📊 BILL Key Takeaways
Is BILL Holdings, Inc. (BILL) a Good Investment?
BILL exhibits a fundamental paradox: exceptional 80.7% gross margins and strong free cash flow generation ($301.9M, 24.8% FCF margin) conflict with negative operating income (-3.2% margin) and extremely poor returns on capital (ROE 0.2%, ROA 0.1%). The anomalous 10,679.9% revenue growth indicates recent acquisition-driven expansion rather than organic growth, creating integration risks and uncertainty about normalized operational profitability.
BILL shows strong underlying software economics, with an 80.2% gross margin and a solid 24.6% free cash flow margin, which indicates the core platform can scale efficiently. However, the business is still not consistently profitable at the operating and net income level, and negative interest coverage alongside meaningful long-term debt limits the quality of the growth story. Fundamentally, this looks like a financially sound but still transitional business rather than a clearly strong one.
BILL Holdings, Inc. Key Strengths (BILL)
- Exceptional gross margin of 80.7% demonstrates strong unit economics and pricing power typical of high-quality software businesses
- Robust free cash flow generation of $301.9M with 24.8% FCF margin provides substantial financial flexibility despite negative operating income
- Healthy cash position of $994.7M and moderate leverage (0.48x debt-to-equity) provide financial cushion for operations and strategic initiatives
- High gross margin of 80.2% supports strong unit economics and scalability
- Operating cash flow of $202.17M and free cash flow of $199.38M show strong cash generation despite GAAP losses
- Healthy liquidity with a 1.65x current and quick ratio plus $1.09B in cash provides balance sheet flexibility
BILL Stock Risks: BILL Holdings, Inc. Investment Risks
- Negative operating income (-$39.2M) despite $1.2B revenue and negative interest coverage ratio (-2.6x) indicate structural profitability challenges and inability to service debt from operations
- Massive revenue growth (10,679.9% YoY) likely driven by acquisition rather than organic growth, raising concerns about integration success, customer retention, and normalized operational metrics
- Severely depressed returns on equity (0.2%) and assets (0.1%) indicate poor capital efficiency and ineffective conversion of revenue into shareholder value despite scale
- Operating margin remains negative at -4.8%, showing the business has not fully converted scale into sustained profitability
- Interest coverage of -2.6x and $1.83B of long-term debt create pressure if earnings recovery stalls
- Extremely large reported revenue growth suggests acquisition effects or comparability noise, which may weaken growth quality
Key Metrics to Watch
- Operating margin trajectory - must improve from -3.2% to positive levels to demonstrate operational viability at scale
- Organic revenue growth rate excluding acquisition impact - critical to assess underlying business momentum and sustainability
- Operating expense ratio trend - currently consuming strong gross margins, requiring discipline in SG&A and R&D spending to achieve profitability
- Operating margin and net income trend
- Free cash flow margin and debt servicing capacity
BILL Holdings, Inc. (BILL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 24.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
BILL Profit Margin, ROE & Profitability Analysis
BILL vs Technology Sector: How BILL Holdings, Inc. Compares
How BILL Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is BILL Holdings, Inc. Stock Overvalued? BILL Valuation Analysis 2026
Based on fundamental analysis, BILL Holdings, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
BILL Holdings, Inc. Balance Sheet: BILL Debt, Cash & Liquidity
BILL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: BILL Holdings, Inc.'s revenue has grown significantly by 514% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.11 indicates the company is currently unprofitable.
BILL Revenue Growth, EPS Growth & YoY Performance
BILL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $358.2M | -$2.6M | $0.07 |
| Q2 2026 | $362.6M | -$2.6M | $0.02 |
| Q1 2026 | $358.5M | -$3.0M | $-0.03 |
| Q3 2025 | $323.0M | $8.9M | $0.00 |
| Q2 2025 | $318.5M | $8.9M | $0.02 |
| Q3 2024 | $272.6M | -$27.9M | $0.00 |
| Q2 2024 | $260.0M | -$27.9M | $-0.38 |
| Q1 2024 | $229.9M | $8.9M | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BILL Holdings, Inc. Dividends, Buybacks & Capital Allocation
BILL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for BILL Holdings, Inc. (CIK: 0001786352)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BILL
What is the AI rating for BILL?
BILL Holdings, Inc. (BILL) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BILL's key strengths?
Claude: Exceptional gross margin of 80.7% demonstrates strong unit economics and pricing power typical of high-quality software businesses. Robust free cash flow generation of $301.9M with 24.8% FCF margin provides substantial financial flexibility despite negative operating income. ChatGPT: High gross margin of 80.2% supports strong unit economics and scalability. Operating cash flow of $202.17M and free cash flow of $199.38M show strong cash generation despite GAAP losses.
What are the risks of investing in BILL?
Claude: Negative operating income (-$39.2M) despite $1.2B revenue and negative interest coverage ratio (-2.6x) indicate structural profitability challenges and inability to service debt from operations. Massive revenue growth (10,679.9% YoY) likely driven by acquisition rather than organic growth, raising concerns about integration success, customer retention, and normalized operational metrics. ChatGPT: Operating margin remains negative at -4.8%, showing the business has not fully converted scale into sustained profitability. Interest coverage of -2.6x and $1.83B of long-term debt create pressure if earnings recovery stalls.
What is BILL's revenue and growth?
BILL Holdings, Inc. reported revenue of $1.2B.
Does BILL pay dividends?
BILL Holdings, Inc. does not currently pay dividends.
Where can I find BILL SEC filings?
Official SEC filings for BILL Holdings, Inc. (CIK: 0001786352) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BILL's EPS?
BILL Holdings, Inc. has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BILL's fundamental grade?
Based on our AI fundamental analysis in June 2026, BILL Holdings, Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BILL stock overvalued or undervalued?
Valuation metrics for BILL: ROE of 0.2% (sector avg: 22%), net margin of 0.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is BILL's AI grade for 2026?
Our dual AI analysis gives BILL Holdings, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BILL's free cash flow?
BILL Holdings, Inc.'s operating cash flow is $304.8M, with capital expenditures of $3.0M. FCF margin is 24.8%.
How does BILL compare to other Technology stocks?
Vs Technology sector averages: Net margin 0.6% (avg: 18%), ROE 0.2% (avg: 22%), current ratio 1.66 (avg: 2.5).