Investing.com -- BILL reported stronger fourth-quarter revenue growth and a sharp improvement in adjusted profitability on Wednesday, while forecasting slower growth for fiscal 2027 as the financial operations platform prepares to change how it reports rewards expenses.

Fourth-quarter total revenue rose 14% year over year to $436.2 million, while core revenue, comprising subscription and transaction fees, increased 16% to $400.5 million. Subscription revenue rose 11% to $76.2 million, while transaction fees climbed 17% to $324.3 million.

Non-GAAP operating income jumped 80% to $101.6 million, compared with $56.4 million a year earlier, while non-GAAP net income rose to $94 million, or 84 cents per diluted share, from $61.6 million, or 53 cents per share. On a GAAP basis, however, the company reported a net loss of $18.5 million, compared with a loss of $7.1 million a year earlier.

For fiscal 2026, total revenue increased 13% to $1.65 billion, while core revenue rose 16% to $1.50 billion. Transaction fees grew 18% to $1.21 billion, helping drive non-GAAP operating income up 35% to $323.7 million. BILL reported a GAAP net loss of $11.2 million for the year, compared with net income of $23.8 million in fiscal 2025.

The company ended the year with 479,300 businesses using its solutions and processed $98 billion in payment volume during the fourth quarter, up 14% from a year earlier. It also repurchased about 8.4 million shares for roughly $300 million during the quarter.

For fiscal 2027, BILL expects total revenue of $1.81 billion to $1.86 billion, implying growth of 9% to 12%, while core revenue is forecast at $1.67 billion to $1.72 billion, up 11% to 14%. The company expects non-GAAP operating income of $421 million to $451 million and non-GAAP diluted earnings per share of $3.56 to $3.79.

Beginning with its September-quarter report, BILL plans to deduct rewards expenses directly from core and total revenue rather than treating them as a sales and marketing expense. The company said the change is intended to better reflect the economics of its Spend and Expense offering and align its presentation with industry practice.