BILL Holdings, Inc. has announced a voluntary change in its accounting principle regarding the presentation of rewards paid to businesses using its BILL Spend and Expense card products. Effective July 1, 2026, the company will reclassify these rewards. Previously, the rewards were recorded as sales and marketing expenses within operating expenses. Under the new principle, the rewards will be classified as a reduction of interchange revenue within subscription and transaction fees.
This change is intended to better reflect the economic substance of the rewards program and align with internal financial reporting and prevalent industry practice. The company noted that this adjustment will enhance comparability for investors and analysts.
Beginning with the fiscal quarter ended September 30, 2026, the company's financial information will reflect this change, with prior periods retrospectively adjusted. The company furnished unaudited supplemental financial information (Exhibit 99.1) that details the effects of this accounting change on revenue, gross profit, and operating expenses for the eight quarters in fiscal years 2025 and 2026.
Despite the reclassification, the company stated that the change has no impact on operating income, net income, net income per share, the balance sheet, or cash flows for any period presented.
