Why Bill Holdings Stock Crushed It Today

Key Points

• The company ended its 2025 in style with an outstanding fourth-quarter earnings report.

• This despite a slight decline in adjusted profitability.

• 10 stocks we like better than Bill Holdings ›

Next-generation fintech Bill Holdings (NYSE: BILL), which specializes in cloud-based software solutions that assist with complex financial operations, was a hot stock on Thursday. It's little wonder, as the company delivered fiscal fourth-quarter results that obliterated analyst estimates.

Investors rewarded this by pushing the stock's price up by 18% on the day, far more than the S&P 500 index's 0.3% gain.

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High billings

For the quarter, its final frame of fiscal 2025, Bill Holdings earned total revenue of $383 million for a sturdy year-over-year increase of 12%. The company's "core" revenue, consisting of its bread-and-butter subscription and transaction fees, advanced 15% to almost $346 million. Of the two components, transaction fees saw the higher growth, at 18% versus subscription's 5%.

Image source: Getty Images.

As for profitability, Bill Holdings landed comfortably in the black, although profitability eroded a bit. Its non-GAAP (adjusted) net income was $61.6 million ($0.53 per share), against $63.9 million for the fourth quarter of 2024.

Both of those headline figures were more than good enough to top the consensus analyst projections. The prognosticators following Bill Holdings's stock were modeling revenue slightly above $376.5 million and adjusted net income of only $0.41 per share.

Management attributed the considerable improvements to several factors, including the rollout of new software and payment products, plus market expansion. The company now counts roughly 500,000 small and midsize businesses as its users, as well as 9,000 accounting firms.

1.6 billion reasons for optimism

Those factors should keep fueling growth, if Bill Holdings's guidance is accurate. For full-year fiscal 2026, the company is expecting revenue of just under $1.59 billion to almost $1.63 billion. This would represent an increase of at least 9% on the fiscal 2025 result.

Bill Holdings also forecast adjusted net income of $236 million to $260 million, which would translate to between $2 and $2.20 per share.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bill Holdings. The Motley Fool has a disclosure policy.