BILL (BILL) Q4 2026: Revenue Growth Continues, Profitability Challenges Persist — Cautiously Optimistic

BILL Holdings, Inc. (NYSE: BILL) reported its fourth quarter and fiscal year 2026 financial results, showcasing a notable increase in revenue but continued challenges in achieving profitability. Total revenue for Q4 2026 reached $436.2 million, reflecting a 14% increase year-over-year. Core revenue, which includes subscription and transaction fees, was $400.5 million, up 16% year-over-year.

Despite the positive revenue growth, the company reported a net loss of $18.5 million, or $0.19 per share, compared to a net loss of $7.1 million, or $0.07 per share, in the same quarter last year. This indicates a disappointing quarter for shareholders, as the losses widened despite revenue growth.

Key Financial Metrics:

• Q4 Total Revenue: $436.2 million (+14% YoY)
• Q4 Core Revenue: $400.5 million (+16% YoY)
• Q4 Subscription Fees: $76.2 million (+11% YoY)
• Q4 Transaction Fees: $324.3 million (+17% YoY)
• Q4 Gross Profit: $356.2 million (81.7% gross margin)
• Q4 Operating Loss: $34.3 million (compared to a loss of $22.3 million in Q4 2025)
• Q4 Net Loss: $18.5 million ($0.19 per share, compared to a loss of $7.1 million or $0.07 per share in Q4 2025)

Fiscal Year Highlights:

• FY26 Total Revenue: $1.7 billion (+13% YoY)
• FY26 Core Revenue: $1.5 billion (+16% YoY)
• FY26 Operating Loss: $73.4 million (improved from a loss of $80.6 million in FY25)
• FY26 Net Loss: $11.2 million ($0.11 per share, compared to net income of $23.8 million or $0.23 per share in FY25)

The company also reported a non-GAAP operating income of $101.6 million for Q4, which is an 80% increase year-over-year. This suggests that while BILL is growing its revenue, it is still grappling with significant operating losses on a GAAP basis.

Shareholder Returns and Guidance

BILL repurchased approximately 8.4 million shares of its common stock in Q4 for a total cost of approximately $300 million. This move indicates management's confidence in the company's long-term prospects, despite the current profitability challenges.

Looking ahead, BILL provided guidance for Q1 FY27, projecting total revenue between $432.5 million and $442.5 million, representing a year-over-year growth of 9% to 12%. Core revenue is expected to be between $398.0 million and $408.0 million, with a similar growth rate. This guidance reflects management's optimism about continued revenue growth, particularly with the increasing adoption of AI capabilities within its platform.

Analyst View

Overall, while the revenue growth is encouraging, the widening losses are a concern for shareholders. The company’s ability to transition from a loss-making position to profitability will be critical in the upcoming quarters. Investors should closely monitor BILL's progress in achieving GAAP profitability and the effectiveness of its AI initiatives, which are expected to drive future growth.

Forward Catalyst

Investors should watch for the upcoming Q1 FY27 results, particularly how the company manages its operating expenses and whether it can sustain its revenue growth trajectory while moving towards profitability. The anticipated changes in revenue presentation, which will net rewards expenses directly from core revenue, may also provide clearer insights into the company's financial health moving forward.

Note: The following tables are in thousands.

	Three Months Ended	Year Ended
	June 30, 2026	June 30, 2025
Revenue
Subscription and transaction fees	$400,482	$1,504,776
Interest on funds held for customers	$35,704	$148,411
Total revenue	$436,186	$1,653,187
Cost of revenue
Service costs	$67,825	$265,808
Depreciation and amortization	$12,170	$49,487
Total cost of revenue	$79,995	$315,295
Gross profit	$356,191	$1,337,892
Operating expenses
Research and development costs	$63,090	$300,571
Sales and marketing	$158,331	$616,211
General and administrative	$70,710	$299,410
Provision for expected credit losses	$13,503	$71,056
Depreciation and amortization	$8,241	$33,169
Restructuring	$76,569	$—
Total operating expenses	$390,444	$1,411,178
Operating loss	$-34,253	$-73,447
Other income	$14,226	$63,316
Income (loss) before provision for income taxes	$-20,027	$-10,131
Provision for (benefit from) income taxes	$-1,551	$1,110
Net income (loss)	$-18,476	$-11,241
Net income (loss) per share attributable to common stock
Basic	$-0.19	$-0.11
Diluted	$-0.19	$-0.11
Weighted-average shares used to compute net income (loss) per share attributable to common stock
Basic	97,896	99,918
Diluted	97,896	99,918

Note: The following tables are in thousands.

ASSETS	June 30, 2026	June 30, 2025
Current assets:
Cash and cash equivalents	$1,031,053	$1,038,346
Short-term investments	$906,456	$1,180,110
Accounts receivable, net	$30,995	$32,341
Acquired card receivables, net	$811,807	$685,108
Prepaid expenses and other current assets	$302,158	$258,418
Funds held for customers	$4,352,633	$4,044,470
Total current assets	$7,435,102	$7,238,793
Non-current assets:
Operating lease right-of-use assets, net	$47,821	$56,086
Property and equipment, net	$144,945	$116,611
Intangible assets, net	$162,146	$222,805
Goodwill	$2,396,509	$2,396,509
Other assets	$31,616	$33,178
Total assets	$10,218,139	$10,063,982
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$9,637	$16,293
Accrued compensation and benefits	$32,930	$39,581
Deferred revenue	$19,377	$22,435
Other accruals and current liabilities	$387,259	$252,455
Borrowings from credit facilities	$—	$180,005
Convertible senior notes, net	$123,057	$33,421
Customer fund deposits	$4,352,633	$4,044,470
Total current liabilities	$4,924,893	$4,588,660
Non-current liabilities:
Deferred revenue	$333	$285
Operating lease liabilities	$48,468	$58,372
Borrowings from credit facilities	$330,000	$—
Convertible senior notes, net	$1,383,066	$1,501,044
Other long-term liabilities	$777	$1,581
Total liabilities	$6,687,537	$6,149,942
Stockholders' equity:
Common stock	$2	$2
Additional paid-in capital	$5,626,327	$5,414,645
Accumulated other comprehensive income (loss)	$-6,415	$10,197
Accumulated deficit	$-2,089,312	$-1,510,804
Total stockholders' equity	$3,530,602	$3,914,040
Total liabilities and stockholders' equity	$10,218,139	$10,063,982

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