BILL

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including BILL (NYSE:BILL) and its peers. Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 12 finance and hr software stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 0.8% below. Luckily, finance and hr software stocks have performed well with share prices up 10.2% on average since the latest earnings results. Transforming the messy back-office financial operations that plague small business owners, BILL (NYSE:BILL) provides a cloud-based platform that automates accounts payable, accounts receivable, and expense management for small and midsize businesses. BILL reported revenues of $436.2 million, up 13.8% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations but full-year revenue guidance slightly missing analysts’ expectations. Interestingly, the stock is up 2.7% since reporting and currently trades at $49.00. Is now the time to buy BILL? Access our full analysis of the earnings results here, it’s free. Pioneering the concept of employees doing their own payroll with its "Beti" technology, Paycom (NYSE:PAYC) provides cloud-based human capital management software that helps businesses manage the entire employment lifecycle from recruitment to retirement. Paycom reported revenues of $531.2 million, up 9.8% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with full-year EBITDA guidance exceeding analysts’ expectations and an impressive beat of analysts’ billings estimates. Paycom achieved the highest full-year guidance raise in the group. The market seems happy with the results as the stock is up 37% since reporting. It currently trades at $239.40. Is now the time to buy Paycom? Access our full analysis of the earnings results here, it’s free. Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ:INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances. Intuit reported revenues of $4.35 billion, up 13.7% year on year, exceeding analysts’ expectations by 2%. Still, it was a softer quarter as it posted full-year guidance of slowing revenue growth. Intuit delivered the weakest full-year guidance update of the whole group. The stock is flat since the results and currently trades at $359.26. Read our full analysis of Intuit’s results here. Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE:WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation. Workiva reported revenues of $255.3 million, up 18.6% year on year. This print topped analysts’ expectations by 1.7%. It was a strong quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates. The stock is up 29.7% since reporting and currently trades at $79.41. Read our full, actionable report on Workiva here, it’s free. Operating in a field where companies traditionally juggled multiple disconnected systems, Paylocity (NASDAQ:PCTY) provides cloud-based human capital management and payroll software solutions that help businesses manage their workforce and HR processes. Paylocity reported revenues of $444.7 million, up 11% year on year. This number beat analysts’ expectations by 3.1%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and EBITDA guidance for next quarter beating analysts’ expectations. The stock is up 12.3% since reporting and currently trades at $161.02. Read our full, actionable report on Paylocity here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature. In this regard, we ran a screener that yielded stocks The Allstate Corporation ALL, Wayfair W, BILL Holdings Inc. BILL, Twilio TWLO and Caribou Biosciences CRBU as the likely winners on the earnings beat potential. Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend. Also, seasonal fluctuations sometimes come into play. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company. On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate. Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher. Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company. An impressive track record in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release. In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters. Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again. Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%. Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger. In addition, we place a few other criteria that push up the chance of a positive surprise. Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through. Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model. In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too: Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects. Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity. A handful of criteria has narrowed down the universe from over 7,700 stocks to only 11. Here are five out of 11 stocks: Allstate: The Zacks Rank #1 company is the third-largest property-casualty (P&C) insurer and the largest publicly held personal lines carrier in the United States. You can see the complete list of today’s Zacks #1 Rank stocks here. The average earnings surprise of ALL for the past four quarters is 45.34%. Wayfair: The Zacks Rank #1 company is an online seller of home goods products, consisting of furniture and home decor. The average earnings surprise of W for the past four quarters is 21.51%. BILL Holdings: The Zacks Rank #1 company primarily serves small and midsize businesses through its AI-powered financial operations platform that connects customers with their suppliers and clients. The average earnings surprise of BILL for the past four quarters is 19.82%. Twilio: Twilio provides a cloud-based customer engagement platform that enables developers and businesses to build, scale and operate real-time communications within software applications. The company currently has a Zacks Rank #1. The average earnings surprise of TWLO for the past four quarters is 13.95%. Caribou Biosciences: This is a clinical-stage CRISPR genome-editing biopharmaceutical company. It has a Zacks Rank #2. The average earnings surprise of CRBU for the past four quarters is 20.08%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILL Holdings (BILL) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this payment processing software company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for BILL Holdings, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $0.92 per share for the current quarter represents a change of +50.8% from the number reported a year ago. Over the last 30 days, the Zacks Consensus Estimate for BILL Holdings has increased 102.38% because four estimates have moved higher compared to no negative revisions. For the full year, the company is expected to earn $3.67 per share, representing a year-over-year change of +32.5%. In terms of estimate revisions, the trend for the current year also appears quite encouraging for BILL Holdings. Over the past month, six estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 46.46%. The promising estimate revisions have helped BILL Holdings earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on BILL Holdings because of its solid estimate revisions, as evident from the stock's 7.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILL’s second quarter results received a positive response from the market, driven by strong adoption of its AI-driven features and a shift in customer acquisition strategy. Management highlighted ongoing traction for its integrated financial automation platform, with CEO René Lacerte noting that over 175,000 businesses now use BILL’s AI agents to streamline financial tasks. The quarter was also marked by a significant organizational restructuring that included leadership changes and a new go-to-market approach, focused on higher-value, multi-product customers. CFO Rohini Jain emphasized that these efforts led to improved profitability, with operational efficiencies and a reduction in fraud losses boosting margins. Is now the time to buy BILL? Find out in our full research report (it’s free). Revenue: $436.2 million vs analyst estimates of $430.3 million (13.8% year-on-year growth, 1.4% beat) Adjusted EPS: $0.84 vs analyst estimates of $0.71 (18.5% beat) Adjusted Operating Income: $101.6 million vs analyst estimates of $84.7 million (23.3% margin, 20% beat) Revenue Guidance for Q3 CY2026 is $437.5 million at the midpoint, below analyst estimates of $443.6 million Adjusted EPS guidance for the upcoming financial year 2027 is $3.68 at the midpoint, beating analyst estimates by 8.6% Operating Margin: -7.9%, down from -5.8% in the same quarter last year Customers: 479,300, down from 493,800 in the previous quarter Billings: $434.2 million at quarter end, up 13.1% year on year Market Capitalization: $4.07 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Tien-Tsin Huang (JPMorgan): Asked about the timeline and realized savings from the restructuring. CFO Rohini Jain confirmed net benefits aligned with expectations, contributing $80 million to cost savings. Scott Berg (Needham & Company): Probed on the monetization strategy for AI agents. CEO René Lacerte outlined a future move toward platform and consumption-based pricing, with a focus on driving early customer retention and usage. Christopher Quintero (Morgan Stanley): Inquired about the drivers of strong payment volume growth. Jain attributed this to increased ACH product usage and growth in mid-market customers with higher average transaction value. Will Nance (Goldman Sachs): Asked about the sustainability of take rates and long-term monetization. Jain indicated that while ACH volumes may compress take rates, overall growth will be supported by volume expansion and diversified monetization strategies. Andrew Schmidt (KeyBanc Capital Markets): Questioned the near-term revenue growth outlook amid organizational changes. Jain explained that revenue headwinds from partner transitions and sales ramp-up are expected to be transitory, with future growth returning to low double digits to mid-teens. In upcoming quarters, the StockStory team will be monitoring (1) the pace of AI feature adoption and how quickly new products contribute to retention and monetization; (2) the stabilization of customer acquisition trends as the restructured sales team gains traction; and (3) the execution of the Embed 2.0 partner strategy, particularly how efficiently BILL transitions existing bank relationships and scales its embedded finance platform. Progress on these fronts will be crucial indicators for the sustainability of BILL’s growth and margin targets. BILL currently trades at $47.62, in line with $47.71 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Transitioned from a hybrid general manager structure to a functional model to drive speed of execution and accountability as an AI-native organization. Achieved significant momentum in AI adoption with over 175,000 businesses using agents for W-9 collection, invoice coding, and touchless transactions. Leveraged proprietary data and network signals to improve invoice financing underwriting, resulting in a 30% volume increase and a 50% reduction in expected loss rates. Consolidated the go-to-market organization under a single Chief Revenue Officer to sell Bill as a unified platform rather than individual product components. Prioritized higher ROI customers by focusing on the 'Ideal Customer Profile' (ICP), specifically mid-market firms with higher transaction volumes and ARPU. Rationalized the bank channel by shifting toward a standardized 'Embed 2.0' platform, acknowledging that not all legacy custom bank relationships will continue. Addressed early challenges in Supplier Payments Plus (SPP) by refining the enterprise sales motion and achieving $800 million in committed TPV. Strategic pivot to an 'agentic platform' that automates financial operations by default for nearly 0.5 million customers using deeply embedded AI. Targeting Rule of 40 status, defined as revenue growth net of rewards plus non-GAAP operating margin, with expectations to exceed this threshold by year-end. Focusing on achieving meaningful GAAP profitability in FY 2027, supported by a reduction in stock-based compensation from 14% to 10% of revenue. Guidance assumes a 3-point headwind to revenue growth: 2 points from Spend & Expense card acceptance dynamics and 1 point from bank channel consolidation. Anticipating Q2 FY 2027 to be the trough of the growth trajectory due to difficult prior-year comparisons before accelerating toward the end of the year. Voluntary accounting change to present revenue net of rewards expense starting in Q1 FY 2027 to better reflect unit economics and peer comparability. Completed a $600 million share repurchase, retiring approximately 14% of common stock, with $400 million remaining on the current authorization. Organizational restructuring resulted in a net benefit of approximately $80 million after reinvesting $30 million back into the business. Monitoring card acceptance dynamics among a small number of high-volume merchants that may impact Spend & Expense volume growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management plans to shift from per-seat pricing to platform fees and usage-based consumption models as AI agents deliver more value. AI is expected to drive monetization by improving customer retention in the first 90 days and enabling higher-tier subscription groupings for agentic features. TPV outperformance was driven by strong ACH adoption among newly acquired larger mid-market customers. The shift toward larger ticket sizes in construction and manufacturing verticals naturally compresses the take rate due to the high mix of ACH versus card. Management is moving away from custom '1.0' solutions that were resource-intensive and difficult to scale across the full product suite. The focus is now exclusively on the 'Embed 2.0' platform, which allows partners to deploy Bill's entire integrated experience more efficiently. Q4 net adds were impacted by the deliberate exit of salespeople during the restructuring to reset quotas and pipelines. Early Q1 indicators show recovery, with management expecting net adds to return to the 2,500 to 3,000 range as the new sales motion stabilizes.

This article first appeared on GuruFocus. Core Revenue: $400.5 million in Q4 FY26, up 16% year-over-year. Non-GAAP Operating Margin: 23% in Q4, expanding 370 basis points sequentially and 860 basis points year-over-year. Non-GAAP Net Income: $94 million in Q4, up 22% sequentially and 53% year-over-year. AP/AR Core Revenue: Grew 10% year-over-year, with subscription ARPU increasing 1.4%. AP/AR Transaction Revenue: $131 million, up 10% year-over-year. Spend and Expense Revenue: $185 million in Q4, up 23% year-over-year. Card Payment Volume: Grew 20% year-over-year in Q4. Net New Customers: Approximately 1,800 added in Q4, below recent trends due to deliberate prioritization and restructuring. Same-Store Sales TPV Growth: 6% year-over-year, a sequential acceleration of 2 points and the highest since Q1 FY23. AP/AR Take Rate: 16.0% in Q4, contracting by 0.5 basis points. Spend and Expense Take Rate: 261 basis points in Q4, reflecting a favorable mix of high interchange verticals. Reward Rate: 133 basis points in Q4, up 3 basis points sequentially. Share Repurchases: Approximately $300 million in Q4 at an average price of $35.31 per share; about 15 million shares retired since Q3 earnings call. Q1 FY27 Core Revenue Guidance: $398 million to $408 million, reflecting 11% to 14% year-over-year growth. Q1 FY27 Non-GAAP Operating Income Guidance: $112.5 million to $117.5 million. Q1 FY27 Non-GAAP EPS Guidance: $0.96 to $1.00. FY27 Core Revenue Guidance: $1.669 billion to $1.719 billion, reflecting 11% to 14% year-over-year growth. FY27 Non-GAAP Operating Income Guidance: $421 million to $451 million, representing a 23% to 24% non-GAAP operating margin. FY27 Non-GAAP EPS Guidance: $3.56 to $3.79, representing 33% year-over-year growth. FY27 GAAP Profitability: Expected to generate well over $125 million in GAAP profits. Warning! GuruFocus has detected 3 Warning Sign with BILL. Is BILL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Core revenue grew 16% year-over-year with non-GAAP operating margin exceeding 23%, showing strong financial performance. AI adoption is robust, with over 175,000 businesses using AI agents, and significant growth in W9, invoice coding, and touchless transaction agents. AI underwriting model improved invoice financing, with volume and revenue up ~30% year-over-year and expected loss rate improved by over 50%. Multiproduct adoption grew 35% year-over-year, and customers using both AP and spend/expense solutions showed a net revenue retention of 111%. Supplier Payments Plus (SPP) is gaining traction, with committed TPV from early adopters reaching almost $800 million and a case study showing significant operational efficiency gains. The company is positioned to exceed Rule of 40 exiting FY27, with a focus on GAAP profitability and expanding margins. Net new customer additions in Q4 were below recent trends at approximately 1,800, impacted by organizational restructuring and a deliberate focus on higher-quality customers. AP/AR take rate contracted by 0.5 basis points due to strong ACH TPV from larger customers, which may pressure monetization. Supplier Payments Plus (SPP) early progress did not meet initial expectations, requiring a new enterprise sales motion that took time to build. The company is facing headwinds in spend and expense (S&E) from card acceptance issues with a small number of merchants and proactive commercial actions on higher reward tiers. Guidance for FY27 includes a 3-point growth headwind from S&E dynamics and bank channel changes, with Q2 expected to be the trough of growth. The company is moving away from custom bank channel solutions, which may result in losing some existing bank relationships. Q: Can you unpack the drivers behind the strong TPV upside in AP/AR, and how should we think about the impact of AI-related spending and larger mid-market customers?A: Rohini Jain (CFO) attributed the Q4 TPV overperformance to the strength of the ACH product and increased usage, particularly from verticals tied to the AI flywheel like construction and manufacturing. She highlighted that mid-market customers, who have ARPU 3 times and TPV 4 times higher than the average customer, are contributing to this growth. While these larger customers have lower take rates, the increased TPV flow also provided a benefit of nearly $2 million in float income, showcasing the multiple monetization avenues of the platform. Q: What is the company's long-term financial framework, and how does it plan to achieve Rule of 40 status and GAAP profitability?A: Rohini Jain (CFO) outlined a three-pillar framework: 1) delivering low double-digit to mid-teens core revenue growth with expanding margins, 2) achieving Rule of 40 status (defined as total revenue growth less rewards plus non-GAAP operating margin), which the company expects to exceed exiting FY27, and 3) achieving meaningful GAAP profitability in FY27. She noted that the company exited Q4 FY26 as a Rule of 40 company and expects to generate well over $125 million in GAAP profits for the full year, with stock-based compensation declining to 10% of revenue. Q: How does BILL plan to monetize its AI capabilities, and what is the strategic pricing direction?A: Rene Lacerte (CEO) stated that the first priority is using AI to drive customer retention and adoption, particularly in the first 90 days of the customer lifecycle. On pricing, he indicated a strategic shift from per-seat pricing to a platform fee model and usage-based consumption fees. Agents will be grouped into different subscription tiers based on the value they create, with some consumption-based pricing as they roll out. This move aims to transition customers from a do-it-yourself to a do-it-for-me approach. Q: What are the drivers of the 2-point headwind in S&E growth, and is this a temporary or permanent dynamic?A: Rohini Jain (CFO) clarified that the headwind is primarily from card acceptance issues with large ad providers like Meta and Google, which is concentrated among a small number of high-volume customers. She noted that on a net revenue basis, the impact will be much smaller because these are also higher-reward customers. The company is also taking proactive commercial actions on certain higher reward tiers and contracts, which contributes to the near-term slowdown but is expected to be transitionary. Q: Can you provide more detail on the decision to move away from certain bank channel partners and the success of the Embed 2.0 strategy?A: Rene Lacerte (CEO) explained that the decision was driven by a need for focus and discipline. The previous bank channel approach was more custom than desired, resulting in multiple platforms that made it challenging to offer all of BILL's capabilities. The company is now consolidating on the Embed 2.0 platform, which enables the entire platform for partners. While not all existing bank relationships will carry forward, the company is seeing strong traction, with one Embed partner's TPV and units more than tripling sequentially from Q3 to Q4. Q: What were the results of the restructuring, and where will incremental operating leverage come from in the future?A: Rohini Jain (CFO) confirmed the restructuring went as planned, with gross savings of approximately $110 million and reinvestments of about $30 million, resulting in a net benefit of around $80 million. Looking forward, she identified AI-led productivity across risk, customer service, and engineering teams as a key source of additional operating leverage. She also emphasized that driving revenue growth through a focused approach on durable and profitable revenue will be the easiest way to expand margins. Q: What is the outlook for net new customer adds, and how is the new go-to-market strategy impacting this?A: Rohini Jain (CFO) acknowledged that Q4 net new adds of approximately 1,800 were below recent trends due to the deliberate decision to prioritize signing the right customers and the organizational restructuring. She noted that the company exited salespeople earlier than planned to familiarize the remaining team with new pipelines. However, early indicators in Q1 are trending in the right direction, and she expects to land in the range of 2,500 to 3,000 net new adds for the quarter, with a recovery towards higher numbers over the rest of the year. Q: Can you elaborate on the progress of Supplier Payments Plus (SPP) and the roadblocks encountered?A: Rene Lacerte (CEO) acknowledged that early progress did not meet initial expectations, primarily because the enterprise sales motion was new to BILL. He emphasized that getting the customer experience right is paramount, and the company has invested in building out the go-to-market motion. Committed TPV from early adopting suppliers has reached almost $800 million. He highlighted a case study where a customer consolidated 168 accounts into one centralized account in 10 weeks, recovering over 400 hours of manual labor per month, demonstrating the product's value. Q: How should we think about the take rate dynamics for AP/AR and S&E going forward?A: Rohini Jain (CFO) explained that the AP/AR take rate compression is due to the outsized ACH TPV growth from larger customers, which have lower take rates. She expects the take rate to remain flat to slightly up from Q4 levels. For S&E, despite the acceptance challenges, the take rate is expected to remain at the higher end of the 250-260 basis point range. She emphasized that growth will be driven by monetizing a larger TPV base through multiple avenues rather than relying solely on take rate expansion. Q: What is the rationale behind the accounting change to present revenue net of rewards, and how will it be reported?A: Rohini Jain (CFO) stated that the voluntary change to present revenue net of rewards expense better reflects the unit economics of the spend and expense business, sharpens focus on the right customer segments, and improves comparability with peers. The change has no impact on operating income or net income. Going forward, the company will guide on a revenue net of rewards basis only, while providing periodic color on rewards performance as an incentive tool to drive the right customers onto the platform. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BILL Holdings, Inc. BILL used its fiscal fourth-quarter 2026 earnings call to frame fiscal 2027 around an AI-native product shift, a unified platform sales motion and tighter focus on profitable growth. Management also set a longer-term margin framework while acknowledging near-term disruption from sales changes, Spend and Expense dynamics and a narrower bank-partner strategy. Founder, CEO and chairperson René Lacerte said more than 175,000 businesses have used BILL’s AI agents across accounts payable and Spend and Expense. Lacerte said the company is moving toward an agentic platform that automates financial operations by default. He highlighted W-9 collection, invoice coding and touchless transaction agents as evidence of adoption. In Q&A, a Needham analyst asked about monetization. Lacerte said BILL plans to pursue better early-life-cycle conversion and retention while moving toward platform fees, tiered agent subscriptions and consumption-based pricing. Q4 non-GAAP EPS of $0.84 beat the Zacks Consensus Estimate of $0.69 by 21.70%, while revenues of $436.20 million topped the consensus mark of $429.70 million by 1.50%. BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote CFO Rohini Jain said BILL is positioned for low-double-digit to mid-teens core revenue growth with expanding margins over time and aims to exceed its Rule of 40 threshold exiting fiscal 2027. For fiscal Q1, BILL expects core revenues of $398 million to $408 million and non-GAAP  EPS of $0.96 to $1.00. For fiscal 2027, BILL guided core revenues of $1.669 billion to $1.719 billion and a non-GAAP operating margin of 23% to 24%. It also expects well over $125 million of GAAP profit. Lacerte said the entire sales team is now trained to sell BILL as a single platform rather than separate products, with multiproduct adoption a central priority. Joint AP and Spend and Expense customers grew 35% year over year in Q4, while customers present in both periods posted net revenue retention of 111%. Jain said the company added about 1,800 net new customers, below recent trends, partly because of restructuring. A KeyBanc analyst pressed on customer additions. Jain said July showed recovery and projected 2,500 to 3,000 net additions in the first quarter, with the range expected to move higher over the remainder of the year. A Morgan Stanley analyst asked what drove stronger AP/AR payment volume. Jain pointed mainly to ACH usage from larger newly acquired customers and stronger activity in manufacturing and construction. Jain said mid-market customers generate roughly three times the ARPU and four times the TPV of the average BILL customer, but their heavier ACH mix carries lower take rates. She added that core ARPU rose 3% sequentially. The trade-off reinforces management’s focus on customer quality and broader monetization rather than customer counts alone. Jain said fiscal 2027 guidance includes three percentage points of growth headwind, with two points tied to Spend and Expense dynamics and one point to the bank channel. She expects fiscal Q2 to mark the growth trough. BILL will begin presenting revenue net of rewards expense in the first quarter. Jain said the change does not affect operating or net income and should sharpen the focus on unit economics. Lacerte said BILL is consolidating embedded finance around standardized Embed 2.0, even if some existing bank relationships do not continue. He also acknowledged Supplier Payments Plus progressed more slowly than initially expected, though committed TPV has reached almost $800 million. Lacerte characterized fiscal 2026 as a year of restructuring, capital returns and platform development, with fiscal 2027 centered on executing through a smaller, more aligned organization. Jain’s outlook paired margin expansion and GAAP profitability goals with a selective approach to revenue quality, leaving sales execution, S&E normalization and AI monetization as key operating priorities. BILL currently carries a Zacks Rank #4 (Sell), with a Value Score of C, Growth Score of B, Momentum Score of B and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Under the Zacks framework, the Rank takes precedence over favorable Style Scores because it reflects the direction of earnings estimate revisions. The B scores indicate relatively favorable growth, momentum and combined VGM characteristics, while the C Value Score is less favorable. The Zacks Rank can change as analysts revise estimates following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILL Holdings (BILL) reported $436.19 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 13.8%. EPS of $0.84 for the same period compares to $0.53 a year ago. The reported revenue represents a surprise of +1.51% over the Zacks Consensus Estimate of $429.71 million. With the consensus EPS estimate being $0.69, the EPS surprise was +21.74%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how BILL Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Businesses Using Solutions - BILL AP/AR Customers: 183,300 versus the three-analyst average estimate of 185,163. Businesses Using Solutions - BILL Spend & Expense Spending Businesses: 46,500 versus the three-analyst average estimate of 47,208. Businesses Using Solutions - Embedded Solutions & Other Customers: 249,500 compared to the 265,033 average estimate based on three analysts. Businesses Using Solutions - Total: 479,300 versus 497,405 estimated by three analysts on average. Revenue- Subscription and transaction fees: $400.48 million compared to the $396.01 million average estimate based on five analysts. The reported number represents a change of +15.8% year over year. Revenue- Interest on funds held for customers: $35.7 million versus the five-analyst average estimate of $34.36 million. The reported number represents a year-over-year change of -4.5%. Revenue- Subscription and transaction fees- Subscription fees: $76.2 million versus $76.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change. Revenue- Subscription and transaction fees- Transaction fees: $324.3 million compared to the $319.41 million average estimate based on four analysts. The reported number represents a change of +17% year over year. Revenue- Subscription fees- BILL AP/AR: $61.4 million versus the three-analyst average estimate of $62.06 million. Revenue- Subscription fees- Embedded and Other Solutions: $14.8 million compared to the $13.63 million average estimate based on three analysts. Revenue- Transaction fees- BILL AP/AR: $131.1 million compared to the $132.9 million average estimate based on three analysts. Revenue- Subscription and transaction fees- Embedded and Other Solutions: $23.5 million versus the three-analyst average estimate of $21.13 million. View all Key Company Metrics for BILL Holdings here>>> Shares of BILL Holdings have returned +11.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILL Holdings (BILL) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.74%. A quarter ago, it was expected that this payment processing software company would post earnings of $0.55 per share when it actually produced earnings of $0.68, delivering a surprise of +23.64%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. BILL Holdings, which belongs to the Zacks Internet - Software industry, posted revenues of $436.19 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $383.35 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. BILL Holdings shares have lost about 9.9% since the beginning of the year versus the S&P 500's gain of 12.4%. While BILL Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for BILL Holdings was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.72 on $442.07 million in revenues for the coming quarter and $3.31 on $1.85 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Zoom Communications (ZM), has yet to report results for the quarter ended July 2026. The results are expected to be released on August 25. This video-conferencing company is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of -2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Zoom Communications' revenues are expected to be $1.27 billion, up 4.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

FY26 Total Revenue was $1.7 Billion and Increased 13% Year-Over-Year FY26 Core Revenue was $1.5 Billion and Increased 16% Year-Over-Year Q4 Total Revenue Increased 14% Year-Over-Year Q4 Core Revenue Increased 16% Year-Over-Year SAN JOSE, Calif., August 19, 2026--(BUSINESS WIRE)--BILL (NYSE: BILL), the financial operations platform trusted by nearly half a million businesses to manage, move, and maximize their money, today announced financial results for the fourth quarter and fiscal year ended June 30, 2026. "Our results for the year demonstrate the durability of our business. We continue to see strong demand for BILL’s integrated platform, with increasing adoption of our AI capabilities," said René Lacerte, BILL CEO and Founder. "The structural changes we’ve implemented position us well to develop and deliver AI-native solutions for the Fortune 5 million." "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," said Rohini Jain, BILL Chief Financial Officer. "We enter FY’27 on a clear path to meaningful GAAP profitability, with the focus, accountability, and alignment to sustain it." Financial Highlights for the Fourth Quarter of Fiscal 2026: Total revenue was $436.2 million, an increase of 14% year-over-year. Core revenue, which consists of subscription and transaction fees, was $400.5 million, an increase of 16% year-over-year. Subscription fees were $76.2 million, up 11% year-over-year. Transaction fees were $324.3 million, up 17% year-over-year. Float revenue, which consists of interest on funds held for customers, was $35.7 million. Gross profit was $356.2 million, representing an 81.7% gross margin, compared to $309.8 million, or an 80.8% gross margin, in the fourth quarter of fiscal 2025. Non-GAAP gross profit was $370.3 million, representing an 84.9% non-GAAP gross margin, compared to $322.7 million, or an 85.0% non-GAAP gross margin, in the fourth quarter of fiscal 2025. Operating loss was $34.3 million, compared to an operating loss of $22.3 million in the fourth quarter of fiscal 2025. Non-GAAP operating income was $101.6 million, compared to $56.4 million in the fourth quarter of fiscal 2025, an increase of 80% year-over-year. Net loss was $18.5 million, or $0.19 per share, basic and diluted, compared to a net loss of $7.1 million, or $0.07 per share, basic and diluted, in the fourth quarter of fiscal 2025. Non-GAAP net income was $94.0 million, or $0.84 per diluted share, compared to non-GAAP net income of $61.6 million, or $0.53 per diluted share in the fourth quarter of fiscal 2025. Financial Highlights for Fiscal Year 2026: Total revenue was $1,653.2 million, an increase of 13% year-over-year. Core revenue, which consists of subscription and transaction fees, was $1,504.7 million, an increase of 16% year-over-year. Subscription fees were $293.5 million, up 8% year-over-year. Transaction fees were $1,211.2 million, up 18% year-over-year. Float revenue, which consists of interest on funds held for customers, was $148.4 million. Gross profit was $1,337.9 million, representing an 80.9% gross margin, compared to $1,190.5 million, or an 81.4% gross margin, in the prior fiscal year. Non-GAAP gross profit was $1,396.2 million, representing an 84.5% non-GAAP gross margin, compared to $1,242.7 million, or an 85.0% non-GAAP gross margin, in the prior fiscal year. Operating loss was $73.4 million, compared to an operating loss of $80.6 million in the prior fiscal year. Non-GAAP operating income was $323.7 million, compared to $239.5 million in the prior fiscal year, an increase of 35% year-over-year. Net loss was $11.2 million, or $0.11 per share, basic and diluted, compared to net income of $23.8 million, or $0.23 and $(0.07) per share, basic and diluted, respectively, in the prior fiscal year. Non-GAAP net income was $314.8 million, or $3.15 and $2.77 per basic and diluted share, respectively, compared to non-GAAP net income of $251.8 million, or $2.43 and $2.21 per basic and diluted share, respectively, in the prior fiscal year. Business Highlights and Recent Developments: Served 479,300 businesses using our solutions as of the end of the fourth quarter.1 Processed $98 billion in total payment volume in the fourth quarter, an increase of 14% year-over-year. Processed 37 million transactions during the fourth quarter, an increase of 14% year-over-year. As of June 30, 2026, 9.2 million BILL standalone network members have originated or received an electronic payment using our platform, an increase of 11% year-over-year. Welcomed Jonathan Leaf as Chief Revenue Officer to lead BILL’s global revenue organization, spanning sales, marketing, embedded partnerships, and customer experience. Repurchased approximately 8.4 million shares of BILL common stock in the fourth quarter for a total cost of approximately $300 million. Financial Outlook We are providing the following guidance for the fiscal first quarter ending September 30, 2026 and the full fiscal year ending June 30, 2027. The outlook for non-GAAP net income and non-GAAP net income per diluted share includes a non-GAAP provision for income taxes of 20%. The outlook for non-GAAP net income per diluted share does not take any future repurchases of BILL shares into account, as the impact of such repurchases on a per diluted share basis is not reasonably estimable. This quarter, we are additionally providing guidance for our rewards expense for the fiscal first quarter ending September 30, 2026 and the fiscal year ending June 30, 2027. 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, pursuant to which we will net rewards expense directly from core revenue (and total revenue) rather than recording it as an operating expense under sales and marketing. We believe this presentation will better represent the economic substance of our Spend and Expense offering and will align with prevailing industry practice, facilitating better comparability of our financial results for investors. The total revenue and core revenue guidance above is presented before deducting rewards expense and does not reflect the planned change described here. These statements are forward-looking and actual results may differ materially. Refer to the "Note on Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Refer to "Non-GAAP Financial Measures" below for additional information on our non-GAAP financial measures and to the reconciliation tables at the end of this press release for the reconciliation of GAAP and non-GAAP results. BILL has not provided a reconciliation of its non-GAAP operating income, non-GAAP net income or non-GAAP net income per diluted share guidance to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort. Conference Call and Webcast Information In conjunction with this announcement, BILL will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal fourth quarter and fiscal year 2026 results and our outlook for the fiscal first quarter ending September 30, 2026 and fiscal year ending June 30, 2027. The live webcast and a replay of the webcast will be available at the Investor Relations section of BILL’s website: https://investor.bill.com/events-and-presentations/default.aspx. About BILL BILL (NYSE: BILL) the intelligent finance platform trusted by nearly half a million businesses and their accountants to manage, move, and maximize their money. BILL powers businesses ranging from fast-moving startups to growing companies with complex operations. We use AI to deliver strategic finance capabilities in one integrated platform that includes AP, AR, expenses, forecasting, procurement and more. With a member network of more than 9 million, BILL’s platform processes ~1% of US GDP annually. Headquartered in San Jose, California, BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and software providers. For more information, visit bill.com. Note on Forward-Looking Statements This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations of future performance, including guidance for our total revenue, core revenue, rewards expense, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per diluted share for the fiscal first quarter ending September 30, 2026 and full fiscal year ending June 30, 2027, our expectations for GAAP profitability and stock-based compensation expense, our planned investments in fiscal year 2027, our revenue growth and profitability profile in future years, activity under our share repurchase program, including the timing, manner, amount, and impact of any repurchases, our expectations for the growth of demand for our platform and the expansion of our customers’ utilization of our services, our planned voluntary change in revenue presentation and the development, deployment and adoption of AI-enabled products and capabilities. These risks and uncertainties include, but are not limited to macroeconomic factors, including changes in interest rates, significant political and regulatory developments or changes in trade policy, including government budget cuts, government shutdowns, the imposition of tariffs and other trade barriers, inflationary, recessionary, and volatile market environments, as well as fluctuations in foreign exchange rates, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, credit risk related to our BILL Divvy Cards and our invoice financing offering, our ability to attract new customers and convert trial customers into paying customers, our ability to develop, deploy, commercialize and realize expected benefits from AI agents and other AI-enabled tools, our ability to invest in our business and develop new products and services, increased competition or new entrants in the marketplace, potential impacts of acquisitions, investments and other strategic transactions, changes to card network rules and interchange fee rates, our relationships with accounting firms, financial institutions and software providers, the global impacts of ongoing geopolitical conflicts, the actual and expected impacts of the above factors on the SMBs we serve and other risks detailed in the registration statements and periodic reports we file with the Securities and Exchange Commission (SEC), including our quarterly and annual reports, which may be obtained on the Investor Relations section of BILL’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise. Non-GAAP Financial Measures In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, basic and diluted, and free cash flow. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. We exclude the following items from non-GAAP gross profit and non-GAAP gross margin: stock-based compensation and related payroll taxes depreciation and amortization We exclude the following items from non-GAAP operating expenses and non-GAAP operating income: stock-based compensation and related payroll taxes depreciation and amortization restructuring acquisition and integration-related expenses professional advisory fees related to shareholders' activism We exclude the following items from non-GAAP net income and non-GAAP net income per share: stock-based compensation expense and related payroll taxes depreciation and amortization restructuring acquisition and integration-related expenses professional advisory fees related to shareholders' activism gain on debt extinguishment amortization of debt discount and issuance costs non-GAAP provision for income taxes It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. We also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise, including our blended U.S. statutory tax rate. We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. We adjust the following items from one or more of our non-GAAP financial measures: Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses. We exclude stock-based compensation, which is a non-cash expense, and related payroll taxes from certain of our non-GAAP financial measures because we believe that excluding these items provide meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expenses using a variety of valuation methodologies and subjective assumptions while the related payroll taxes are dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business. Depreciation and amortization. We exclude depreciation and amortization from certain of our non-GAAP financial measures because we believe that excluding this non-cash charge provides meaningful supplemental information regarding operational performance. Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash. Restructuring. We exclude costs incurred in connection with formal restructuring plans and reductions-in-force from certain of our non-GAAP financial measures because these costs are atypical and would have not otherwise been incurred in the normal course of our business operations. Professional advisory fees related to shareholders' activism. We exclude costs associated with incremental professional advisory fees incurred in connection with activist shareholders, as these costs are atypical and do not reflect costs incurred from our regular engagement with shareholders. Gain on debt extinguishment. We exclude gain on debt extinguishment associated with our repurchases of certain of our outstanding convertible senior notes because we believe that excluding this non-cash gain provides better insight regarding our operational performance. Amortization of debt discount and issuance costs. We exclude amortization of debt discount and issuance costs associated with our issuance of our convertible senior notes and credit arrangement from certain of our non-GAAP financial measures because we believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance. Non-GAAP provision for income taxes. Consists of assumed provision for income taxes based on the statutory tax rate taking into consideration the nature of the taxed item and the relevant taxing jurisdiction. In addition, free cash flow is a non-GAAP measure defined as net cash provided by operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs. We believe free cash flow is an important liquidity measure of the cash that is generated, after incurring operating expenses, purchases of property and equipment and capitalization of internal-use software costs, for future operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in the ordinary course of business. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain strong balance sheets and invest in future growth. There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this press release for the reconciliation of GAAP and non-GAAP results. View source version on businesswire.com: https://www.businesswire.com/news/home/20260819721539/en/ Contacts IR Contact:Jack [email protected] Press Contact:Lauren [email protected]

Interested in BILL Holdings, Inc.? Here are five stocks we like better. Strong fourth-quarter performance: Core revenue rose 16% year over year to $400.5 million, while non-GAAP operating margin reached 23% and non-GAAP net income increased 53% to $94 million. AI and platform adoption accelerated: More than 175,000 businesses used BILL’s AI agents, while customers using both its AP/AR and Spend & Expense products grew 35% year over year. BILL is shifting its sales organization toward a unified platform strategy. Fiscal 2027 outlook remains positive: BILL forecast 11%–14% core revenue growth, $421 million–$451 million in non-GAAP operating income and EPS of $3.56–$3.79. The company also repurchased about $300 million of stock during the quarter. 3 Stocks That Benefit if Companies Cut Costs in 2026 BILL (NYSE:BILL) said its fiscal fourth quarter of 2026 was marked by organizational restructuring, expanded use of artificial intelligence tools and continued profitability gains, as the company moves toward a unified platform sales strategy and targets low-double-digit to mid-teens core revenue growth over the longer term. Chairman, CEO and Founder René Lacerte said the company completed organizational changes intended to accelerate its transition to an “AI-native” business. Core revenue grew 16% year over year in the fourth quarter, while non-GAAP operating margin exceeded 23%. → Looking Beyond CrowdStrike? 3 AI Security Stocks Stand Out Lacerte said more than 175,000 businesses have used BILL’s AI agents across spend and expense and accounts payable functions. The company’s W-9 agent, which handles outreach, collection and IRS validation, was used by more than 40,000 organizations after more than tripling sequentially. The agent has collected more than 240,000 W-9 forms, according to the company. BILL’s invoice coding agent, launched in February, has been used by more than 60,000 companies and eliminated about 90% of coding steps for a multi-line invoice, Lacerte said. The company said the tool reduced processing time across its accounts payable customers by nearly half. → 3 Robotics Stocks Under $10: Value, Momentum, or Bet? Its touchless transactions agent, made generally available to Spend & Expense customers in late April, automated more than 7 million transaction fields for 30,000 customers. Meanwhile, the Pay For You agent completed more than 30,000 card transactions without human interaction during the quarter. The company also highlighted AI-enabled underwriting in its invoice financing business. Invoice financing volume and revenue each grew about 30% year over year in fiscal 2026, while the expected loss rate improved by more than 50%, Lacerte said. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? “As more and more transactions are executed on our platform, our models get smarter, our risk selection improves, and we can extend more credit at better economics for the customer and us,” Lacerte said. BILL simplified its structure, reduced management layers and shifted from a hybrid general-manager model to a functional model during the fourth quarter. The company appointed Jonathan Leaf as chief revenue officer, promoted Mike Cieri to chief product officer and named founding engineer Eric Chan as chief technology officer. For fiscal 2027, the company identified three priorities: delivering AI-native customer experiences, acquiring higher-return-on-investment customers and expanding value across the platform. As part of that strategy, BILL trained its full sales organization to sell the company’s products as a single platform rather than as individual components. The number of customers using both its accounts payable/accounts receivable and Spend & Expense offerings grew 35% year over year in the fourth quarter. Customers using both products in the current and prior-year fourth quarters had net revenue retention of 111%. BILL also said it is shifting its embedded-finance partner strategy toward its standardized Embed 2.0 platform and away from custom-built bank channel solutions. Lacerte said the company does not expect every existing bank-channel relationship to continue under the new approach. The company said one embedded partner more than tripled both transaction payment volume and units sequentially from the third quarter to the fourth quarter. Chief Financial Officer Rohini Jain reported fourth-quarter core revenue of $400.5 million, up 16% from a year earlier. Non-GAAP operating margin was 23%, up 370 basis points sequentially and 860 basis points year over year. Non-GAAP net income was $94 million, rising 22% sequentially and 53% year over year. Jain said the profitability outperformance reflected earlier-than-planned workforce-reduction timing as well as lower fraud and credit losses. The restructuring generated close to the previously projected $110 million in gross savings, she said, with BILL planning to reinvest approximately $30 million, implying about $80 million in net benefit. AP/AR core revenue grew 10% year over year, while transaction revenue rose 10% to $131 million. Spend & Expense revenue increased 23% to $185 million, and card payment volume rose 20%. AP/AR total payment volume exceeded expectations by roughly 300 basis points, driven largely by larger customers and ACH volume. Same-store-sales TPV grew 6% year over year, the highest rate since the first quarter of fiscal 2023. During the quarter, BILL repurchased about $300 million of stock at an average price of $35.31 per share. Since its third-quarter earnings call, the company has retired about 15 million shares, representing nearly 14% of common shares outstanding. It had $400 million remaining under its $1 billion authorization as of the call. For the first quarter of fiscal 2027, BILL forecast total revenue of $432.5 million to $442.5 million and core revenue of $398 million to $408 million, representing 11% to 14% year-over-year core revenue growth. It expects non-GAAP operating income of $112.5 million to $117.5 million and non-GAAP earnings per share of $0.96 to $1.00. For the full fiscal year, the company expects total revenue of $1.807 billion to $1.857 billion and core revenue of $1.669 billion to $1.719 billion. The core revenue forecast represents growth of 11% to 14% from the prior year. BILL expects non-GAAP operating income of $421 million to $451 million, or a 23% to 24% margin, and non-GAAP EPS of $3.56 to $3.79. Jain said the company expects more than $125 million of GAAP profit in fiscal 2027. BILL also plans to begin reporting revenue net of rewards expense beginning in the first quarter, with rewards expense shifting from sales and marketing to a reduction of subscription and transaction fees. Jain said the presentation change will not affect operating income or net income. The company said it expects to exceed its internally defined Rule of 40 threshold by the end of fiscal 2027, measuring growth in total revenue less rewards combined with non-GAAP operating margin. BILL Holdings, Inc provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BILL Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.