Summary
BILL closed fiscal 2025 third quarter with total revenue of $358.2 million, up 11% year over year. Core revenue, which consists of subscription and transaction fees, was $320.3 million, up 14%. The company served 488,600 businesses as of March 31, 2025, up 5%, and processed $79.4 billion in total payment volume, up 11%. Transactions processed rose 16% to 29.7 million. Those operating metrics show that customer activity kept growing even as the company faced a mix shift in revenue.
Gross profit was $291.0 million, up 8.6%, but gross margin slipped to 81.2%, down 1.7 percentage points. The decline came from lower interest on funds held for customers and a change in payment-processing cost mix. Operating loss was $28.9 million, and the loss widened from the prior-year quarter. Operating margin was -8.1%, up 0.5 percentage points. Net loss was $11.6 million, a swing from prior-year net income, and diluted EPS was -$0.11, a swing to a loss. On a non-GAAP basis, gross profit was $304.0 million, operating income was $53.3 million, and net income was $58.7 million, or $0.50 per diluted share. Non-GAAP operating income fell 9% year over year.
Cash generation remained a bright spot. Operating cash flow was $99.5 million, up 49%, while capital expenditures were $1.15 million. Free cash flow, a non-GAAP measure, was $90.5 million. For the nine months ended March 31, 2025, revenue was $1,079.2 million, up 14%, net income was $30.9 million, a swing to a profit, and operating cash flow was $266.8 million, up 33.3%. Deferred revenue was $21.74 million, up 23.9%. Remaining performance obligations were $74.4 million, down 24.2%, which is a metric worth watching because it can signal future revenue conversion.
Guidance for the fiscal fourth quarter ending June 30, 2025 calls for total revenue growth of 8% to 11% and core revenue growth of 11% to 15%. For the full fiscal year ending June 30, 2025, the company guided to total revenue growth of 12% to 13% and core revenue growth of 15% to 16%. Non-GAAP operating income is guided to $43.0 million to $48.0 million for the fourth quarter and $226.2 million to $231.2 million for the full year. Non-GAAP net income is guided to $46.5 million to $50.5 million for the quarter and $236.7 million to $240.7 million for the full year, with non-GAAP diluted EPS of $0.39 to $0.43 for the quarter and $2.06 to $2.09 for the full year. The outlook assumes a 20% non-GAAP tax rate and does not factor in future share repurchases.
Risks remain visible. The MD&A notes that some BILL AP/AR customers reduced spending in the quarter, lowering total payment volume per customer. Lower interest rates reduce interest on funds held for customers, which pressures float revenue. SMBs are sensitive to inflation, tariffs, and broader economic weakness. BILL carries credit exposure on BILL Divvy Corporate Cards and invoice financing, and it had $75.8 million of authorized but not cleared card transactions off balance sheet. The company also had $3.4 billion in unused credit available to spending businesses and borrowers. Fraud losses and card rewards expense rose with transaction volume. Competition and a history of operating losses are additional risks. During the nine months ended March 31, 2025, BILL repurchased 3,711,246 shares for $201.3 million under its August 2024 program, leaving $100.0 million available. The RPO decline and the gross margin compression are the two items that most warrant monitoring into the fourth quarter.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $358.2M | $362.6M | -1.2% | $323.0M | +10.9% |
| Gross profit | $291.0M | $295.9M | -1.7% | $268.0M | +8.6% |
| Gross margin | 81.2% | 81.6% | -0.4 pp | 83.0% | -1.7 pp |
| Research & development | $86.5M | $84.8M | +2.1% | $81.6M | +6.1% |
| Sales & marketing | $136.8M | $132.5M | +3.2% | $118.1M | +15.8% |
| General & administrative | $73.9M | $71.1M | +3.8% | $81.6M | -9.5% |
| Total operating expenses | $320.0M | $317.7M | +0.7% | $295.6M | +8.2% |
| Operating income (loss) | -$28.9M | -$21.7M | -33.3% | -$27.6M | -4.8% |
| Operating margin | -8.1% | -6.0% | -2.1 pp | -8.6% | +0.5 pp |
| Net income (loss) | -$11.6M | $33.5M | -134.5% | $31.8M | -136.4% |
| Net margin | -3.2% | 9.3% | -12.5 pp | 9.8% | -13.1 pp |
| Diluted EPS | -$0.11 | -$0.06 | -$0.05 | $0.00 | -$0.11 |
Risks
A significant portion of revenue comes from SMBs, which may have fewer financial resources to weather downturns. MD&A states that in the three months ended March 31, 2025, certain BILL AP/AR customers reduced spending, resulting in reduced total payment volume per customer, and recent reductions in U.S. federal government spending may adversely impact the SMBs served.
Company had a net loss of $11.59 million in the current quarter, a swing from net income of $31.81 million in the prior-year quarter, while operating loss widened to $28.95 million from $27.62 million. Risk factors state the company has a history of operating losses and may not sustain or expand profitability.
Gross margin decreased to 81.2% in the current quarter from 83.0% in the prior-year quarter. Risk factors and MD&A state that declining interest rates reduce revenue from interest earned on customer funds and that customer adoption of faster payment methods may further reduce this revenue.
BILL Divvy Corporate Card exposes the company to credit risk because it purchases participation interests in receivables and bears entire credit risk if spending businesses fail to pay card balances. The risk is compounded by reliance on underwriting models and potential charge-offs.
Competition is intense, with Intuit launching a native bill payment solution integrated with QuickBooks in October 2023 and Brex and Ramp introducing bill payment products. Financial institution partners and accounting software providers may also develop or bundle competing solutions.
The company depends on Issuing Banks Cross River Bank and WEX Bank for extensions of credit, and the legal structure of bank-nonbank program agreements faces true lender and valid when made challenges. Adverse regulatory enforcement or orders against the Issuing Banks could restrict or terminate card offerings.
BILL Divvy Corporate Card funding relies on warehouse facilities and finance partners that purchase participation interests. If these arrangements are not renewed or replaced, the company may need to use limited corporate cash or reduce spend and expense operations significantly.
Risk management efforts may not prevent fraudulent activities by customers, spending businesses, or third parties, and the company may bear fraud losses under card-issuing bank partnerships. The software-driven platform could enable significant financial losses.
Risk factors list data asset size and ability to leverage AI as competitive factors, and warn that competitors may introduce AI-based services that are easier to use or more advanced than the company's platform. MD&A describes the platform as AI-enabled.
Outstanding 0% convertible senior notes and borrowings under the Revolving Credit Facility create debt service obligations. Notes may require cash settlement upon conversion or repurchase upon a fundamental change, and future debt could contain restrictions on these payments.
MD&A critical accounting estimates states that sustained macroeconomic or industry conditions could negatively impact the fair value of the company's single reporting unit and require a quantitative goodwill impairment test, potentially resulting in a non-cash impairment charge.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Businesses using our solutions
Core Revenue
Non-GAAP Operating Income
Non-GAAP Net Income
BILL AP/AR Customers
Embedded Solutions and Other Customers
Non-GAAP Gross Profit
Spending businesses using BILL Spend and Expense
Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q3 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.