BILL (BILL) - 2025 Q4 - Annual Results

Executive Summary BILL reported strong Q4 and FY25 financial results, emphasizing growth, profitability, and market penetration Company Overview and Strategic Focus BILL, a financial operations platform for SMBs, achieved strong Q4 and FY25 results, focusing on growth and profitability - Fiscal year 2025 was pivotal for BILL, driving growth and profitability, launching essential new software and payment products, and expanding market opportunity[2] - BILL's platform serves approximately half a million SMBs and 9,000 accounting firms, with a network of 8 million members, reinforcing its scale advantage[2] - The company is driving growth through strategic initiatives while sharpening its focus on expanding profitability, reflecting confidence in its strategy and investment opportunity[2] Key Financial Achievements BILL achieved significant financial growth in FY25 and Q4 FY25, with full-year total revenue at $1.5 billion FY25 and Q4 FY25 Key Financial Metrics | Metric | FY25 Value (Billions) | YoY Change | Q4 FY25 Value (Millions) | YoY Change | | :----------------- | :-------------------- | :--------- | :----------------------- | :--------- | | Total Revenue | $1.5 | +13% | $383.3 | +12% | | Core Revenue | $1.3 | +16% | $345.9 | +15% | Financial Highlights for the Fourth Quarter of Fiscal 2025 This section presents BILL's Q4 FY25 revenue, profitability, and earnings per share performance Q4 Revenue Performance BILL's Q4 FY25 total revenue grew 12% to $383.3 million, with core revenue increasing 15% Q4 FY25 Revenue Performance | Metric | Q4 FY25 (Millions) | YoY Change | | :---------------------- | :----------------- | :--------- | | Total Revenue | $383.3 | +12% | | Core Revenue | $345.9 | +15% | | Subscription Fees | $68.8 | +5% | | Transaction Fees | $277.1 | +18% | | Float Revenue | $37.4 | N/A | Q4 Profitability and Margins Q4 FY25 GAAP gross profit reached $309.8 million with 80.8% margin, non-GAAP operating income decreased 6% Q4 FY25 Profitability and Margins | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | YoY Change | | :---------------------- | :----------------- | :----------------- | :--------- | | Gross Profit (GAAP) | $309.8 | $278.5 | +11.2% | | Gross Margin (GAAP) | 80.8% | 81.0% | -0.2 ppts | | Gross Profit (Non-GAAP) | $322.7 | $292.0 | +10.5% | | Gross Margin (Non-GAAP) | 84.2% | 85.0% | -0.8 ppts | | Operating Loss (GAAP) | ($22.3) | ($22.2) | -0.45% | | Operating Income (Non-GAAP) | $56.4 | $60.0 | -6% | Q4 Net Income and EPS BILL reported a GAAP net loss of $7.1 million in Q4 FY25, with non-GAAP net income at $61.6 million Q4 FY25 Net Income and EPS | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | YoY Change | | :---------------------- | :----------------- | :----------------- | :--------- | | Net Income (Loss) (GAAP) | ($7.1) | $7.6 | -193.4% | | EPS (GAAP, Basic) | ($0.07) | $0.07 | -200% | | EPS (GAAP, Diluted) | ($0.07) | ($0.03) | -133.3% | | Net Income (Non-GAAP) | $61.6 | $63.9 | -3.76% | | EPS (Non-GAAP, Diluted) | $0.53 | $0.57 | -7.02% | Financial Highlights for Fiscal Year 2025 This section details BILL's full fiscal year 2025 financial performance, covering revenue, profitability, and EPS FY25 Revenue Performance BILL's FY25 total revenue grew 13% to $1.46 billion, with core revenue increasing 16% FY25 Revenue Performance | Metric | FY25 (Millions) | YoY Change | | :---------------------- | :-------------- | :--------- | | Total Revenue | $1,462.6 | +13% | | Core Revenue | $1,300.8 | +16% | | Subscription Fees | $272.1 | +6% | | Transaction Fees | $1,028.7 | +19% | | Float Revenue | $161.8 | N/A | FY25 Profitability and Margins FY25 GAAP gross profit reached $1.19 billion with 81.4% margin, non-GAAP operating income increased 22% FY25 Profitability and Margins | Metric | FY25 (Millions) | FY24 (Millions) | YoY Change | | :---------------------- | :-------------- | :-------------- | :--------- | | Gross Profit (GAAP) | $1,190.5 | $1,055.6 | +12.8% | | Gross Margin (GAAP) | 81.4% | 81.8% | -0.4 ppts | | Gross Profit (Non-GAAP) | $1,242.7 | $1,109.9 | +12% | | Gross Margin (Non-GAAP) | 85.0% | 86.0% | -1.0 ppts | | Operating Loss (GAAP) | ($80.6) | ($174.2) | +53.7% | | Operating Income (Non-GAAP) | $239.5 | $196.2 | +22% | FY25 Net Income and EPS BILL achieved a GAAP net income of $23.8 million in FY25, with non-GAAP net income increasing to $251.8 million FY25 Net Income and EPS | Metric | FY25 (Millions) | FY24 (Millions) | YoY Change | | :---------------------- | :-------------- | :-------------- | :--------- | | Net Income (Loss) (GAAP) | $23.8 | ($28.9) | +182.4% | | EPS (GAAP, Basic) | $0.23 | ($0.27) | +185.2% | | EPS (GAAP, Diluted) | ($0.07) | ($0.27) | +74.1% | | Net Income (Non-GAAP) | $251.8 | $244.0 | +3.2% | | EPS (Non-GAAP, Diluted) | $2.21 | $2.12 | +4.2% | Business Highlights and Recent Developments This section outlines BILL's recent strategic initiatives, operational achievements, and key leadership changes New Share Repurchase Program BILL's Board of Directors authorized a new share repurchase program of up to $300 million - BILL's Board of Directors authorized a new share repurchase program of up to $300 million of its outstanding common stock[9] - The company expects to fund the share repurchase program using existing cash, reflecting confidence in its strategy and strong cash flow generation[2][10] - Repurchases may occur through open market purchases, privately negotiated transactions, or Rule 10b5-1 trading plans, subject to market conditions[10] Operational Metrics BILL's platform served 493,800 businesses, processed $86 billion in payment volume, and expanded its network - Served 493,800 businesses using solutions as of Q4 FY25 end[15] - Processed $86 billion in total payment volume in Q4, an increase of 13% year-over-year[15] - Processed 33 million transactions during Q4, an increase of 18% year-over-year[15] - 8.3 million BILL standalone network members as of June 30, 2025, an increase of 18% year-over-year[15] Leadership Changes BILL welcomed Rohini Jain, a technology industry finance leader, as its new Chief Financial Officer - Rohini Jain, a technology industry finance leader, was welcomed as BILL's Chief Financial Officer[15] Financial Outlook This section provides BILL's financial guidance for Q1 and full fiscal year 2026, including disclaimers Q1 Fiscal Year 2026 Guidance For Q1 FY26, BILL projects total revenue between $385.0 million and $395.0 million Q1 FY26 Financial Guidance | Metric | Q1 FY26 Guidance (Millions) | YoY Growth | | :-------------------------- | :-------------------------- | :--------- | | Total Revenue | $385.0 - $395.0 | 7% - 10% | | Core Revenue | $348.0 - $358.0 | 11% - 14% | | Non-GAAP Operating Income | $53.5 - $58.5 | N/A | | Non-GAAP Net Income | $56.5 - $60.5 | N/A | | Non-GAAP Net Income per Diluted Share | $0.49 - $0.52 | N/A | Full Fiscal Year 2026 Guidance For FY26, BILL anticipates total revenue between $1.59 billion and $1.63 billion, indicating 9-11% growth FY26 Financial Guidance | Metric | FY26 Guidance (Millions) | YoY Growth | | :-------------------------- | :----------------------- | :--------- | | Total Revenue | $1,589.5 - $1,629.5 | 9% - 11% | | Core Revenue | $1,450.5 - $1,490.5 | 12% - 15% | | Non-GAAP Operating Income | $240.0 - $270.0 | N/A | | Non-GAAP Net Income | $236.0 - $260.0 | N/A | | Non-GAAP Net Income per Diluted Share | $2.00 - $2.20 | N/A | Forward-Looking Statements and Non-GAAP Disclaimer This section highlights uncertainties in financial projections and clarifies the basis for non-GAAP guidance - The outlook for non-GAAP net income and non-GAAP net income per diluted share includes a non-GAAP provision for income taxes of 20%[12] - The non-GAAP net income per diluted share outlook does not account for future share repurchases, as their impact is not reasonably estimable[12] - Reconciliation of non-GAAP guidance to GAAP measures is not provided due to the inability to reasonably calculate or predict certain excluded items without unreasonable effort[14] Company Information This section provides details on BILL's recent conference call and an overview of the company's mission Conference Call and Webcast BILL hosted a conference call and webcast on August 27, 2025, to discuss Q4 and FY25 results and FY26 outlook - A conference call and webcast were held on August 27, 2025, to discuss financial results and outlook, with a replay available on the Investor Relations website[16] About BILL BILL (NYSE: BILL) is a leading financial operations platform for SMBs, automating payables, receivables, and spend - BILL (NYSE: BILL) is a leading financial operations platform for small and midsize businesses (SMBs), automating payables, receivables, and spend/expense management[17] - The platform leverages a proprietary network of millions of members to facilitate faster payments and is headquartered in San Jose, California[17] - BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and accounting software providers[17] Non-GAAP Financial Measures This section defines and explains the rationale behind BILL's use of non-GAAP financial measures and free cash flow Non-GAAP Adjustments and Rationale BILL uses non-GAAP measures, excluding items like stock-based compensation, for clearer operational insight - Non-GAAP financial measures are presented for supplemental informational purposes and are not a substitute for GAAP measures[19] - Excluded items from non-GAAP measures include stock-based compensation and related payroll taxes, depreciation and amortization, acquisition and integration-related expenses, restructuring, gain on debt extinguishment, and amortization of debt issuance costs[21][22][24][25][26][27][28][29][30][31] - Non-GAAP provision for income taxes is based on a statutory tax rate considering the nature of the taxed item and relevant jurisdiction[22] - These non-GAAP measures provide useful information for understanding financial performance, future prospects, and for management's financial and operational decision-making[23] Free Cash Flow Definition Free cash flow is a non-GAAP liquidity measure, indicating cash generated from operations after capital expenditures - Free cash flow is a non-GAAP measure defined as net cash provided by operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs[33] - It serves as an important liquidity measure, indicating cash generated for future operational expenses and investment in the business[33] - Limitations include not reflecting future contractual commitments or the total increase/decrease in cash balance for a given period[33] Condensed Consolidated Financial Statements This section presents BILL's condensed consolidated balance sheets, statements of operations, and cash flows Condensed Consolidated Balance Sheets As of June 30, 2025, BILL's total assets increased to $10.06 billion, driven by cash, investments, and customer funds Condensed Consolidated Balance Sheets | Metric | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (Thousands) | | :-------------------------- | :------------------------ | :------------------------ | :----------------- | | ASSETS | | | | | Cash and cash equivalents | $1,038,346 | $985,941 | +$52,405 | | Short-term investments | $1,180,110 | $601,535 | +$578,575 | | Funds held for customers | $4,044,470 | $3,704,907 | +$339,563 | | Total assets | $10,063,982 | $9,178,813 | +$885,169 | | LIABILITIES | | | | | Convertible senior notes, net | $1,534,465 | $733,991 | +$800,474 | | Customer fund deposits | $4,044,470 | $3,704,907 | +$339,563 | | Total liabilities | $6,149,942 | $5,044,612 | +$1,105,330 | | STOCKHOLDERS' EQUITY | | | | | Total stockholders' equity | $3,914,040 | $4,134,201 | -$220,161 | Condensed Consolidated Statements of Operations For FY25, total revenue grew 13% to $1.46 billion, with reduced operating loss and a return to net income Condensed Consolidated Statements of Operations | Metric | Year Ended June 30, 2025 (Thousands) | Year Ended June 30, 2024 (Thousands) | YoY Change | | :-------------------------- | :----------------------- | :----------------------- | :--------- | | Total revenue | $1,462,570 | $1,290,172 | +13.4% | | Subscription and transaction fees | $1,300,804 | $1,122,733 | +15.9% | | Gross profit | $1,190,467 | $1,055,556 | +12.8% | | Operating loss | ($80,602) | ($174,164) | +53.7% | | Net income (loss) | $23,799 | ($28,878) | +182.4% | | Basic EPS | $0.23 | ($0.27) | +185.2% | | Diluted EPS | ($0.07) | ($0.27) | +74.1% | Stock-based Compensation | Stock-based Compensation | Year Ended June 30, 2025 (Thousands) | Year Ended June 30, 2024 (Thousands) | | :-------------------------------------- | :----------------------- | :----------------------- | | Total stock-based compensation | $242,532 | $248,375 | Condensed Consolidated Statements of Cash Flows FY25 saw increased net cash from operating activities and improved financing, despite higher investing cash usage Condensed Consolidated Statements of Cash Flows | Metric | Year Ended June 30, 2025 (Thousands) | Year Ended June 30, 2024 (Thousands) | Change (Thousands) | | :-------------------------------------- | :----------------------- | :----------------------- | :----------------- | | Net cash provided by operating activities | $350,644 | $278,771 | +$71,873 | | Net cash used in investing activities | ($817,390) | ($409,374) | -$408,016 | | Net cash provided by (used in) financing activities | $666,522 | ($742,599) | +$1,409,121 | | Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | $199,486 | ($873,442) | +$1,072,928 | | Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $3,550,884 | $3,351,398 | +$199,486 | Reconciliation of GAAP to Non-GAAP Financial Measures This section provides detailed reconciliations between GAAP and non-GAAP financial measures for performance indicators Gross Profit Reconciliation The reconciliation details adjustments from GAAP to non-GAAP gross profit, primarily for depreciation and stock-based compensation Gross Profit Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Gross profit | $1,190,467 | $1,242,685 | $1,055,556 | $1,109,872 | | Gross margin | 81.4% | 85.0% | 81.8% | 86.0% | | Add: Depreciation and amortization | $42,298 | | $44,722 | | | Add: Stock-based compensation and related payroll taxes charged to cost of revenue | $9,920 | | $9,594 | | Operating Expenses Reconciliation This reconciliation adjusts GAAP operating expenses for R&D, Sales & Marketing, and G&A by removing non-cash items Operating Expenses Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Research and development | $340,059 | $229,804 | $336,754 | $230,994 | | Sales and marketing | $543,711 | $502,910 | $478,540 | $428,467 | | General and administrative | $281,913 | $197,676 | $277,662 | $194,125 | | Less: Stock-based compensation and related payroll taxes (R&D) | ($110,255) | | ($105,760) | | | Less: Stock-based compensation and related payroll taxes (S&M) | ($40,801) | | ($50,073) | | | Less: Stock-based compensation and related payroll taxes (G&A) | ($84,329) | | ($82,565) | | Operating Loss Reconciliation The reconciliation converts GAAP operating loss to non-GAAP operating income by adding back non-cash expenses Operating Loss Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Operating loss | ($80,602) | $239,546 | ($174,164) | $196,181 | | Add: Depreciation and amortization | $74,935 | | $93,794 | | | Add: Stock-based compensation and related payroll taxes | $245,305 | | $247,992 | | | Add: Restructuring | ($92) | | $27,587 | | Net Income (Loss) Reconciliation This reconciliation details adjustments from GAAP net income (loss) to non-GAAP net income, including tax provisions Net Income (Loss) Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Net income (loss) | $23,799 | $251,798 | ($28,878) | $243,994 | | Add: GAAP provision for income taxes | $6,611 | | $2,559 | | | Add: Depreciation and amortization | $74,935 | | $93,794 | | | Add: Stock-based compensation and related payroll taxes | $245,305 | | $247,992 | | | Less: Gain on debt extinguishment | ($40,550) | | ($45,271) | | | Less: Non-GAAP provision for income taxes | ($62,949) | | ($60,999) | | Net Income (Loss) Per Share Reconciliation This reconciliation adjusts GAAP EPS to non-GAAP diluted EPS by accounting for stock-based compensation and tax provisions Net Income (Loss) Per Share Reconciliation | Metric | FY25 GAAP (Per Share) | FY25 Non-GAAP (Per Share) | FY24 GAAP (Per Share) | FY24 Non-GAAP (Per Share) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Basic EPS | $0.23 | $2.43 | ($0.27) | $2.30 | | Diluted EPS | ($0.07) | $2.21 | ($0.27) | $2.12 | | Add: Stock-based compensation and related payroll taxes | $2.37 | | $2.34 | | | Less: Non-GAAP provision for income taxes | ($0.61) | | ($0.57) | | Free Cash Flow BILL's free cash flow for FY25 increased to $312.5 million, calculated by adjusting operating cash flow Free Cash Flow Reconciliation | Metric | FY25 (Thousands) | FY24 (Thousands) | | :-------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $350,644 | $278,771 | | Purchases of property and equipment | ($4,335) | ($976) | | Capitalization of internal-use software costs | ($33,767) | ($19,917) | | Free cash flow | $312,542 | $257,878 | Remaining Performance Obligations As of June 30, 2025, BILL's total remaining performance obligations amounted to $73.1 million, with a portion due within one year Remaining Performance Obligations | Period | June 30, 2025 (Thousands) | | :-------------------------------------- | :------------------------ | | Over the next 1 year | $33,221 | | Between 1 to 2 years | $17,166 | | Thereafter | $22,668 | | Total | $73,055 |