NYSE:BILL
BILL Holdings, Inc.
BILL Holdings offers a cloud-based financial management platform that automates cash flow optimization and connects businesses with funding solutions.
Key Metrics
Investment Thesis
Bull Case
Investors should consider BILL for its proven ability to monetize a massive addressable market of underserved small businesses with high recurring revenue potential from its subscription model. The company's recent profitability and strong cash generation provide the flexibility to invest in R&D or acquire complementary technologies, positioning it as a dominant player in the fintech infrastructure space.
Bear Case
The stock carries substantial risks due to a history of volatility, with net income swinging from negative $28.9M in 2024 to positive $23.8M in 2025, suggesting earnings stability may still be fragile. Significant common share repurchases of $430.0M and other financing activities indicate potential liquidity constraints or a need to manage capital structure amidst large liabilities totaling $6.15B.
About BILL Holdings, Inc.
BILL Holdings operates as a cloud-based financial services platform enabling businesses to manage cash flow, automate accounts payable, and optimize working capital. Serving small-to-mid-sized enterprises and fintech companies globally, the company provides technology solutions that help clients reduce borrowing costs and improve liquidity through its unique ecosystem of integrated lending partners.
Analysis
Management Discussion
The company achieved a notable turnaround in 2025 with net income reaching $23.8M, reversing years of losses seen in 2023 and 2024, while revenue grew to $1.46B from $1.29B the prior year. Despite strong operating leverage evidenced by a positive cash flow from operations of $350.6M, the business continues to generate significant non-operating income of $111.0M, likely reflecting investment holdings or specific one-time financing events.
Industry Overview
The fintech working capital industry is rapidly evolving as traditional banks struggle to serve small businesses, creating an opening for specialized technology providers like BILL. Regulatory scrutiny on payment processors and non-bank lenders remains high, but the demand for instant funding solutions continues to drive growth in this niche sector.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $1.06B | $1.29B | $1.46B |
| Cost of Revenue | $194.0M | $234.6M | $272.1M |
| Gross Profit | $864.5M | $1.06B | $1.19B |
| Operating Expenses | $1.16B | $1.23B | $1.27B |
| Operating Income | $-295.8M | $-174.2M | $-80.6M |
| R&D | $314.6M | $336.8M | $340.1M |
| G&A | $281.3M | $277.7M | $281.9M |
| Marketing | $515.9M | $478.5M | $543.7M |
| Stock-Based Comp | $313.6M | $248.4M | $242.5M |
| D&A | $48.5M | $23.2M | $27.5M |
| Depreciation | $15.5M | $13.8M | $13.0M |
| Amortization | $80.2M | $80.0M | $61.9M |
| Other OpEx | $48.5M | $136.8M | $105.4M |
| Non-Operating Income | $72.9M | $147.8M | $111.0M |
| Interest Expense | $15.2M | — | — |
| Interest Income | $91.3M | $122.3M | — |
| Pre-Tax Income | $-222.9M | $-26.3M | $30.4M |
| Income Tax | $808.0K | $2.6M | $6.6M |
| Continuing Ops | $-223.7M | $-28.9M | $23.8M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-223.7M | $-28.9M | $23.8M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-223.7M | $-28.9M | $23.8M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $6.67B | $6.31B | $7.24B |
| Cash & Equivalents | $1.62B | $985.9M | $1.04B |
| Accounts Receivable | $28.2M | $28.0M | $32.3M |
| Prepaid Expenses | $170.1M | $297.2M | $258.4M |
| Other Current Assets | $4.86B | $5.00B | $5.91B |
| Long-Term Assets | $2.96B | $2.86B | $2.83B |
| PP&E (Net) | $81.6M | $88.0M | $116.6M |
| Intangibles | $361.4M | $281.5M | $222.8M |
| Goodwill | $2.40B | $2.40B | $2.40B |
| Operating Leases | $69.0M | $59.4M | $56.1M |
| Other LT Assets | $54.4M | $38.6M | $33.2M |
| Total Assets | $9.64B | $9.18B | $10.06B |
| Current Liabilities | $3.75B | $4.06B | $4.59B |
| Accounts Payable | $8.5M | $7.4M | $16.3M |
| Current Leases | $14.1M | $13.0M | $12.9M |
| Deferred Revenue | $26.3M | $17.0M | $22.4M |
| Other Current Liab | $3.51B | $3.73B | $4.28B |
| Long-Term Liabilities | $1.80B | $981.6M | $1.56B |
| LT Operating Leases | $72.5M | $62.8M | $58.4M |
| Other LT Liab | $1.59B | $914.6M | $1.32B |
| Total Liabilities | $5.55B | $5.04B | $6.15B |
| Shareholders' Equity | $4.09B | $4.13B | $3.91B |
| Paid-In Capital | $4.95B | $5.23B | $5.41B |
| Retained Earnings | $-856.2M | $-1.10B | $-1.51B |
| AOCI | $-4.5M | $-1.9M | $10.2M |
| Total L&E | $9.64B | $9.18B | $10.06B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-223.7M | $-28.9M | $23.8M |
| Non-Cash Adjustments | $163.8M | $-35.4M | $-54.9M |
| Working Capital Changes | $247.7M | $343.1M | $381.7M |
| Cash from Operations | $187.8M | $278.8M | $350.6M |
| Capital Expenditures | $7.6M | $976.0K | $4.3M |
| Cash from Investing | $259.3M | $-409.4M | $-817.4M |
| Share Buybacks | $87.6M | $211.9M | $430.0M |
| Cash from Financing | $235.1M | $-742.6M | $666.5M |
| FX Effect | $-38.0K | $-240.0K | $-290.0K |
| Net Change in Cash | $682.1M | $-873.4M | $199.5M |
| Beginning Cash | $3.54B | $4.22B | $3.35B |
| Ending Cash | $4.22B | $3.35B | $3.55B |
Frequently Asked Questions
How does BILL Holdings, Inc. make money?
The company's revenue is primarily driven by subscription fees for its core working capital management platform, transaction processing fees from automated payment networks, and financing commissions generated by connecting borrowers with third-party lending partners. Additional streams include professional services such as implementation and training, as well as interest income derived from cash balances held within the ecosystem.
What are the main risks for BILL?
Regulatory headwinds from potential changes in payment processing rules could erode high-margin transaction revenue streams and increase compliance costs significantly. Heavy reliance on third-party lenders exposes the company to counterparty risk and potential reputational damage if funding partners default or face regulatory scrutiny. Intense competition from larger fintech players and traditional banks entering the SMB lending space threatens its market share and pricing power.
What is BILL's competitive advantage?
BILL possesses a significant first-mover advantage in automating accounts payable for SMEs, creating high switching costs and deep data moats that enhance its ability to secure financing rates. Its proprietary network of lending partners allows it to offer competitive, real-time funding solutions that traditional banks cannot match speed-wise or at the same margin levels.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.