BILL Holdings, Inc.

Previous wording

We efficiently reach SMBs through our proven direct and indirect go-to-market strategies. We acquire new businesses to use our solutions directly through digital marketing and inside sales, and indirectly through accounting firms, financial institution partnerships, and software providers. As of December 31, 2025, our partners included some of the most trusted brands in the financial services business, including more than 85 of the top 100 accounting firms and six of the top ten largest financial institutions for SMBs in the United States (U.S.), including JPMorgan Chase, Bank of America, Wells Fargo Bank, and American Express. As we add customers and partners, we expect our network to continue to grow organically.

Current wording

We efficiently reach SMBs through our proven direct and indirect go-to-market strategies. We acquire new businesses to use our solutions directly through digital marketing and inside sales, and indirectly through accounting firms, financial institution partnerships, and software providers. As of March 31, 2026, our partners included some of the most trusted brands in the financial services business, including more than 85 of the top 100 accounting firms and some of the largest financial institutions for SMBs in the United States (U.S.). As we add customers and partners, we expect our network to continue to grow organically.

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 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.

Current wording

We recently launched BILL AI, including our first suite of AI agents, which are designed to simplify and accelerate SMB workflows. Examples include W-9 filings, customer support and assistance, touchless transactions, automatic reconciliations and complex invoice coding. We have enhanced the capabilities of our Supplier Payments Plus product with expanded digital acceptance and greater control of preferences. 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. Finally, we recently launched BILL Travel, our travel management offering, to empower our customers' employees to book trips and track expenses through our platform.

Previous 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.

Current wording

We have grown rapidly and scaled our business operations in recent periods. Our revenue was $406.6 million and $358.2 million during the three months ended March 31, 2026 and 2025, respectively, representing an increase of $48.3 million. Our revenue was $1,217.0 million and $1,079.2 million during the nine months ended March 31, 2026 and 2025, respectively, representing an increase of $137.8 million. We generated a net income of $12.8 million and a net loss of $11.6 million during the three months ended March 31, 2026 and 2025, respectively, and a net income of $7.2 million and $30.9 million during the nine months ended March 31, 2026 and 2025, respectively.

Previous wording

Current macroeconomic conditions and uncertainties, including volatility in interest rates and borrowing costs, inflation and currency exchange rates, and recent changes in international trading relationships, supply chains and U.S. and foreign tariff rates have impacted and could continue to impact our business and the SMBs we serve. SMBs are particularly susceptible to changes in overall economic and financial conditions, and certain SMBs may, in the event of adverse economic conditions or a recession or any inability to access financing, moderate their expenditures, shift to lower-cost methods of payment, or cease operations entirely. Reductions in interest rates by the U.S. Federal Reserve Bank may improve financial conditions for SMBs, but there can be no assurance of future rate cuts or any corresponding increase in economic activity. At the same time, such reductions in interest rates have the effect of reducing the interest on funds held for customers we generate. We intend to continue to monitor macroeconomic conditions closely and to take appropriate financial or operational actions in response to such conditions.

Current wording

Current macroeconomic conditions and uncertainties, including volatility in interest rates and borrowing costs, inflation and currency exchange rates, the impact of the ongoing rapid development and adoption of new AI capabilities, the conflict in Iran and related supply chain disruptions, and recent changes in international trading relationships and U.S. and foreign tariff rates have impacted and could continue to impact our business and the SMBs we serve. SMBs are particularly susceptible to changes in overall economic and financial conditions, and certain SMBs may, in the event of adverse economic conditions or a recession or any inability to access financing, moderate their expenditures, shift to lower-cost methods of payment, or cease operations entirely. Reductions in interest rates by the U.S. Federal Reserve Bank may improve financial conditions for SMBs, but there can be no assurance of future rate cuts or any corresponding increase in economic activity. At the same time, such reductions in interest rates have the effect of reducing the interest on funds held for customers we generate. We intend to continue to monitor macroeconomic conditions closely and to take appropriate financial or operational actions in response to such conditions.

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 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.

Current wording

We are committed to undertaking measures to improve organizational agility and efficiency, while also seeking to drive greater profitability. In furtherance of this commitment, we have undertaken or announced several reductions in force (RIFs) in recent periods, including a RIF impacting approximately 6% of employees in October 2025, a smaller RIF in March 2026, and, in May 2026, we announced our intention to execute an additional RIF impacting up to 30% of our workforce. We continue to consider appropriate actions to improve structural efficiencies and optimize operations in future periods.

Previous wording

We market our BILL Spend and Expense software and BILL Divvy Card, a charge card for business expenses, to potential spending businesses and issue business-purpose charge cards through our card issuing partner banks (Issuing Banks). When a business applies for a BILL Divvy Card, we utilize, on behalf of the Issuing Bank, proprietary risk management capabilities to confirm the identity of the business, and perform a credit underwriting process to determine if the business is eligible for a BILL Divvy Card pursuant to our credit policies. Once approved for a BILL Divvy Card the spending business is provided a credit limit and can use the BILL Spend and Expense software to request virtual cards or physical cards, establish budgets, and manage spend.

Current wording

We market our BILL Spend and Expense software and BILL Divvy Card, a charge card for business credit and expense management, to potential spending businesses and issue business-purpose charge cards through our card issuing partner banks (Issuing Banks). When a business applies for a BILL Divvy Card, we utilize, on behalf of the Issuing Bank, proprietary risk management capabilities to confirm the identity of the business, and perform a credit underwriting process to determine if the business is eligible for a BILL Divvy Card pursuant to our credit policies. Once approved for a BILL Divvy Card, the spending business is provided a credit limit and can use the BILL Spend and Expense software to request virtual cards or physical cards, establish budgets, and manage spend.

Previous wording

The cards on our platform are issued by Cross River Bank, a Federal Deposit Insurance Corporation (FDIC)-insured New Jersey state chartered bank, and WEX Bank and Web Bank, FDIC-insured Utah state chartered banks. Under our arrangements with the Issuing Banks, we must comply with their respective credit policies and underwriting procedures, and the Issuing Banks maintain ultimate authority to decide whether to issue a card or approve a transaction. We are responsible for all fraud and unauthorized use of a card and generally are required to hold the Issuing Bank harmless from such losses unless claims regarding fraud or unauthorized use are due to the sole gross negligence of the Issuing Bank.

Current wording

The cards on our platform are issued by Cross River Bank, a Federal Deposit Insurance Corporation (FDIC)-insured New Jersey state chartered bank, and WEX Bank and WebBank, FDIC-insured Utah state chartered banks. Under our arrangements with the Issuing Banks, we must comply with their respective credit policies and underwriting procedures, and the Issuing Banks maintain ultimate authority to decide whether to issue a card or approve a transaction. We are responsible for all fraud and unauthorized use of a card and generally are required to hold the Issuing Bank harmless from such losses unless claims regarding fraud or unauthorized use are due to the sole gross negligence of the Issuing Bank.

Previous wording

In order to purchase the participation rights in the receivables, we maintain certain funding arrangements, including warehouse facilities. We typically fund some portion of these participation interest purchases by borrowing under our credit facilities, although we may also fund purchases using corporate cash.

Current wording

In order to ensure we have the operational flexibility and liquidity to purchase the participation rights in the receivables, we maintain certain funding arrangements, including warehouse facilities. We typically fund some portion of these participation interest purchases by borrowing under our credit facilities, although most purchases are funded using corporate cash.

Previous 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.

Current wording

(1)As of March 31, 2026, the total number of BILL AP/AR customers was approximately 181,500; the total number of spending businesses that used our BILL Spend and Expense solution was approximately 45,600; and the total number of Embedded Solutions and Other customers was approximately 266,700.

Previous 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.

Current wording

(2)During the three months ended March 31, 2026, the Total Payment Volume (TPV) by BILL AP/AR customers was approximately $73.9 billion; the total card payment volume transacted by spending businesses that used BILL Divvy Cards was approximately $6.6 billion; and the TPV transacted by Embedded Solutions and Other customers was approximately $8.2 billion. During the nine months ended March 31, 2026, the TPV by BILL AP/AR customers was approximately $228.6 billion; the total card payment volume transacted by spending businesses that used BILL Divvy Cards was approximately $19.3 billion; and the TPV transacted by Embedded Solutions and Other customers was approximately $25.2 billion.

Previous 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.

Current wording

(3)During the three months ended March 31, 2026, the total number of transactions executed by BILL AP/AR customers was approximately 12.1 million; the total number of transactions executed by spending businesses that used BILL Divvy Cards was approximately 19.5 million; and the total number of transactions executed by Embedded Solutions and Other customers was approximately 2.4 million. During the nine months ended March 31, 2026, the total number of transactions executed by BILL AP/AR customers was approximately 37.4 million; the total number of transactions executed by spending businesses that used BILL Divvy Cards was approximately 58.1 million; and the total number of transactions executed by Embedded Solutions and Other customers was approximately 6.5 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 and six months ended December 31, 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 nine months ended March 31, 2026 and 2025.

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 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.

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, and 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

General and administrative – General and administrative expenses consist primarily of personnel-related expenses, including stock-based compensation expenses, for finance, corporate business operations, risk management, legal and compliance, human resources, information technology, costs incurred for external professional services, losses from fraud, and allocated overhead costs. We expect to incur additional general and administrative expenses as we explore various growth initiatives, which include incurring higher costs for professional services. We also expect to increase the size of our general and administrative functions to support the growth in our business. As a result, we expect that our general and administrative expenses will increase in absolute dollars but may fluctuate as a percentage of revenue from period to period.

Current wording

General and administrative – General and administrative expenses consist primarily of personnel-related expenses, including stock-based compensation expenses, for finance, corporate business operations, risk management, legal and compliance, human resources, and information technology functions, costs incurred for external professional services, losses from fraud, and allocated overhead costs. We expect to incur additional general and administrative expenses as we explore various growth initiatives, which include incurring higher costs for professional services. We also expect to increase the size of our general and administrative functions to support the growth in our business. As a result, we expect that our general and administrative expenses will increase in absolute dollars but may fluctuate as a percentage of revenue from period to period.

Previous wording

Provision for expected credit losses – Provision for expected credit losses represents the amount of expense required to maintain the allowance for expected credit losses on our consolidated balance sheets, which represents management’s estimate of expected credit losses. In the event that our receivables outperform expectation and/or we reduce our expectation of credit losses in future periods, we may release reserves and thereby reduce the provision for expected credit losses. The provision is determined based on our estimate of expected credit losses on acquired cards receivables, loans held for investment and accounts receivable on our balance sheets, changes in our estimate of expected credit losses on receivables outstanding and loans held for investment as of the end of the period and the net charge-offs incurred in the period.

Current wording

Provision for expected credit losses – Provision for expected credit losses represents the amount of expense required to maintain the allowance for expected credit losses on our consolidated balance sheets, which represents management’s estimate of expected credit losses. In the event that our receivables outperform expectation and/or we reduce our expectation of credit losses in future periods, we may release reserves and thereby reduce the provision for expected credit losses. The provision is determined based on our estimate of expected credit losses on acquired card receivables, loans held for investment and accounts receivable on our balance sheets, changes in our estimate of expected credit losses on receivables outstanding and loans held for investment as of the end of the period and the net charge-offs incurred in the period.

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, and customer relationship. Amortization of capitalized internal-use software costs paid in cash are excluded.

Current wording

Depreciation and amortization – Depreciation and amortization consists 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 is excluded.

Previous wording

Restructuring – Restructuring costs consist primarily of employee severance and other employment termination benefits related to the RIF. Additionally, these costs may include contract termination expenses and other costs related to the execution of our efforts to improve organizational agility and efficiency, while also seeking to drive greater profitability. 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 – Restructuring costs consist primarily of employee severance and other employment termination benefits related to the RIFs. Additionally, these costs may include contract termination expenses and other costs related to the execution of our efforts to improve organizational agility and efficiency, while also seeking to drive greater profitability. 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

(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.

Current wording

(2)Depreciation and amortization does not include amortization of capitalized internal-use software costs paid in cash of $7.9 million and $25.0 million during the three and nine months ended March 31, 2026, respectively, and $3.6 million and $10.9 million during the three and nine months ended March 31, 2025, respectively, which are included in service costs and general and administrative in the condensed consolidated statements of operations.

Previous wording

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

Current wording

The following table sets forth our revenue during the three and nine months ended March 31, 2026 and 2025, respectively (amounts in thousands):

Previous 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:

Current wording

Total revenue increased by $48.3 million and $137.8 million during the three and nine months ended March 31, 2026, respectively, as compared to the prior year period, primarily due to:

Previous 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

Current wording

•a $44.5 million and $135.3 million increase, respectively, in transaction fees primarily due to increased total payment volume driven by the increase in customer adoption of our products; and

Previous 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

Current wording

•a $6.3 million and $14.1 million increase, respectively, in subscription fees primarily due to an increase in customers as compared to the same prior year period; partially offset by

Previous 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.

Current wording

•a $2.5 million and $11.7 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 and six months ended December 31, 2025 and 2024, respectively, were as follows (amounts in thousands):

Current wording

Cost of revenue, gross profit, and gross margin during the three and nine months ended March 31, 2026 and 2025, 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 $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.

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 $7.2 million and $23.5 million during the three and nine months ended March 31, 2026, respectively, and $3.6 million and $10.9 million during the three and nine months ended March 31, 2025, respectively, which are included in service costs.

Previous 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:

Current wording

Service costs increased by $6.0 million and $31.4 million during the three and nine months ended March 31, 2026, respectively, as compared to the prior year periods, primarily due to:

Previous 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

Current wording

•a $3.8 million and $18.4 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

•a $9.4 million and $11.9 million increase, respectively, in other costs, primarily from a $8.2 million and $8.9 million increase in amortization of capitalized internal-use software costs paid in cash.

Current wording

•a $4.0 million and $15.9 million increase, respectively, in other costs, primarily from a $3.6 million and $12.5 million increase, respectively, in amortization of capitalized internal-use software costs and a $1.2 million and $3.0 million increase, respectively, in software licenses and subscriptions; partially offset by

Previous wording

Our research and development expenses decreased to 20% and 19% as a percentage of revenue during the three and six months ended December 31, 2025, respectively, as compared to 22% for each of the prior year periods, driven by the revenue growth and a higher number of initiatives subject to capitalization of internal-use software costs.

Current wording

Our research and development expenses decreased to 18% and 20% as a percentage of revenue during the three and nine months ended March 31, 2026, respectively, as compared to 24% and 22% for the prior year periods, driven by the revenue growth and a higher number of initiatives subject to capitalization of internal-use software costs.

Previous 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

Current wording

•a $58.4 million increase in rewards expense in connection with our BILL Divvy Cards as a result of increased transaction volume. Rewards expense increased to 51% as a percentage of revenue from spend and expense interchange fees from 48% during the prior year period, primarily due to higher reward rates;

Previous 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.

Current wording

Our sales and marketing expenses remained flat at 38% and 37% as a percentage of revenue during the each of the three and nine months ended March 31, 2026, respectively, as compared to the prior year periods.

Previous wording

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

Current wording

•a $9.1 million increase in consulting fees for outside services, including fees related to shareholders' activism;

Previous 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.

Current wording

•a $3.2 million increase in losses from fraud driven by the increase in the volume of transactions processed during the current period; and

Previous 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.

Current wording

Our general and administrative expenses decreased to 18% and 19% as a percentage of our total revenue during the three and nine months ended March 31, 2026, respectively, as compared to 21% and 20% for the prior year periods, primarily due to revenue growth.

Previous wording

Provision for expected credit losses increased by $1.3 million during the three months ended December 31, 2025 as compared to the prior year period, primarily due to the following:

Current wording

Provision for expected credit losses increased by $3.9 million and $0.6 million during the three and nine months ended March 31, 2026, respectively, as compared to the prior year periods.

Previous wording

•a $9.6 million increase from acquired card receivables related to portfolio growth, an increase in delinquencies and a release of the allowance for expected credit losses during the three months ended December 31, 2024 as a result of a decrease in delinquencies during that period; offset by

Current wording

Provision for expected credit losses from acquired card receivables increased by $3.5 million and $9.9 million during the three and nine months ended March 31, 2026, respectively, as compared to the prior year periods, primarily due to portfolio growth, an increase in delinquencies and a release of $5.7 million of the allowance for expected credit losses during the three months ended March 31, 2025 as a result of refinements to the credit loss methodology during that period.

Previous wording

Provision for expected credit losses decreased by $3.3 million during the six months ended December 31, 2025 as compared to the prior year period, primarily due to a $9.6 million decrease related to the improvement in the delinquency performance of loans held for investment, offset by a $6.4 million increase primarily related to portfolio growth in acquired card receivable.

Current wording

Provision for expected credit losses from loans held for investment decreased during the nine months ended March 31, 2026 as compared to the prior year period, primarily due to improvement in the delinquency performance of loans held for investment, a decrease to estimated loss rates in the current period and an increase to estimated loss rates during the prior year periods, which were partially offset by portfolio growth.

Previous wording

Depreciation and amortization increased by $4.6 million and $3.5 million during the three and six months ended December 31, 2025, respectively, as compared to the prior year periods, primarily due to higher amortization of capitalized internal-use software costs during the periods.

Current wording

Depreciation and amortization increased by $2.1 million and $5.6 million during the three and nine months ended March 31, 2026, respectively, as compared to the prior year periods, primarily due to higher amortization of capitalized internal-use software costs during the periods.

Previous 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.

Current wording

Restructuring increased by $5.0 million and $14.3 million during the three and nine months ended March 31, 2026, respectively, due to the RIFs undertaken during the current fiscal year. 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 $40.5 million decrease due to a gain on debt extinguishment recognized in prior year periods resulting from the partial repurchase of our 2025 Notes and 2027 Notes;

Current wording

•a $40.6 million decrease due to a gain on debt extinguishment recognized in prior year periods resulting from the partial repurchase of our 2025 Notes and 2027 Notes (each as defined in Liquidity and Capital Resources below);