Bill.com Holdings, Inc. BILL

The business

BILL sells software that automates accounts payable and receivable for small and midsize businesses, moves the B2B payments those workflows create, and runs a spend and expense product (the former Divvy) plus BILL AR. Revenue comes in three streams: subscription fees for the software, transaction fees that are a take rate on payment volume, and float revenue, the interest BILL earns on customer funds it holds in trust between initiation and settlement. The engine is core revenue, subscription plus transaction fees together, at roughly $1.45B of the ≈$1.60B trailing total and growing 16%; float is the remaining ≈$150M and is purely a function of interest rates. Total payment volume ran $329.8B in fiscal 2025, and BILL monetizes a slice of that through ad-valorem payment products (virtual card, instant transfer, cross-border) that lift the take rate above the flat per-transaction base.

The thing the financials do not show is that BILL sits at the intersection of two demand signals that move in opposite directions right now. Small-business spending has been soft, which pressures transaction volume and the take rate, while the accountant channel and financial-institution partnerships (the embedded motion, where banks resell BILL to their own SMB customers) are a slower but stickier distribution engine than the standalone motion. What changed in the last two quarters is that core revenue growth held at 16% and non-GAAP operating margin reached 20% in the March quarter, up roughly 475 basis points year over year, while BILL printed its first GAAP-profitable quarter. Float, meanwhile, is fading as the Fed eases: float revenue was $35.4M in the March quarter against $161.8M for all of fiscal 2025, so the rate-driven piece is shrinking even as the operating business speeds up.