One-glance verdict
Undervalued
$158.83 our estimate vs market $49.16
Wall Street consensus: $57.30 (-63.9% lower than our fair-value estimate)
69% below our estimate, below the bear case
Fundamentals snapshot
BILL Holdings, Inc.
BILL · NYQ · Technology · Software - Application
Current price
$49.16
52-week range
$31.41 - $57.21
Market cap
$4.19B
Balance sheet
Healthy
0.90x Concerning
Net cash $40.06M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 13.0% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -0.3% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 4.3% (peer median: 4.5%).
What this company does
BILL Holdings, Inc.
BILL provides online software that acts like a digital bookkeeper for small and midsize businesses, helping them automate tasks like paying bills and sending invoices. The company primarily earns money from monthly subscription fees and by taking a small percentage of each payment processed through its system. This matters because it helps businesses save time on paperwork and get a clearer picture of their cash flow (the money moving in and out of the company), which is crucial for staying healthy and growing.
How the company got here
Founded in 2006 as a way for small and midsize businesses to manage their cash flow online, the company was originally named Cashboard. It went public with an IPO (Initial Public Offering, the first time a private company sells its stock to the public) in December 2019. A major turning point was the acquisition of Divvy in 2021, which added corporate card and expense management to its offerings. The company also acquired Invoice2go to better serve very small businesses and freelancers, and officially changed its name from Bill.com to BILL Holdings, Inc. in 2023 to reflect its broader platform.
What it actually does
BILL provides a cloud-based software platform designed to be a central hub for a small or midsize business's financial tasks. Think of it as a digital back office that helps a business pay its bills to suppliers (a process called accounts payable) and get paid by its customers (called accounts receivable). The platform uses artificial intelligence (AI) to automate and simplify tasks like entering invoices, getting approvals for payments, and managing employee expenses. This helps businesses save time, reduce manual data entry, and have a clearer picture of their cash flow (the movement of money in and out of the company).
Subscription and Transaction Fees
This is the company's primary way of making money, representing the majority of its revenue. Businesses pay a recurring subscription fee to access and use the BILL software platform. On top of that, BILL charges transaction fees for processing payments, which can be a percentage of the payment amount or a flat fee per transaction. The more payments a business makes or receives through the platform, the more transaction fees BILL generates.
Spend & Expense Management
This business line comes largely from the acquisition of a company called Divvy. It offers businesses a combined corporate card and software system to control company spending. Employees use the corporate cards for expenses, and the software allows managers to set spending limits and track purchases in real-time, eliminating the need for traditional expense reports. This service helps businesses manage their spending more effectively and simplifies the process for both employees and the finance department.
Interest on Funds Held for Customers
This is a smaller, but still significant, part of BILL's revenue. When a business schedules a payment to a supplier, BILL holds that money for a short period before sending it to the supplier. During this time, BILL earns interest on these customer funds, which is often referred to as 'float revenue'. This is a common practice for companies that process large volumes of payments.
What management is betting on now
The company's main focus is on becoming an "AI-native" company, using artificial intelligence to further automate and simplify financial tasks for its customers. They are working to integrate their acquired companies, like Divvy and Invoice2go, into a single, unified platform to offer more services to existing customers. Management is also focused on increasing profitability through operational efficiency, which has included significant workforce reductions. Another key strategy is expanding its reach by partnering with financial institutions and accounting firms to offer its platform to their small business clients.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$88.56M
FY2025 Q2
$78.33M
FY2025 Q3
$98.38M
FY2025 Q4
$81.03M
FY2026 Q1
$95.56M
FY2026 Q2
$103.83M
FY2026 Q3
$102.51M
FY2026 Q4
$110.61M
Revenue
$436.19M
Net income
$-18.48M
Diluted EPS
-0.17
Operating cash flow
$110.99M
Free cash flow
$110.61M
Fetching…
Sources
Revenue
$406.56M
Net income
$12.79M
Diluted EPS
0.12
Operating cash flow
$102.67M
Free cash flow
$102.51M
Fetching…
Sources
Revenue
$414.67M
Net income
$-2.59M
Diluted EPS
-0.03
Operating cash flow
$105.32M
Free cash flow
$103.83M
Fetching…
Sources
Revenue
$395.74M
Net income
$-2.96M
Diluted EPS
-0.03
Operating cash flow
$96.86M
Free cash flow
$95.56M
Fetching…
Sources
Revenue
$383.35M
Net income
$-7.07M
Diluted EPS
0.02
Operating cash flow
$83.82M
Free cash flow
$81.03M
Fetching…
Sources
Revenue
$358.22M
Net income
$-11.59M
Diluted EPS
-0.11
Operating cash flow
$99.53M
Free cash flow
$98.38M
Fetching…
Sources
Revenue
$362.55M
Net income
$33.55M
Diluted EPS
-0.06
Operating cash flow
$78.72M
Free cash flow
$78.33M
Fetching…
Sources
Revenue
$358.45M
Net income
$8.91M
Diluted EPS
0.08
Operating cash flow
$88.58M
Free cash flow
$88.56M
Fetching…
Sources
Is it cheap or expensive?
Fair value $158.83 vs current price $49.16
Wall Street consensus is the average analyst price target: $57.30 (-63.9% lower than our fair-value estimate).
Our most-likely fair value is $158.83 a share — about 223.1% above today's price of $49.16, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $40.1M - more cash than debt. Interest coverage 0.9x.
Net debt
$-40.06M
Interest coverage
0.90x
BILL Holdings, Inc.'s profit covers its interest bill about 0.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
BILL
BASELINE
BILL Holdings, Inc.
Total debt $1.90B Interest coverage 0.90x This is the baseline the peer rows are being compared against.
Total debt $8.34B Interest coverage 19.99x +2,127% vs BILL Carries about 22.3x more debt cushion than BILL.
Total debt $0.00 Interest coverage 25.33x +2,722% vs BILL Carries about 28.2x more debt cushion than BILL.
Total debt $5.38M Interest coverage -11.46x -100% vs BILL This peer has almost no interest-payment cushion compared with BILL.
What you should know
The case for and against BILL
2 Rewards
2 Risks
Rewards
-
Revenue grew 13.0% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -0.3% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 4.3% (peer median: 4.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.31x
P/B
1.28x
P/S
2.54x
EV/EBITDA
41.48x
PEG ratio
0.48x
Profitability
How much profit each dollar creates
Gross margin
83.9%
Operating margin
9.7%
Net margin
-0.7%
ROE
-0.3%
ROA
0.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.54x
Current ratio
1.51x
Quick ratio
0.57x
Total debt
$1.90B
Total cash
$1.94B
Growth
How the business has been compounding
Revenue TTM
$1.65B
Revenue 5Y CAGR
26.7%
EPS TTM
-0.11
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$415.83M
Free CF TTM
$412.50M
FCF margin
25.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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