BILL Holdings Reports 14% Revenue Growth but Net Loss in Q2 Fiscal 2026

BILL Holdings, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a total revenue of $414.7 million for the three months ended December 31, 2025, a 14% increase from $362.6 million in the same period last year. For the six months ended December 31, 2025, revenue reached $810.4 million, up 12% from $721.0 million in the prior year. The growth was primarily driven by a 17% increase in subscription and transaction fees, which totaled $375.1 million, compared to $319.6 million in the previous year. However, the company experienced a decline in interest income from funds held for customers, which fell to $39.5 million from $42.9 million year-over-year.

Despite the revenue growth, BILL Holdings reported a net loss of $2.6 million for the quarter, a significant decrease from the net income of $33.5 million in the same quarter of the previous year. For the six-month period, the net loss was $5.6 million, compared to a net income of $42.5 million in the prior year. The losses were attributed to increased operating expenses, which rose to $349.2 million from $317.7 million year-over-year, driven by higher costs in sales and marketing, general and administrative expenses, and a restructuring charge related to a reduction in workforce impacting approximately 6% of employees.

Operationally, BILL Holdings reported a total of approximately 177,500 businesses using its core accounts payable and receivable platform, alongside 44,000 spending businesses utilizing its BILL Spend and Expense solution. The company processed approximately 12.8 million transactions during the quarter, contributing to a total payment volume of approximately $79.9 billion. The company also noted a significant increase in its customer base, which is expected to drive further revenue growth.

In terms of strategic developments, BILL launched its AI platform, BILL AI, in October 2025, which includes AI agents designed to automate various financial processes. The company also announced partnerships with major financial institutions and software providers, which are anticipated to enhance its market reach and product offerings. As of December 31, 2025, BILL Holdings had cash and cash equivalents of $1.1 billion, along with $1.1 billion in short-term investments, providing a solid liquidity position to support its ongoing operations and growth initiatives.

Looking ahead, BILL Holdings expressed cautious optimism regarding its growth trajectory, emphasizing the importance of monitoring macroeconomic conditions that could impact small and medium-sized businesses. The company plans to continue investing in its technology and expanding its customer base while managing operational efficiencies to improve profitability.