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Bill.com Holdings
(NYSE:BILL)
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Rating:66Neutral
Price Target:
$49.00
▲(12.62% Upside)
Action:Downgraded
Date:05/29/26
Bill.com presents a polarizing investment profile. Its core financial strengths are highly compelling, led by massive cash flow generation, raised full-year guidance, margin expansion, and a massive $1 billion buyback program. However, the score is heavily dragged down by a severe technical downtrend, an extremely stretched traditional valuation, and notable execution risks surrounding a 30% workforce reduction and sweeping executive turnover.
Positive Factors
Strong free cash flow generation
Consistent, growing free cash flow (positive since 2023) provides durable financial flexibility for product investment, AI initiatives, and share repurchases. Strong cash conversion supports long-term reinvestment and reduces reliance on external funding while enabling margin-enhancing initiatives.
Negative Factors
Large workforce reduction
A cut of this magnitude risks operational disruption, loss of institutional knowledge, and morale impacts that can impair product delivery and customer service. Execution risk is material: cost savings may boost margins, but missteps could slow innovation and damage retention for months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, growing free cash flow (positive since 2023) provides durable financial flexibility for product investment, AI initiatives, and share repurchases. Strong cash conversion supports long-term reinvestment and reduces reliance on external funding while enabling margin-enhancing initiatives.
Read all positive factors
Bill.com Holdings Key Performance Indicators (KPIs)
Any
Total Transactions
Counts the number of transactions processed, reflecting customer engagement and the platform's ability to handle high volumes efficiently.
Counts the number of transactions processed, reflecting customer engagement and the platform's ability to handle high volumes efficiently.
Data provided by:
The Fly
The FlyBill.com Holdings (BILL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.49B
Dividend YieldN/A
Average Volume (3M)2.39M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth12.47%
EPS Growth-98.50%
CountryUS
Employees2,364
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding99,596,725
10 Day Avg. Volume2,417,713
30 Day Avg. Volume2,391,314
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)1.22
Price to Sales (P/S)3.28
P/FCF Ratio15.47
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
$53.67Price Target Upside23.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.37
Revenue Forecast (FY)$1.85B
Bill.com Holdings Business Overview & Revenue Model
Company Description
Bill.com Holdings, Inc. (BILL) is a financial software company in the fintech and enterprise SaaS sector focused on automating back-office financial operations for small and midsize businesses (SMBs) and accounting firms. Its cloud platform is use...
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:May 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call emphasizes durable revenue growth, meaningful margin expansion and a strategic pivot to an AI-native operating model with measurable early AI adoption metrics. Management achieved GAAP profitability, raised full-year guidance, authorized a $1B buyback and outlined significant cost-savings initiatives. However, the company is executing a sizable workforce reduction (up to 30%), expects net new customer adds to moderate as it moves upmarket, and faces uneven demand across some verticals plus longer sales cycles in enterprise supplier offerings. On balance, the positives around strong financial results, margin improvement, AI-driven productivity gains and capital returns outweigh the execution and transition risks disclosed.Positive Updates
Core Revenue Growth
Core revenue of $371 million in Q3, up 16% year-over-year, demonstrating continued top-line growth.
Negative Updates
Workforce Reduction of Up to 30%
Company will reduce workforce by up to 30% by end of Q4 as part of restructuring to become AI-native — a material operational change that carries execution, morale and transition risks despite expected cost savings (~$110M gross).
Read all updates
Q3-2026 Updates
Positive
Negative
Core Revenue Growth
Core revenue of $371 million in Q3, up 16% year-over-year, demonstrating continued top-line growth.
Read all positive updates
Company Guidance
BILL guided Q4 FY‑26 total revenue of $425–$435 million and core revenue of $392–$402 million (13%–16% YoY), assuming AP/AR TPV in line with Q3, Spend & Expense volume ~20% YoY, AP/AR take rates steady with Q3 and Spend & Expense take rate slightly above 250 bps; they expect Q4 non‑GAAP operating income of $81.5–$86.5 million, non‑GAAP net income of $78–$82 million and non‑GAAP EPS of $0.69–$0.72. For fiscal 2026 they raised the midpoint and now expect core revenue of $1.496–$1.506 billion (15%–16% YoY), float revenue of $145.7 million (up $4.2 million vs prior guidance), total revenue of $1.642–$1.652 billion, non‑GAAP operating income of $303.6–$308.6 million (≈19% margin; >460 bps YoY expansion excluding float and ~270 bps of upside vs initial guidance), non‑GAAP net income of $298.7–$302.7 million and non‑GAAP EPS of $2.61–$2.64, with stock‑based compensation expected below $250 million; management also said the workforce optimization will generate ~$110 million of gross annualized savings with $20–$30 million to be reinvested in FY‑27 and the Board authorized up to $1 billion for share repurchases.Bill.com Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
82
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.60B | 1.46B | 1.29B | 1.06B | 641.96M | 238.26M |
| Gross Profit | 1.29B | 1.19B | 1.06B | 864.49M | 496.95M | 176.46M |
| EBITDA | 136.76M | 138.42M | 96.03M | -102.54M | -225.16M | -100.17M |
| Net Income | 164.00K | 23.80M | -28.88M | -223.72M | -326.36M | -98.72M |
Balance Sheet | ||||||
| Total Assets | 10.08B | 10.06B | 9.18B | 9.64B | 9.26B | 5.97B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 2.32B | 1.59B | 2.66B | 2.71B | 1.16B |
| Total Debt | 1.89B | 1.77B | 976.85M | 1.91B | 1.86B | 1.08B |
| Total Liabilities | 6.28B | 6.15B | 5.04B | 5.55B | 5.21B | 3.44B |
| Stockholders Equity | 3.80B | 3.91B | 4.13B | 4.09B | 4.04B | 2.53B |
Cash Flow | ||||||
| Free Cash Flow | 383.06M | 309.67M | 257.88M | 156.56M | -33.73M | -16.58M |
| Operating Cash Flow | 388.66M | 350.64M | 278.77M | 187.77M | -18.09M | 4.62M |
| Investing Cash Flow | -316.72M | -817.39M | -409.37M | 259.29M | -1.13B | -1.43B |
| Financing Cash Flow | 118.14M | 666.52M | -742.60M | 235.11M | 2.88B | 1.64B |
Bill.com Holdings Technical Analysis
Positive
43.51
Price Trends
38.40
Positive
38.61
Positive
43.88
Positive
Market Momentum
1.90
Positive
60.48
Neutral
25.57
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 43.51 is above the 20-day moving average (MA) of 43.28, above the 50-day MA of 38.40, and below the 200-day MA of 43.88, indicating a bullish trend. The MACD of 1.90 indicates Positive momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 25.57 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 | $3.80B | 41.13 | 14.49% | ― | 13.90% | 1906.95% | |
73 Outperform | $2.09B | -369.91 | -2.53% | ― | 11.79% | 85.70% | |
66 Neutral | $4.49B | -13,675.76 | <0.01% | ― | 12.47% | -98.50% | |
64 Neutral | $2.02B | 142.00 | 1.29% | ― | 9.58% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $4.93B | 59.90 | 5.79% | ― | 20.67% | ― |
* Technology Sector Average
BILL
Bill.com Holdings
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2.73
6.44%
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GBTG
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51.28%
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Bill.com Announces Major Restructuring and Share Repurchase Plan
Neutral
May 7, 2026
On May 7, 2026, BILL reported third-quarter fiscal 2026 results showing total revenue of $406.6 million, up 13% year over year, driven by 16% growth in core subscription and transaction revenue to $371.1 million, and an improvement from an $11.6 m...
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.