BILL Q4 Earnings Call Highlights

Key Points

• Strong fourth-quarter performance: Core revenue rose 16% year over year to $400.5 million, while non-GAAP operating margin reached 23% and non-GAAP net income increased 53% to $94 million.
• AI and platform adoption accelerated: More than 175,000 businesses used BILL’s AI agents, while customers using both its AP/AR and Spend & Expense products grew 35% year over year. BILL is shifting its sales organization toward a unified platform strategy.
• Fiscal 2027 outlook remains positive: BILL forecast 11%–14% core revenue growth, $421 million–$451 million in non-GAAP operating income and EPS of $3.56–$3.79. The company also repurchased about $300 million of stock during the quarter.

BILL NYSE: BILL said its fiscal fourth quarter of 2026 was marked by organizational restructuring, expanded use of artificial intelligence tools and continued profitability gains, as the company moves toward a unified platform sales strategy and targets low-double-digit to mid-teens core revenue growth over the longer term.

Chairman, CEO and Founder René Lacerte said the company completed organizational changes intended to accelerate its transition to an “AI-native” business. Core revenue grew 16% year over year in the fourth quarter, while non-GAAP operating margin exceeded 23%.

AI adoption expands across financial workflows

Lacerte said more than 175,000 businesses have used BILL’s AI agents across spend and expense and accounts payable functions. The company’s W-9 agent, which handles outreach, collection and IRS validation, was used by more than 40,000 organizations after more than tripling sequentially. The agent has collected more than 240,000 W-9 forms, according to the company.

BILL’s invoice coding agent, launched in February, has been used by more than 60,000 companies and eliminated about 90% of coding steps for a multi-line invoice, Lacerte said. The company said the tool reduced processing time across its accounts payable customers by nearly half.

Its touchless transactions agent, made generally available to Spend & Expense customers in late April, automated more than 7 million transaction fields for 30,000 customers. Meanwhile, the Pay For You agent completed more than 30,000 card transactions without human interaction during the quarter.

The company also highlighted AI-enabled underwriting in its invoice financing business. Invoice financing volume and revenue each grew about 30% year over year in fiscal 2026, while the expected loss rate improved by more than 50%, Lacerte said.

“As more and more transactions are executed on our platform, our models get smarter, our risk selection improves, and we can extend more credit at better economics for the customer and us,” Lacerte said.

Restructuring and platform strategy

BILL simplified its structure, reduced management layers and shifted from a hybrid general-manager model to a functional model during the fourth quarter. The company appointed Jonathan Leaf as chief revenue officer, promoted Mike Cieri to chief product officer and named founding engineer Eric Chan as chief technology officer.

For fiscal 2027, the company identified three priorities: delivering AI-native customer experiences, acquiring higher-return-on-investment customers and expanding value across the platform.

As part of that strategy, BILL trained its full sales organization to sell the company’s products as a single platform rather than as individual components. The number of customers using both its accounts payable/accounts receivable and Spend & Expense offerings grew 35% year over year in the fourth quarter. Customers using both products in the current and prior-year fourth quarters had net revenue retention of 111%.

BILL also said it is shifting its embedded-finance partner strategy toward its standardized Embed 2.0 platform and away from custom-built bank channel solutions. Lacerte said the company does not expect every existing bank-channel relationship to continue under the new approach.

The company said one embedded partner more than tripled both transaction payment volume and units sequentially from the third quarter to the fourth quarter.

Fourth-quarter results and capital allocation

Chief Financial Officer Rohini Jain reported fourth-quarter core revenue of $400.5 million, up 16% from a year earlier. Non-GAAP operating margin was 23%, up 370 basis points sequentially and 860 basis points year over year. Non-GAAP net income was $94 million, rising 22% sequentially and 53% year over year.

Jain said the profitability outperformance reflected earlier-than-planned workforce-reduction timing as well as lower fraud and credit losses. The restructuring generated close to the previously projected $110 million in gross savings, she said, with BILL planning to reinvest approximately $30 million, implying about $80 million in net benefit.

• AP/AR core revenue grew 10% year over year, while transaction revenue rose 10% to $131 million.
• Spend & Expense revenue increased 23% to $185 million, and card payment volume rose 20%.
• AP/AR total payment volume exceeded expectations by roughly 300 basis points, driven largely by larger customers and ACH volume.
• Same-store-sales TPV grew 6% year over year, the highest rate since the first quarter of fiscal 2023.

During the quarter, BILL repurchased about $300 million of stock at an average price of $35.31 per share. Since its third-quarter earnings call, the company has retired about 15 million shares, representing nearly 14% of common shares outstanding. It had $400 million remaining under its $1 billion authorization as of the call.

Fiscal 2027 outlook and accounting change

For the first quarter of fiscal 2027, BILL forecast total revenue of $432.5 million to $442.5 million and core revenue of $398 million to $408 million, representing 11% to 14% year-over-year core revenue growth. It expects non-GAAP operating income of $112.5 million to $117.5 million and non-GAAP earnings per share of $0.96 to $1.00.

For the full fiscal year, the company expects total revenue of $1.807 billion to $1.857 billion and core revenue of $1.669 billion to $1.719 billion. The core revenue forecast represents growth of 11% to 14% from the prior year. BILL expects non-GAAP operating income of $421 million to $451 million, or a 23% to 24% margin, and non-GAAP EPS of $3.56 to $3.79.

Jain said the company expects more than $125 million of GAAP profit in fiscal 2027. BILL also plans to begin reporting revenue net of rewards expense beginning in the first quarter, with rewards expense shifting from sales and marketing to a reduction of subscription and transaction fees. Jain said the presentation change will not affect operating income or net income.

The company said it expects to exceed its internally defined Rule of 40 threshold by the end of fiscal 2027, measuring growth in total revenue less rewards combined with non-GAAP operating margin.

About BILL (NYSE:BILL)

BILL Holdings, Inc provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services.

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