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Bill.com Holdings
(NYSE:BILL)
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Rating:58Neutral
Price Target:
$50.00
▲(4.80% Upside)
Action:Downgraded
Date:08/20/26
The score is held back primarily by weakening financial performance—especially the sharp deterioration in operating cash flow/free cash flow and inconsistent profitability. Offsetting this, the latest earnings call was constructive with solid FY27 growth and margin targets plus active buybacks, and technicals show moderately improving momentum. Valuation remains a drag due to a negative P/E and no dividend support.
Positive Factors
Strong gross margins
An approximately 81% gross margin indicates attractive software economics and pricing capacity. This provides a durable base for funding product investment, absorbing payment-related costs, and converting future revenue growth into operating leverage.
Negative Factors
Severe deterioration in cash generation
The collapse in operating and free cash flow weakens financial flexibility and raises questions about working-capital quality or other cash conversion pressures. If persistent, it could constrain reinvestment, debt capacity, and the ability to fund shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong gross margins
An approximately 81% gross margin indicates attractive software economics and pricing capacity. This provides a durable base for funding product investment, absorbing payment-related costs, and converting future revenue growth into operating leverage.
Read all positive factors
Bill.com Holdings Key Performance Indicators (KPIs)
Any
Total Payment Volume
Measures the total value of payments processed, indicating the scale of operations and potential revenue growth from transaction fees.
Measures the total value of payments processed, indicating the scale of operations and potential revenue growth from transaction fees.
Data provided by:
The Fly
The FlyBill.com Holdings (BILL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.11B
Dividend YieldN/A
Average Volume (3M)2.39M
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth13.03%
EPS Growth-150.40%
CountryUS
Employees1,683
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.11
Shares Outstanding85,276,780
10 Day Avg. Volume2,417,713
30 Day Avg. Volume2,391,314
Financial Highlights & Ratios
PEG Ratio2.22
Price to Book (P/B)1.02
Price to Sales (P/S)2.19
P/FCF Ratio8.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$57.23Price Target Upside19.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)3.74
Revenue Forecast (FY)$1.83B
Bill.com Holdings Business Overview & Revenue Model
Company Description
Bill.com Holdings, Inc. offers a powerful cloud-based platform designed to streamline, digitize, and automate the core financial operations for small and medium-sized businesses worldwide. Through its software-as-a-service (SaaS) model, the compan...
How the Company Makes Money
BILL primarily makes money through two revenue streams: (1) subscription revenue from customers who pay recurring fees to use its software platform for AP/AR and related workflow automation, and (2) transaction revenue generated when customers use...
Bill.com Holdings Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational and financial progress: solid Q4 revenue growth (+16% core revenue), significant margin expansion and profitability improvements, large-scale AI adoption delivering productivity and risk improvements (invoice financing volume/revenue +~30% and >50% loss-rate improvement), strong cross-product adoption (35% growth) and active capital returns (share buybacks). Management also candidly disclosed near-term headwinds tied to go-to-market reorganization, slower net-new customer adds, SPP rollout timing, bank-channel consolidation, and S&E acceptance/rewards dynamics which together were modeled as roughly a 3-point headwind to FY27 growth. On balance the company presented durable growth targets (FY27 core revenue +11%–14%), clear margin targets (23%–24% non-GAAP operating margin) and GAAP profitability plans, with multiple operational levers (AI, platform cross-sell, Embed 2.0) expected to drive future upside — overall the positives (growth, margin expansion, AI-driven improvements, buybacks, and guidance) outweigh the disclosed near-term execution risks.Positive Updates
Q4 Revenue and Profitability
Core revenue of $400.5M, up 16% year-over-year; non-GAAP operating margin ~23% (expanded 370 basis points sequentially and 860 basis points year-over-year); non-GAAP net income of $94M, up 22% sequentially and 53% year-over-year.
Negative Updates
Soft Net-New Customer Adds in Q4
Q4 added ~1.8K net-new customers, below recent trends due to deliberate focus on higher-quality customers and salesforce restructuring; management indicated this impacted growth and expects recovery with Q1 early indicators improving (Q1 net-new add guidance midpoint implies modest recovery).
Read all updates
Q4-2026 Updates
Positive
Negative
Q4 Revenue and Profitability
Core revenue of $400.5M, up 16% year-over-year; non-GAAP operating margin ~23% (expanded 370 basis points sequentially and 860 basis points year-over-year); non-GAAP net income of $94M, up 22% sequentially and 53% year-over-year.
Read all positive updates
Company Guidance
For Q1 FY27 Bill guided total revenue of $432.5M–$442.5M and core revenue of $398M–$408M (11%–14% YoY), with rewards expense of $92.5M (implying core revenue net of rewards growth of 10%–14%); AP/AR TPV is expected in line with FY26, S&E TPV mid‑teens YoY, AP/AR take rate in line with Q4 (~16.0 bps) and S&E take rate ~260 bps; non‑GAAP operating income is targeted at $112.5M–$117.5M and non‑GAAP EPS $0.96–$1.00 on ~102M diluted shares. For FY27 the company guided total revenue $1.807B–$1.857B (9%–12% YoY), core revenue $1.669B–$1.719B (11%–14% YoY) with rewards expense $401.5M (core revenue net of rewards growth 10%–14%), non‑GAAP operating income $421M–$451M (23%–24% margin; ~590 bps ex‑float expansion at midpoint), non‑GAAP net income $370.5M–$394.5M and non‑GAAP EPS $3.56–$3.79 on ~104M shares (reflecting $600M repurchases), GAAP profit “well over $125M,” stock‑based comp ~ $190M (~10% of revenue), and $400M remaining on the $1B buyback; note revenue will be presented net of rewards beginning Q1 FY27 and the company is modeling a 2‑point S&E and 1‑point bank‑channel headwind for the year.Bill.com Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
34
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.65B | 1.46B | 1.29B | 1.06B | 641.96M |
| Gross Profit | 1.30B | 1.19B | 1.06B | 864.49M | 496.95M |
| EBITDA | 100.10M | 138.42M | 96.03M | -102.54M | -225.16M |
| Net Income | -11.24M | 23.80M | -28.88M | -223.72M | -326.36M |
Balance Sheet | |||||
| Total Assets | 10.22B | 10.06B | 9.18B | 9.64B | 9.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 2.32B | 1.59B | 2.66B | 2.71B |
| Total Debt | 1.90B | 1.77B | 976.85M | 1.91B | 1.86B |
| Total Liabilities | 6.69B | 6.15B | 5.04B | 5.55B | 5.21B |
| Stockholders Equity | 3.53B | 3.91B | 4.13B | 4.09B | 4.04B |
Cash Flow | |||||
| Free Cash Flow | 422.45M | 309.67M | 257.88M | 156.56M | -33.73M |
| Operating Cash Flow | 425.78M | 350.64M | 278.77M | 187.77M | -18.09M |
| Investing Cash Flow | -28.60M | -817.39M | -409.37M | 259.29M | -1.13B |
| Financing Cash Flow | -182.78M | 666.52M | -742.60M | 235.11M | 2.88B |
Bill.com Holdings Technical Analysis
Positive
47.71
Price Trends
42.79
Positive
40.14
Positive
43.75
Positive
Market Momentum
1.33
Positive
54.20
Neutral
23.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BILL, the sentiment is Positive. The current price of 47.71 is below the 20-day moving average (MA) of 48.10, above the 50-day MA of 42.79, and above the 200-day MA of 43.75, indicating a neutral trend. The MACD of 1.33 indicates Positive momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 23.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BILL.
Bill.com Holdings Risk Analysis
Bill.com Holdings disclosed 66 risk factors in its most recent earnings report. Bill.com Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bill.com Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $4.00B | 43.36 | 14.49% | ― | 13.90% | 1906.95% | |
73 Outperform | $2.30B | 67.13 | 3.36% | ― | 9.58% | ― | |
66 Neutral | $2.22B | 447.06 | 1.41% | ― | 10.83% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $4.95B | 59.25 | 5.51% | ― | 30.16% | ― | |
58 Neutral | $4.11B | -419.51 | -0.30% | ― | 13.03% | -150.40% |
* Technology Sector Average
BILL
Bill.com Holdings
47.71
6.08
14.60%
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Bill.com Holdings Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Bill.com reshapes leadership to drive AI-native transformation
Positive
May 26, 2026
On May 26, 2026, BILL announced a broad reshaping of its executive ranks and organizational structure to support its transition into an AI-native company. Executive Vice President Michael Cieri was promoted to Chief Product Officer to lead a newly...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.