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BILL Holdings, Inc. (BILL)·Q4 2025 Earnings Summary

Executive Summary

  • BILL delivered Q4 revenue of $383.3M (+12% YoY) and non-GAAP diluted EPS of $0.53, with both revenue and EPS above S&P Global consensus ($376.3M and $0.41, respectively), aided by ad valorem product adoption and stable float; management also authorized a $300M share repurchase program as a confidence signal . Revenue consensus: $376.3M*, EPS consensus: $0.41*.
  • Core revenue grew 15% YoY to $345.9M as transaction fees rose 18% YoY to $277.1M; Q4 non-GAAP operating income was $56.4M, while GAAP results included a -$7.1M net loss tied to operating and tax expense .
  • FY26 outlook: total revenue $1.59–$1.63B (+9–11% YoY), core revenue $1.45–$1.49B (+12–15%), non-GAAP EPS $2.00–$2.20; Q1 FY26 revenue $385–$395M and non-GAAP EPS $0.49–$0.52 .
  • Call tone was constructive on AI agents, mid-market, and embedded partnerships, but prudent on SMB spend/tariff headwinds and SME take-rate compression; CFO highlighted ACH/check pricing actions and ad valorem expansion as key monetization levers .

Note: Consensus values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • “BILL delivered a strong Q4 with results ahead of guidance while deepening our market penetration,” including non-GAAP operating income of $56.4M and non-GAAP diluted EPS of $0.53 .
  • CEO emphasized AI progress: “We built our AgenTik AI platform … we’ll start rolling out our suite of financial operations agents to customers in 2026,” positioning BILL to “win intelligent financial operations” .
  • Monetization and growth levers: Q4 ad valorem penetration ex-FI rose to 14.3% (from 13.8% YoY), with strong adoption of emerging products (Pay by Card, invoice financing, Instant Transfer/InstaPay) and ACH/check pricing actions to align with value .

What Went Wrong

  • GAAP profitability slipped: Q4 GAAP net loss -$7.1M (vs. $7.6M profit LY), while non-GAAP operating income fell 6% YoY to $56.4M from $60.0M .
  • Net revenue retention inclusive of FIs was 94% amid lower B2B spend and supplier cost sensitivity; SME take-rate pressure reflected mix shifts (ads, T&E) and tariff-driven wallet compression, prompting a prudent outlook .
  • Management flagged macro/tariff uncertainty and near-term TPV per customer constraints; international payments carry FX-related volatility despite mitigations .

Financial Results

P&L and Key Metrics (YoY and QoQ context)

MetricQ4 2024Q3 2025Q4 2025
Total Revenue ($M)$343.665 $358.217 $383.349
Core Revenue ($M)$301.306 $320.298 $345.947
Float Revenue ($M)$42.359 $37.919 $37.402
Gross Margin % (GAAP)81.0% 81.2% 80.8%
Gross Margin % (Non-GAAP)85.0% 84.9% 84.2%
Non-GAAP Operating Income ($M)$60.0 $53.299 $56.352
GAAP Net Income (Loss) ($M)$7.596 $(11.589) $(7.074)
Non-GAAP Diluted EPS ($)$0.57 $0.50 $0.53
Free Cash Flow ($M)$73.092 $90.541 $68.478

Revenue Mix

MetricQ4 2024Q3 2025Q4 2025
Subscription & Transaction Fees ($M)$301.306 $320.298 $345.947
Subscription Fees ($M)—$68.2 $68.8
Transaction Fees ($M)—$252.1 $277.1
Float Revenue ($M)$42.359 $37.919 $37.402

Operating Metrics (KPI)

KPIQ2 2025Q3 2025Q4 2025
Businesses Using Solutions481,300 488,600 493,800
Total Payment Volume (TPV)$84B $79B $86B
Transactions Processed30M 30M 33M
Network Members——8.3M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($M)Q1 FY26—$385–$395New
Core Revenue ($M)Q1 FY26—$348–$358New
Non-GAAP Op Income ($M)Q1 FY26—$53.5–$58.5New
Non-GAAP Net Income ($M)Q1 FY26—$56.5–$60.5New
Non-GAAP EPS (diluted)Q1 FY26—$0.49–$0.52New
Total Revenue ($M)FY26—$1,589.5–$1,629.5New
Core Revenue ($M)FY26—$1,450.5–$1,490.5New
Non-GAAP Op Income ($M)FY26—$240–$270New
Non-GAAP Net Income ($M)FY26—$236–$260New
Non-GAAP EPS (diluted)FY26—$2.00–$2.20New

Notes: Non-GAAP EPS outlook assumes a 20% non-GAAP tax rate and excludes the impact of future buybacks .

Earnings Call Themes & Trends

TopicQ2 FY25 (Previous Mentions)Q3 FY25 (Previous Mentions)Q4 FY25 (Current)Trend
AI/AgentsEmbedded AI in workflows; building towards finance agents; strong data asset Accelerated AI roadmap; foundational data/context for agents AgenTik AI platform; agents rolling out in 2026 to “do it for you”; multi-use cases (intake, supplier mgmt, security) Increasing scope and timeline clarity
Ad valorem monetizationMixed in Q2 (FX headwinds, check/ACH seasonality) but newer products accelerating Take-rate expansion driven by Instant Transfer, Pay by Card, invoice financing; ACH/check price actions Broader portfolio, Supplier Payments Plus to move to supplier-paid ad valorem Positive, diversified levers
SMB macro/tariffsMonitoring policy; prudent outlook; ex-FX monetization baseline higher More uncertainty; fewer transactions and lower spend per customer; cautious outlook Prudent Q1/FY26 assumptions (flat volume/customer; SME take-rate lower end); tariff headwinds noted Cautious near term
Mid-market focusBuilding multi-entity/procurement; stronger accountant channel Faster growth than overall base; features resonating; embed/partner motion “Dedicated mid-market focus” with 2x TPV per customer; global features coming Strengthening
Pricing/packaging—ACH/check pricing initiated (e.g., ACH +$0.10) with broader pricing plans Pricing alignment with value; subscription ARPU expansion path via AI Monetization tailwind
Embedded partnershipsEmbed 2.0 live; 200+ customers on Spend & Expense integration New embed distribution live; bank partners using 4 offerings; Zero GA Fortune 500 embed deal signed; new partner reaching hundreds of thousands of SMBs Expanding channels

Management Commentary

  • CEO: “We built our AgenTik AI platform… we’ll start rolling out our suite of financial operations agents to customers in 2026” .
  • CFO: “We accelerated core revenue growth to 15% YoY… delivered $56.4M in non-GAAP operating income… 17% more than the top end of our guidance” .
  • Product strategy: “Supplier Payments Plus… will allow us to move from a flat fee ACH transaction paid by the buyer to an ad valorem fee paid by the supplier” .
  • Monetization: “Overall ad valorem penetration ex FI increased to 14.3% in Q4, up from 13.8 a year ago” .
  • Capital allocation: New $300M buyback reflects confidence and is enabled by strong cash flow generation .

Q&A Highlights

  • Guidance prudence and macro: Management expects flat volume/customer and SME take rate at low-end given tariff-driven wallet shifts (ads/T&E), despite strong Q4 spend trends; lapping a large online ads acceptance change should aid back-half trends .
  • Take-rate drivers: Continued push into emerging ad valorem (Instant Transfer, Pay by Card, invoice financing) and Supplier Payments Plus; lower FX losses; ACH/check pricing to support monetization .
  • AI agents monetization: Three-phase plan—drive adoption first, introduce differentiated subscription pricing, then transaction-level monetization over time .
  • Mid-market motion: Dedicated focus; higher TPV/user counts and global capabilities planned; efficient multi-channel go-to-market .
  • Embedded partnerships: Signed a Fortune 500 software partner and another partner reaching hundreds of thousands of SMBs; expect meaningful distribution expansion .

Estimates Context

MetricQ2 2025Q3 2025Q4 2025
Revenue Consensus Mean ($M)360.0*356.0*376.3*
Revenue Actual ($M)362.554 358.217 383.349
Primary EPS Consensus Mean ($)0.466*0.374*0.406*
Non-GAAP Diluted EPS Actual ($)0.56 0.50 0.53
  • Q4 beats: Revenue +$7.1M vs consensus; EPS +$0.12 vs consensus. Q2 and Q3 also beat both revenue and EPS .

Note: Consensus values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Execution beat: Q4 revenue and non-GAAP EPS exceeded consensus amid healthy ad valorem adoption and stable float; FY25 delivered strong cash flow to fund growth and buybacks . Consensus referenced above (S&P Global).
  • Monetization levers: ACH/check price actions, Supplier Payments Plus (supplier-paid ad valorem), international local-transfer enhancements, and continued ramp of invoice financing and real-time payments should support take-rate over FY26 .
  • AI as catalyst: AgenTik AI agents (2026 rollout) and broader AI features are aimed to increase retention, multi-product adoption, and to support subscription ARPU growth over time .
  • Mid-market and embed: Higher-ARPU mid-market segment and new embed partnerships (including a Fortune 500 software partner) expand distribution and wallet share opportunities .
  • Risk management: Guidance prudently assumes flat volume/customer and lower-end SME take rates near-term given tariff/macro uncertainty; watch NRR stabilization and SME spend mix (ads/T&E) .
  • Capital allocation: $300M repurchase authorization plus prior $100M buybacks signal confidence and could be EPS accretive; not included in EPS outlook .
  • Watch items: International FX exposure (mitigated by increased trading frequency), GAAP-to-non-GAAP adjustments (notably stock comp and D&A), and cadence/timing of AI monetization .

Additional Details and Reference Data

  • Q4 revenue breakdown: Subscription $68.8M (+5% YoY), Transaction $277.1M (+18% YoY), Float $37.4M; Non-GAAP gross margin 84.2% .
  • FY25 summary: Revenue $1,462.6M (+13% YoY), Core $1,300.8M (+16% YoY), Non-GAAP operating income $239.5M (+22% YoY), Non-GAAP diluted EPS $2.21 .
  • Q4 Spend & Expense revenue: $151M (+19% YoY), with 22% card volume growth; credit/fraud losses reduced by 14 bps YoY .

Non-GAAP methodology and tax rate: See reconciliation and 20% non-GAAP tax rate assumptions in press release .

Other relevant press releases in the quarter:

  • Engagement with Starboard Value and reiteration of commitment to long-term growth; buyback underscores conviction .
  • Paychex partnership: “Bill Pay, Powered by BILL” integrates AP with Paychex Flex to reach SMBs via embedded distribution .