Summary
BILL reported $358.5 million in first quarter fiscal 2025 revenue, up 17.5% from the prior-year quarter. Gross profit rose 18.0% to $293.8 million, and gross margin was 82.0%, up 0.3 percentage points from the prior-year quarter. The company swung to net income of $8.9 million from a net loss in the prior-year quarter, and diluted EPS was $0.08. Operating loss narrowed to $7.7 million, and operating margin improved to negative 2.1%. Core revenue, which combines subscription and transaction fees, rose to $314.9 million. Non-GAAP operating income increased 101% to $67.1 million, while non-GAAP net income was $68.6 million, or $0.63 per diluted share. The gap between GAAP net income and non-GAAP net income reflects large non-cash and non-recurring items such as stock-based compensation and amortization.
Operationally, BILL served 476,200 businesses at September 30, 2024, up 1% from 471,200 a year earlier. Total payment volume was $79.8 billion for the quarter, up 14%, and transactions processed totaled 28.6 million, up 16%. The company repurchased roughly 3.7 million shares for about $200 million during the quarter under the August 2024 Share Repurchase Program, leaving approximately $100.0 million available for future repurchases. BILL also hired Mary Kay Bowman as Executive Vice President, Payments and Financial Services, and Bobbie Grafeld as Chief People Officer.
Management guided second quarter fiscal 2025 total revenue growth to 12% to 13% year over year and core revenue growth to 15% to 17%. For the full fiscal year ending June 30, 2025, the company guided total revenue growth to 12% to 13% and core revenue growth to 15% to 17%. Non-GAAP operating income guidance is $47.5 million to $52.5 million for the second quarter and $182.5 million to $207.5 million for the full fiscal year. Non-GAAP net income guidance is $48.0 million to $52.0 million for the second quarter and $181.5 million to $201.5 million for the full fiscal year. Non-GAAP net income per diluted share guidance is $0.44 to $0.48 for the second quarter and $1.65 to $1.83 for the full fiscal year. The outlook assumes a 20% non-GAAP tax provision and does not include future share repurchases in per-share guidance.
Risks remain centered on credit and the macroeconomic backdrop. BILL disclosed that its provision for expected credit losses increased because of portfolio growth in acquired card receivables and loans held for investment. Management noted that SMBs are sensitive to economic and financial conditions, and some customers moderated spending or shifted to lower-cost payment methods. That pressure weighed on payment volume and transaction fee growth relative to historical trends. The company also flagged risks tied to interest rates, inflation, volatile markets, foreign exchange, fraud and loss, credit risk on BILL Divvy Corporate Cards, competition, acquisitions and integration, and reliance on accounting firm and financial institution partners. It cited its history of operating losses and the large sums of customer funds it transfers daily. Remaining performance obligations fell 34.3% to $82.2 million, and current deferred revenue rose 11.5% to $21.7 million. Operating cash flow was $88.6 million, up 65.1%, while capital expenditures were $0.02 million, down 95.8%. Free cash flow, a non-GAAP measure, was $81.5 million, up from $47.6 million.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $358.4M | $343.7M | +4.3% | $305.0M | +17.5% |
| Gross profit | $293.8M | $278.5M | +5.5% | $249.0M | +18.0% |
| Gross margin | 82.0% | 81.0% | +0.9 pp | 81.6% | +0.3 pp |
| Research & development | $78.7M | $79.6M | -1.2% | $89.1M | -11.7% |
| Sales & marketing | $126.3M | $123.7M | +2.1% | $118.4M | +6.7% |
| General & administrative | $66.8M | $25.2M | +165.2% | $85.3M | -21.7% |
| Total operating expenses | $301.5M | $300.7M | +0.3% | $305.6M | -1.4% |
| Operating income (loss) | -$7.7M | -$22.2M | +65.4% | -$56.6M | +86.4% |
| Operating margin | -2.1% | -6.5% | +4.3 pp | -18.6% | +16.4 pp |
| Net income (loss) | $8.9M | $7.6M | +17.3% | -$27.9M | +132.0% |
| Net margin | 2.5% | 2.2% | +0.3 pp | -9.1% | +11.6 pp |
| Diluted EPS | $0.08 | $0.07 | +$0.01 | -$0.26 | +$0.34 |
Risks
The MD&A states that the macroeconomic environment has caused SMB customers to moderate expenditures and shift to lower-cost payment methods, resulting in lower payment volume growth and lower transaction fee growth than historical trends. Risk factors also note SMBs have fewer financial resources to weather an economic downturn.
Risk factors expanded on credit risk from BILL Divvy Corporate Card, including that the company bears entire credit risk on participation interests and does not file UCC liens. The MD&A reports the provision for expected credit losses increased due to portfolio growth in acquired card receivables and loans held for investment.
Risk factors name Intuit's October 2023 launch of a native bill payment solution integrated with QuickBooks and new bill payment products from Brex and Ramp. Competitors may also leverage AI-based services to offer more advanced or lower-cost alternatives.
The BILL Spend and Expense offering depends on Cross River Bank and WEX Bank as Issuing Banks. Risk factors note true lender litigation and regulatory scrutiny that could force alternative bank relationships or business modifications.
Risk factors state that BILL Divvy Corporate Card funding relies on warehouse facilities and participation interest purchases. If financing partners terminate or fail to renew, the company may have to use corporate cash and could face limited ability to offer card products.
The risk factors disclose that revenue from interest on funds held for customers is a meaningful portion of total revenue. The company anticipates interest rates may decline, which would decrease this revenue and could adversely affect operating results.
Risk factors state relationships with more than 8,000 accounting firm partners contribute a significant portion of consolidated revenue, including an exclusive partnership with CPA.com. Damage to reputation or inability to grow these relationships could weaken growth prospects.
Risk factors identify founder and CEO René Lacerte and President and CFO John Rettig as critical, with no key person insurance. The MD&A notes a December 2023 reduction-in-force reduced personnel-related costs and stock-based compensation.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Businesses using our solutions
Non-GAAP Operating Income
Remaining performance obligations (Total)
BILL AP/AR Customers
Embedded Solutions and Other Customers
Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.