0001786352-25-000037
SEC filingRevenue grew 13% YoY to $1.46B driven by transaction fee growth, net income turned positive to $23.8M.
Bill.com Holdings, Inc. describes itself as a leading financial operations platform for small and midsize businesses (SMBs). Its mission is to make it simple to connect and do business by automating payables, receivables, and spend/expense management. As of June 30, 2025, approximately 493,800 businesses used its solutions, processing $330 billion in Total Payment Volume (TPV) during fiscal 2025. The platform’s proprietary network includes about 8.3 million members who have paid or received funds electronically.
The filing does not present formal reporting segments; instead, it organizes the solution into integrated functional areas: Accounts Payable Automation, Accounts Receivable Automation, Spend and Expense Management, Payment Services, and Value-Added Services. Revenue share by area is not disclosed, but each is described as a core part of the unified platform.
The principal platform is BILL, encompassing all solutions. Key named products include BILL Spend and Expense, BILL Divvy Card (a charge card), Pay By Card, International Payments, Instant Transfer (via RTP), and value-added features like positive pay, PO matching, cash flow forecasting, and Supplier Payments Plus. The platform integrates with leading accounting software such as QuickBooks, NetSuite, Sage Intacct, Xero, and Microsoft Dynamics 365 Business Central.
BILL uses a dual go-to-market strategy: direct channels (self-service and inside sales) and indirect channels through partnerships with accounting firms, financial institutions, and software providers. Marketing efforts generate leads via word-of-mouth, accounting partners, digital campaigns, and brand advertising. No single customer is mentioned as material; the customer base consists of hundreds of thousands of SMBs. Geographic mix is not explicitly broken out, but the company serves U.S.-based businesses and facilitates cross-border payments to over 130 countries.
The primary competitor is the legacy manual process of SMBs. Other competition comes from large enterprise-focused firms, adjacent SMB product providers, and point solution vendors in areas like document management, AP, AR, and spend management. BILL differentiates through its comprehensive end-to-end portfolio, deep integrations, AI-enabled data assets, proprietary risk management, and regulatory compliance (e.g., money transmitter licenses). Key competitive factors include product features, data asset size, ease of deployment, integration capabilities, automation, cloud delivery, security, and pricing.
BILL’s strategy centers on automating the SMB back office to free businesses from cumbersome financial processes. It leverages its large data asset to build AI capabilities and develop AI agents for payables, receivables, procurement, and cash management. The company aims to strengthen network effects as more customers connect, driving higher adoption and engagement. It also focuses on expanding distribution through accounting firms, financial institutions, and embedded technology via APIs. Proprietary risk management expertise is a strategic asset to manage fraud and credit exposure.
As of June 30, 2025, BILL had 2,364 employees. Offices are in San Jose, CA, and Draper, UT. None of the employees are represented by a labor union. The company emphasizes culture with values of humility, authenticity, passion, accountability, and fun. It offers competitive compensation, equity, benefits, and development programs, including a 'summer of AI' training initiative. Employee resource groups (ERGs) support inclusivity across various affinities.
In fiscal 2025, Bill.com generated total revenue of $1.46 billion, a 13% increase from $1.29 billion in fiscal 2024. The growth was primarily driven by a 19% surge in transaction fees to $1.03 billion, fueled by higher total payment volume (TPV) and increased customer adoption. Subscription fees rose 6% to $272 million, reflecting customer base expansion. Interest on funds held for customers declined 3% to $162 million due to lower interest rates. Gross profit grew 13% to $1.19 billion, but gross margin contracted 40 basis points to 81.4%, largely from a mix shift in payment processing costs. Operating loss narrowed significantly to $80.6 million from $174.2 million, a 54% improvement, as revenue growth outpaced expense increases. Sales and marketing expenses rose 14% to $544 million, primarily from higher card rewards. Net income turned positive at $23.8 million compared to a net loss of $28.9 million in the prior year. Free cash flow increased 21% to $312.5 million, supporting share repurchases of $236.4 million under the August 2024 program.
The MD&A does not provide segment-level P&L, but key business metrics reveal underlying trends. BILL AP/AR customers grew 4% to 169,500, and net dollar-based retention improved to 94% from 92%, driven by increased revenue from financial institution partners and TPV growth. BILL Spend and Expense customers totaled 41,100, with card payment volume rising. Embedded Solutions and Other customers reached 283,200. Total TPV grew 13% to $329.8 billion, and transactions processed increased 17% to 121.3 million, indicating strong platform usage.
Management highlighted the impact of macroeconomic factors, including interest rate volatility and tariff changes, which could affect SMB spending. The company expects to continue investing in R&D (23% of revenue) and sales and marketing (37% of revenue). In December 2024, Bill.com issued $1.4 billion of 0% convertible notes due 2030, using proceeds to repurchase portions of existing notes and $200 million of common stock. A new $300 million share repurchase program was authorized in August 2025. No specific revenue or margin guidance was provided, but the company emphasized monitoring macroeconomic conditions and adjusting spending accordingly.
As of June 30, 2025, BILL held $1.04B in cash and cash equivalents and $1.18B in short-term investments, totaling $2.22B in highly liquid assets. Total debt stood at $1.71B, primarily composed of $1.53B in convertible senior notes (net) and $180.0M drawn on the 2021 Credit Facility. Shareholders' equity was $3.91B, with a debt-to-equity ratio of 0.44x. The company's liquidity position remains strong, supported by $4.04B in funds held for customers (customer deposits), which are ring-fenced.
Total contractual commitments amount to $145.8M as of June 30, 2025. Operating lease obligations total $82.7M, with payments spread through 2031. Other multi-year agreements (service and partnership fees) total $63.1M, due by 2029. Additionally, BILL is contractually obligated to purchase up to $76.0M in card receivables that have been authorized but not yet cleared. The company also has $3.6B in unused credit arrangements with spending businesses, which are unconditionally cancellable and do not represent future cash requirements.
During fiscal 2025, BILL executed significant capital actions. The company issued $1.4B of 0% convertible senior notes due 2030, using $585.4M to repurchase portions of its 2025 and 2027 notes, and $200.0M to buy back common stock in privately negotiated transactions. Total share repurchases for the year were $437.7M (including excise tax), retiring 6.7 million shares. As of June 30, 2025, $65.0M remained under the August 2024 program, and in August 2025, the board authorized an additional $300.0M share repurchase program. Capital expenditures (including capitalized software) totaled $38.1M, representing 2.6% of revenue, reflecting continued investment in platform development.
BILL reports revenue across three solution categories: BILL AP/AR ($667.8M, +12% YoY), BILL Spend and Expense ($555.0M, +21% YoY), and Embedded and Other Solutions ($78.0M, +11% YoY). Interest on funds held for customers contributed $161.8M. The company operates as a single operating segment, with the CODM reviewing consolidated financials using net income as the primary profitability measure. International revenue was less than 3% of total revenue, indicating a predominantly U.S. customer base.
Bill.com's risk factors reflect its dependence on SMBs, which are acutely sensitive to macroeconomic conditions. With $1.5B revenue in fiscal 2025, a significant portion comes from SMBs that may tighten budgets during downturns, as evidenced by recent shifts to lower-cost payment methods. The company achieved GAAP profitability ($23.8M net income) but has an accumulated deficit of $1.5B, underscoring the risk of returning to losses as costs rise for AI, sales, and product development.
Credit risk from the BILL Divvy Card is a major concern: the company relies on $600M in warehouse facilities and bears the entire credit risk on participation interests. Non-payment rates could increase due to economic stress or inaccurate risk models. Interest income on customer funds ($161.8M, 11% of revenue) is vulnerable to declining rates and migration to instant payments.
The company operates under extensive regulation: money transmitter licenses in 50+ states, AML/sanctions compliance, and bank partnership structures. Past regulatory fines and audit gaps highlight ongoing compliance challenges. The 'true lender' doctrine could disrupt bank partnerships for the Divvy Card. Privacy laws (CCPA, GDPR) and AI regulations (EU AI Act) impose additional costs and operational constraints.
Competition is intensifying from Intuit's native bill pay, Brex, and Ramp. Bill.com's AI investments are critical but carry execution risk. Interchange fee litigation (Visa/Mastercard) could reduce card revenue. Dependence on accounting firm and financial institution partnerships is a double-edged sword: relationships drive growth but terminations would be damaging.
Global economic uncertainty, tariffs, and banking system instability (e.g., SVB failure) could impact SMB customers and the company's liquidity. Cybersecurity threats are escalating, with $329.8B TPV at risk. While the company maintains insurance, coverage may be insufficient.
The provided document excerpt does not contain the Consolidated Statements of Cash Flows. The text includes the auditor's report and partial notes, but the actual cash flow statement (referenced on page 89) is not included. As a result, no cash flow data is available for analysis. For a complete analysis, the full cash flow statement with figures for fiscal year 2025 is required.