The quarter was a small revenue miss but a clear profit beat. Q4 total revenue was $436.2 million versus published consensus of roughly $439.2 million, while non-GAAP diluted EPS reached $0.84 versus approximately $0.71 expected. The earnings beat matters more than the modest revenue shortfall because profitability substantially exceeded BILL’s prior Q4 guide of $0.69–$0.72 per diluted share. BILL said, “In Q4, we delivered 16% core revenue growth with strong non-GAAP profitability — demonstrating that growth and margin expansion are not a trade-off at BILL.”
| Metric | Q4 FY26 | Q4 FY25 / expectation | Read |
|---|---|---|---|
| Total revenue (Income Statement) | $436.2M | $383.3M; ~$439.2M consensus | 14% year over year; slight consensus miss |
| Core revenue (Financial Highlights) | $400.5M | $345.9M | 16% year over year |
| Non-GAAP operating income (Operating income reconciliation) | $101.6M | $56.4M | 80% year over year |
| Non-GAAP diluted EPS (EPS reconciliation) | $0.84 | $0.53; ~$0.71 consensus | Beat |
| Free cash flow (Cash Flow reconciliation) | $96.5M | $68.5M | 41% year over year |
| FY27 total revenue guide (Guidance) | $1.807B–$1.857B | Prior FY26 revenue $1.653B | 9%–12% reported growth |
| FY27 non-GAAP diluted EPS guide (Guidance) | $3.56–$3.79 | FY26 $2.77 | 29%–37% growth |
Underlying growth remained healthy, but the headline revenue rate will become less comparable. Core revenue rose 16%, led by 17% transaction-fee growth, while subscription fees increased 11% (Financial Highlights). BILL also reported total payment volume of $98.2 billion, up from $86.1 billion a year earlier (Operating metrics). The company will begin netting rewards expense against revenue in Q1 FY27; the new guidance is presented before that deduction, so reported revenue and growth rates will change mechanically rather than purely economically. BILL said, “We are providing such guidance in anticipation of a planned voluntary change in our revenue presentation, beginning with our quarterly report for the fiscal quarter ending September 30, 2026.”
Margin expansion was the strongest part of the filing. Non-GAAP operating margin reached 23%, versus 15% a year ago, helped by lower research-and-development spending and lower stock-based compensation, although GAAP operating loss widened to $34.3 million from $22.3 million because of $76.6 million in restructuring charges (Operating loss reconciliation). BILL’s adjusted result therefore beat expectations, but the path to GAAP profitability still depends on excluding substantial stock compensation and restructuring costs.
The FY27 outlook supports continued earnings leverage, not a major growth reacceleration. The company guided to 9%–12% total-revenue growth and 11%–14% core-revenue growth, alongside $421 million–$451 million of non-GAAP operating income and $3.56–$3.79 of diluted EPS (Guidance). That is a profitability-forward outlook: earnings growth is much faster than revenue growth, but the revenue range itself does not signal a return to BILL’s former high-growth profile.
Cash generation and capital returns remain supportive, but the filing is not an unqualified beat. Free cash flow increased to $354.7 million for FY26 from $312.5 million, and BILL repurchased $560.5 million of stock during the year (Cash Flow statement). The net read is narrowly positive: a meaningful adjusted-profit beat and stronger cash generation outweigh a modest revenue miss, while the rewards-expense reclassification introduces a new comparability wrinkle.
Read the original 8-K on SEC EDGAR ↗