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.
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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
- Billings: $414.9 million at quarter end, up 14.4% year on year
- Market Capitalization: $4.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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.
Our Top 5 Analyst Questions From BILL’s Q4 Earnings Call
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Christopher Quintero (Morgan Stanley) asked about the risk of AI-driven disruption and competitive moats. CEO René Lacerte responded that BILL’s scale, proprietary data, and trusted network make its platform difficult to replicate, emphasizing that “our assets are scarce and unique.”
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Tien-Tsin Huang (JPMorgan) questioned the sustainability of recent growth and the balance between macroeconomic factors and company execution. CFO Rohini Jain cited broad-based spend recovery across manufacturing, construction, and discretionary verticals, noting encouraging signs but maintaining a cautious approach in guidance.
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Christopher Svensson (Deutsche Bank) explored long-term pricing risks from AI and the impact of recent subscription price hikes. Lacerte and Jain stressed that pricing is tied to delivered customer value, with early results showing lower-than-expected churn and increased stickiness.
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Darrin Peller (Wolfe Research) asked for updates on BILL’s strategic review and cost optimization. President John Rettig outlined ongoing efforts in geographic diversification and AI-driven productivity, with initial benefits expected to materialize in the following year.
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Scott Berg (Needham & Company) inquired about the effects of pricing changes on customer metrics. Rettig reported positive ARPU trends and said that pricing optimization is a multiyear initiative, with broader rollout planned for the next year.
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 $47.29, up from $35.68 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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