BILL Holdings Inc.
BILLBusiness Overview
ticker: BILL step: 01 generated: 2026-05-13 source: quick-research
BILL Holdings, Inc. (BILL) — Business Overview
Business Description
BILL is a financial operations platform for small and midsize businesses (SMBs), automating accounts payable, accounts receivable, and spend management. The platform connects ~500K SMBs and 9,000 accounting firms through an 8-million-member payment network, enabling businesses to send and receive payments, manage vendor relationships, and control employee spending from a single platform. FY2025 (ended June 2025) revenue was $1.463B (+13% YoY), with total payment volume of $95B+ and a $300M share repurchase program announced.
Revenue Model
Three revenue streams: (1) Transaction fees (~70% of revenue) — per-payment fees on AP/AR transactions processed; (2) Subscription fees (~19%) — SaaS license fees for the platform; (3) Float revenue (~11%) — interest income earned on customer funds held while payments are in transit. Transaction fee growth (+19% YoY in FY2025) is the primary growth engine, driven by payment volume and international expansion. Float revenue is interest-rate sensitive — a rate tailwind in FY2023–2024, now facing headwind as rates normalize.
Products & Services
- BILL AP (Accounts Payable) — automated bill payment, vendor management, approval workflows, ACH/check/wire payment processing
- BILL AR (Accounts Receivable) — automated invoicing, payment collection, customer portal
- BILL Spend & Expense (Divvy) — corporate card + expense management; BILL Divvy card volume +600% among AP customers YoY
- Supplier Payments Plus — accelerated payment option for suppliers (pay ~7 days faster); launched Q4 FY2025
- International Payments — local transfer payments to 30+ countries (expanding)
- Agentic AI Platform — in development; intelligent finance agents for automated financial operations at scale
Customer Base & Go-to-Market
~500K SMB customers + 9,000 accounting firms as channel partners. Accounting firms are a critical distribution channel — they recommend BILL to their SMB clients for bookkeeping automation. Network of 8M members (vendors, suppliers) creates a two-sided marketplace. Key verticals: professional services, retail, healthcare practices, and construction businesses. Under pressure from activist investors Starboard Value and Elliott (who flagged the stock as undervalued in late 2025), BILL explored strategic options including a potential sale.
Competitive Position
BILL competes against QuickBooks (Intuit), SAP Concur, Tipalti, and traditional bank payment services. Differentiation: SMB-specific workflow automation (not enterprise complexity), accounting firm partnership network, and the BILL Divvy card which connects spend management to AP workflows. The 8-million member supplier network creates a network effect — more suppliers on the platform makes BILL more valuable to payers. Competition from banks embedding payment automation into business banking products is an ongoing threat.
Key Facts
- Founded: 2006
- Headquarters: San Jose, California
- Employees: ~3,500
- Exchange: NYSE
- Sector / Industry: Technology / SMB FinTech — Payments & Financial Operations
- Market Cap: ~$4B (at ~$40/share)
Financial Snapshot
ticker: BILL step: 04 generated: 2026-05-13 source: quick-research
BILL Holdings, Inc. (BILL) — Financial Snapshot
Note: BILL's fiscal year ends June 30.
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $642M | $1.06B | $1.29B | +22% |
| Subscription Revenue | ~$170M | ~$230M | ~$257M | +12% |
| Transaction Revenue | ~$380M | ~$670M | ~$860M | +28% |
| Float Revenue | ~$90M | ~$160M | ~$175M | +9% |
| Non-GAAP Gross Margin | ~78% | ~82% | ~82% | |
| GAAP Net Income | ~-$0.3B | ~-$0.2B | ~-$0.03B | improving |
FY2025 (ended June 2025): Total revenue $1.463B (+13% YoY); core revenue $1.30B (+16%). Transaction fees $1.03B (+19%). Float revenue $161.8M (declining with interest rates). Non-GAAP operating income exceeded initial guidance by 20%+. Net income swung back to ~-$24M on TTM basis by Q2 FY2026 (Dec 2025).
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$150–200M |
| Free Cash Flow | ~$120–160M |
| Float Revenue (held funds) | $161.8M (interest on $5B+ customer funds) |
| Cash & Equivalents | ~$1.5B |
| Total Debt | ~$1.7B (convertible notes) |
Float portfolio: BILL holds $5B+ of customer payment funds in transit at any time, generating interest income. This was a significant earnings tailwind in 2023–2024 when rates were high; as rates normalize downward, float revenue will decline. Net debt position. $300M share repurchase program initiated FY2025.
Key Ratios (approximate)
- P/E: ~25–35x (non-GAAP FY2026E) | EV/Sales: ~3x | FCF Yield: ~3–4%
- Revenue Growth (TTM): ~13–14% | Non-GAAP Operating Margin: ~15–18%
Growth Profile
BILL grew from $642M (FY2022) to $1.463B (FY2025) — driven by strong FY2023 growth (+65%) from Divvy/Invoice2go acquisitions and interest rate tailwinds. Growth has decelerated sharply to 13% (FY2025) as rate tailwinds normalize and SMB spending faces macro pressure. FY2026 guidance: $1.59–1.63B (+9–11%), implying continued deceleration. The bull case requires Agentic AI and international expansion to re-accelerate core transaction revenue above 20%.
Forward Estimates
- FY2026: Revenue $1.59–1.63B (+9–11%); core revenue guided ~17% growth
- Non-GAAP EPS: ~$2.00–2.50 (improving as SBC declines relative to revenue)
- International payments: 30+ countries expanding; $1B+ international payment volume opportunity
- BILL Divvy card volume: +600% YoY momentum; embedded spend management = ARPU expansion
- Analyst mean PT: ~$55 (+35% upside from ~$40); 22 analysts, Moderate Buy (13 Buy / 8 Hold / 1 Sell)
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $BILL.