BILL raises FY27 profit forecast as Q1 profit tops estimates

BILL Holdings (BILL) topped first-quarter profit estimates and raised its full-year profit forecast, but revenue came in below consensus.

Shares were little changed at 9:35 a.m. ET, from a $50.89 close.

Revenue rose 13%.

Here's how the company did:

• Adjusted EPS: $1.18 per diluted share vs. 61 cents a year earlier; 98 cents expected
• Revenue: $353.8 million vs. $314.5 million a year earlier; $448.11 million expected
• GAAP net income: $60.3 million, or 61 cents per diluted share, vs. a net loss of $3.0 million a year earlier

The shortfall reflects a rewards accounting change. Starting July 1, 2026, rewards paid to Spend and Expense card businesses are a direct reduction of subscription and transaction fees, not sales and marketing expense.

Prior periods have been restated. Operating income and net income are not affected.

Revenue and operating results

Core revenue, which combines subscription and transaction fees, was $316.4 million, up 14%. Subscription fees rose 9% to $77.3 million, and transaction fees rose 16% to $239.1 million. Float revenue was $37.4 million.

BILL AP/AR revenue was $200.4 million, and BILL Spend and Expense revenue was $92.5 million.

Non-GAAP operating income was $136.9 million, up 101% from $68.2 million a year earlier. GAAP operating income was $51.2 million, compared with an operating loss of $20.7 million a year earlier.

It processed $102 billion in total payment volume, up 14%, and 38 million transactions, also up 14%. It served 475,300 businesses at quarter-end.

Guidance

For the fiscal second quarter ending Dec. 31, 2026, the company expects total revenue of $353.0 million to $363.0 million and non-GAAP net income per diluted share of 97 cents to $1.01.

For fiscal 2027, the company raised its non-GAAP net income per diluted share forecast to $3.99 to $4.15, from the $3.56 to $3.79 it gave on Aug. 19. Non-GAAP operating income is now expected at $466 million to $486 million, from $421 million to $451 million.

Full-year total revenue is now forecast at $1.43 billion to $1.46 billion, against $1.406 billion to $1.456 billion in August.

The non-GAAP EPS outlook includes a 20% non-GAAP tax provision and excludes any future share repurchases.

Costs and capital returns

Restructuring charges were $24.4 million, compared with $8.9 million a year earlier.

The company repurchased about 7 million shares for about $305 million in the quarter.

Net income swung from a loss of $2.6 million in the second quarter of fiscal 2026 to a profit of $12.8 million in the third quarter.