Abstract
BILL HOLDINGS INC will release its quarterly results on February 05, 2026, Post Market; this preview highlights consensus forecasts for revenue, gross margin, net margin, and adjusted EPS alongside the company’s fiscal dynamics and segment trends since the prior quarter.Market Forecast
The market projects BILL HOLDINGS INC’s current quarter revenue at $398.50 million, up 10.63% year over year, with adjusted EPS estimated at $0.56, and EBIT estimated at $62.05 million, implying year-over-year EBIT growth of 25.42%. No explicit gross margin or net margin guidance was provided in the forecasts retrieved; however, the prior quarter’s high-80s gross margin profile sets a high base for comparison.Management’s business mix remains centered on subscription and transaction fees and interest on customer funds, with the former continuing to be the primary revenue driver supported by product breadth, customer adoption, and network effects. The most promising segment remains subscription and transaction fees at $358.01 million last quarter; year-over-year segment-specific growth data was not disclosed within the collected period.
Last Quarter Review
For the previous quarter (fiscal Q1 2026), BILL HOLDINGS INC delivered revenue of $395.74 million, a gross profit margin of 83.32%, GAAP net profit attributable to the parent company of -$2.96 million, a net profit margin of -0.75%, and adjusted EPS of $0.61, with revenue growing 10.40% year over year. A notable highlight was solid adjusted profitability, as EBIT of $68.24 million and adjusted EPS of $0.61 exceeded consensus, indicating resilient operating leverage despite modest GAAP losses.The main business continued to be driven by subscription and transaction fees at $358.01 million, supplemented by $37.74 million from interest on customer funds; year-over-year segment growth was not reported, though the revenue mix remained stable with subscription and transaction fees comprising 90.46% of total revenue.
Current Quarter Outlook (with major analytical insights)
Main business: Subscription and transaction fees
The backbone of BILL HOLDINGS INC’s model remains subscription and transaction fees, which accounted for $358.01 million last quarter and roughly nine-tenths of total revenue. With fiscal seasonality and small business spending patterns ramping through the December quarter, payment volume trends and attach rates across the platform will be the primary determinants of top-line performance. The estimate for total revenue at $398.50 million implies year-over-year growth of 10.63%, suggesting steady throughput in core payment flows and subscription retention, consistent with the company’s high recurring revenue characteristics.Gross margin in the last quarter was 83.32%, reflecting a software-led model augmented by scaled payment economics; sustaining a comparable level will hinge on transaction mix and negotiated payment costs across card, ACH, and other rails. The net margin was -0.75% on GAAP, demonstrating that while adjusted profitability improved, GAAP expenses—often including amortization, stock-based compensation, and integration investments—still weigh on bottom-line results. For the upcoming print, investors will listen closely for unit economics across payment products, subscription tier migration, and monetization per active customer to gauge whether the revenue mix can continue to support strong gross margin while balancing growth investments.
Most promising business: Subscription and transaction fees scaling with network effects
Subscription and transaction fees present the largest absolute opportunity given their scale and operating leverage, with last quarter’s $358.01 million base providing a clear runway for compound growth as more small and midsize businesses adopt the platform. Network effects, including vendor enablement and payer/payee density, can translate into higher throughput and lower marginal customer acquisition costs over time. As the platform integrates deeper with accounting systems and adds workflow automation features, it can drive both volume-based fees and subscription upgrades.The near-term variable is payment mix: higher card mix can expand revenue per transaction while also carrying higher cost of revenue, whereas ACH or lower-cost rails can support gross margin stability. Any product releases that increase embedded value—such as improved approval workflows, expense management capabilities, or cross-sell into adjacent services—can lift average revenue per customer without materially increasing cost-to-serve, supporting both revenue growth and margin resilience.
Factors most impacting the stock price this quarter
The first stock driver will be total revenue versus the $398.50 million consensus and the implied year-over-year growth of 10.63%; a beat or miss relative to that benchmark will likely be the central catalyst. The second driver will be the balance between GAAP results and adjusted profitability, especially whether adjusted EPS of $0.56 aligns with EBIT execution at $62.05 million and how GAAP profitability trends as operating expenses normalize post integration and platform investments. The third critical factor will be any changes in customer funds yields and balances, which influence interest-on-customer-funds revenue; while last quarter this represented $37.74 million, forward changes in rate environments or customer behavior can affect this high-margin revenue source.Guidance quality will matter across revenue growth, operating margins, and adjusted EPS trajectory. If management signals sustained double-digit top-line growth with a path to GAAP profitability, the market could reward the stock for improved visibility and operating leverage. Conversely, if transaction volume decelerates or cost pressures compress gross margin from the 83.32% base, investors may reassess near-term valuation multiples.
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