BILL Holdings Q4 FY26 earnings call BILL

BILL completed a significant transformation to become an AI-native company, with over 175,000 businesses now using its AI agents. The W-9 agent has been adopted by over 40,000 companies, tripling sequentially, and has collected over 240,000 W-9s with zero customer effort. The invoice coding agent, launched in February, is used by over 60,000 companies, eliminating 90% of coding steps and reducing processing time by nearly half. The touchless transactions agent, generally available in April, has automated over 7 million transaction fields for 30,000 customers. The Pay By Card agent completed over 30,000 card transactions in Q4. An AI underwriting model improved invoice financing volume and revenue by 30% in FY26, while reducing the expected loss rate by over 50%.

During Q4 FY26, BILL significantly simplified and reduced layers across the company, transitioning from a hybrid general manager structure to a functional model. This restructuring aims to accelerate execution and drive velocity, impact, and growth. Key leadership appointments include Jonathan Leaf as Chief Revenue Officer, Mike Cherry as Chief Product Officer, and Eric Chan as Chief Technology Officer. These changes align the organization and product strategy to support a unified platform approach.

BILL outlined three strategic priorities for FY27: 1) Deliver AI-native experiences by deeply embedding AI into products, moving towards an agentic platform that automates financial operations by default, and introducing new front-end experiences. 2) Acquire higher ROI customers by driving multiproduct adoption (joint AP and Spend & Expense customers grew 35% YoY with 111% NRR) and leveraging the Embed 2.0 strategy for scalable embedded finance solutions, which will lead to moving away from some custom 1.0 bank channel solutions. 3) Expand value through BILL's platform by introducing new products and enhancements, such as Supplier Payments Plus (SPP), to increase monetization opportunities.

While early progress for SPP has not met initial expectations due to the new enterprise sales motion, BILL is now seeing increased deal momentum and faster implementations. Contracts with large customers lock in new ACH monetization and preserve virtual card volume. Committed TPV across all payment offerings from early adopting suppliers has reached almost $800 million. A case study highlighted a business services company consolidating 168 accounts into one, automating 72% to 98-100% of payment transactions, and recovering over 400 hours of manual labor per month after deploying SPP.

BILL introduced a longer-term financial framework targeting low double-digit to mid-teens core revenue growth with expanding margins. The company is focused on driving progress towards the Rule of 40, defined as total revenue less rewards growth plus non-GAAP operating margin, and expects to exceed this threshold exiting FY27. A key focus for FY27 is achieving meaningful GAAP profitability, with an expectation to generate well over $125 million in GAAP profits for the full year.

BILL is navigating significant changes in its go-to-market organization, including a new sales motion under new leadership, unified around a single platform sale. The company is also making an accounting presentation change starting Q1 FY27, where revenue will be presented net of rewards expense, recognized as a reduction of subscription and transaction fees. This voluntary change aims to better reflect unit economics, sharpen focus on profitable customer segments, and improve comparability with peers, with no impact on operating or net income.