BILL Holdings (BILL) Q3 2026 earnings summary

Executive summary

• Q3 FY26 total revenue reached $406.6M, up 13.5% year-over-year, with core revenue up 16% to $371.1M, driven by both subscription and transaction fees.

• Achieved GAAP profitability for the first time, with net income of $12.8M, reversing a net loss from the prior year.

• Accelerated AI transformation as a top strategic priority, with over 100,000 customers using AI agents to automate financial operations.

• Announced a workforce reduction of up to 30% by end of Q4 to create a leaner, AI-native organization.

• Nearly 500,000 businesses used the platform as of March 31, 2026, with 8.3M network members and 34M transactions processed totaling $89B in payment volume.

Financial highlights

• Non-GAAP operating margin reached 20%, expanding 475 basis points year-over-year; non-GAAP operating income was $79.8M, up 50% YoY.

• Non-GAAP net income for Q3 was $77.2M, up from $58.7M YoY.

• Gross profit was $331.9M (81.6% margin); non-GAAP gross margin was 85.1%.

• Free cash flow for Q3 was $84.7M, with a margin of 20.8%.

• Float revenue declined 7% year-over-year to $35.4M in Q3'26.

Outlook and guidance

• Q4 FY26 revenue guidance: $425M–$435M (+11–13% YoY); core revenue $392M–$402M (+13–16% YoY).

• Q4 non-GAAP net income expected at $78M–$82M.

• FY26 core revenue guidance raised to $1.496B–$1.506B (+15–16% YoY); total revenue $1.642B–$1.652B (+12–13% YoY).

• FY26 non-GAAP operating income expected at $303.6M–$308.6M (approx. 19% margin); non-GAAP net income $298.7M–$302.7M.

• Workforce optimization expected to generate $110M in gross annualized savings, with $20M–$30M reinvested in growth areas in FY27.