By Emon Reiser

Shares for Bill Holdings were on the rise after the financial services company said growth in subscription and transaction fees accelerated during the second quarter.

The stock rose 20.3% to $42.93 in midday Friday trading. Despite the intraday gains, shares are down 21% year to date.

Bill Holdings, which offers back-office financial software mainly for small and mid-sized businesses, on Thursday reported $414.7 million in revenue for the quarter ended Dec. 31, beating the $399.8 million analysts on FactSet expected.

The San Jose, Calif., company during the quarter saw a 17% increase in its core revenue, which consists of subscription and transaction fees. Subscription fees were up 6% year-over-year to $72.1 million, while transaction fees rose 20% year-over-year to $303.1 million.

"In Q2, customers using invoice financing grew by nearly 50% year-over-year, and the origination volume increased by more than 30%," Chief Executive René Lacerte said on a Thursday call with analysts. "We increased adoption while improving unit economics at the same time. This outcome is a direct result of our powerful AI models and our evolving capability to safely underwrite a wider range of suppliers."

Bill Holdings reported a loss of $2.59 million, or three cents a share, compared with a profit of $33.55 million in the year-ago quarter.

Adjusted for one-time items, Bill Holdings reported 64 cents in earnings per share. Analysts expected 56 cents a share.

The company guided for third-quarter revenue of between $397.5 million and $407.5 million, and adjusted earnings per share between 53 cents and 57 cents. Analysts expect $401 million in revenue and 54 cents a share in adjusted earnings.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

February 06, 2026 12:06 ET (17:06 GMT)

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