BILL Holdings, Inc.

What they do

BILL provides an integrated cloud platform covering accounts payable, accounts receivable, expenses, forecasting and procurement for small and midsize businesses and their accountants. The platform connects customers to suppliers, clients, banks, card issuers and accounting software, and includes BILL Spend and Expense and the BILL Divvy Card. It reaches SMBs directly through digital marketing and inside sales and indirectly through accounting firms, financial institutions and software providers.

Revenue drivers

• Transaction fees — Largest revenue line at $1,211.2 million in fiscal 2026, up 18% year-over-year, earned on payment activity across the platform.
• Subscription fees — Fiscal 2026 subscription fees were $293.5 million, up 8% year-over-year, from businesses paying for access to BILL's software solutions.
• Float revenue — Interest on funds held for customers was $148.4 million in fiscal 2026 and is outside the company's defined core revenue.

Recent performance

Fiscal 2026 total revenue was $1,653.2 million, up 13% year-over-year, with core revenue of $1,504.7 million up 16%. Fourth quarter total revenue was $436.2 million, up 14%, and Q4 core revenue was $400.5 million, up 16%. Fiscal 2026 produced a net loss of $11.2 million, or $0.11 per diluted share, versus net income of $23.8 million in fiscal 2025. Non-GAAP operating income rose 35% to $323.7 million for the year, and operating cash flow was $415.8 million. Fourth quarter TPV was $98 billion, up 14%, on 37 million transactions.

Strategy

In fiscal 2026 BILL launched BILL AI and its first suite of AI agents for tasks such as W-9 filings, touchless transactions and invoice coding. It enhanced Supplier Payments Plus and launched BILL Travel for booking trips and tracking expenses. The company launched embed partnerships with Paychex, Oracle NetSuite and Acumatica under its "Embed 2.0" initiative. Management also cited structural changes and named Jonathan Leaf as Chief Revenue Officer, and repurchased approximately 8 million shares during the year.

Risks

• History of operating losses — BILL has a history of operating losses and may not sustain or expand profitability, with fiscal 2026 producing a $73.4 million GAAP operating loss and an $11.2 million net loss.
• SMB concentration — A significant portion of revenue comes from small and medium-sized businesses, which may have fewer financial resources to weather an economic downturn.
• Credit risk on card and financing products — The BILL Divvy Card exposes the company to credit risk from spending businesses' ability to pay card balances, and offerings such as invoice financing may also carry credit risk.
• Dependence on customer acquisition and retention — Failure to attract new customers, convert trial users to paying customers, retain current customers or sell additional services and new payment products would adversely affect revenue growth.

Outlook

Management says the company enters fiscal 2027 on a clear path to meaningful GAAP profitability, citing Q4 core revenue growth of 16% alongside strong non-GAAP profitability. BILL expects its embed partnerships with Paychex, Oracle NetSuite and Acumatica to extend platform reach and offer new payment capabilities to partners' users. Management also points to increasing adoption of BILL's AI capabilities and continued focus, accountability and alignment to sustain results.