance

Rohini Jain outlined fiscal 2026 guidance: core revenue of $1.46–$1.49 billion and total revenue of $1.6–$1.63 billion. Q2 core revenue is projected at $359–$369 million with non-GAAP operating income of $63–$68 million. Cost optimization and AI productivity gains are expected to drive structurally higher profitability.

Additional News

1. AI Agents Launch: BILL introduced intelligent AI agents to automate B2B transactions, enhancing efficiency and reducing manual workflows.

2. Embedded Partnerships: New partnerships with NetSuite, Paychex, and Acumatica expanded BILL’s reach to 1 million SMBs, with $1 trillion in annual payment volume.

3. BILL Cash Account: Launched as a high-yield operating bank account to optimize cash flow and enable faster payments, marking the first step in broader treasury capabilities.

Price Action

The stock price of BILL Holdings has dropped 5.62% during the latest trading day, tumbled 9.43% during the most recent full trading week, and plummeted 15.92% month-to-date.