Summary
BILL closed fiscal 2026 with fourth-quarter revenue of $436.2 million, up 13.8% from the prior-year quarter. Gross profit was $356.2 million, and gross margin reached 81.7%, up 0.9 percentage points. The company reported an operating loss of $34.3 million, and the net loss widened to $18.5 million. Operating cash flow for the quarter was $111.0 million, up 32.4%. Capital expenditures were $0.4 million, down 86.6%. Deferred revenue was $19.4 million, down 13.6%, and remaining performance obligations were $55.6 million, down 23.9%. On a non-GAAP basis, operating income was $101.6 million, up 80% year over year, and non-GAAP net income was $94.0 million. Free cash flow was $96.5 million.
For the full fiscal year, revenue rose 13.0% to $1.65 billion. Gross profit was $1.34 billion, up 12.4%, while gross margin slipped to 80.9%, down 0.5 percentage points. The operating loss narrowed to $73.4 million. Net loss was $11.2 million, compared with net income in the prior fiscal year, and diluted EPS was -$0.11, down $0.04. Operating cash flow reached $415.8 million, up 18.6%. Capital expenditures were $3.3 million, down 23.1%. Operating margin was -4.4%, up 1.1 percentage points from the prior fiscal year.
Operationally, BILL served 479,300 businesses at the end of the fourth quarter. Total payment volume was $98 billion in the quarter, up 14% year over year, and transactions processed were 37 million, also up 14%. The platform had 9.2 million network members as of June 30, 2026, up 11%. For the full fiscal year, total payment volume was $371.3 billion and transactions processed were 139.4 million. Net dollar-based retention was 95% for fiscal 2026, up from 94% in fiscal 2025. The company completed a restructuring in the fourth quarter, including a reduction in force affecting approximately 30% of its workforce in May 2026, and expects the plan to be substantially completed by September 30, 2026. BILL also repurchased approximately 8.4 million shares for about $300 million in the fourth quarter. In May 2026, the board authorized a new share repurchase program of up to $1.0 billion.
Guidance for the fiscal first quarter ending September 30, 2026, and the full fiscal year ending June 30, 2027, points to continued growth. For Q1 FY27, total revenue is expected to be $432.5 million to $442.5 million, a 9% to 12% year-over-year increase. Full-year FY27 total revenue guidance is $1,807.0 million to $1,857.0 million, also 9% to 12% growth. Core revenue guidance is $398.0 million to $408.0 million for Q1 FY27 and $1,669.0 million to $1,719.0 million for FY27, with 11% to 14% growth in both periods. Non-GAAP operating income is guided to $112.5 million to $117.5 million for Q1 FY27 and $421.0 million to $451.0 million for FY27. Non-GAAP net income is $98.0 million to $102.0 million for Q1 FY27 and $370.5 million to $394.5 million for FY27. Non-GAAP net income per diluted share is $0.96 to $1.00 for Q1 FY27 and $3.56 to $3.79 for FY27. The company also initiated rewards expense guidance of $92.5 million for Q1 FY27 and $401.5 million for FY27. Beginning with the quarterly report for the fiscal quarter ending September 30, 2026, BILL plans a voluntary change in revenue presentation to net rewards expense directly from core revenue and total revenue rather than recording it as sales and marketing expense. The guidance above is presented before deducting rewards expense. Risks include macroeconomic pressure on SMBs, changes in interest rates, tariffs, inflation, and geopolitical conflicts. The company also faces credit risk on acquired card receivables and loans held for investment, competition, card network rule changes, and execution risk around its AI initiatives, restructuring, and remote-first transition.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $436.2M | $406.6M | +7.3% | $383.3M | +13.8% |
| Gross profit | $356.2M | $331.9M | +7.3% | $309.8M | +15.0% |
| Gross margin | 81.7% | 81.6% | +0.0 pp | 80.8% | +0.9 pp |
| Research & development | $63.1M | $74.4M | -15.2% | $90.0M | -29.9% |
| Sales & marketing | $158.3M | $153.2M | +3.3% | $148.1M | +6.9% |
| General & administrative | $70.7M | $72.3M | -2.2% | $70.2M | +0.8% |
| Total operating expenses | $390.4M | $332.3M | +17.5% | $332.0M | +17.6% |
| Operating income (loss) | -$34.3M | -$399.0K | -8484.5% | -$22.2M | -53.9% |
| Operating margin | -7.8% | -0.1% | -7.8 pp | -5.8% | -2.0 pp |
| Net income (loss) | -$18.5M | $12.8M | -244.5% | -$7.1M | -161.3% |
| Net margin | -4.2% | 3.1% | -7.4 pp | -1.8% | -2.4 pp |
| Diluted EPS | -$0.18 | $0.12 | -$0.30 | -$0.07 | -$0.11 |
Risks
BILL has undertaken multiple reductions in force, including one announced in May 2026 impacting approximately 30% of its workforce, after an approximately 6% RIF in October 2025 and a smaller one in March 2026. Restructuring charges increased $90.9 million during fiscal 2026 from none in fiscal 2025, and the shift to a remote-first company may trigger impairment losses on lease-related assets and property and equipment while straining customer support and operations.
A significant portion of BILL's revenue comes from SMBs, which are more exposed to downturns and have recently tightened budgets and shifted to lower-cost payment methods. Businesses using our solutions fell 3% to 479,300 as of June 30, 2026 from 493,800 a year earlier, and recent reductions in U.S. federal government spending, including at the Small Business Administration, add pressure on the SMB base.
BILL states that rapid AI development may further intensify competition, lower barriers to entry, shorten product cycles and let competitors replicate features at lower cost, and it recently launched BILL AI and a first suite of AI agents whose adoption and cost-effectiveness are unproven. Research and development expenses decreased $39.5 million during fiscal 2026 partly because more initiatives were subject to internal-use software capitalization.
BILL bears the entire credit risk on BILL Divvy Card receivables through purchased participation interests and does not file UCC liens on card balances, limiting recovery in bankruptcies. Provision for expected credit losses from acquired card receivables increased $9.0 million during fiscal 2026 on portfolio growth, and funding depends on $600.0 million of revolving warehouse facilities, of which $330.0 million was drawn as of June 30, 2026.
BILL verifies customer identities, monitors transactions and holds card Issuing Banks harmless for fraud and unauthorized card use, so evolving fraud techniques, increasingly augmented by AI, could produce material losses. General and administrative losses from fraud increased $3.7 million during fiscal 2026 driven by higher transaction volume.
BILL faces intensifying competition from adjacent software and payments players, including Intuit's QuickBooks native bill payment, Brex (recently acquired by Capital One) and Ramp, and notes that partner software providers and financial institutions could bundle competing solutions at lower cost or for free.
Revenue from interest on funds held for customers decreased $13.4 million, or 8%, during fiscal 2026 and fell to 9% of total revenue from 11% as declining interest rates reduced yield, with additional pressure from customers adopting faster payment methods such as instant transfer and migrating spend to BILL Divvy Cards.
BILL depends on accounting firm, financial institution and Embed 2.0 partners, including recently announced launches with Paychex, Oracle NetSuite and Acumatica, and a significant portion of revenue is tied to accounting firm relationships and the CPA.com partnership. Partner integration requires significant engineering investment, and delays or lower adoption could produce expenditures without anticipated revenue.
As of June 30, 2026 BILL had $123.5 million of 0% convertible 2027 Notes maturing April 1, 2027 and $1.4 billion of 0% convertible 2030 Notes outstanding, plus $330.0 million drawn under its Revolving Credit Facilities secured by BILL Divvy Card receivables. Holders may require cash repurchase upon a fundamental change, and the 2027 Notes mature within the coming year.
BILL discloses that general and administrative expenses increased $17.5 million during fiscal 2026, including a $13.0 million increase in consulting fees for outside services with fees related to shareholders' activism. Activist actions could divert management attention, affect the trading value of its securities and add to operating costs.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q4 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.