In Q1, we delivered very strong financial results, innovated at a rapid pace, and executed well across the company.
— Rene Lacerte
03Detailed Report
BILL
Company BILL
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 21, 2026
Swipe to view all report sections
Executive Summary
Billcom Holdings Inc (BILL) reported a solid start to fiscal 2025 (Q1) with notable strength in core revenue, profitability expansion, and cash flow generation. Total revenue reached $358.5 million, up 18% year over year, while core revenue (subscription and transaction fees) grew 19% YoY to $315.0 million, underscoring the momentum in BILL’s integrated platform. Management highlighted disciplined investment to accelerate growth while delivering durable profitability, as evidenced by non-GAAP operating income of $67.0 million (19% non-GAAP margin) and free cash flow of $81.5 million (approx. 23% free-cash-flow margin) in the quarter. BILL also stressed favorable unit economics with TPV growth, increased adoption across larger SMBs, and expanding Spend & Expense usage. Combined with a strong balance sheet and abundant cash flow, BILL is executing on its strategy to extend the financial-operations category for SMBs while funding investments to widen its competitive moat.
Management reiterated that the large US SMB opportunity remains highly addressable, with only a minority of SMBs having automated AP/AR today. The company cited a scalable platform with integrated BILL AP/AR, Spend & Expense, and working-capital solutions, plus an expanding ecosystem (accountants, financial institutions, and partners like Xero) as critical pillars for long-term growth. BILL’s actions in Q1—real-time funding, BILL Divvy AP card availability, international payments expansion, and ongoing AI-enabled product enhancements (Sync Assist)—are positioned to lift monetization and drive adoption across higher-spend cohorts. The company also signaled that its $45 million incremental investment in 2025 is back-loaded in cadence, with hiring and execution intensifying later in the year, supporting a multi-year growth trajectory toward the operative target of durable scalable growth.
Key Performance Indicators
Revenue
Increasing
358.45M
QoQ: 4.30% | YoY: 17.53%
Gross Profit
Increasing
293.75M
81.95% margin
QoQ: 11.37% | YoY: 17.99%
Operating Income
Increasing
21.98M
QoQ: 200.66% | YoY: 138.79%
Net Income
Increasing
8.91M
QoQ: 17.34% | YoY: 131.99%
EPS
Increasing
0.08
QoQ: 17.90% | YoY: 132.42%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $358.45 million in Q1 2025, up 18% YoY; Core revenue $315.0 million, up 19% YoY; Float revenue $44.0 million.
- Integrated platform (ex-FI channel) revenue: $295.0 million, up 18% YoY. BILL AP/AR revenue: $162.0 million, up 13% YoY; TPV growth: 12% YoY; TPV per customer: +2% YoY. Spend & Expense revenue: $133.0 million, up 25% YoY; card spend growth: +26% YoY; Spend & Expense interchanges: 260 bps; Rewards: 47% of Spend & Expense revenue.
- Embedded and other solutions (FI channel, Invoice2go, etc.): $20.0 million, up 28% YoY.
- Non-GAAP gross profit: $307.0 million; non-GAAP gross margin: 86% (above target low-80s due to float revenue/mix).
- Non-GAAP operating income: $67.0 million; non-GAAP operating margin: 19%; operating income margin (GAAP): 6.13%.
- Net income (GAAP): $8.9 million; net margin: 2.49%; EPS (GAAP): $0.084; EPS (diluted): $0.083; Non-GAAP diluted EPS: $0.63.
- Operating cash flow: $88.6 million; free cash flow: $81.5 million (free cash flow margin not explicitly stated).
- Balance sheet: cash and equivalents $853.5 million; total cash and short-term investments $1.473 billion; total assets $9.045 billion; total liabilities $5.032 billion; total stockholders’ equity $4.013 billion; net debt of about $58 million (net cash).
- Share repurchase: $200 million repurchased under the $300 million program.
- Guidance (2Q and FY25): modest sequential operating expense growth; Q2 revenue guidance $355.5–$360.5 million; core revenue guidance $316–$321 million; float revenue $39.5 million. FY25 revenue guidance $1.439–$1.464 billion; core revenue $1.291–$1.316 billion; float revenue ~$148 million; non-GAAP net income $181.5–$201.5 million; non-GAAP diluted EPS $1.65–$1.83; SBC <20% of revenue; share count ~110 million.
- Commentary on macro and market: management noted continued macro uncertainty but remains confident in a multi-year growth path; investments are back-loaded and aimed at accelerating core revenue and margin expansion over the long term.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
358.45M
17.53%
4.30%
Gross Profit
293.75M
17.99%
11.37%
Operating Income
21.98M
138.79%
200.66%
Net Income
8.91M
131.99%
17.34%
EPS
0.08
132.42%
17.90%
Key Financial Ratios
Gross Profit Margin
Excellent
82.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Fair
6.13%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
2.49%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.10%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.22%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.53
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.20
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
156.40x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
1.39x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.