Q3 Core Revenue Increased 14% Year-Over-Year Q3 Total Revenue Increased 11% Year-Over-Year

SAN JOSE, Calif., May 08, 2025--(BUSINESS WIRE)--BILL (NYSE: BILL), a leading financial operations platform for small and midsize businesses (SMBs), today announced financial results for the third fiscal quarter ended March 31, 2025.

"We drove strong financial performance and innovated at scale as we added new capabilities to solve more financial back-office pain points for SMBs and their suppliers," said René Lacerte, BILL CEO and Founder. "We expanded our platform with a suite of mid-market solutions, enhanced our payment portfolio with streamlined reconciliation, and broadened and diversified our distribution ecosystem. These achievements strengthen our ability to capture the large market opportunity to transform and reimagine financial operations for millions of SMBs."

"In Q3, we delivered strong growth and significantly exceeded our non-GAAP profitability expectations," said John Rettig, BILL President and CFO. "Our focused execution and durable business model enabled us to achieve this set of strong results. The opportunity ahead of BILL is large, and we are executing well to create sustained value for our customers, partners, and shareholders."

Financial Highlights for the Third Quarter of Fiscal Year 2025:

Total revenue was $358.2 million, an increase of 11% year-over-year. Core revenue, which consists of subscription and transaction fees, was $320.3 million, an increase of 14% year-over-year. Subscription fees were $68.2 million, up 4% year-over-year. Transaction fees were $252.1 million, up 17% year-over-year. Float revenue, which consists of interest on funds held for customers, was $37.9 million. Gross profit was $291.0 million, representing an 81.2% gross margin, compared to $268.0 million, or an 83.0% gross margin, in the third quarter of fiscal 2024. Non-GAAP gross profit was $304.0 million, representing an 84.9% non-GAAP gross margin, compared to $281.5 million, or an 87.1% non-GAAP gross margin, in the third quarter of fiscal 2024. Operating loss was $28.9 million, compared to an operating loss of $27.6 million in the third quarter of fiscal 2024. Non-GAAP operating income was $53.3 million, compared to $58.5 million in the third quarter of fiscal 2024, a decrease of 9% year-over-year. Net loss was $11.6 million, or $(0.11) per basic and diluted share, compared to net income of $31.8 million, or $0.30 and $0.00 per share, basic and diluted, respectively, in the third quarter of fiscal 2024. Non-GAAP net income was $58.7 million, or $0.50 per diluted share, compared to non-GAAP net income of $68.6 million, or $0.60 per diluted share, in the third quarter of fiscal 2024.

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Business Highlights and Recent Developments:

Served 488,600 businesses using our solutions as of the end of the third quarter.1 Processed $79 billion in total payment volume in the third quarter, an increase of 11% year-over-year. Processed 30 million transactions during the third quarter, an increase of 16% year-over-year. Welcomed technology industry leader, Mike Cieri, as Executive Vice President, General Manager of Software Solutions.

Financial Outlook

We are providing the following guidance for the fiscal fourth quarter ending June 30, 2025 and the full fiscal year ending June 30, 2025.

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1 Businesses using more than one of our solutions are included separately in the total for each solution utilized.

Q4 FY25

Guidance  FY25

Guidance Total revenue (millions)  $370.5 - $380.5  $1,450.0 - $1,460.0 Year-over-year total revenue growth  8% - 11%  12% - 13% Core revenue (millions)  $335.0 - $345.0  $1,290.0 - $1,300.0 Year-over-year core revenue growth  11% - 15%  15% - 16% Non-GAAP operating income (millions)  $43.0 - $48.0  $226.2 - $231.2 Non-GAAP net income (millions)  $46.5 - $50.5  $236.7 - $240.7 Non-GAAP net income per diluted share  $0.39 - $0.43  $2.06 - $2.09

The outlook for non-GAAP net income and non-GAAP net income per diluted share includes a non-GAAP provision for income taxes of 20%. The outlook for non-GAAP net income takes into account the use of corporate cash for investment and other strategic capital allocation, including but not limited to the share repurchase program announced in August 2024. The outlook for non-GAAP net income per diluted share does not take any future repurchases of BILL shares into account, as its impact on a per diluted share basis is not reasonably estimable.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

BILL has not provided a reconciliation of its non-GAAP operating income, non-GAAP net income or non-GAAP net income per share guidance to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call and Webcast Information

In conjunction with this announcement, BILL will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal third quarter 2025 results and our outlook for the fiscal fourth quarter and fiscal year ending June 30, 2025. The live webcast and a replay of the webcast will be available at the Investor Relations section of BILL’s website: https://investor.bill.com/events-and-presentations/default.aspx.

About BILL

BILL (NYSE: BILL) is a leading financial operations platform for small and midsize businesses (SMBs). As a champion of SMBs, we are automating the future of finance so businesses can thrive. Our integrated platform helps businesses to more efficiently control their payables, receivables and spend and expense management. Hundreds of thousands of businesses rely on BILL’s proprietary network of millions of members to pay or get paid faster. Headquartered in San Jose, California, BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and accounting software providers. For more information, visit bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations of future performance, including guidance for our total revenue, core revenue, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per share for the fiscal fourth quarter and full fiscal year ending June 30, 2025, our planned investments in fiscal year 2025, our revenue growth and profitability profile, activity under our previously-announced share repurchase program, our expectations for the growth of demand for our platform and the expansion of our customers’ utilization of our services. These risks and uncertainties include, but are not limited to macroeconomic factors, including changes in interest rates, significant political and regulatory developments or changes in trade policy, including the imposition of tariffs and other trade barriers, inflationary, recessionary, and volatile market environments, as well as fluctuations in foreign exchange rates, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, credit risk related to our BILL Divvy Corporate Cards, our ability to attract new customers and convert trial customers into paying customers, our ability to invest in our business and develop new products and services, increased competition or new entrants in the marketplace, potential impacts of acquisitions and investments, our relationships with accounting firms and financial institutions, the global impacts of ongoing geopolitical conflicts, the actual and expected impacts of the above factors on the SMBs we serve and other risks detailed in the registration statements and periodic reports we file with the SEC, including our quarterly and annual reports, which may be obtained on the Investor Relations section of BILL’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income and non-GAAP net income per share, basic and diluted. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.

We exclude the following items from non-GAAP gross profit and non-GAAP gross margin:

stock-based compensation and related payroll taxes depreciation and amortization

We exclude the following items from non-GAAP operating expenses and non-GAAP operating income:

stock-based compensation and related payroll taxes depreciation and amortization acquisition and integration-related expenses restructuring

We exclude the following items from non-GAAP net income and non-GAAP net income per share:

stock-based compensation expense and related payroll taxes depreciation and amortization acquisition and integration-related expenses restructuring gain on debt extinguishment amortization of debt issuance costs non-GAAP provision for income taxes

It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. We also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise, including our blended U.S. statutory tax rate.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses. We exclude stock-based compensation, which is a non-cash expense, and related payroll taxes from certain of our non-GAAP financial measures because we believe that excluding these items provide meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expenses using a variety of valuation methodologies and subjective assumptions while the related payroll taxes are dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business.

Depreciation and amortization. We exclude depreciation and amortization from certain of our non-GAAP financial measures because we believe that excluding this non-cash charge provides meaningful supplemental information regarding operational performance. Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash.

Acquisition and integration-related expenses. We exclude acquisition and integration-related expenses from certain of our non-GAAP financial measures because these costs would have not otherwise been incurred in the normal course of our business operations. In addition, we believe that acquisition and integration-related expenses are non-recurring charges unique to a specific acquisition. Although we may engage in future acquisitions, such acquisitions and the associated acquisition and integration-related expenses are considered unique and not comparable to other acquisitions.

Restructuring. We exclude costs incurred in connection with formal restructuring plans from certain of our non-GAAP financial measures because these costs are exceptional and would have not otherwise been incurred in the normal course of our business operations.

Gain on debt extinguishment. We exclude gain on debt extinguishment associated with our repurchases of certain of our outstanding convertible senior notes because we believe that excluding this non-cash gain provides better insight regarding our operational performance.

Amortization of debt issuance costs. We exclude amortization of debt issuance costs associated with our issuance of our convertible senior notes and credit arrangement from certain of our non-GAAP financial measures because we believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance.

Non-GAAP provision for income taxes. Consists of assumed provision for income taxes based on the statutory tax rate taking into consideration the nature of the taxed item and the relevant taxing jurisdiction.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

Free Cash Flow

Free cash flow is a non-GAAP measure defined as net cash provided by operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs. We believe free cash flow is an important liquidity measure of the cash that is generated, after incurring operating expenses, purchases of property and equipment and capitalization of internal-use software costs, for future operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in the ordinary course of business. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain strong balance sheets and invest in future growth.

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)  March 31, 
2025  June 30, 
2024  ASSETS  Current assets:  Cash and cash equivalents  $ 1,047,737   $ 985,941  Short-term investments   1,125,349    601,535  Accounts receivable, net   26,663    28,049  Acquired card receivables, net   705,535    697,216  Prepaid expenses and other current assets   241,332    297,169  Funds held for customers   3,657,218    3,704,907  Total current assets   6,803,834    6,314,817  Non-current assets:  Operating lease right-of-use assets, net   58,076    59,414  Property and equipment, net   104,837    88,034  Intangible assets, net   237,970    281,471  Goodwill   2,396,509    2,396,509  Other assets   31,410    38,568  Total assets  $ 9,632,636   $ 9,178,813   LIABILITIES AND STOCKHOLDERS' EQUITY  Current liabilities:  Accounts payable  $ 9,302   $ 7,447  Accrued compensation and benefits   32,998    34,158  Deferred revenue   21,740    17,006  Other accruals and current liabilities   262,921    299,506  Convertible senior notes, net   33,397    —  Customer fund deposits   3,657,218    3,704,907  Total current liabilities   4,017,576    4,063,024  Non-current liabilities:  Deferred revenue   245    4,167  Operating lease liabilities   60,694    62,847  Borrowings from credit facilities, net   180,006    180,009  Convertible senior notes, net   1,499,780    733,991  Other long-term liabilities   3,874    574  Total liabilities   5,762,175    5,044,612  Stockholders' equity:  Common stock   2    2  Additional paid-in capital   5,331,897    5,233,037  Accumulated other comprehensive income (loss)   7,277    (1,890 ) Accumulated deficit   (1,468,715 )   (1,096,948 ) Total stockholders' equity   3,870,461    4,134,201  Total liabilities and stockholders' equity  $ 9,632,636   $ 9,178,813

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share amounts)  Three Months Ended 
March 31,  Nine Months Ended

March 31, 2025    2024    2025    2024  Revenue  Subscription and transaction fees (1)  $ 320,298   $ 281,294   $ 954,857   $ 821,428  Interest on funds held for customers   37,919    41,734    124,364    125,080  Total revenue   358,217    323,028    1,079,221    946,508  Cost of revenue  Service costs (1)   56,733    43,845    166,633    135,988  Depreciation and amortization (2)   10,479    11,167    31,882    33,427  Total cost of revenue   67,212    55,012    198,515    169,415  Gross profit   291,005    268,016    880,706    777,093  Operating expenses  Research and development (1)   86,540    81,594    250,009    257,145  Sales and marketing (1)   136,758    118,105    395,614    354,808  General and administrative (1)(3)   73,851    63,858    211,744    207,162  Provision for expected credit losses (3)   14,945    17,715    56,964    45,320  Depreciation and amortization (2)   7,857    12,262    24,728    37,403  Restructuring   —    2,104    —    27,195  Total operating expenses   319,951    295,638    939,059    929,033  Operating loss   (28,946 )   (27,622 )   (58,353 )   (151,940 ) Other income, net   18,650    59,801    91,831    118,026  Income (loss) before provision for income taxes   (10,296 )   32,179    33,478    (33,914 ) Provision for income taxes   1,293    370    2,607    2,559  Net income (loss)  $ (11,589 )  $ 31,809   $ 30,871   $ (36,473 )  Net income (loss) per share attributable to common stockholders:  Basic  $ (0.11 )  $ 0.30   $ 0.30   $ (0.34 ) Diluted  $ (0.11 )  $ 0.00   $ (0.09 )  $ (0.34 ) Weighted-average number of common shares used to compute net income (loss) per share attributable to common stockholders:  Basic   102,219    105,436    103,679    106,045  Diluted   102,219    111,176    104,139    106,045

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(1) Includes stock-based compensation charged to revenue and expenses as follows (in thousands):

Three Months Ended 
March 31,  Nine Months Ended 
March 31, 2025  2024  2025  2024 Revenue - subscription and transaction fees  $ 562  $ 446  $ 1,697  $ 1,303 Cost of revenue - service costs   2,414   2,190   7,147   7,124 Research and development   27,362   25,183   80,265   78,708 Sales and marketing   9,507   10,968   30,781   37,643 General and administrative   22,384   20,382   62,881   61,684 Restructuring   —   220   —   3,574 Total stock-based compensation  $ 62,229  $ 59,389  $ 182,771  $ 190,036

(2) Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash. (3) Provision for expected credit losses was included in general and administrative expenses during the three and nine months ended March 31, 2024.

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)  Three Months Ended

March 31,  Nine Months Ended

March 31, 2025    2024    2025    2024  Cash flows from operating activities:  Net income (loss)  $ (11,589 )  $ 31,809   $ 30,871   $ (36,473 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities:  Stock-based compensation   62,230    59,389    182,771    190,036  Amortization of intangible assets   15,165    20,220    46,760    60,663  Depreciation of property and equipment   3,171    3,209    9,850    10,167  Amortization of capitalized internal-use software costs paid in cash   3,114    2,593    10,947    6,332  Amortization of debt issuance costs   1,384    1,651    3,280    5,174  Accretion of discount on investments in marketable debt securities   (7,738 )   (15,114 )   (29,410 )   (39,285 ) Accretion of discount on loans held for investment   (5,279 )   (2,900 )   (15,239 )   (5,531 ) Gain on debt extinguishment   —    (35,715 )   (40,550 )   (35,715 ) Provision for expected credit losses on acquired card receivables and other financial assets   14,945    18,590    56,964    47,279  Non-cash operating lease expense   2,067    2,038    6,174    6,590  Other   319    1,761    909    1,661  Changes in assets and liabilities:  Accounts receivable   2,442    (4,185 )   1,282    (3,795 ) Prepaid expenses and other current assets   9,101    5,564    (18,206 )   5,413  Other assets   (516 )   (828 )   8,398    (2,068 ) Accounts payable   3,834    (2,131 )   1,760    (1,898 ) Other accruals and current liabilities   7,246    (14,132 )   14,381    6,812  Operating lease liabilities   (2,759 )   (2,642 )   (7,187 )   (7,559 ) Other long-term liabilities   2,385    (2,570 )   2,261    (2,617 ) Deferred revenue   8    202    812    (5,035 ) Net cash provided by operating activities   99,530    66,809    266,828    200,151  Cash flows from investing activities:  Purchases of corporate and customer fund short-term investments   (1,104,408 )   (1,052,609 )   (2,314,975 )   (2,042,849 ) Proceeds from maturities and sales of corporate and customer fund short-term investments   624,617    577,254    1,727,367    1,858,759  Purchase of intangible assets   —    —    (2,868 )   —  Purchases of loans held for investment   (196,212 )   (108,830 )   (576,885 )   (218,943 ) Principal repayments of loans held for investment   194,846    97,561    564,295    191,861  Acquired card receivables, net   (153,338 )   (127,508 )   (146,388 )   (139,850 ) Purchases of property and equipment   (1,147 )   (16 )   (1,546 )   (771 ) Capitalization of internal-use software costs   (7,460 )   (3,833 )   (21,219 )   (14,595 ) Other   (1,003 )   —    (1,582 )   —  Net cash used in investing activities   (644,105 )   (617,981 )   (773,801 )   (366,388 )  Cash flows from financing activities:  Proceeds from issuance of convertible senior notes   —    —    1,400,000    —  Cash paid for convertible senior notes issuance costs   (906 )   —    (24,006 )   —  Payments for repurchase of convertible senior notes   —    (710,931 )   (539,403 )   (710,931 ) Proceeds from unwind of capped calls   —    10,252    —    10,252  Purchase of capped calls   —    —    (92,960 )   —  Customer fund deposits liability and other   (114,587 )   (144,394 )   (61,856 )   155,376  Prepaid card deposits   11,102    (4,292 )   43,473    (20,776 ) Repurchase of common stock   —    —    (400,001 )   (211,902 ) Proceeds from line of credit borrowings   —    45,000    —    45,000  Proceeds from exercise of stock options   520    1,473    2,772    6,525  Tax withholdings related to net share settlements of equity awards   (1,702 )   (1,681 )   (6,416 )   (1,681 ) Proceeds from issuance of common stock under the employee stock purchase plan   —    8,649    5,302    16,495  Contingent consideration payout   —    (5,291 )   —    (10,762 ) Net cash provided by (used in) financing activities   (105,573 )   (801,215 )   326,905    (722,404 ) Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents   591    (390 )   (181 )   (397 ) Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents   (649,557 )   (1,352,777 )   (180,249 )   (889,038 ) Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period   3,820,707    4,688,580    3,351,399    4,224,841  Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period  $ 3,171,150   $ 3,335,803   $ 3,171,150   $ 3,335,803  Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above:  Cash and cash equivalents  $ 1,047,737   $ 952,474   $ 1,047,737   $ 952,474  Restricted cash included in other current assets   92,754    153,031    92,754    153,031  Restricted cash included in other assets   5,297    5,297    5,297    5,297  Restricted cash and restricted cash equivalents included in funds held for customers   2,025,362    2,225,001    2,025,362    2,225,001  Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period  $ 3,171,150   $ 3,335,803   $ 3,171,150   $ 3,335,803

BILL HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands except percentages and per share amounts)  Three Months Ended

March 31,  Nine Months Ended

March 31, 2025    2024    2025    2024  Reconciliation of gross profit:  GAAP gross profit  $ 291,005   $ 268,016   $ 880,706   $ 777,093  Add:  Depreciation and amortization (1)   10,479    11,167    31,882    33,427  Stock-based compensation and related payroll taxes charged to cost of revenue   2,530    2,277    7,367    7,351  Non-GAAP gross profit  $ 304,014   $ 281,460   $ 919,955   $ 817,871  GAAP gross margin   81.2 %   83.0 %   81.6 %   82.1 % Non-GAAP gross margin   84.9 %   87.1 %   85.2 %   86.4 % ___________________

(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash.

Three Months Ended

March 31,  Nine Months Ended

March 31, 2025    2024    2025    2024  Reconciliation of operating expenses:  GAAP research and development expenses  $ 86,540   $ 81,594   $ 250,009   $ 257,145  Less - stock-based compensation and related payroll taxes   (28,553 )   (26,062 )   (82,303 )   (80,499 ) Non-GAAP research and development expenses  $ 57,987   $ 55,532   $ 167,706   $ 176,646   GAAP sales and marketing expenses  $ 136,758   $ 118,105   $ 395,614   $ 354,808  Less - stock-based compensation and related payroll taxes   (9,869 )   (11,417 )   (31,419 )   (38,508 ) Non-GAAP sales and marketing expenses  $ 126,889   $ 106,688   $ 364,195   $ 316,300   GAAP general and administrative expenses (1)  $ 73,851   $ 63,858   $ 211,744   $ 207,162  Less:  Stock-based compensation and related payroll taxes   (22,957 )   (20,863 )   (63,939 )   (62,797 ) Acquisition and integration-related expenses   —    (3 )   —    (972 ) Restructuring   —    —    92    —  Non-GAAP general and administrative expenses  $ 50,894   $ 42,992   $ 147,897   $ 143,393  ___________________

(1) Provision for expected credit losses was included in general and administrative expenses during the three and nine months ended March 31, 2024.

Three Months Ended

March 31,  Nine Months Ended

March 31, 2025    2024    2025    2024  Reconciliation of operating loss:  GAAP operating loss  $ (28,946 )  $ (27,622 )  $ (58,353 )  $ (151,940 ) Add:  Depreciation and amortization (1)   18,336    23,429    56,610    70,830  Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses (2)   63,909    60,619    185,028    189,155  Acquisition and integration-related expenses   —    3    —    972  Restructuring   —    2,104    (92 )   27,195  Non-GAAP operating income  $ 53,299   $ 58,533   $ 183,193   $ 136,212  ___________________

(1) Excludes amortization of capitalized internal-use software costs paid in cash.

(2) Excludes stock-based compensation charged to Restructuring, shown separately below.

Three Months Ended

March 31,  Nine Months Ended

March 31, 2025    2024    2025    2024  Reconciliation of net income (loss):  GAAP net income (loss)  $ (11,589 )  $ 31,809   $ 30,871   $ (36,473 ) Add - GAAP provision for income taxes   1,293    370    2,607    2,559  Income (loss) before taxes   (10,296 )   32,179    33,478    (33,914 ) Add (less):  Depreciation and amortization (1)   18,336    23,429    56,610    70,830  Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses (2)   63,909    60,619    185,028    189,155  Acquisition and integration-related expenses   —    3    —    972  Restructuring   —    2,104    (92 )   27,195  Gain on debt extinguishment, net of change on mark to market derivatives   —    (34,297 )   (40,550 )   (34,297 ) Amortization of debt issuance costs   1,384    1,651    3,280    5,174  Non-GAAP net income before non-GAAP tax adjustments   73,333    85,688    237,754    225,115  Non-GAAP provision for income taxes (3)   (14,667 )   (17,138 )   (47,551 )   (45,023 ) Non-GAAP net income  $ 58,666   $ 68,550   $ 190,203   $ 180,092  ___________________

(1) Excludes amortization of capitalized internal-use software costs paid in cash.

(2) Excludes stock-based compensation charged to Restructuring, shown separately below.

(3) The non-GAAP provision for income taxes is calculated using a blended tax rate of 20%, taking into consideration the nature of the taxed item and the applicable statutory tax rate in each relevant taxing jurisdiction.

Three Months Ended

March 31,  Nine Months Ended

March 31, 2025    2024    2025    2024  Reconciliation of net income (loss) per share attributable to

common stockholders, basic and diluted:  GAAP net income (loss) per share attributable to common stockholders, basic and diluted  $ (0.11 )  $ 0.30   $ 0.30   $ (0.34 ) Add - GAAP provision for income taxes   0.01    0.00    0.03    0.02  Income (loss) before taxes   (0.10 )   0.30    0.33    (0.32 ) Add:  Depreciation and amortization (1)   0.18    0.22    0.55    0.67  Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses   0.63    0.58    1.77    1.77  Acquisition and integration-related expenses   —    0.00    —    0.01  Restructuring   —    0.02    0.00    0.26  Gain on debt extinguishment, net of change on mark to market derivatives   —    (0.33 )   (0.39 )   (0.32 ) Amortization of debt issuance costs   0.01    0.02    0.03    0.05  Non-GAAP net income before non-GAAP tax adjustments per share attributable to common stockholders, basic  $ 0.72   $ 0.81   $ 2.29   $ 2.12  Non-GAAP net income before non-GAAP tax adjustments per share attributable to common stockholders, diluted  $ 0.62   $ 0.74   $ 2.10   $ 1.93  Less - Non-GAAP provision for income taxes   (0.14 )   (0.16 )   (0.46 )   (0.42 ) Non-GAAP net income per share attributable to common stockholders, basic  $ 0.57   $ 0.65   $ 1.83   $ 1.70  Non-GAAP net income per share attributable to common stockholders, diluted  $ 0.50   $ 0.60   $ 1.68   $ 1.54  ___________________

(1) Excludes amortization of capitalized internal-use software costs paid in cash.

Three Months Ended

March 31,  Nine Months Ended

March 31, 2025  2024  2025  2024 Shares used to compute GAAP and non-GAAP net income (loss) per share attributable to common stockholders, basic  102,219  105,436  103,679  106,045 Shares used to compute GAAP net income (loss) per share attributable to common stockholders, diluted  102,219  111,176  104,139  106,045 Shares used to compute non-GAAP net income per share attributable to common stockholders, diluted  117,667  115,059  113,126  116,666

BILL HOLDINGS, INC.

FREE CASH FLOW

(Unaudited, in thousands)  Three Months Ended 
March 31,  Nine Months Ended 
March 31, 2025    2024    2025    2024  Net cash provided by operating activities  $ 99,530   $ 66,809   $ 266,828   $ 200,151  Purchases of property and equipment   (1,529 )   (16 )   (1,546 )   (771 ) Capitalization of internal-use software costs   (7,460 )   (3,833 )   (21,219 )   (14,595 ) Free cash flow  $ 90,541   $ 62,960   $ 244,063   $ 184,785

BILL HOLDINGS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(Unaudited, in thousands)  March 31, 
2025  June 30, 
2024 Remaining performance obligations to be recognized as revenue:  Over the next 1 year  $ 30,931  $ 30,225 Between 1 to 2 years   16,703   16,887 Thereafter   26,796   39,733 Total  $ 74,430  $ 86,845

View source version on businesswire.com: https://www.businesswire.com/news/home/20250508961033/en/

Contacts

IR Contact:

Karen Sansot
[email protected]

Press Contact:

Lauren Johns
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