Bill.com Holdings, Inc. (BILL) | Investment Case

1. Company Snapshot

1.a. Company Description

Bill.com Holdings, Inc.provides cloud-based software that simplifies, digitizes, and automates back-office financial operations for small and midsize businesses worldwide.The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency.

It also offers onboarding implementation support, and ongoing support and training services.The company serves accounting firms, financial institutions, and software companies.Bill.com Holdings, Inc.

was incorporated in 2006 and is headquartered in San Jose, California.

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1.b. Last Insights on BILL

Breaking News: BILL Holdings is set to report Q2 earnings, with Wall Street projecting key metrics. Analysts estimate the company's performance for the quarter ended December 2025. The recent earnings release showed increased scrutiny on BILL's financials. No recent earnings release is available as the next one is expected on February 29. Analysts from Zacks and Deutsche Bank recommend a hold. RBC Capital and Mizuho Securities recommend a buy and a hold respectively. Wedbush and Piper Jaffray recommend a hold and a buy.

1.c. Company Highlights

Last Price	37.06
Change Percentage	-10.98%
Open	40.56
Previous Close	41.63
Market Cap ( Millions)	3720
Volume	5362689
Year High	98
Year Low	36.55
M A 50	51.3
M A 200	47.84

FCF Yield	8.87%
Dividend Yield	0.00%
ROE	0.31%
Debt / Equity	49.49%
Net Debt / EBIDTA	648.21%
Price To Book	0.97
Price Earnings Ratio	316.75
Price To FCF	11.28
Price To sales	2.48
EV / EBITDA	35.81

2. BILL's Strong Q1 Performance Driven by Revenue Growth and Profitability Expansion

BILL's fiscal first quarter 2026 earnings report showcased a robust performance, with core revenue reaching $358 million, a 14% year-over-year increase, and non-GAAP operating income hitting $68 million, exceeding the high end of guidance. The company's EPS came in at $0.61, surpassing estimates of $0.51. The non-GAAP operating margin expanded by over 250 basis points sequentially, driven by disciplined expense management and a temporary pause in hiring. Revenue growth was fueled by a 10% year-over-year increase in BILL AP/AR revenue and a 6% rise in subscription revenue.

Publication Date: Nov -14

                                    📋 Highlights
                                    Core Revenue Growth:
                                                Achieved $358 million in core revenue, up 14% year-over-year, exceeding guidance.
Profitability Expansion:
                                                Non-GAAP operating margin reached 17%, a 250–300 basis point sequential increase.
Strategic Partnerships:
                                                Signed 3 new Embed 2.0 partnerships (e.g., NetSuite, Paychex) covering ~1 million SMBs and $1 trillion in annual payment volume.
AI Automation Launch:
                                                Introduced Agentic AI agents for transaction coding and customer support, reducing manual workflows.
2026 Revenue Outlook:
                                                Projects core revenue of $1.46–$1.49 billion, with non-GAAP operating margin of 16–17%.

                                

Strategic Partnerships and Product Advancements

BILL made significant strides in its strategic priorities, signing three broad-reaching Embed partnerships with category-leading software providers, including NetSuite, Paychex, and Acumatica. These partnerships will extend BILL's reach and position its platform directly within the tools used by millions of SMBs. The company also advanced its AI leadership with the introduction of new intelligent AI agents, which are transforming financial workflows from manual to touchless. As noted by René Lacerte, "We've been very excited about what we can do with AI and what the impact it will have for our customers."

Valuation and Growth Expectations

With a P/S Ratio of 3.43 and an expected revenue growth rate of 10.8% next year, BILL's valuation appears reasonable. However, the EV/EBITDA ratio of 52.41 suggests that the company's profitability is not yet fully reflected in its valuation. As BILL continues to expand its platform and drive growth through strategic partnerships and product advancements, investors will be watching closely to see if the company can sustain its momentum and deliver on its long-term vision.

Key Drivers of Future Growth

BILL's future growth is expected to be driven by its expanding Embed partnerships, the adoption of its AI-powered solutions, and the introduction of new products such as the BILL Cash account. The company's focus on mid-market customers is also expected to drive stronger engagement, retention, and growth. As John Rettig noted, "The economics typically work out well for BILL, with strong unit economics and high lifetime values due to multiproduct adoption and higher TPV per customer from the mid-market segment."

3. NewsRoom

Seeking Clues to BILL Holdings (BILL) Q2 Earnings? A Peek Into Wall Street Projections for Key Metrics

15:21

Source: zacks.com

SanDisk Corp Faces Significant Reduction in Jerome Dodson's Portfolio

Jan -12

Source: gurufocus.com

3 Stocks That Benefit if Companies Cut Costs in 2026

Jan -09

Source: marketbeat.com

BILL (NYSE:BILL) Shares Down 5.2% – Should You Sell?

Jan -04

Source: defenseworld.net

BILL Stock Down 38% This Past Year but One Investor Just Stepped In With a $4 Million Position

Dec -28

Source: fool.com

Market Today: Oracle-TikTok JV, Tesla Pay Reinstated, Nike Sinks

Dec -19

Source: gurufocus.com

If AI Financial Automation Happens (It Is) Then These Four Companies Win

Dec -18

Source: 247wallst.com

Caxton Associates LLP Takes $2.79 Million Position in BILL Holdings, Inc. $BILL

Dec -15

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.43%)

6. Segments

Subscription and Transaction Fees

Expected Growth: 14.0%

Bill.com's 14.0% growth in Subscription and Transaction Fees is driven by increasing adoption of digital payment solutions, expansion of existing customer relationships, and growing demand for accounts payable and receivable automation. Additionally, the company's strategic partnerships, such as the one with American Express, have contributed to the growth.

Interest on Funds Held for Customers

Expected Growth: 18.0%

The 18.0% growth in Interest on Funds Held for Customers from Bill.com Holdings, Inc. is driven by increasing adoption of digital payment solutions, rising transaction volumes, and expansion into new markets. Additionally, the company's focus on providing value-added services, such as cash flow management and financial software integration, contributes to the growth.

7. Detailed Products

Bill Pay

A cloud-based payment platform that enables businesses to pay bills, invoices, and vendors electronically.

Invoicing

A digital invoicing solution that allows businesses to create, send, and track invoices electronically.

Cash Flow Management

A financial management tool that provides real-time visibility into a company's cash flow, enabling informed business decisions.

AP Automation

An automated accounts payable solution that streamlines invoice processing, approval, and payment.

AR Automation

An automated accounts receivable solution that accelerates invoice delivery, tracking, and payment.

8. Bill.com Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bill.com Holdings, Inc. operates in a niche market, providing cloud-based software that integrates with accounting software, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative solutions, Bill.com's strong brand recognition and customer loyalty mitigate this power.

Bargaining Power Of Suppliers

Bill.com Holdings, Inc. has a diversified supplier base, reducing dependence on individual suppliers and minimizing their bargaining power.

Threat Of New Entrants

While there are barriers to entry, such as the need for significant investment in technology and marketing, new entrants can still emerge, especially from adjacent industries.

Intensity Of Rivalry

The accounting software market is highly competitive, with established players like QuickBooks and Xero, as well as emerging players, leading to intense rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	31.88%
Debt Cost	3.95%
Equity Weight	68.12%
Equity Cost	12.35%
WACC	9.67%
Leverage	46.80%

11. Quality Control: Bill.com Holdings, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CleanSpark

A-Score: 4.1/10

Value: 7.0

Growth: 5.1

Quality: 8.2

Yield: 0.0

Momentum: 3.5

Volatility: 0.7

1-Year Total Return ->

Dayforce

A-Score: 4.1/10

Value: 2.8

Growth: 7.3

Quality: 5.0

Yield: 0.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

Instructure Holdings

A-Score: 4.1/10

Value: 3.7

Growth: 7.8

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

Blackbaud

A-Score: 3.6/10

Value: 6.2

Growth: 3.3

Quality: 3.2

Yield: 0.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

Bill.com

A-Score: 3.6/10

Value: 2.8

Growth: 9.4

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

Asana

A-Score: 3.4/10

Value: 4.4

Growth: 6.3

Quality: 3.8

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.31%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.67%

Bill.com Holdings, Inc. - US0900431000

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BILL

1.c. Company Highlights

Weak Momentum

Average Growth

Fairly Valued

Earnings Beats

Revenues Beats

Average Quality

Earnings Miss

Expensive

Medium Volatility

Stable Momentum

Revenues Miss

Higher Growth

2. BILL's Strong Q1 Performance Driven by Revenue Growth and Profitability Expansion

Strategic Partnerships and Product Advancements

Valuation and Growth Expectations

Key Drivers of Future Growth

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.43%)

6. Segments

Subscription and Transaction Fees

Expected Growth: 14.0%

Interest on Funds Held for Customers

Expected Growth: 18.0%

7. Detailed Products

Bill Pay

Invoicing

Cash Flow Management

AP Automation

AR Automation

8. Bill.com Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Bill.com Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.06$

Current Price

37.06$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA