BILL (NYSE:BILL) reported fiscal second-quarter 2026 results that management said extended the momentum from the prior quarter, with a “meaningful beat” on core revenue and profitability alongside what executives described as encouraging signs of SMB resilience.
Chairman, CEO, and Founder René Lacerte said the company delivered 17% core revenue growth versus the prior year and achieved an 18% non-GAAP operating margin in Q2, while also seeing increasing spend volumes across the platform. Lacerte pointed to BILL’s scale—nearly 500,000 customers, more than 9,500 accounting firms on the platform, and over 8 million businesses in its proprietary B2B payment network—as central to its ability to drive engagement, transaction volume, and product adoption.
Q2 highlights: revenue growth, margin expansion, and volume trends
Within the integrated platform, Jain said growth in both AP/AR and Spend & Expense accelerated:
- AP/AR core revenue grew 11% year over year. BILL added approximately 4,000 net new customers in Q2.
- AP/AR transaction revenue was $128 million, up 14% year over year. Jain said TPV per customer increased modestly and same-store sales TPV grew 4% year over year, above Q1’s level.
- Spend & Expense revenue was $166 million, up 24% year over year, which Jain attributed primarily to accelerated card volume growth and a better-than-expected take rate.
On industry trends, Jain said manufacturing spend remained strong and construction showed an uptick on the AP/AR side, “reversing the trend in recent quarters.” For Spend & Expense, she cited a spend increase in advertising, retail, and healthcare services, and said card payment volume rose 25% year over year. Take rate was 255 basis points, which she said was driven by volume and higher-interchange verticals such as advertising and healthcare services.
Jain also noted that non-GAAP operating margin excluding float expanded 70 basis points sequentially and 290 basis points year over year. During the quarter, the company repurchased $133 million of stock.
Product adoption: multi-product, invoice financing, and Cash Account
Lacerte emphasized increasing adoption of multiple BILL products, saying the number of businesses using both AP/AR and Spend & Expense rose 28% year over year in Q2. He said those customers generate more revenue per customer and tend to be “stickier.”
He also highlighted invoice financing as a “fast-growing” solution aimed at improving SMB cash flow. In Q2, management said customers using invoice financing grew by nearly 50% year over year and origination volume increased by more than 30%. On the call, Lacerte said the product helps suppliers get paid “four to six weeks earlier,” and COO John Rettig added that BILL is managing rollout in a measured way to refine underwriting and risk models while ensuring the “right economics” as it scales.
Lacerte discussed the launch of BILL Cash Account, describing it as an integrated operating account designed to help SMBs optimize cash flow and bring “$ billions of monthly offline spend” onto BILL’s network. He said early indications since the Q2 launch show that more than 70% of Cash Account users increased their spend volumes on the network.
AI and automation: “agentic” capabilities across workflows
A major theme of the call was AI-driven automation. Lacerte said “agentic AI” is live across the platform, with a focus on vendor management, transaction entry, and operational efficiency and risk management.
Among examples cited:
- Vendor management: BILL’s W-9 agent and Smart Response agent automate tax document collection and vendor communications. Lacerte said nearly 10,000 customers enabled the W-9 agent in Q2 and 40,000 W-9s were collected. He said BILL expects the agent to collect and automate 3 million W-9s by year-end.
- Transactions: Lacerte said BILL’s invoice coding agent can fully code complex invoices and reduce steps required by 90%. He also referenced auto-generated receipts and Gmail capture capabilities.
- Risk and support: Lacerte said in the first half the company’s systems stopped 5.3 million fraudulent attempts and reduced manual fraud reviews by 40%. He also said the BILL Assistant agent increased self-serve customer contacts from 13% prior to its introduction to 40% for customers enabled with the agent.
In the Q&A, Lacerte addressed investor questions about AI disruption, arguing the risk was “overplayed” and emphasizing BILL’s combination of contextual data, trust, and network effects. He pointed to more than $1 trillion in spend and payments on the network, hundreds of millions of transactions, over 1 billion documents, and the importance of trust when moving money “where the precision bar is 100%.”
Go-to-market, pricing actions, and guidance updates
Rettig reiterated three strategic priorities: growing through the integrated platform, expanding and penetrating the addressable market, and innovating with AI for customer value and internal productivity. He highlighted rapid adoption of the BILL Divvy Card for accounts payable payments, saying AP card payment volume grew more than 160% year over year in Q2.
Rettig also discussed Supplier Payments Plus (SPP), saying early adopting suppliers have committed to approximately $400 million in annual TPV since the product’s introduction two quarters ago. He described SPP as a complement to virtual cards and a potential way to address a portion of ACH volume over time, while noting it is an enterprise sales motion with longer cycles and will take time to “move the needle” on overall metrics.
On pricing and customer mix, Jain said BILL expects AP/AR net adds to trend down slightly in the short term as the company focuses on larger customers and aligns pricing with value delivered, noting subscription ARPU increased 1% sequentially. Management said it has implemented targeted subscription price increases for new and existing direct channel customers, with early results showing less churn than expected.
For guidance, Jain provided the following outlook:
- Fiscal Q3 2026: total revenue of $397.5 million to $407.5 million; core revenue of $364.5 million to $374.5 million (14% to 17% growth); non-GAAP EPS of $0.53 to $0.57.
- Fiscal 2026: core revenue of $1.490 billion to $1.510 billion (15% to 16% growth), about 170 basis points higher than prior guidance; float revenue expected at $141.5 million; total revenue of $1.631 billion to $1.651 billion; non-GAAP operating margin approximately 17%.
Jain also said the company now expects stock-based compensation expense of approximately $255 million for fiscal 2026, below previous guidance.
In closing remarks, Lacerte said BILL’s accelerated growth and margin expansion reflected “the compounding advantage of our platform,” which management believes supports sustained profitable growth over the long term.
About BILL (NYSE:BILL)
BILL Holdings, Inc provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services.
