Summary
BILL closed fiscal 2025 with fourth-quarter total revenue of $383.3 million, up 11.5% year over year. Fiscal year revenue reached $1.46 billion, up 13.4%. Gross profit was $309.8 million in the quarter, up 11.2%, and $1.19 billion for the fiscal year, up 12.8%. Gross margin slipped to 80.8% in the quarter, down 0.2 percentage points, and to 81.4% for the fiscal year, down 0.4 percentage points. The company reported an operating loss of $22.2 million in the quarter, essentially flat year over year. For the full fiscal year, operating loss was $80.6 million, a narrower loss than the prior fiscal year. Operating margin improved to -5.8% in the quarter, up 0.7 percentage points, and to -5.5% for the fiscal year, up 8.0 percentage points. Net loss was $7.1 million in the quarter, compared with net income in the prior-year quarter. Fiscal year net income was $23.8 million, a swing to profit from a net loss in the prior fiscal year. Diluted EPS for the fiscal year was -$0.07, a narrower loss than the prior fiscal year.
Non-GAAP results show a similar mix of growth and margin pressure. Fourth-quarter non-GAAP operating income was $56.4 million, down 6% year over year. Fiscal year non-GAAP operating income was $239.5 million, up 22%. Non-GAAP net income was $61.6 million in the quarter, or $0.53 per diluted share, compared with $63.9 million, or $0.57 per diluted share. For the fiscal year, non-GAAP net income was $251.8 million, or $2.21 per diluted share, compared with $244.0 million, or $2.12 per diluted share. Core revenue, which includes subscription and transaction fees, was $345.9 million in the quarter, up 15% year over year, and $1,300.8 million for the fiscal year, up 16%. Subscription fees were $68.8 million in the quarter, up 5%, and $272.1 million for the fiscal year, up 6%. Transaction fees were $277.1 million in the quarter, up 18%, and $1,028.7 million for the fiscal year, up 19%.
Operational metrics point to steady network expansion. BILL served 493,800 businesses using its solutions as of June 30, 2025. Fourth-quarter total payment volume was $86 billion, up 13% year over year, and transactions processed were 33 million, up 18%. The network reached 8.3 million members, up 18%. For fiscal 2025, total payment volume was $329.8 billion, up 13%, and transactions processed were 121.3 million, up 17%. Net dollar-based retention was 94%, up from 92% in the prior fiscal year. Cash generation remained solid. Fourth-quarter operating cash flow was $83.8 million, up 6.6%, and fiscal year operating cash flow was $350.6 million, up 25.8%. Capital expenditures were $2.8 million in the quarter, up 1260.5%, and $4.3 million for the fiscal year, up 344.2%. Deferred revenue was $22.4 million, up 31.9%. Remaining performance obligations were $73.1 million, down 15.8%.
Guidance for the next quarter and the full fiscal year reflects continued growth but a moderation in total revenue expansion. For the first quarter of fiscal 2026, BILL guides total revenue growth of 7% to 10% year over year and core revenue growth of 11% to 14%. Non-GAAP operating income is expected at $53.5 million to $58.5 million, non-GAAP net income at $56.5 million to $60.5 million, and non-GAAP net income per diluted share at $0.49 to $0.52. For the full fiscal year 2026, total revenue growth is guided to 9% to 11% and core revenue growth to 12% to 15%. Non-GAAP operating income is expected at $240.0 million to $270.0 million, non-GAAP net income at $236.0 million to $260.0 million, and non-GAAP net income per diluted share at $2.00 to $2.20. The non-GAAP net income outlook assumes a 20% non-GAAP provision for income taxes.
The quarter also brought a new $300 million share repurchase program. BILL repurchased approximately 2.2 million shares in the fourth quarter and July 2025 for about $100 million. Management pointed to strong cash flow generation as support for the buyback. Risks remain familiar for the SMB-focused platform. Macroeconomic conditions, interest rate changes, inflation, tariffs, and volatile market environments could pressure the SMBs BILL serves. The MD&A notes that certain BILL AP/AR customers reduced spending in fiscal 2025, which lowered total payment volume per customer. Lower interest rates reduce float revenue. The company also carries credit risk on BILL Divvy Cards and invoice financing, along with fraud and unauthorized use risk. Competition and a history of operating losses are additional concerns.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $383.3M | $358.2M | +7.0% | $343.7M | +11.5% |
| Gross profit | $309.8M | $291.0M | +6.4% | $278.5M | +11.2% |
| Gross margin | 80.8% | 81.2% | -0.4 pp | 81.0% | -0.2 pp |
| Research & development | $90.0M | $86.5M | +4.1% | $79.6M | +13.1% |
| Sales & marketing | $148.1M | $136.8M | +8.3% | $123.7M | +19.7% |
| General & administrative | $70.2M | $73.9M | -5.0% | $25.2M | +178.7% |
| Total operating expenses | $332.0M | $320.0M | +3.8% | $300.7M | +10.4% |
| Operating income (loss) | -$22.2M | -$28.9M | +23.1% | -$22.2M | -0.1% |
| Operating margin | -5.8% | -8.1% | +2.3 pp | -6.5% | +0.7 pp |
| Net income (loss) | -$7.1M | -$11.6M | +39.0% | $7.6M | -193.1% |
| Net margin | -1.8% | -3.2% | +1.4 pp | 2.2% | -4.0 pp |
| Diluted EPS | -$0.07 | -$0.11 | +$0.04 | $0.07 | -$0.14 |
Risks
A significant portion of BILL's revenue comes from SMBs, which are more susceptible to economic downturns, inflation, tariffs, and interest-rate changes. In fiscal 2025, BILL observed certain BILL AP/AR customers reduce spending, resulting in reduced TPV per customer, and recent reductions in U.S. federal government spending, including in the U.S. Small Business Administration, may adversely impact the SMBs it serves.
Interest on funds held for customers was $161.8 million, or 11% of total revenue, in fiscal 2025 and decreased 3% from fiscal 2024, primarily due to lower yield driven by decreases in interest rates. Further rate declines or customer migration to instant transfer or BILL Divvy Card could reduce this revenue and harm operating results.
BILL bears the entire credit risk on BILL Divvy Card receivables purchased from Issuing Banks and does not file UCC liens on card balances, which reduces collection ability in bankruptcies. Provision for expected credit losses increased 21% to $72.7 million in fiscal 2025, and any failure of credit or risk models could cause significant losses.
The BILL Divvy Card funding model relies on warehouse facilities and Revolving Credit Facilities with $600.0 million total borrowing capacity. If finance partners terminate or interrupt financing, BILL may have to fund participation purchases with corporate cash, which could limit card offerings and materially harm the business.
The market for cloud-based financial back-office software is highly fragmented and competitive. Intuit launched a native bill payment solution integrated with QuickBooks in October 2023, and Brex and Ramp introduced bill payment products in recent periods, challenging BILL's ability to win, retain, and expand customers.
Payments and financial services regulations are material to BILL. It is licensed as a money transmitter, registered as a Money Services Business with FinCEN, must hold eligible liquid assets equal to at least 100% of customer balances, and faces true lender and program agreement risks with Issuing Banks such as Cross River Bank, WEX Bank, and Web Bank.
BILL is responsible for verifying customer identities and monitoring transactions for fraud, bears fraud losses under card-issuing and processing partnerships, and may reimburse customers for third-party fraud. The software-driven and highly automated nature of the platform could enable criminals to steal significant amounts of money.
Most customer and accounting firm contracts are open-ended and can be terminated by either party without penalty. BILL's net dollar-based retention rate was 94% in fiscal 2025, up from 92% in fiscal 2024 but still below 100%, indicating contraction, and failure to retain or expand customers would harm revenue.
BILL uses AI in its business and faces competition based on data asset size and ability to leverage AI. Challenges developing or deploying new AI tools, including AI agents, could cause reputational, competitive, and legal harm and adversely affect results.
As of June 30, 2025, BILL had $33.5 million of 2025 Notes due December 1, 2025, $123.5 million of 2027 Notes, $1.4 billion of 2030 Notes, and $180.0 million drawn under the 2021 Credit Facility. Debt service and conversion settlement obligations may require cash and could adversely affect liquidity and financial condition.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Businesses using our solutions
Total Payment Volume
Transactions Processed
Remaining performance obligations (Total)
BILL AP/AR Customers
Embedded Solutions and Other Customers
Spending businesses using BILL Spend and Expense
Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q4 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.