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# BILL Cuts Reported Revenue By $94.0 Million In A Quarter With Card Rewards Change, Profit Unchanged
- URL: https://www.bullished.co/bill-cuts-reported-revenue-by-94-0-million-in-a-quarter-with-card-rewards-change-profit-b2d372da/
- Published: 2026-10-15T20:39:16.000Z
- Updated: 2026-10-15T20:39:16.000Z
- Description: BILL says netting card rewards against revenue leaves operating income, net income and cash flows unchanged for every period shown.
- Author: Matteo Parrino
- Tags: Earnings, BILL, Industry: Technology

BILL Holdings will now subtract card rewards from revenue instead of booking them as a sales and marketing cost, an [8-K filed Thursday](https://www.sec.gov/Archives/edgar/data/0001786352/000162828026066002/bill-20261015.htm?ref=bullished.co) shows. For the quarter ended June 30, 2026, total revenue falls to $342.2 million from $436.2 million as previously reported.

## What the 8-K says

The change took effect July 1, 2026 and covers rewards paid to businesses using the BILL Spend and Expense cards. Those rewards were previously sales and marketing expenses within operating expenses. They are now a reduction of interchange revenue inside subscription and transaction fees.

The quarter ended September 30, 2026 will be the first to carry the new presentation, with prior periods retrospectively adjusted. An [exhibit](https://www.sec.gov/Archives/edgar/data/0001786352/000162828026066002/bill-20261015xexx991.htm?ref=bullished.co) gives unaudited restated figures for eight quarters across fiscal 2025 and 2026.

The revenue reduction in those eight quarters runs from $62.1 million in the quarter ended September 30, 2024 to $94.0 million in the quarter ended June 30, 2026\. It is not a steady climb: the quarter ended March 31, 2026 was $85.3 million, below the $87.0 million of the quarter before.

For the June 2026 quarter:

- Subscription and transaction fees fall to $306.5 million from $400.5 million.
- Gross profit drops to $262.2 million from $356.2 million.
- Sales and marketing expense falls to $64.3 million from $158.3 million.
- Total operating expenses fall to $296.4 million from $390.4 million.

## What it changes

Revenue and costs both shrink by the same amount, so the filing says operating income, net income, per-share results, the balance sheet and cash flows are unaffected in any period presented. Reported revenue and gross profit are lower, however, and the sales and marketing line is far smaller.

The company says the net presentation "better reflects the economic substance" of the rewards program and matches the financial information it uses internally. It also says the approach fits "prevalent industry practice," which it says makes comparisons easier for investors and analysts.

If you track BILL's revenue growth or margins, compare new figures only against the restated history.

## What to watch

BILL's first-quarter results, the first under the new presentation, are scheduled for Thursday, November 5, after the market close, according to the [company's announcement](https://markets.ft.com/data/announce/detail?dockey=600-202610131605BIZWIRE%5FUSPRX%5F%5F%5F%5F20261013%5FBW397895-1&ref=bullished.co).

The restated June-quarter gross profit of $262.2 million is the base the November 5 results will be measured against.

### Sources

- [8-K Filing — BILL Holdings, Inc. (BILL)](https://www.sec.gov/Archives/edgar/data/0001786352/000162828026066002/bill-20261015.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit bill-20261015xexx991.htm — BILL Holdings, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001786352/000162828026066002/bill-20261015xexx991.htm?ref=bullished.co) — SEC EDGAR
- [BILL to Report Fiscal First Quarter 2027 Financial Results – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610131605BIZWIRE%5FUSPRX%5F%5F%5F%5F20261013%5FBW397895-1&ref=bullished.co) — Financial Times