BILL Holdings 2025 Q4 Earnings Beats Expectations, Net Loss Widens 193%

BILL Holdings (BILL) reported its fiscal 2025 Q4 earnings on Aug 27th, 2025. The company delivered revenue results that exceeded both analyst estimates and year-ago performance, although it swung to a net loss. The company also authorized a $300 million share repurchase program, signaling continued confidence in its long-term strategy.

Revenue for the quarter grew by 11.5% to $383.35 million, surpassing the $376.17 million estimate and the $343.67 million reported in the same period last year. Core revenue, driven by subscription and transaction fees, reached $345.95 million, with subscription fees rising 5% year-over-year to $68.8 million and transaction fees climbing 18% to $277.1 million. Additionally, float revenue—derived from interest on funds held for customers—contributed $37.40 million.

The company reported a net loss of $7.07 million, or $0.07 per share, in Q4 2025, compared to a net income of $7.60 million, or $0.07 per share, in Q4 2024, reflecting a 193.1% deterioration. Despite the loss, management highlighted it as a new record high for fiscal Q4 net income over the past seven years.

BILL Holdings' stock edged up 1.34% during the latest trading day, declined 0.05% during the most recent full trading week, and fell 9.64% month-to-date. A backtested investment strategy of buying the stock 30 days after the earnings release following three years of revenue growth yielded poor results, with a -59.41% return, underperforming the benchmark by 127.60%. The strategy exhibited a -28.30% CAGR and a maximum drawdown of 0.00%, suggesting no further downside risk but poor performance overall.

Bill’s board of directors authorized a new $300 million share repurchase program, underscoring its commitment to shareholder returns. For the fourth quarter, core revenue increased by 15% year-over-year to $345.9 million, with non-GAAP gross profit reaching $322.7 million, representing an 84.2% margin. CEO René Lacerte emphasized the pivotal nature of fiscal 2025, highlighting growth, innovation, and scale, and expressed optimism for 2026 driven by AI advancements.

The company’s Q4 performance was marked by strong revenue growth and profitability improvements despite a net loss that significantly worsened compared to the prior year. This indicates a mixed but not entirely negative earnings report.

René Lacerte, CEO of BILL Holdings, described fiscal 2025 as a transformative year for the company. He highlighted the successful launch of key products, strategic expansion, and innovation through Agentic AI, which aims to redefine financial operations for small and medium businesses. Lacerte also noted the company’s growing network of 8 million members and its role in enhancing automation and fraud detection. Looking ahead, he emphasized the potential for AI-driven workflows to evolve from assisting users to executing tasks autonomously, positioning BILL as a leader in the sector. Lacerte’s comments underscored confidence in the company’s long-term prospects and market leadership.

BILL provided forward-looking guidance for fiscal Q1 2026, projecting total revenue between $385–395 million and core revenue between $348–358 million. Non-GAAP operating income is expected to range from $53.5–58.5 million, with non-GAAP EPS forecasted at $0.49–0.52. For the full year, total revenue is expected to reach $1.59–1.63 billion, representing 9%–11% growth, with core revenue of $1.45–1.49 billion, or 12%–15% growth. Non-GAAP operating income is projected at $240–270 million, with non-GAAP EPS between $2–2.20. Management emphasized disciplined cost management, AI investments, and expansion of ad valorem revenue, while acknowledging macroeconomic uncertainties and pricing adjustments aligned with customer value.

Among the notable non-earnings-related developments in early September 2025, Bill Holdings’ board authorized a $300 million share repurchase program, signaling strong confidence in the company’s financial position and long-term value. This move aligns with the broader trend of companies enhancing shareholder returns through buybacks amid improving cash flow dynamics. Additionally, CEO René Lacerte reiterated a focus on innovation, particularly through the integration of Agentic AI into the company’s offerings, which is expected to enhance customer retention and operational efficiency. The company’s recent strategic direction has also emphasized the expansion of its ecosystem, with an increasing number of small businesses and accounting firms adopting its platform. No major C-level changes or mergers were reported in the immediate period following the earnings release, and the company remains focused on its core growth and profitability objectives.