BILL Holdings, Inc. (NYSE:BILL) finished fiscal 2026 with stronger revenue and sharply higher non-GAAP profitability, but its aggregate business metric moved in the opposite direction. Fourth-quarter revenue increased 14% year over year to $436.2 million, while core revenue—subscription and transaction fees—grew 16% to $400.5 million.
Non-GAAP operating income at BILL Holdings, Inc. (NYSE:BILL) climbed 80% to $101.6 million. The reported number of businesses using its solutions declined to 479,300 from 493,800 in the preceding quarter. However, Integrated Platform businesses increased by 2,700, while the aggregate decline came entirely from Embedded Solutions and Other. Businesses using multiple solutions are counted separately, making this a measure of solution relationships rather than unique companies.
Bull Case
The bull case for BILL Holdings, Inc. (NYSE:BILL) starts with activity. The company processed $98 billion in total payment volume and 37 million transactions during the quarter, with both measures increasing 14% year over year. Transaction-fee revenue advanced 17%, while subscription revenue increased 11%.
Activity outpaced the reported business count, reflecting stronger average use and a mix shift toward larger customers. BILL Holdings, Inc. (NYSE:BILL) also said more than 175,000 businesses had used its AI agents. Its invoice-coding agent had reached more than 60,000 businesses, while the W-9 agent was being used by over 40,000 organizations. These tools can save customers time, potentially increasing customer stickiness.
The efficiency gains may also continue. BILL Holdings, Inc. (NYSE:BILL) expects fiscal 2027 non-GAAP operating income of $421 million to $451 million, up from $323.7 million in fiscal 2026. It also forecast 11% to 14% core revenue growth under its historical presentation, before the planned netting of rewards expense against revenue.
Bear Case
The earnings-quality concern is the gap between adjusted and reported profitability. BILL Holdings, Inc. (NYSE:BILL) recorded a $34.3 million GAAP operating loss, wider than the $22.3 million loss a year earlier. Its non-GAAP operating income excludes stock-based compensation and related payroll taxes, depreciation and amortization, restructuring costs, acquisition and integration expenses, and activist-related advisory fees.
BILL Holdings, Inc. (NYSE:BILL) announced a workforce reduction of up to 30% in May. A smaller cost base can support margins, but reduced sales, onboarding, or customer-support capacity could slow core customer additions. The rise in Integrated Platform businesses is encouraging; the next test is whether that growth accelerates as the restructuring progresses.
Conclusion
BILL Holdings, Inc. (NYSE:BILL) produced real operating progress: core revenue, payment volume, transactions, and AI adoption all grew while non-GAAP profit expanded. The wider GAAP operating loss and slower core customer additions keep the turnaround incomplete. The shares look promising if core customer additions recover over the next two quarters, providing evidence that the efficiency push has not weakened the company’s growth engine.
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Disclosure: None. This article is originally published at Insider Monkey.
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