BILL Holdings moves Spend and Expense card rewards out of marketing costs, lowering revenue
Restated figures reduce reported revenue in each of the eight quarters of fiscal 2025 and 2026 shown, with no change to operating income or net income.
Key takeaways
- BILL Holdings Inc. (BILL) said in a regulatory filing on Oct. 15, 2026 that it changed how it accounts for rewards paid to businesses that use its BILL Spend and Expense cards, effective July 1, 2026. The rewards move from sales and marketing expense to a reduction of interchange revenue. Operating income and net income are unaffected.
BILL Holdings Inc. (BILL) said in a regulatory filing Thursday that it changed how it accounts for rewards paid to spending businesses using its BILL Spend and Expense card products. Effective July 1, 2026, the rewards are classified as a reduction of interchange revenue within subscription and transaction fees. Previously they were recorded as sales and marketing expenses within operating expenses.
The change lowers reported revenue. The filing said it has no impact on operating income, net income or loss, net income or loss per share, the balance sheet or cash flows for any period presented.
The company said the change better reflects the economic substance of the rewards program and matches the financial information it uses internally. It also said the net presentation follows prevalent industry practice and improves comparability for investors and analysts.
Beginning with the fiscal quarter ended Sept. 30, 2026, the company's financial information will reflect the change, and prior periods will be retrospectively adjusted. To allow comparison with its upcoming earnings release, BILL furnished unaudited supplemental information as Exhibit 99.1 covering each of the eight quarters in fiscal years 2025 and 2026.
Total revenue for the eight quarters, in thousands:
| Quarter | As previously reported | Effect of change | As adjusted |
|---|---|---|---|
| Three months ended Sept. 30, 2024 | 358,450 | (62,064) | 296,386 |
| Three months ended Dec. 31, 2024 | 362,554 | (64,748) | 297,806 |
| Three months ended March 31, 2025 | 358,217 | (68,359) | 289,858 |
| Three months ended June 30, 2025 | 383,349 | (76,819) | 306,530 |
| Three months ended Sept. 30, 2025 | 395,741 | (81,291) | 314,450 |
| Three months ended Dec. 31, 2025 | 414,671 | (87,031) | 327,640 |
| Three months ended March 31, 2026 | 406,563 | (85,279) | 321,284 |
| Three months ended June 30, 2026 | 436,186 | (94,004) | 342,182 |
In the quarter ended June 30, 2026, the adjustment reduced total revenue by $94.0 million, from $436.2 million as previously reported to $342.2 million. Sales and marketing expense for the same quarter was $158.3 million as previously reported and $64.3 million as adjusted.