Financial Data and Key Metrics Changes - In Q2 2026, the company reported $375 million in core revenue, reflecting a 17% year-over-year growth and exceeding guidance [26][30] - Non-GAAP operating margin was 18%, showing a sequential and year-over-year expansion [26][29] - AP/AR transaction revenue reached $128 million, up 14% year-over-year, with TPV per customer increasing modestly [27][28] Business Line Data and Key Metrics Changes - AP/AR core revenue grew 11% year-over-year, with approximately 4,000 net new customers added in Q2 [26][27] - Spend and expense revenue totaled $166 million, representing a 24% year-over-year growth, driven by card volume growth [28] - The number of businesses using both AP/AR and spend and expense solutions grew 28% year-over-year [9][19] Market Data and Key Metrics Changes - The company observed strong spend growth in manufacturing and a rebound in construction, reversing previous trends [27][55] - Card payment volume increased by 25% year-over-year, particularly in advertising, retail, and healthcare services [28] - The same-store sales growth for the AP/AR platform was 4%, an acceleration from the previous quarter [55] Company Strategy and Development Direction - The company aims to drive growth from its integrated platform, expand its addressable market, and innovate with AI to create value [19][25] - The Embed 2.0 strategy is designed to extend reach with SMBs and enhance distribution through partnerships [11][24] - The company is focused on optimizing pricing to align with the value delivered to customers, particularly in the AP/AR segment [22][63] Management's Comments on Operating Environment and Future Outlook - Management noted resilience among SMBs and the importance of innovation in creating stickiness with the platform [51][55] - The company expects to see continued growth in invoice financing, with a 50% year-over-year increase in customers [10][66] - Management expressed confidence in the company's unique position and the ability to leverage AI for future growth [41][62] Other Important Information - The company repurchased $133 million of stock during the quarter, maintaining a disciplined approach to share repurchases [29] - The company expects core revenue for fiscal 2026 to be in the range of $1.490 billion to $1.510 billion, reflecting 15%-16% growth year-over-year [31][32] Q&A Session Summary Question: How at risk is BILL from AI disruption? - Management believes the impact of AI is overplayed and emphasizes the company's unique expertise and data assets as competitive advantages [36][38] Question: What is the attribution for growth acceleration? - Management attributes growth to a strong platform, customer value delivery, and resilience in SMBs, alongside innovation [51][55] Question: What are the risks to pricing algorithms in the context of AI? - Management asserts that pricing is based on the value created for customers and sees AI as a tool to enhance efficiency and value [62][63] Question: What is the update on the strategic process review? - Management is focused on optimizing costs and enhancing efficiency, with a roadmap for opportunities identified [77][78] Question: How does the company view its ability to win in the move-up market? - Management believes in the unique value of its platform for larger businesses and is seeing positive signals in adoption and ARPU growth [80][82]

Financial Data and Key Metrics Changes - In Q2 2026, the company reported $375 million in core revenue, reflecting a 17% year-over-year growth and exceeding guidance expectations [23] - Non-GAAP operating margin was 18%, showing both sequential and year-over-year expansion [23][26] - The company repurchased $133 million of stock during the quarter, indicating a disciplined approach to share repurchases [26] Business Line Data and Key Metrics Changes - AP/AR core revenue grew 11% year-over-year, with transaction revenue reaching $128 million, up 14% year-over-year [23][24] - Spend and expense revenue totaled $166 million, representing a 24% year-over-year growth, driven by a 25% increase in card payment volume [24][25] - The number of businesses using both AP/AR and spend and expense solutions grew 28% year-over-year in Q2 [7] Market Data and Key Metrics Changes - The company observed strong spend trends in manufacturing and a rebound in construction, reversing previous trends [24][51] - There was a resurgence in spending in advertising and retail sectors, which had been muted in prior quarters [51] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving growth from its integrated platform, expanding its addressable market, and innovating with AI to create value [16] - The Embed 2.0 growth strategy aims to extend reach with SMBs and enhance distribution through partnerships, unlocking potential to reach close to 1 million businesses [9][10] - The company is enhancing its offerings for accountants and larger businesses, indicating a shift towards targeting larger clients [18][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of SMBs and the value created through innovation, which is expected to drive stickiness and growth [49] - The company anticipates continued momentum in invoice financing, with a nearly 50% year-over-year growth in customers using this service [8][64] - Management highlighted the importance of trust and unique data assets as competitive advantages against potential AI disruptions [33][36] Other Important Information - The company expects core revenue for fiscal 2026 to be in the range of $1.490 billion to $1.510 billion, reflecting a 15%-16% growth year-over-year [29] - Stock-based compensation expenses are projected to be approximately $255 million, below previous guidance [31] Q&A Session Summary Question: How at risk is BILL from AI disruption? - Management believes the impact of AI is overplayed and emphasizes the company's unique expertise and data assets as competitive advantages [33][36] Question: What contributed to the growth acceleration? - Management attributes growth to the durability of the business model and the resilience of SMBs, alongside innovation creating more value opportunities [49][51] Question: How sustainable is the growth in spend and expense? - Management sees encouraging signs in recent spending trends but remains cautious about baking in these trends into future guidance [55] Question: What is the outlook for invoice financing? - Management notes strong demand for invoice financing, with repeat usage and significant impact on cash flow for SMBs [64][66]

BILL NYSE BILL Investor Deck February 2026 Safe harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond ou ...

"We accelerated core revenue growth while strengthening our margin profile," said Rohini Jain, BILL CFO. "Our Q2 performance underscores the durability of our business and the discipline of our investment approach. Looking ahead, we are focused on extending differentiation, driving efficiency, and delivering long‑term shareholder value." Financial Highlights for the Second Quarter of Fiscal Year 2026: Business Highlights and Recent Developments: Financial Outlook We are providing the following guidance for ...

Core Viewpoint - Analysts project that BILL Holdings (BILL) will report quarterly earnings of $0.56 per share, with revenues expected to reach $399.75 million, reflecting a 10.3% increase year over year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating stability in analysts' projections [1] - Revenue from 'Interest on funds held for customers' is estimated at $35.97 million, showing a decline of 16.2% year over year [4] - Revenue from 'Subscription and transaction fees' is projected to be $364.64 million, indicating a growth of 14.1% year over year [4] Group 2: Detailed Revenue Breakdown - 'Subscription fees' under 'Subscription and transaction fees' is expected to reach $68.80 million, reflecting a 1.6% increase from the previous year [5] - 'Transaction fees' under 'Subscription and transaction fees' is estimated at $295.76 million, indicating a growth of 17.4% year over year [5] Group 3: Key Metrics and Market Performance - Total Payment Volume is projected at $93.86 billion, compared to $84.00 billion from the previous year [6] - The number of 'Transactions Processed' is expected to reach 35.11 million, up from 30.00 million year over year [6] - Over the past month, shares of BILL Holdings have decreased by 22.4%, while the Zacks S&P 500 composite has increased by 1.8% [6] - BILL Holdings currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance in the near future [6]

Group 1 - Parnassus Investments reported a 5.49% return for the Parnassus Mid Cap Fund in Q3 2025, outperforming the Russell Midcap Index which returned 5.33% [1] - The Russell Mid Cap Index continued to rise following a strong second quarter, indicating a positive market trend [1] Group 2 - Parnassus Core Equity Fund highlighted BILL Holdings, Inc. (NYSE:BILL) as a key investment, noting a one-month return of 16.66% despite a 52-week decline of 45.78% [2] - BILL Holdings, Inc. closed at $51.76 per share on December 03, 2025, with a market capitalization of $5.196 billion [2] - The company is positioned in a large and underpenetrated market for small and medium-sized businesses, with potential for revenue growth as digitization of back-office workflows increases [3] - BILL Holdings benefits from strong distribution partnerships and network effects, providing a competitive advantage in its market [3] Group 3 - BILL Holdings, Inc. was held by 52 hedge fund portfolios at the end of Q3 2025, an increase from 45 in the previous quarter [4] - Despite its potential, some analysts believe that certain AI stocks may offer greater upside potential and lower downside risk compared to BILL Holdings [4]

Company Overview - BILL Holdings has a total revenue of $1.50 billion and a net income of $11.93 million for the trailing twelve months (TTM) [4] - The company's stock price is currently at $55.23, reflecting a one-year price change of -38% [4] Investment Activity - Totem Point Management initiated a new position in BILL Holdings, acquiring 71,225 shares valued at approximately $3.77 million as of September 30 [2][3] - This new position represents 3.36% of Totem Point's total reportable U.S. equity assets under management [3] Business Model and Performance - BILL operates a cloud-based platform that automates financial operations for small and midsize enterprises, generating revenue primarily through a software-as-a-service (SaaS) model [6][9] - In the most recent quarter, BILL reported total revenue of $395.7 million, a 10% year-over-year increase, with core revenue growing 14% [10] - The platform processed $89 billion in payment volume during the quarter, serving nearly 500,000 businesses, indicating steady adoption despite market challenges [10] Market Position and Outlook - Despite a significant stock price decline, the underlying business fundamentals remain strong, suggesting a disconnect between market pricing and business performance [1][11] - The new investment by Totem Point Management aligns with a portfolio focused on durable growth franchises, indicating a belief in BILL's long-term potential as a discounted compounder [11]

Core Viewpoint - Barington Capital Group urges BILL Holdings to implement a comprehensive cost reduction plan and explore strategic alternatives, including a potential sale or merger, due to the company's slowing fundamentals and prolonged share price underperformance [1]. Group 1: Company Performance - BILL is positioned in the growing B2B financial automation sector, but faces challenges with slowing monetization trends and increasing industry competition, raising concerns about its long-term independence [2]. - The company has struggled to deliver operating profitability, which has led to market skepticism regarding its ability to maintain its leadership position [1][2]. Group 2: Strategic Recommendations - Barington recommends that the Board ensure management operates with greater cost discipline to better convert revenue growth into profitability and stronger cash flows [2]. - The firm suggests that BILL engage a financial advisor and form a special committee of independent directors to explore all strategic alternatives, including a potential sale or merger, given the strong private market valuations of similar companies [3]. Group 3: Investment Perspective - Barington believes that BILL would be an attractive acquisition candidate for both strategic and financial buyers, highlighting the disparity between the public market's valuation and the company's technology leadership and transaction network [3].

Core Insights - 13D Activist Fund reported a Q3 2025 return of 8.88%, underperforming the Russell 2000 Index which returned 12.39% [1] - The Russell 2000 outperformed the S&P 500 by the largest margin in three years, with returns of 12.39% compared to 8.12% for the S&P 500 [1] Company Overview: BILL Holdings, Inc. - BILL Holdings, Inc. provides cloud-based software solutions aimed at simplifying and automating back-office financial operations for small and midsize businesses (SMBs) [2][3] - The stock of BILL Holdings, Inc. had a one-month return of 16.66%, but it has lost 45.78% of its value over the past 52 weeks, closing at $51.76 per share with a market capitalization of $5.196 billion on December 03, 2025 [2] Revenue Breakdown - BILL's revenue for 2025 was $1.45 billion, with the following contributions: - Accounts Payable/Accounts Receivable generated $668 million, accounting for 46% of total revenue, with one-third from subscription fees and the remainder from payment processing fees [3] - BILL Spend and Expense, which includes the BILL Divvy Card, contributed $555 million, representing 38% of total revenue [3] - Embedded and Other Solutions, including white label solutions and Invoice2go, generated $78 million, or 5% of total revenue [3] - Interest on funds held for customers contributed $162 million, making up 11% of total revenue [3]

Investment & Stake - Activist investor Barington takes a stake in business payments firm Bill Holdings [1]