BILL's card business processed enough extra volume to add $75.6 million to rewards expense. Rewards now consume 51% of revenue from spend and interchange fees, up from 49% a year earlier. Growth, in other words, arrived with a bigger bill attached.
The headline numbers show growth in several measures. Over the twelve months ended June 30, 2026, revenue rose 13.0% to $1.7 billion, while operating cash flow climbed 18.6% to $415.8 million. Gross margin slipped only slightly, from 81.4% to 80.9%, and operating margin improved to negative 4.4% from negative 5.5%.
Then net income turned from a $23.8 million profit into an $11.2 million loss. That swing does not line up neatly with the cash-generation trend, because the year also included a $40.6 million reduction in other income from the absence of a prior-year gain on debt extinguishment, plus $90.9 million of restructuring charges tied to workforce reductions.
BILL describes the broader movement this way:
"The net change was primarily driven by growth in subscription and transaction revenue, partially offset by higher operating expenditures, lower interest earned on funds held for customers, and cash payments related to our restructuring plan."
10-K 2026-08-20
The plain-English version is that the business sold more and generated more cash, but several items below and around gross profit pulled the reported result in the other direction. Interest earned on customer funds fell as yields declined, and the restructuring plan required cash payments rather than existing only as an accounting footnote.
The cost profile is doing more work than the revenue line suggests. Sales and marketing expense rose by $72.5 million, primarily because of the higher rewards bill attached to BILL Divvy Cards. General and administrative expense also increased by $17.5 million, including $13.0 million in consulting fees for outside services, including shareholder activism-related fees.
Management also points to the financing change inside other income:
"Other income, net decreased by $47.7 million during fiscal 2026 as compared to fiscal 2025, primarily due to the following: a $40.6 million decrease due to the absence of gain on debt extinguishment resulting from the partial repurchases of our 2025 Notes and 2027 Notes; and a $6.6 million decrease due to interest expense from the new 2025 Credit Facility."
10-K 2026-08-20
That is why the bottom line differs from the cash flow statement. BILL ended the year with diluted shares down 3.8% and capex down 23.1%, while accounts receivable fell 4.2%. The company retained about $1.0 billion of cash, but net income was negative and the gross margin edged lower.
The longer record adds some perspective without resolving the trade-off. BILL's revenue grew from $1.5 billion in fiscal 2025, but operating losses remain, even as the operating margin has narrowed. At the latest close, the shares were valued at 208.4 times earnings, a multiple that leaves the reported earnings line unusually visible whenever a prior-year gain disappears.
The unresolved detail is the restructuring line in BILL's next reported results: whether those charges recede after the fiscal 2026 workforce reductions, or whether the higher operating-cost burden keeps showing up alongside the cash growth. BILL is growing, and its cash flow is keeping pace. The accounting bottom line, for now, remains negative.
Source: BILL Holdings' fiscal 2026 Form 10-K, filed August 20, 2026.