BILL (NYSE:BILL) delivered higher fourth-quarter revenue and a substantial improvement in adjusted earnings on Wednesday, although the financial operations software provider guided for a slower pace of expansion in fiscal 2027 as it prepares to revise the accounting treatment of rewards expenses.
Total revenue for the fourth quarter increased 14% year on year to $436.2 million. Core revenue, which includes subscription and transaction fees, advanced 16% to $400.5 million.
Subscription revenue grew 11% to $76.2 million, while transaction fee revenue increased 17% to $324.3 million. BILL shares responded positively, rising 2.7% in U.S. premarket trading by 04:06 ET.
Adjusted operating profit jumps 80%
Profitability improved significantly on an adjusted basis, with non-GAAP operating income climbing 80% to $101.6 million from $56.4 million in the same period last year.
Non-GAAP net income reached $94 million, equivalent to 84 cents per diluted share, compared with $61.6 million, or 53 cents per share, a year earlier.
The GAAP figures remained in negative territory, however. BILL recorded a fourth-quarter net loss of $18.5 million, widening from a $7.1 million loss in the prior-year period.
For the full 2026 fiscal year, total revenue rose 13% to $1.65 billion and core revenue increased 16% to $1.50 billion. Transaction fees grew 18% to $1.21 billion, contributing to a 35% increase in non-GAAP operating income to $323.7 million.
BILL posted a full-year GAAP net loss of $11.2 million, reversing the $23.8 million net profit reported in fiscal 2025.
Payment volumes and customer base expand
The company finished the fiscal year with 479,300 businesses using its products, while fourth-quarter payment volume increased 14% year on year to $98 billion.
BILL also continued returning capital to shareholders, repurchasing approximately 8.4 million shares for around $300 million during the quarter.
These operating metrics accompanied continued growth in the company’s core subscription and transaction businesses, even as management adopted a more measured stance towards the coming fiscal year.
BILL forecasts slower revenue growth for FY27
For fiscal 2027, BILL expects total revenue of between $1.81 billion and $1.86 billion, representing annual growth of approximately 9% to 12%.
Core revenue is forecast at $1.67 billion to $1.72 billion, implying growth of 11% to 14%. Non-GAAP operating income is expected to reach between $421 million and $451 million, while non-GAAP diluted earnings per share are projected at $3.56 to $3.79.
BTIG analyst Andrew Harte suggested management may have deliberately left some room in its projections.
“The bull in us says the FY27 core revenue guide is conservative, and CFO Rohini Jain went so far as to say there is a measure of prudence in the outlook,” Harte said in a note.
“We expect bottom-line beats to become more challenging now that there is a clearer impact from reorganization benefits, but think revenue growth expectations are now set at a favorable level for the company to beat,” he wrote.
Rewards accounting change begins next quarter
BILL will also alter how it presents rewards expenses beginning with its September-quarter results.
Rather than recording those costs within sales and marketing expenses, the company plans to deduct rewards expenses directly from core and total revenue.
Management said the revised treatment should provide a clearer representation of the economics of its Spend and Expense offering while bringing BILL’s financial reporting more closely into line with industry practice.
The accounting change will affect how future revenue figures are presented, making it an important consideration when comparing BILL’s fiscal 2027 performance with previous periods.