Financial automation platform BILL (NYSE:BILL) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 14.4% year on year to $414.7 million. Guidance for next quarter’s revenue was better than expected at $402.5 million at the midpoint, 1.8% above analysts’ estimates. Its non-GAAP profit of $0.64 per share was 14.2% above analysts’ consensus estimates.
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BILL (BILL) Q4 CY2025 Highlights:
- Revenue: $414.7 million vs analyst estimates of $400.1 million (14.4% year-on-year growth, 3.7% beat)
- Adjusted EPS: $0.64 vs analyst estimates of $0.56 (14.2% beat)
- Adjusted Operating Income: $74.09 million vs analyst estimates of $66.46 million (17.9% margin, 11.5% beat)
- The company lifted its revenue guidance for the full year to $1.64 billion at the midpoint from $1.61 billion, a 1.8% increase
- Management raised its full-year Adjusted EPS guidance to $2.37 at the midpoint, a 8.7% increase
- Operating Margin: -4.4%, up from -6% in the same quarter last year
- Market Capitalization: $3.57 billion
StockStory’s Take
BILL’s fourth quarter was shaped by accelerating adoption of its AI-powered financial automation tools and robust growth in transaction volumes across its platform. Management highlighted increased spend from small and midsize businesses (SMBs), a rebound in construction sector activity, and strong momentum for its multiproduct offerings as key drivers. CEO René Lacerte emphasized that “innovation defines the broad category of how businesses manage their financial operations,” citing rapid traction for newly launched agentic AI features and partnerships that extend BILL’s reach. The company also noted higher card payment volume and positive early results from targeted price increases.
Looking forward, BILL’s raised guidance is underpinned by expanded AI-powered automation, deeper integration with accounting firms, and new embedded finance partnerships. Management believes adoption of agent-driven workflows and multi-entity support will generate higher customer engagement and revenue per user. CFO Rohini Jain pointed to deliberate investments in optimizing rewards, pricing, and customer mix, while Lacerte sees the company’s proprietary data and network effects as core differentiators. Management remains focused on scaling AI across the platform, with Lacerte stating, “We’re redefining how financial operations scale, enabling SMBs to expand capability and capacity without adding costs.”
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to broad-based transaction growth, increased adoption of AI-driven automation, and successful expansion into larger customer segments.
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AI-powered automation gains traction: BILL’s agentic AI tools, including the W-9 collection and coding agents, drove higher automation and efficiency for customers. More than 10,000 customers enabled the W-9 agent, with 40,000 documents processed in the quarter. Management expects these features to significantly reduce manual work and operational friction.
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Multiproduct adoption increases stickiness: The number of businesses using both accounts payable/accounts receivable (AP/AR) and Spend & Expense solutions grew 28% year-over-year. These multiproduct users demonstrated higher engagement and revenue per customer, supporting improved retention and platform stickiness.
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Transaction volume and new payment offerings: Accelerated transaction growth was supported by the adoption of the BILL Divvy card for AP payments, which saw 160% year-over-year volume growth. New solutions like Supplier Payments Plus (SPP) gained traction among large suppliers, adding breadth to BILL’s payment portfolio.
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Invoice financing expansion: Usage of invoice financing—a service providing SMBs with faster access to capital—grew rapidly, with a 50% increase in customers and over 30% growth in origination volume. Management highlighted improved unit economics and broader adoption across industries.
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Price optimization and move upmarket: Targeted subscription price increases for direct channel customers began to positively impact average revenue per user (ARPU). BILL also shifted focus toward larger customers, resulting in slightly lower net customer adds but stronger ARPU and customer quality.
Drivers of Future Performance
BILL’s outlook centers on scaling AI-driven automation, enhancing product integration, and driving adoption among larger customers to support margin expansion and sustained growth.
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AI-enabled operational scale: Management expects continued deployment of agentic AI tools to drive workflow automation, efficiency, and cost savings for both customers and internal teams. This is anticipated to support margin expansion and competitive differentiation as AI features become more deeply embedded across the platform.
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Growth in embedded finance and partner channels: New partnerships with providers like NetSuite, Acumatica, and Paychex are expected to expand BILL’s reach to nearly one million additional businesses. Management believes scaling embedded finance distribution will increase transaction volumes and diversify revenue streams over the next several quarters.
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Customer mix and pricing optimization: The company is deliberately shifting its focus to larger businesses and implementing targeted price increases, which should lift ARPU and improve unit economics. Management noted that ongoing evaluation of rewards programs and customer acquisition strategies will be key to sustaining profitability amid evolving market conditions.
Catalysts in Upcoming Quarters
In coming quarters, our analysts will watch (1) continued adoption and monetization of agentic AI features, (2) the pace at which embedded finance partnerships scale transaction volumes and broaden BILL’s distribution, and (3) execution on pricing optimization and customer mix improvements. Additionally, we will track progress on cost initiatives and the impact of new product rollouts on customer engagement and retention.
BILL currently trades at $39.55, up from $35.68 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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