Bill.com Holdings, Inc. Q4 FY2025 earnings call

Management Statement and Operational Highlights

• Launched Supplier Payments Plus in Q4 2025, which streamlines payment transactions for suppliers and SMBs, moving from flat fee ACH to ad valorem fee.
• Introduced Bill Procurement in Q4, combining AP, AR, spend, expense procurement, and forecasting in a single platform.
• Built an AI platform (AgenTeq AI) to launch intelligent finance agents, aiming to eliminate workflows and improve customer retention, multiproduct adoption, and acquisition.
• Bill network surpassed 8 million members, with 54% of payments on Bill occurring within the network.
• Strengthened position in the accounting channel with a 24% year-over-year increase in net new customer adds from accounting firms.

Segment Performance

• Bill APAR: Core revenue grew 15% year over year in Q4 2025, with transaction revenue up 15% year over year. Total payment volume grew 13% year over year. Net new Bill APAR customers added 4,700 in Q4. Net revenue retention rate (inclusive of financial institutions) was 94%, and annual customer retention remained healthy at 86%.
• Bill spend and expense: Revenue totaled $151 million in Q4 2025, up 19% year over year, driven by 22% card payment volume growth. Rewards as a percentage of card payment volume increased 5 basis points year over year, while credit and fraud losses were reduced by 14 basis points in Q4.

Guidance

• Fiscal Q1 2026: Total revenue expected to be in the range of $385 million to $395 million, core revenue $348 million to $358 million. Non-GAAP operating income expected $53.5 million to $58.5 million, non-GAAP net income $56.5 million to $60.5 million, non-GAAP EPS $0.49 to $0.52.
• Full-year 2026: Total revenue expected $1.59 billion to $1.63 billion (9%-11% growth year over year). Non-GAAP operating income $240 million to $270 million, non-GAAP net income $236 million to $260 million, non-GAAP EPS $2 to $2.20. Plan to repurchase up to $300 million in shares.

Risks

• Macro-economic uncertainties impacting SMB spending.
• Supplier cost sensitivity towards payment acceptance affecting net revenue retention.
• Volatility in international payment environments.

Question and Answer Q: Tien-Tsin Huang asked about revenue outlook and what's holding back core revenue growth acceleration.

A: Rene Lacerte and Rohini Jain discussed foundational elements of the company, portfolio mix impacts, and prudent assumptions due to macro headwinds.

Q: Trevor Dodds inquired about AI agents' opportunity and use cases.

A: Rene Lacerte elaborated on AI agents' role in eliminating workflows, covering intake, supplier management, payment execution, and insights generation.

Q: Chris Quintero asked about mid-market go-to-market motion evolution.

A: John Rettig mentioned leveraging existing channels and investing in mid-market capabilities like international product features.

Q: Darrin Peller questioned guidance thought process and take rate expansion.

A: Rohini Jain and John Rettig discussed take rate drivers, macro conservatism, and ad valorem portfolio expansion.

Q: Scott Berg asked about Q4 performance vs. prior guidance and AI monetization.

A: Rohini Jain noted Q4 strength in FX IP and AP card, and Rene Lacerte discussed AI monetization phases.

Q: Kenneth Suchoski asked about same-store sales growth and subscription ARPU.

A: John Rettig explained mix-related factors and expected improvement with mid-market customer growth.