BILL reported sharply improving non-GAAP profitability in its fiscal fourth quarter of 2026, but its GAAP operating loss moved in the opposite direction as restructuring and other excluded costs created a substantial gap between the two measures.
Non-GAAP operating income increased 80% to $101.6 million from $56.4 million. And non-GAAP operating margin expanded to 23% from 15%, an improvement of 800 basis points.
Under GAAP, however, BILL’s operating loss widened to $34.3 million from $22.3 million, an increase of approximately 54%.
GAAP operating margin deteriorated to negative 8% from negative 6%.
A major contributor to the gap was $76.6 million of restructuring expense during the quarter. BILL’s non-GAAP reconciliation also excluded $38.9 million of stock-based compensation and related payroll taxes and $20.4 million of depreciation and amortization.
Revenue continued to grow despite the GAAP profitability pressure.
Total revenue increased 14% to $436.2 million, while core revenue increased 16% to $400.5 million.
Transaction fees rose 17% to $324.3 million, while subscription fees increased 11% to $76.2 million. Float revenue was $35.7 million.
Gross profit increased to $356.2 million from $309.8 million, and GAAP gross margin improved to 81.7% from 80.8%.
The divergence extended to the bottom line. BILL reported a GAAP net loss of $18.5 million compared with a $7.1 million loss a year earlier. Non-GAAP net income, however, increased to $94 million from $61.6 million.
BILL processed $98 billion of total payment volume during the quarter, up 14%, across 37 million transactions, also up 14%. It ended the quarter serving 479,300 businesses and had 9.2 million standalone network members that had originated or received an electronic payment through the platform.
For fiscal 2027, BILL expects non-GAAP operating income of $421 million to $451 million on total revenue of $1.807 billion to $1.857 billion.
Management also said the company is entering fiscal 2027 on a path toward meaningful GAAP profitability.
KEY QUOTES:
“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.”
René Lacerte, CEO and Founder of BILL
