Bill Holdings Q2 Loss Challenges Bullish Narrative On Revenue Growth And Valuation Discount

BILL Holdings (BILL) just posted Q2 2026 results with revenue of US$414.7 million and a basic EPS loss of US$0.03, alongside net income excluding extra items of a US$2.6 million loss. The company has seen quarterly revenue move from US$362.6 million in Q2 2025 to US$414.7 million in Q2 2026, while basic EPS shifted from a profit of US$0.33 to a loss of US$0.03 over the same period. This puts the spotlight firmly on how efficiently that extra revenue is translating into margins.

See our full analysis for BILL Holdings.

With the headline numbers on the table, the next step is to see how this mix of higher revenue and ongoing losses lines up against the widely followed narratives around BILL’s growth potential, risk profile, and path toward stronger margins.

Curious how numbers become stories that shape markets? Explore Community Narratives

12.3% revenue growth backs the top line story

• Over the last 12 months, BILL generated US$1.55b in revenue and grew at 12.3% per year, ahead of the 10.2% market pace.
• What stands out for the bullish view is that this above market growth has come while the latest trailing 12 month net income sits at a US$24.2 million loss, so:
  • Supporters who focus on BILL as a core SMB finance platform can point to the steady lift from US$1.34b to US$1.55b in trailing revenue across the periods provided as evidence that customers are still spending on the service.
  • At the same time, the ongoing loss profile reminds you that revenue momentum alone does not yet translate into positive trailing earnings, which is an important check on any bullish growth story.

Consensus watchers who want a fuller story on how this growth trend fits into long term expectations may find the broader narrative worth a look. 📊 Read the full BILL Holdings Consensus Narrative.

Losses narrow but TTM still in the red

• On a trailing 12 month basis, BILL moved from a profit of US$81.9 million in Q2 2025 TTM to a loss of US$24.2 million in Q2 2026 TTM, while quarterly net losses excluding extra items have recently been in the US$2.6 million to US$3.0 million range.
• Critics who worry about the unprofitable status get some support and some pushback from the numbers:
  • The bearish angle that “BILL is still loss making” lines up with the latest trailing EPS of a US$0.24 loss and four consecutive quarters of negative quarterly EPS since Q3 2025.
  • On the other hand, the step from a US$11.6 million quarterly loss in Q3 2025 to losses nearer US$2.6 million in Q2 2026 suggests the loss profile has changed meaningfully over these specific periods, which is not fully aligned with a view that the business is stuck in worsening red ink.

P/S of 3.2x and 60.1% DCF gap

• With a share price of US$48.94 and trailing revenue of US$1.55b, BILL trades on a P/S of 3.2x, below peers at 4.9x and the US Software industry at 3.7x, and the stock is about 60.1% below a DCF fair value of US$122.70.
• Bulls who argue that valuation already reflects the risks will point to several contrasts in the data:
  • The combination of a 3.2x P/S and the 60.1% gap to DCF fair value sits beside the fact that the company is still posting a trailing loss of US$24.2 million, which means the apparent discount is not tied to current profitability.
  • Supporters may also highlight that this lower multiple is coming after 12.3% revenue growth, so the market is pricing that growth more cautiously than peers with higher P/S ratios.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on BILL Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

BILL is growing revenue but still carries trailing losses, negative EPS and a recent swing from profit to loss. This may concern investors focused on stability.

If that mix of ongoing losses and cautious pricing has you looking for more resilient ideas, check out 86 resilient stocks with low risk scores to focus on companies with steadier risk profiles right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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