BILL Holdings, Inc. [BILL] · Equity Underwriting Memo

Financial Model Notes

BILL Holdings [BILL] — Financial Model Notes

As of 2026-07-29. Every figure below traces to a primary filing. Accession numbers are given for each source. Nothing is interpolated except where marked.


1. Sources

Filing Period Filed Accession
10-Q 2026-03-31 (Q3 FY26) 2026-05-08 0001628280-26-032387
8-K / EX-99.1 Q3 FY26 results 2026-05-07 0001628280-26-032064
10-Q 2025-12-31 (Q2 FY26) 2026-02-06 0001628280-26-005879
10-Q 2025-09-30 (Q1 FY26) 2025-11-07 0001628280-25-050328
10-K FY2025 (2025-06-30) 2025-08-28 0001786352-25-000037
10-Q 2025-03-31 (Q3 FY25) 2025-05-09 0001786352-25-000021
10-K FY2023 (2023-06-30) 2023-08-29 0001786352-23-000054
10-K FY2022 (2022-06-30) 2022-08-22 0001786352-22-000017
8-K Leadership changes; guidance reaffirmed 2026-05-26 0001193125-26-239245
8-K PAO resignation 2025-12-16 0001628280-25-057323
8-K Director resignation 2026-01-26 0001628280-26-003403
DFAN14A Third-party proxy material 2025-09-08 0000921895-25-002557

Market data: Alpaca (SIP daily bars; options snapshots and contracts). XBRL: data.sec.gov/api/xbrl/companyfacts/CIK0001786352.json.


2. Revenue build — the three components

Annual (10-K, audited)

$k FY2021 FY2022 FY2023 FY2024 FY2025
Subscription fees 257,143 272,136
Transaction fees 865,590 1,028,668
Subscription + transaction 232,255 633,365 944,710 1,122,733 1,300,804
Interest on funds held for customers 6,010 8,594 113,758 167,439 161,766
Total revenue 238,265 641,959 1,058,468 1,290,172 1,462,570
Float as % of revenue 2.5% 1.3% 10.7% 13.0% 11.1%

FY2021–23 subscription/transaction detail is not disclosed; the combined line is.

Quarterly (10-Qs + earnings releases; every quarter reconciles)

$k Sub+txn (10-Q) Float (10-Q) Total (10-Q) Sub ($m, release) Txn ($m, release) Check
Q1 FY25 (Sep-24) 314,943 43,507 358,450 67.4 247.5 314.9 ✓
Q2 FY25 (Dec-24) 319,616 42,938 362,554 67.7 251.9 319.6 ✓
Q3 FY25 (Mar-25) 320,298 37,919 358,217 68.2 252.1 320.3 ✓
Q4 FY25 (Jun-25)¹ 345,947 37,402 383,349 68.8 277.1 345.9 ✓
Q1 FY26 (Sep-25) 358,005 37,736 395,741 70.8 287.2 358.0 ✓
Q2 FY26 (Dec-25) 375,128 39,543 414,671 72.1 303.1 375.2 ✓
Q3 FY26 (Mar-26) 371,134 35,429 406,563 74.5 296.6 371.1 ✓
TTM to Mar-26 1,450,214 150,109 1,600,323 286.2 1,164.0 1,450.2 ✓

¹ Q4 FY25 derived as FY2025 less 9M FY2025 (10-K less Q3 FY25 10-Q). All other quarters are stated figures.

TTM revenue of $1,600,323k confirms the screen's $1,600,324k to $1k.

Disaggregation by solution (10-K note / 10-Q note)

$k FY2023 FY2024 FY2025 9M FY25 9M FY26 9M growth
BILL AP/AR 505,644 595,408 667,782 492,905 547,689 +11.1%
BILL Spend and Expense 353,132 457,309 555,016 404,366 490,990 +21.4%
Integrated platform 858,776 1,052,717 1,222,798 897,271 1,038,679 +15.8%
Embedded Solutions and Other 85,934 70,016 78,006 57,586 65,588 +13.9%
Total sub + txn 944,710 1,122,733 1,300,804 954,857 1,104,267 +15.6%

3. Growth rates — the restatement

Measure Value Note
Screen's "demonstrated CAGR" 31.58% FY2022 $641,959k → FY2025 $1,462,570k, 3 years. Reproduces the scanner's 0.3158401 exactly.
Same window ex-float 27.11% $633,365k → $1,300,804k
Float CAGR, same window 169.9% $8,594k → $161,766k
Float share of total growth 18.7% $153,172k of $820,611k
FY2023 total / core growth +64.9% / +49.2%
FY2024 total / core growth +21.9% / +18.8%
FY2025 total / core growth +13.4% / +15.9%
TTM total / core growth +12.5% / +15.4% vs TTM to 2025-03-31 of $1,422,885k / $1,256,162k
Q3 FY26 total / core growth +13.5% / +15.9%
FY2026 guidance, total / core +12–13% / +15–16% Reaffirmed 2026-05-26

Acquisition test. Per the FY2022 10-K: "Our revenue for fiscal 2022 includes the revenue of Invoice2go from the date of acquisition on September 1, 2021 and of Divvy for the full fiscal year." Divvy closed 1 June 2021, Invoice2go 1 September 2021. The FY2022 base of the CAGR window therefore already contains Divvy in full and Invoice2go for ten months. Goodwill is unchanged at $2,396,509k at 30 Jun 2024, 30 Jun 2025 and 31 Mar 2026 — no acquisitions since. The 31.6% is not acquisition-inflated.


4. Margins — and a labelling defect in the screen

Measure FY2024 FY2025 TTM to Mar-26 Q3 FY26
Gross profit $k 1,055,556 1,190,467 1,291,435 331,855
Gross margin 81.8% 81.4% 80.7% 81.6%
Operating income (loss) $k (174,164) (80,602) (61,444) (399)
GAAP operating margin (13.5%) (5.5%) (3.8%) (0.1%)
Non-GAAP operating income $k 79,800
Non-GAAP operating margin 19.6%
Stock-based compensation $k ~236,000 (ann.) 53,937
SBC as % of revenue ~14.7% 13.3%

Screen labelling defect: the screen's gross_margin_pct 81.4 and op_margin_pct −5.5 are FY2025 annual figures, reported alongside a TTM revenue figure of $1,600.3m. The TTM equivalents are 80.7% and −3.8%. Immaterial to the conclusion; recorded because mixing period bases silently is how the larger errors happen. op_margin_delta_pp 8.0 (FY24 −13.5% → FY25 −5.5%) is correct on its own FY basis.

Accruals. 9M FY2026 net income $7,235k against operating cash flow $304,846k. Accruals are strongly negative — high earnings quality. Not a Twist/TXG-style problem.


5. Balance sheet and the net-cash correction

At 2026-03-31 ($k):

Corporate Customer (offsetting, excluded)
Cash and cash equivalents 994,672 Funds held for customers 3,999,136
Short-term investments 1,178,673 Customer fund deposits (3,999,136)
Acquired card receivables, net 819,359 Net 0
Convertible senior notes, net (1,504,854)
Revolving credit facilities (330,000)
Net cash (used here) +338,491

Debt detail (Q3 FY26 debt note):

Instrument Principal $k Carrying $k Coupon Maturity
2030 Notes 1,400,000 0% (0.32% effective) 2030-04-01
2027 Notes 123,548 0% (0.48% effective) 2027-04-01
less unamortised discount/issuance (18,694)
Converts, net 1,523,548 1,504,854
2021 Credit Facility (Divvy Peach LLC / Goldman) 180,000 180,000 SOFR + 1.95%, 6.60% May 2028, $300m commitment
2025 Credit Facility (Odin Financing LLC / JPM) 150,000 150,000 SOFR + 1.80%, 6.02% Nov 2027, $300m commitment
Total 1,853,548 1,834,854

2030 Notes conversion price $119.45 (11.7m shares); capped calls struck $119.45 / capped $154.84. The if-converted value did not exceed principal at 2026-03-31. No dilution path at current prices.

The screen's error, arithmetically

screen:    994,672 − 1,504,854 − 330,000 = −840,182   ← short-term investments omitted
verified:  994,672 + 1,178,673 − 1,504,854 − 330,000 = +338,491
Consequence Screen Verified
EV $m 5,454.5 4,278.8
EV/Sales 3.41x 2.67x
Required 5y CAGR 15.3% 9.8%

6. Share count

Shares outstanding, 10-Q cover, 2026-04-30 99,596,727 — matches the screen exactly
Basic weighted average, Q3 FY26 99,285k
Diluted weighted average, Q3 FY26 112,677k (if-converted on the 2030 Notes)
Share class Single class, $0.00001 par. Not dual-class.
EPS cross-check $12,786k ÷ 99,285k = $0.1288 vs filed $0.13
Repurchases, 9M FY2026 $272,658k; ~1.0m shares for ~$52m in Q3 FY26
Authorisation outstanding $1,000,000k, 24-month term from 2026-05-07
Modelled 12-month share count 96.0m (partial execution)

7. Key business metrics (10-K and quarterly releases)

Metric FY2023 FY2024 FY2025 Q3 FY26
Businesses using our solutions 461,000 474,600 493,800 (+4%) 493,800
— of which BILL AP/AR ~169,500
— of which BILL Spend and Expense ~41,100
Total payment volume ($bn) 266.0 292.4 (+10%) 329.8 (+13%) 89 (+12%)
Transactions processed (m) 85.1 103.8 (+22%) 121.3 (+17%) 34 (+14%)
Net dollar-based retention (AP/AR) 111% 92% 94% (annual only)
Logo retention (AP/AR, FY24→FY25) ~86%
Network members (m) 8.3 >8
Fraud + credit loss, AP/AR (% of TPV) ~0.01%
Fraud + credit loss, Divvy cards (% of card volume) ~0.23%

Quarterly customer count (from the releases): 470,000 · 464,900 · 474,600 · 476,200 · 480,000 · 488,600 · 493,800 · 498,100 · 498,500 · 493,800.

Implied take rate (transaction fees ÷ TPV, TPV rounded to $bn so ±0.4bp): 28.2 · 30.4 · 31.0 · 30.9 · 30.0 · 31.9 · 32.2 · 32.3 · 31.9 · 33.3 bp. Annual: FY2024 29.6bp, FY2025 31.2bp (+5.4%).


8. FY2026 guidance and the FY2027E build

FY2026 guidance (issued 2026-05-07, reaffirmed 2026-05-26):

Q4 FY26 FY2026
Total revenue $425.0–435.0m $1,642.0–1,652.0m (+12–13%)
Core revenue $392.0–402.0m $1,496.3–1,506.3m (+15–16%)
Implied float ~$33m ~$145.7m
Non-GAAP operating income $81.5–86.5m $303.6–308.6m
Non-GAAP EPS (diluted) $0.69–0.72 $2.61–2.64

FY2027E (house, base case): core $1,501.3m × 1.13 = $1,696m; float $145.7m × 0.92 = $134m; total $1,831m, +11.1%.

Rationale: core decelerates ~2pp from the FY26 guided rate on a customer base that declined sequentially in Q3 FY26 with NDR at 94%, partly offset by continued take-rate expansion. Float declines ~8% on a realised yield of ~3.7% against ~$4.0bn of customer funds into an easing cycle.

No consensus comparison is available — Alpha Vantage's shared 25/day quota was exhausted at the time of the run. Consensus Criteria is INDETERMINATE and blocks nothing.


9. What is derived, approximate, or unverified

Item Status
Q3/Q4 FY2024 subscription fees ($65.6m / $65.8m) Derived by residual from the FY2024 total and stated YoY growth. Approximate.
Q4 FY2025 revenue lines Derived as FY2025 less 9M FY2025. Exact arithmetic on filed figures.
Implied take rates TPV is reported rounded to the whole $bn → ±0.4bp. Direction robust; individual quarters are not.
TTM SBC (~$236m) Annualised from 9M FY2026 $176,998k. Approximate.
Own EV/Sales history Built with current share count and net cash held fixed against as-known TTM revenue, so the series measures multiple movement, not historical EV exactly. Stated, not silent.
Exit multiple 24.1x EBIT Taken from the screen; comparator set not rebuilt. The dominant unresolved input. Break-even is 21.3x.
Terminal margin 11.2% Screen's industry median (pre-profit). Not independently derived.
Street target ~$53.91 Press-sourced, unverified. Sanity band only.
Starboard stake / board seats / strategic review / 30% headcount cut / new CRO Press-reported; no SC 13D in BILL's recent EDGAR index. Not used anywhere in the model.
Ramp / Brex / Navan competitive position Named on general knowledge. Private; no filings; no numbers asserted.
Peer multiples (CPAY, WEX, MQ, TOST) Not pulled. Peer Spread Criteria is INDETERMINATE.
Call-transcript mention counts Not available. §6 of the Research doc is a press-release frequency series and is labelled as such.