BILL Holdings, Inc.

Previous wording

In October 2025, we launched BILL AI, including our first AI agents, which are designed to autonomously collect and validate W-9s and reconcile receipts. We anticipate launching additional agents and AI features in the coming months. In addition, we recently announced embed partnerships with Paychex, Oracle NetSuite, and Acumatica, which we expect will extend our platform's reach and offer new payment capabilities to our partners' users.

Current wording

In October 2025, we launched BILL AI, including our first AI agents, which are designed to autonomously collect and validate W-9s and reconcile receipts. We launched an additional agent in February 2026 and anticipate launching additional agents and AI features in the coming months. In addition, we previously announced embed partnerships with Paychex, Oracle NetSuite, and Acumatica, which we expect will extend our platform's reach and offer new payment capabilities to our partners' users.

Previous wording

We have grown rapidly and scaled our business operations in recent periods. Our revenue was $395.7 million and $358.5 million during the three months ended September 30, 2025 and 2024, respectively, an increase of $37.3 million. We generated a net loss of $3.0 million and net income of $8.9 million during the three months ended September 30, 2025 and 2024, respectively.

Current wording

We have grown rapidly and scaled our business operations in recent periods. Our revenue was $414.7 million and $362.6 million during the three months ended December 31, 2025 and 2024, respectively, an increase of $52.1 million, and our revenue was $810.4 million and $721.0 million during the six months ended December 31, 2025 and 2024, respectively, an increase of $89.4 million. We generated a net loss of $2.6 million and net income of $33.5 million during the three months ended December 31, 2025 and 2024, respectively, and a net loss of $5.6 million and net income of $42.5 million during the six months ended December 31, 2025 and 2024, respectively.

Previous wording

We are committed to undertaking measures to improve organizational agility and efficiency, while also seeking to drive greater profitability. On October 15, 2025, in furtherance of this commitment, the Company announced a reduction in force (RIF) impacting approximately 6% of employees. We incurred the majority of the charges related to the RIF in the three months ended September 30, 2025 and expect it to be substantially completed by December 31, 2025. The Company also intends to consider and pursue additional actions to improve structural efficiencies and optimize operations over the course of the year.

Current wording

We are committed to undertaking measures to improve organizational agility and efficiency, while also seeking to drive greater profitability. On October 15, 2025, in furtherance of this commitment, the Company announced a reduction in force (RIF) impacting approximately 6% of employees. We incurred the majority of the charges related to the RIF in the three months ended September 30, 2025 and the RIF was substantially completed by December 31, 2025. The Company also intends to consider and pursue additional actions to improve structural efficiencies and optimize operations over the course of the year.

Previous wording

(1)As of September 30, 2025, the total number of BILL AP/AR customers was approximately 173,500; the total number of spending businesses that used our BILL Spend and Expense solution was approximately 42,500; and the total number of Embedded Solutions and Other customers was approximately 282,500.

Current wording

(1)As of December 31, 2025, the total number of BILL AP/AR customers was approximately 177,500; the total number of spending businesses that used our BILL Spend and Expense solution was approximately 44,000; and the total number of Embedded Solutions and Other customers was approximately 277,000.

Previous wording

(2)During the three months ended September 30, 2025, the TPV by BILL AP/AR customers was approximately $74.7 billion; the total card payment volume transacted by spending businesses that used BILL Divvy Cards was approximately $6.2 billion; and the TPV transacted by Embedded Solutions and Other customers was approximately $8.4 billion.

Current wording

(2)During the three months ended December 31, 2025, the TPV by BILL AP/AR customers was approximately $79.9 billion; the total card payment volume transacted by spending businesses that used BILL Divvy Cards was approximately $6.5 billion; and the TPV transacted by Embedded Solutions and Other customers was approximately $8.7 billion. During the six months ended December 31, 2025, the TPV by BILL AP/AR customers was approximately $154.6 billion; the total card payment volume transacted by spending businesses that used BILL Divvy Cards was approximately $12.7 billion; and the TPV transacted by Embedded Solutions and Other customers was approximately $17.0 billion.

Previous wording

(3)During the three months ended September 30, 2025, the total number of transactions executed by BILL AP/AR customers was approximately 12.5 million; the total number of transactions executed by spending businesses that used BILL Divvy Cards was approximately 18.8 million; and the total number of transactions executed by Embedded Solutions and Other customers was approximately 2.0 million.

Current wording

(3)During the three months ended December 31, 2025, the total number of transactions executed by BILL AP/AR customers was approximately 12.8 million; the total number of transactions executed by spending businesses that used BILL Divvy Cards was approximately 19.8 million; and the total number of transactions executed by Embedded Solutions and Other customers was approximately 2.1 million. During the six months ended December 31, 2025, the total number of transactions executed by BILL AP/AR customers was approximately 25.4 million; the total number of transactions executed by spending businesses that used BILL Divvy Cards was approximately 38.5 million; and the total number of transactions executed by Embedded Solutions and Other customers was approximately 4.1 million.

Previous wording

To grow revenue from businesses using our solutions, we must deliver a product experience that helps them automate their back-office financial operations. The more they use and rely upon our product offerings to automate their operations, the more transactions they process on our platform. This metric provides an important indication of the aggregate value of transactions that businesses using our solutions are completing on our platform and is an indicator of our ability to generate revenue from businesses using our solutions. We define TPV as the total value of transactions that we process on our platform during a particular period, comprising transactions from BILL AP/AR customers, BILL Divvy Card transactions, and transactions executed by Embedded Solutions and Other customers. Our calculation of TPV is presented gross of payments that may be subsequently reversed. Such reversals comprised less than 2% of TPV during each of the three months ended September 30, 2025 and 2024.

Current wording

To grow revenue from businesses using our solutions, we must deliver a product experience that helps them automate their back-office financial operations. The more they use and rely upon our product offerings to automate their operations, the more transactions they process on our platform. This metric provides an important indication of the aggregate value of transactions that businesses using our solutions are completing on our platform and is an indicator of our ability to generate revenue from businesses using our solutions. We define TPV as the total value of transactions that we process on our platform during a particular period, comprising transactions from BILL AP/AR customers, BILL Divvy Card transactions, and transactions executed by Embedded Solutions and Other customers. Our calculation of TPV is presented gross of payments that may be subsequently reversed. Such reversals comprised less than 2% of TPV during each of the three and six months ended December 31, 2025 and 2024.

Previous wording

Service costs– Service costs consist primarily of costs that are directly attributed to processing customers’ and spending businesses' transactions (such as the cost of printing checks, postage for mailing checks, fees associated with the issuance and processing of card transactions, net of card network incentives, fees for processing payments), personnel-related costs, including stock-based compensation expenses, for our customer success and payment operations teams, outsourced support services for our customer success team, direct and amortized costs for implementing and integrating our cloud-based platform into our customers’ systems, and cloud payments infrastructure costs. We expect that service costs will increase in absolute dollars, but may fluctuate as a percentage of revenue from period to period, as we continue to invest in growing our business and based on whether or not we are the principal or the agent under arrangements with third parties.

Current wording

Service costs– Service costs consist primarily of costs that are directly attributed to processing customers’ and spending businesses' transactions (such as the cost of printing checks, postage for mailing checks, fees associated with the issuance and processing of card transactions, net of card network incentives, fees for processing payments), personnel-related costs, including stock-based compensation expenses, for our customer success and payment operations teams, outsourced support services for our customer success team, direct and amortized costs for implementing and integrating our cloud-based platform with our customers’ systems, and cloud payments infrastructure costs. We expect that service costs will increase in absolute dollars, but may fluctuate as a percentage of revenue from period to period, as we continue to invest in growing our business and based on whether or not we are the principal or the agent under arrangements with third parties.

Previous wording

Research and development (R&D) – R&D expenses consist primarily of personnel-related expenses, including stock-based compensation expenses, for our R&D teams, incurred in developing new products or enhancing existing products, and allocated overhead costs. We expense a substantial portion of R&D expenses as incurred. We believe that delivering new and enhanced functionality is critical to attract new customers and expand our relationship with existing customers. We expect to continue to make investments in and expand our offerings to enhance our customers’ experience and satisfaction, and to attract new customers. We expect our R&D expenses to increase in absolute dollars, but they may fluctuate as a percentage of revenue from period to period as we expand our R&D team to develop new products and product enhancements, including continued investments in our AI tools and offerings, such as AI agents. We capitalize certain software development costs that are attributable to developing new products and adding incremental functionality to our platform and amortize such costs into service costs over the estimated life of the new product or incremental functionality, which is generally three years.

Current wording

Research and development (R&D) – R&D expenses consist primarily of personnel-related expenses, including stock-based compensation expenses, for our R&D teams, incurred in developing new products or enhancing existing products, and allocated overhead costs. We expense a substantial portion of R&D expenses as incurred. We believe that delivering new and enhanced functionality is critical to attract new customers and expand our relationship with existing customers. We expect to continue to make investments in and expand our offerings to enhance our customers’ experience and satisfaction, and to attract new customers. We expect our R&D expenses to increase in absolute dollars, but they may fluctuate as a percentage of revenue from period to period as we expand our R&D team to develop new products and product enhancements, including continued investments in our AI tools and offerings, such as AI agents. We capitalize certain internal-use software development costs that are attributable to developing new products and adding incremental functionality to our platform and amortize such costs into service costs over the estimated life of the new product or incremental functionality, which is generally three years.

Previous wording

Depreciation and amortization – Depreciation and amortization consist of depreciation and amortization of property and equipment, and amortization of acquired intangibles, such as developed technology, customer relationship, and trade names. Amortization of capitalized internal-use software costs paid in cash are excluded.

Current wording

Depreciation and amortization – Depreciation and amortization consist of depreciation and amortization of property and equipment, and amortization of acquired intangibles, such as developed technology, and customer relationship. Amortization of capitalized internal-use software costs paid in cash are excluded.

Previous wording

(2)Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash of $4.5 million and $3.8 million during the three months ended September 30, 2025 and 2024, respectively, which are included in service costs in the condensed consolidated statements of operations.

Current wording

(2)Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash of $12.6 million and $17.1 million during the three and six months ended December 31, 2025, respectively, and $3.6 million and $7.4 million during the three and six months ended December 31, 2024, respectively, which are included in service costs in the condensed consolidated statements of operations.

Previous wording

Comparison of the three months ended September 30, 2025 and 2024

Current wording

Comparison of the three and six months ended December 31, 2025 and 2024

Previous wording

The following table sets forth our revenue during the three months ended September 30, 2025 and 2024, respectively (amounts in thousands):

Current wording

The following table sets forth our revenue during the three and six months ended December 31, 2025 and 2024, respectively (amounts in thousands):

Previous wording

Total revenue increased by $37.3 million during the three months ended September 30, 2025 as compared to the prior year period, primarily due to:

Current wording

Total revenue increased by $52.1 million and $89.4 million during the three and six months ended December 31, 2025, respectively, as compared to the prior year period, primarily due to:

Previous wording

•a $39.7 million increase in transaction fee revenue primarily due to increased total payment volume driven by the increase in customer adoption of our products; and

Current wording

•a $51.2 million and $90.8 million increase, respectively, in transaction fee revenue primarily due to increased total payment volume driven by the increase in customer adoption of our products; and

Previous wording

•a $3.4 million increase in subscription fee revenue primarily due to an increase in customers as compared to the same prior year period; offset by

Current wording

•a $4.3 million and $7.8 million increase, respectively, in subscription fee revenue primarily due to an increase in customers as compared to the same prior year period; offset by

Previous wording

•a $5.8 million decrease during the three months ended September 30, 2025 in interest on funds held for customers primarily due to lower yield driven by the decrease in interest rates.

Current wording

•a $3.4 million and $9.2 million decrease, respectively, in interest on funds held for customers primarily due to lower yield driven by the decrease in interest rates.

Previous wording

Cost of revenue, gross profit, and gross margin during the three months ended September 30, 2025 and 2024, respectively, were as follows (amounts in thousands):

Current wording

Cost of revenue, gross profit, and gross margin during the three and six months ended December 31, 2025 and 2024, respectively, were as follows (amounts in thousands):

Previous wording

(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash of $4.5 million and $3.8 million during the three months ended September 30, 2025 and 2024, respectively, which are included in service costs.

Current wording

(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash of $12.6 million and $17.1 million during the three and six months ended December 31, 2025, respectively, and $3.6 million and $7.4 million during the three and six months ended December 31, 2024, respectively, which are included in service costs.

Previous wording

Service costs increased by $12.5 million during the three months ended September 30, 2025 as compared to the prior year periods, primarily due to:

Current wording

Service costs increased by $12.9 million and $25.4 million during the three and six months ended December 31, 2025, respectively, as compared to the prior year periods, primarily due to:

Previous wording

•a $10.0 million increase in direct costs associated with the processing of our customers' payment transactions and data hosting services, which were driven by the increase in the number of customers and increased adoption of new product offerings; and

Current wording

•a $4.6 million and $14.6 million increase, respectively, in direct costs associated with the processing of our customers' payment transactions and data hosting services, which were driven by the increase in customer adoption of our products; and

Previous wording

Gross margin decreased to 80.5% during the three months ended September 30, 2025 as compared to 82.0% for the prior year period due to a change in mix of costs associated with processing of payments.

Current wording

Gross margin decreased to 79.8% and 80.2% during the three and six months ended December 31, 2025 as compared to 81.6% and 81.8% for the prior year period due to a higher amortization of capitalized internal-use software costs paid in cash.

Previous wording

Sales and marketing expenses increased by $22.9 million during the three months ended September 30, 2025 as compared to the prior year period, primarily due to the following:

Current wording

Sales and marketing expenses increased by $22.9 million and $45.8 million during the three and six months ended December 31, 2025, respectively as compared to the prior year period, primarily due to the following:

Previous wording

•a $19.2 million increase in rewards expense in connection with our BILL Divvy Cards as a result of increased transaction volume. During the three months ended September 30, 2025, rewards expense increased to 52% as a percentage of revenue from spend and expense interchange fees from 47% during the prior year period, primarily due to higher reward rates;

Current wording

•a $22.3 million and $41.5 million increase, respectively, in rewards expense in connection with our BILL Divvy Cards as a result of increased transaction volume. During each of the three and six months ended December 31, 2025, rewards expense increased to 52% as a percentage of revenue from spend and expense interchange fees from 48% during each of the prior year periods, primarily due to higher reward rates; and

Previous wording

Our sales and marketing expenses increased to 38% as a percentage of revenue during the three months ended September 30, 2025 from 35% during prior year period primarily due to higher reward rates when compared to prior year period.

Current wording

Our sales and marketing expenses remained flat at 37% as a percentage of revenue during the three months ended December 31, 2025 as compared to the prior year period. Our sales and marketing expenses increased to 38% as a percentage of revenue during the six months ended December 31, 2025 from 36% during prior year period primarily due to higher reward rates when compared to prior year period.

Previous wording

•a $2.5 million increase in consulting fees for outside services, including fees related to shareholders' activism; and

Current wording

•a $5.6 million and $8.1 million increase, respectively, in consulting fees for outside services, including fees related to shareholders' activism;

Previous wording

•a $4.8 million increase in personnel-related expense, including stock-based compensation expense, resulting from increase in headcount;

Current wording

•a $4.5 million increase, during the six months ended December 31, 2025, in personnel-related expense, including stock-based compensation expense, resulting from increase in headcount during the first fiscal quarter ended September 30, 2025 and a merit increase during the second fiscal quarter ended December 31, 2025; and

Previous wording

•a $1.9 million increase in provision for fraud losses driven by the increase in the volume of transactions processed during the current period.

Current wording

•a $2.0 million and $3.9 million increase, respectively, in losses from fraud driven by the increase in the volume of transactions processed during the current period.

Previous wording

Our general and administrative expenses remained flat at 19% as a percentage of our total revenue during the three months ended September 30, 2025 as compared to the prior year period.

Current wording

Our general and administrative expenses remained flat at 20% and 19% as a percentage of our total revenue during the three and six months ended December 31, 2025, respectively, as compared to the prior year periods.

Previous wording

Restructuring increased by $9 million during the three months ended September 30, 2025 due to the RIF. Refer to Note 12 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Current wording

Restructuring increased by $0.4 million and $9.3 million during the three and six months ended December 31, 2025, respectively, due to the RIF. Refer to Note 12 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Previous wording

•a $1.9 million increase in interest expense primarily due to borrowings from 2025 Credit Facility (as defined in Liquidity and Capital Resources below) in July, 2025;

Current wording

•a $2.1 million and $4.0 million decrease, respectively, due interest expense from the new 2025 Credit Facility (as defined in Liquidity and Capital Resources below); offset by

Previous wording

•a $2.3 million increase in interest income primarily due to a higher average balance of corporate funds; and

Current wording

•a $3.4 million and $5.8 million increase, respectively, in interest income, primarily due to a higher average balance of corporate funds.

Previous wording

We define non-GAAP gross profit as gross profit minus depreciation and amortization, and stock-based compensation and related payroll taxes charged to cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit, divided by total revenue. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table shows a reconciliation of our non-GAAP gross profit and non-GAAP gross margin to our gross profit and gross margin for the periods presented (amounts in thousands):

Current wording

We define non-GAAP gross profit as gross profit minus depreciation and amortization, and stock-based compensation and related payroll taxes charged to cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit, divided by total revenue. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table shows a reconciliation of our non-

Previous wording

(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash of $4.5 million and $3.8 million during the three months ended September 30, 2025 and 2024, respectively, which are included in service costs in the condensed consolidated statements of operations.

Current wording

(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash of $12.6 million and $17.1 million during the three and six months ended December 31, 2025, respectively, and $3.6 million and $7.4 million during the three and six months ended December 31, 2024, respectively, which are included in service costs in the condensed consolidated statements of operations.

Previous wording

As of September 30, 2025, our principal sources of liquidity were our cash and cash equivalents of $1.1 billion, our available-for-sale short-term investments of $1.2 billion, and our available undrawn Revolving Credit Facilities (as defined below) of $270.0 million. Our cash equivalents are comprised primarily of money market funds, certificates of deposit, and investments in debt securities with original maturities of three months or less at the time of purchase. Our short-term investments are comprised primarily of available-for-sale investments in corporate bonds, certificates of deposit, asset-backed securities, municipal bonds, and U.S. treasury securities with original maturities of more than three months. Our corporate deposits held at large multinational financial institutions and U.S. national or regional banks, may at times exceed federally insured limits. We monitor the financial strength of the financial institutions with which we do business to ensure they are financially sound and present minimal credit risk. We further believe the associated risk of concentration for our investments is mitigated by holding a diversified portfolio of highly rated investments consisting of the money market funds and short-term debt securities described above. We have a total borrowing capacity of $600.0 million from our Revolving Credit Facilities, and have drawn $330.0 million as of September 30, 2025. Our principal uses of cash are funding our operations and other working capital requirements, including the contractual and other obligations discussed below.

Current wording

As of December 31, 2025, our principal sources of liquidity were our cash and cash equivalents of $1.1 billion, our available-for-sale short-term investments of $1.1 billion, and our available undrawn Revolving Credit Facilities (as defined below) of $270.0 million. Our cash equivalents are comprised primarily of money market funds, certificates of deposit, and investments in debt securities with original maturities of three months or less at the time of purchase. Our short-term investments are comprised primarily of available-for-sale investments in corporate bonds, certificates of deposit, asset-backed securities, municipal bonds, and U.S. treasury securities with original maturities of more than three months. Our corporate deposits held at large multinational financial institutions and U.S. national or regional banks, may at times exceed federally insured limits. We monitor the financial strength of the financial institutions with which we do business to ensure they are financially sound and present minimal credit risk. We further believe the associated risk of concentration for our investments is mitigated by holding a diversified portfolio of highly rated investments consisting of the money market funds and short-term debt securities described above. We have a total borrowing capacity of $600.0 million from our Revolving Credit Facilities, and have drawn $330.0 million as of December 31, 2025. Our principal uses of cash are funding our operations and other working capital requirements, including the contractual and other obligations discussed below.

Previous wording

As of September 30, 2025 ,our principal commitments to settle our contractual obligations consisted of our 2025 Notes, 2027 Notes, 2030 Notes, and outstanding borrowings from our Revolving Credit Facilities as further discussed below. For additional discussion about our Notes and Revolving Credit Facilities, refer to Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. In addition, we have minimum commitments under our noncancellable operating lease agreements and agreements with certain vendors. There have been no material changes to our contractual obligations, commitments or litigation from those disclosed in Note 14 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (2025 10-K).

Current wording

As of December 31, 2025, our principal commitments to settle our contractual obligations consisted of our 2027 Notes, 2030 Notes, and outstanding borrowings from our Revolving Credit Facilities as further discussed below. For additional discussion about our Notes and Revolving Credit Facilities, refer to Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. In addition, we have minimum commitments under our noncancellable operating lease agreements and agreements with certain vendors. There have been no material changes to our contractual obligations or litigation from those disclosed in Note 14 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (2025 10-K), except for commitments disclosed in Note 11.

Previous wording

In August 2025, our board of directors authorized an additional share repurchase program pursuant to which we announced our intention to purchase up to $300.0 million of our outstanding shares of common stock (the August 2025 Share Repurchase Program). We may repurchase such shares from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The August 2025 Share Repurchase Program has no mandated end date, may be suspended, discontinued or modified at any time, and does not obligate us to acquire any amount of common stock. We repurchased and subsequently retired 302,715 shares for $16.3 million under the August 2025 Share Repurchase Program, including the immaterial amount of accrued excise tax, during the three months ended September 30, 2025. As of September 30, 2025, approximately $283.7 million remained available for future share repurchases under the August 2025 Share Repurchase Program.

Current wording

In August 2025, our board of directors authorized an additional share repurchase program pursuant to which we announced our intention to purchase up to $300.0 million of our outstanding shares of common stock (the August 2025 Share Repurchase Program). We may repurchase such shares from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The August 2025 Share Repurchase Program has no mandated end date, may be suspended, discontinued or modified at any time, and does not obligate us to acquire any amount of common stock. For additional discussion about our share repurchase program activity during the period and shares available for future repurchases, refer to Note 8 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Net cash provided by operating activities increased to $96.9 million during the three months ended September 30, 2025, from $88.6 million during the prior year period. The net change was due mainly to the increase in our revenue during the period.

Current wording

Net cash provided by operating activities increased to $202.2 million during the six months ended December 31, 2025, from $167.3 million during the prior year period. The net change was due mainly to the increase in our revenue during the period.

Previous wording

Our net cash used in investing activities decreased to $108.7 million during the three months ended September 30, 2025, from $139.5 million during the prior year period. The net change was primarily due to the decrease in purchases of corporate and customer short-term investments, offset by a decrease in proceeds from maturities of corporate and customer short-term investments.

Current wording

Our net cash provided by investing activities was $27.9 million during the six months ended December 31, 2025, compared to net cash used of $129.7 million during the prior year period. The net change was primarily due to the decrease in purchases of corporate and customer short-term investments and net increase in loans held for investment, offset by a decrease in proceeds from maturities of corporate and customer short-term investments and net increase in acquired cards receivable balance.

Previous wording

Our cash proceeds from our financing activities consist primarily of proceeds from line of credit borrowings. Our cash usage for our financing activities consists primarily of repurchases of shares. Additionally, the increase or decrease in our net cash from financing activities is impacted by the change in customer fund deposits liability and prepaid card deposits.

Current wording

Our cash proceeds from our financing activities consist primarily of proceeds from line of credit borrowings. Our cash usage for our financing activities consists primarily of repurchases of shares and repayments of convertible senior notes. Additionally, the increase or decrease in our net cash from financing activities is impacted by the change in customer fund deposits liability and prepaid card deposits.