BILL Holdings, Inc.: changes accounting presentation for card rewards

What happened BILL Holdings, Inc. reported that, effective Jul 1, 2026, it voluntarily changed its accounting principle for the presentation of rewards paid to spending businesses using its BILL Spend and Expense card products. The filing says rewards previously were classified as sales and marketing expenses within operating expenses and will be classified as a reduction of interchange revenue within subscription and transaction fees. Beginning with the fiscal quarter ended Sep 30, 2026, the company’s financial information will reflect the change, with prior periods retrospectively adjusted. The company furnished unaudited supplemental financial information reflecting the effects for eight quarters in fiscal years 2025 and 2026.

Key details

• Effective date: Jul 1, 2026.
• Previous classification: rewards recorded as sales and marketing expenses within operating expenses.
• New classification: rewards recorded as a reduction of interchange revenue within subscription and transaction fees.
• The filing states the change has no impact on operating income, net income/(loss), net income/(loss) per share, balance sheet, or cash flows for any period presented.

Why it may matter This item was reported under Item 7.01, Regulation FD disclosure, and covers a voluntary change in accounting principle for how the company presents card rewards in its financials. The filing does not explain why the company changed its accounting presentation.