BILL (US:BILL)2026-02-05 22:43Revenue and Growth - Revenue for the three months ended December 31, 2025, was $414.7 million, an increase of 14.4% from $362.6 million in the same period of 2024[138] - Total Payment Volume (TPV) for the three months ended December 31, 2025, was $95.1 billion, representing a 13% increase from $84.5 billion in the same period of 2024[157] - The number of businesses using the company's solutions reached approximately 498,500 as of December 31, 2025, a growth of 4% from 481,300 in 2024[157] - The company processed approximately 34.7 million transactions during the three months ended December 31, 2025, a 16% increase from 30.0 million transactions in the same period of 2024[157] - Total Payment Volume for the six months ended December 31, 2025, was $184.4 billion, a 12% increase from $164.5 billion in the same period of 2024[157] - Subscription and transaction fees revenue increased by 17% to $375.1 million for the three months ended December 31, 2025, compared to $319.6 million in the same period of 2024[183] - Total revenue for the three months ended December 31, 2025, was $414.7 million, reflecting a 14% increase from $362.6 million in the prior year[183] - Revenue for the three months ended December 31, 2025, was $414.7 million, an increase from $362.6 million in the same period of 2024, representing a growth of 14.5%[205] Profitability and Loss - The company generated a net loss of $2.6 million for the three months ended December 31, 2025, compared to a net income of $33.5 million in the same period of 2024[138] - Net loss for the three months ended December 31, 2025, was $(2.6) million, a significant decrease from a net income of $33.5 million in the same period of 2024[183] - Operating loss improved by 17% to $(18.1) million for the three months ended December 31, 2025, compared to $(21.7) million in the same period of 2024[183] - Gross profit for the three months ended December 31, 2025, was $331.1 million, a 12% increase from $295.9 million in the same period of 2024[183] - Gross profit for the three months ended December 31, 2025, was $331.1 million, with a gross margin of 79.8%, down from 81.6% in the prior year period[186] - Non-GAAP gross profit for the six months ended December 31, 2025, was $679.9 million, compared to $615.9 million in the prior year, reflecting a year-over-year increase of 10.4%[205] Expenses and Costs - Service costs rose by 23% to $69.2 million for the three months ended December 31, 2025, compared to $56.3 million in the same period of 2024[183] - Total operating expenses increased by 10% to $349.2 million for the three months ended December 31, 2025, compared to $317.7 million in the same period of 2024[183] - Research and development expenses decreased by 2% to $82.8 million for the three months ended December 31, 2025, compared to $84.8 million in the same period of 2024[183] - Sales and marketing expenses increased by 17% to $155.4 million for the three months ended December 31, 2025, compared to $132.5 million in the same period of 2024[183] - Operating expenses as a percentage of revenue decreased to 84% for the three months ended December 31, 2025, compared to 88% in the prior year period[186] - Research and development expenses decreased to 20% of revenue for the three months ended December 31, 2025, down from 22% in the prior year period[187] - Sales and marketing expenses increased by $22.9 million during the three months ended December 31, 2025, remaining flat at 37% of revenue[192] - General and administrative expenses increased by $8.4 million during the three months ended December 31, 2025, remaining flat at 20% of total revenue[193] Cash Flow and Financial Position - Free cash flow for the six months ended December 31, 2025, was $173.4 million, up from $153.1 million in the same period of 2024, indicating a growth of 13.2%[206] - Cash and cash equivalents as of December 31, 2025, totaled $1.1 billion, with an additional $1.1 billion in available-for-sale short-term investments[208] - Net cash provided by operating activities increased to $202.2 million for the six months ended December 31, 2025, compared to $167.3 million in the prior year, a growth of 20.9%[219] - Net cash provided by investing activities was $27.9 million during the six months ended December 31, 2025, a significant improvement from net cash used of $129.7 million in the prior year[221] Strategic Initiatives - The company launched BILL AI in October 2025, introducing AI agents designed to autonomously collect and validate W-9s and reconcile receipts[137] - The company has established partnerships with over 85 of the top 100 accounting firms and six of the top ten largest financial institutions for SMBs in the U.S.[136] - The company announced a reduction in force impacting approximately 6% of employees to improve organizational agility and efficiency[142] - The company authorized a share repurchase program of up to $300.0 million in August 2025, with no mandated end date[214] Debt and Borrowing - The company has a total borrowing capacity of $600.0 million from its Revolving Credit Facilities, with $330.0 million drawn as of December 31, 2025[210] - As of December 31, 2025, the company had outstanding borrowings from its 2027 Notes and 2030 Notes, with $123.5 million of 2027 Notes remaining after repurchases[213] - The company has a total borrowing capacity of $300.0 million under the 2021 Credit Facility, with $180.0 million borrowed as of December 31, 2025[232] - The 2025 Credit Facility also has a total borrowing capacity of $300.0 million, with $150.0 million borrowed as of December 31, 2025[233] - The company borrowed $330.0 million from its Revolving Credit Facilities as of December 31, 2025, with interest rates indexed to a floating rate mechanism[251] Risk Factors - The company is exposed to credit risk from card receivable balances and loans held for investment, with potential defaults due to various factors[257] - A hypothetical 0.5%-2.0% increase or decrease in interest rates would not have a material effect on the company's financial results[251] - A 10% change in the relative value of the U.S. dollar to other foreign currencies would have an immaterial effect on cash flows and operating results[260] - The company evaluates the realizability of deferred tax assets quarterly, which may result in a material release of valuation allowance in the future[242]