Executive Summary

Q3 FY25 delivered 11% total revenue growth to $358.2M and 14% core revenue growth to $320.3M, with non-GAAP diluted EPS of $0.50; both revenue and EPS beat S&P Global consensus (rev $356.0M, EPS $0.37) as pricing/mix and ad valorem products aided monetization while FX losses abated . Consensus figures marked with an asterisk are from S&P Global: revenue* $355.98M, EPS* $0.374 [Values retrieved from S&P Global].
Management raised FY25 profitability guidance (non-GAAP operating income to $226.2–$231.2M; non-GAAP EPS to $2.06–$2.09) while maintaining FY25 revenue range ($1.45–$1.46B) and introducing Q4 guidance (total rev $370.5–$380.5M, non-GAAP EPS $0.39–$0.43), citing near-term SMB spend uncertainty but durable monetization levers .
KPIs: businesses served 488,600; TPV $79B (+11% YoY); transactions 30M (+16% YoY); Spend & Expense revenue $138M (+21% YoY), Spend & Expense businesses 39,500; AP/AR customers 164,800 (+4,200 net adds) .
Stock-relevant catalysts: take-rate expansion from ad valorem products, ACH/check pricing increases, and stronger FY25 profitability guide; tempered by lower TPV per customer (-2% YoY) and macro/tariff uncertainty, with Q4 monetization expected similar to Q3 .

What Went Well and What Went Wrong

What Went Well

Monetization expansion and lower FX loss: ad valorem products (Instant Transfer, Pay By Card, invoice financing) drove take-rate gains; FX losses reduced ~65% after trading/hedging changes .
Free cash flow and profitability: FCF grew 44% YoY in Q3 (25% margin); non-GAAP operating margin 15% and non-GAAP EPS $0.50 exceeded guidance top end by $0.12 .
Ecosystem wins: accounting channel net adds up >60% YoY; Spend & Expense revenue up 21% YoY with 1,800 net new businesses; embedded platform progress and advanced ACH beta for large suppliers .

Management quotes:

“We delivered strong growth and significantly exceeded our non-GAAP profitability expectations.” – John Rettig, CFO .
“We are accelerating our AI growth strategy to change the game again for SMBs.” – René Lacerte, CEO .
“Our advanced ACH solution…simplifies payment reconciliations…removes yet another layer of complexity.” – René Lacerte .

What Went Wrong

TPV trends softer: total payment volume +10% YoY, slightly below expectations; TPV per customer -2% YoY as SMBs moderated spend in several categories and leap year effect .
Q3 GAAP results weaker YoY: GAAP net loss of $(11.6)M vs GAAP net income $31.8M a year ago; GAAP gross margin declined to 81.2% from 83.0% YoY .
Near-term caution: management flagged highest SMB uncertainty since early COVID, macro/tariffs risks, and expects Q4 monetization similar to Q3 (not expanding), adjusting near-term outlook accordingly .

Financial Results

Consolidated Results vs Prior Periods

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenue ($USD Millions)	$358.0	$363.0	$358.2
Core Revenue ($USD Millions)	$315.0	$320.0	$320.3
Float Revenue ($USD Millions)	$44.0	$43.0	$37.9
Non-GAAP Diluted EPS ($)	$0.63	$0.56	$0.50
Non-GAAP Gross Margin (%)	86%	85%	84.9%
Non-GAAP Operating Margin (%)	19%	17%	15%

Notes: Q3 non-GAAP operating income includes a one-time ~$5.7M benefit from reserve methodology refinement .

Segment/Revenue Components (Q3 FY25)

Component	Q3 2025
Subscription Fees ($USD Millions)	$68.2
Transaction Fees ($USD Millions)	$252.1
Float Revenue ($USD Millions)	$37.9
Spend & Expense Revenue ($USD Millions)	$138.0
Embedded & Other Solutions Revenue ($USD Millions)	$19.0

KPIs (Oldest → Newest)

KPI	Q1 2025	Q2 2025	Q3 2025
Businesses Served	475,000+	480,000+	488,600
Total Payment Volume ($USD Billions)	$80	$85	$79
Transactions (Millions)	29	30	30
BILL AP/AR Customers	156,000+	160,000+	164,800
Spend & Expense Businesses	36,000+	37,800	39,500

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Millions)	Q4 FY25	—	$370.5 – $380.5	New
Core Revenue ($USD Millions)	Q4 FY25	—	$335.0 – $345.0	New
Non-GAAP Operating Income ($USD Millions)	Q4 FY25	—	$43.0 – $48.0	New
Non-GAAP Net Income ($USD Millions)	Q4 FY25	—	$46.5 – $50.5	New
Non-GAAP EPS ($)	Q4 FY25	—	$0.39 – $0.43	New
Total Revenue ($USD Billions)	FY25	$1.454 – $1.469	$1.450 – $1.460	Maintained (range narrowed)
Core Revenue ($USD Billions)	FY25	$1.297 – $1.312	$1.290 – $1.300	Slightly Lower
Float Revenue ($USD Millions)	FY25	~$157	~$160	Raised
Non-GAAP Operating Income ($USD Millions)	FY25	$207.5 – $222.5	$226.2 – $231.2	Raised
Non-GAAP Net Income ($USD Millions)	FY25	$216.0 – $228.0	$236.7 – $240.7	Raised
Non-GAAP EPS ($)	FY25	$1.87 – $1.97	$2.06 – $2.09	Raised
Non-GAAP Tax Rate Assumption	FY25	20%	20%	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 FY25)	Current Period (Q3 FY25)	Trend
AI/technology initiatives	Embedded AI in workflows; launched Sync Assist; accelerating investment; invoice financing scaling; API/embed momentum	“Accelerating our AI growth strategy” and exploring agentic finance; expect more AI updates; efficiency gains	Accelerating
Supplier experience & advanced ACH	Straight-through processing for virtual cards; advanced ACH in beta; dedicated supplier teams	Advanced ACH beta described; consolidated remittance; auto-convert checks/ACH; rollout expected over next several quarters	Scaling (beta→broader rollout)
International payments & FX	Expanded local transfers to 30+ countries; FX volatility pressured monetization	Local transfer adoption driving share of wallet; FX losses abated via increased trading frequency	Improving FX outcomes
Pricing & packaging	Indicated opportunity to optimize pricing across transaction/subscription	Raised ACH/check pricing (new customers in March; existing from May); more holistic pricing/packaging to lift ARPU	Positive ARPU tailwind FY26
Accounting channel & ecosystem	+1,000 firms joined; 8,500+ firms; Embed 2.0, Xero beta; net adds up 38% YoY	Net adds from accounting grew >60% YoY; broadened diverse ecosystem; banks adopting multiple offerings	Strengthening
Macro/tariffs & SMB sentiment	Cautious outlook; watch policy; assume consistent SMB spend; modest H2 take-rate lift	Highest SMB uncertainty since early COVID; moderating transactions/spend per customer; Q4 monetization similar to Q3	More cautious
Spend & Expense mix	25–21% growth; ad category mix shift impacted interchange	S&E revenue up 21%; card spend per customer +3%; cautious on T&E/retail discretionary exposure	Solid, watch discretionary

Management Commentary

Strategic focus: “We expanded our platform with a suite of mid-market solutions, enhanced our payment portfolio…broadened and diversified our distribution ecosystem.” – René Lacerte, CEO .
Profitability and guidance: “Non-GAAP net income per fully diluted share was $0.50, which exceeded the top end of our guidance range by $0.12… We have adjusted our near-term outlook to account for the more challenging environment.” – John Rettig, CFO .
Macro tone: “I don't think SMBs have seen this much uncertainty since the beginning of COVID… fewer transactions per customer and slightly decreased spend per customer.” – René Lacerte .

Q&A Highlights

Take-rate/monetization drivers: Strength from ad valorem products; FX losses reduced; Q4 monetization expected similar to Q3 vs prior plan for expansion .
Pricing impact: ACH fee moved to ~$0.59 from ~$0.49; ACH ~70% of AP/AR transactions; modest FY25 impact, more benefit in FY26; broader pricing/packaging to lift ARPU and subscription contribution .
Advanced ACH rollout: Unique value proposition due to existing supplier relationships and data; dedicated teams engaging large suppliers; broader go-live anticipated in FY26 .
Tariffs/cross-border: Majority of cross-border is services; no significant USD vs local currency shift; product improvements increased wallet share; FX risk contained and losses reduced .

Estimates Context

Q3 FY25 results vs Wall Street consensus (S&P Global):
- Revenue: Actual $358.217M vs consensus* $355.980M → beat . Consensus figures marked with an asterisk are from S&P Global [Values retrieved from S&P Global].
- Primary EPS: Actual $0.50 vs consensus* $0.374 → beat . Consensus figures marked with an asterisk are from S&P Global [Values retrieved from S&P Global].

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Consensus Mean ($USD Millions)	$347.014*	$359.990*	$355.980*
Revenue Actual ($USD Millions)	$358.0	$363.0	$358.217
Primary EPS Consensus Mean ($)	$0.502*	$0.466*	$0.374*
Primary EPS Actual ($)	$0.63	$0.56	$0.50

Note: Asterisked consensus values are from S&P Global [Values retrieved from S&P Global].

Expected estimate revisions: Upward for FY25/FY26 profitability given raised non-GAAP operating income/EPS and demonstrated monetization expansion; potentially cautious revenue/TPV trajectories near term due to macro signals .

Key Takeaways for Investors

Monetization resilience: Ad valorem products and pricing actions are supporting take-rate, offsetting softer TPV per customer; watch Q4 where monetization is guided similar to Q3 .
Profitability upgrade: FY25 non-GAAP operating income and EPS raised materially; focus on efficiency and AI-enabled leverage provides downside protection to margins .
Near-term macro caution: Management cites unusually high SMB uncertainty and moderated transaction intensity; risk to TPV growth and payment mix in discretionary categories .
Product catalysts: Advanced ACH rollout to large suppliers, expanded local transfers, Pay By Card, invoice financing, and embed/APIs should support medium-term monetization and growth .
Pricing tailwinds: ACH/check price increases phase in from May; broader packaging may lift ARPU and subscription growth in FY26 .
Ecosystem leverage: Accounting channel net adds >60% YoY and embedded partners broaden distribution; supports durable customer acquisition and cross-sell .
Trading implications: Near-term setup favors fade of revenue acceleration expectations but supports long positions on margin stability and FY25 EPS raise; catalysts include continued ad valorem adoption and pricing benefits against macro/tariff headlines .

BILL Holdings, Inc. (BILL)·Q3 2025 Earnings Summary