BILL Cuts Costs, Lifts Profit as Revenue Growth Set to Slow
The payments-software company posted $101.6 million in non-GAAP operating income for its fiscal fourth quarter, up 80% from a year earlier, even as it guided for revenue growth to decelerate in fiscal 2027.
BILL Holdings (BILL), the payments-software company serving small and midsize businesses, closed its fiscal fourth quarter with a sharp acceleration in profitability that overshadowed a revenue trajectory poised to cool.
Non-GAAP operating income reached $101.6 million in the three months ended June 30, an 80% jump from a year earlier and a 23% margin, up from 15% in the same period of fiscal 2025. The gain reflected both steady top-line growth and the first full quarter of savings from a restructuring that eliminated headcount across research and development. GAAP R&D spending fell 30% year over year to $63.1 million; on a non-GAAP basis, it dropped to $49.2 million from $62.1 million. The cuts came at a cost: $76.6 million in restructuring charges in the quarter, the bulk of a $90.9 million total for the fiscal year, which pushed GAAP operating loss to $34.3 million from near break-even in the prior quarter.
Total revenue rose 14% year over year to $436.2 million, matching the second quarter’s pace and edging above the third quarter’s 13%. Core revenue—which excludes float income—grew 16% to $400.5 million, holding steady with the prior quarter. Transaction fees, the largest line at $324.3 million, grew 17%, a modest deceleration from 18% in the third quarter and 20% in the second. Subscription fees, by contrast, quickened to 11% growth from 9% in the third quarter and 6% in the second, reaching $76.2 million. Float income slipped to $35.7 million, down 5% from a year earlier as interest rates declined.
Payment volume through the platform accelerated to $98 billion, up 14% year over year, compared with 12% growth in the third quarter. Transaction count held at 14% growth, reaching 37 million. The network of businesses and suppliers totaled 9.2 million members, up 11% year over year. Businesses actively using the platform, however, declined sequentially to 479,300 from 493,800 in the third quarter—a drop of roughly 19,200.
Fiscal 2027 total revenue was guided to $1.81 billion–$1.86 billion, implying 9%–12% growth, a step down from fiscal 2026’s 13% pace. Core revenue is projected at $1.67 billion–$1.72 billion, or 11%–14% growth, versus 16% in the year just ended. Revenue presentation will also change starting in the first quarter of fiscal 2027, with rewards expense netted against the top line. Rewards-expense guidance was provided for the first time: $401.5 million for the full year and $92.5 million for the first quarter.
Even as the top line is set to moderate, the profit outlook points to further margin expansion. Non-GAAP operating income is forecast at $421 million–$451 million for fiscal 2027, representing 30%–40% growth over the $323.7 million recorded in fiscal 2026. Full-year non-GAAP operating margin reached 20% in fiscal 2026, up from 16% in fiscal 2025. Non-GAAP net income for the fourth quarter was $94.0 million, or $0.84 a diluted share, compared with $77.2 million, or $0.68 a share, in the third quarter.
Roughly 8.4 million shares were repurchased for approximately $300 million during the quarter, a sharp increase from $52 million in the third quarter and $133 million in the second. The buyback acceleration came alongside a wave of leadership changes: a new chief revenue officer, Jonathan Leaf, was appointed in the quarter, following the arrival of a new chief product officer and chief technology officer in the prior period and the departure of the previous chief commercial officer and chief technology officer.
The fiscal 2027 guidance frames a trade-off that will define the coming year: slower revenue growth offset by deeper operating leverage as the restructuring savings flow through. Whether the shrinking customer count stabilizes will determine whether the margin gains can compound without a reacceleration in the business base.