Financial automation platform BILL (NYSE: BILL) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 10.4% year on year to $395.7 million. The company expects next quarter’s revenue to be around $399.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.61 per share was 20.5% above analysts’ consensus estimates.
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BILL (BILL) Q3 CY2025 Highlights:
- Revenue: $395.7 million vs analyst estimates of $391 million (10.4% year-on-year growth, 1.2% beat)
- Adjusted EPS: $0.61 vs analyst estimates of $0.51 (20.5% beat)
- Adjusted Operating Income: $68.24 million vs analyst estimates of $56.54 million (17.2% margin, 20.7% beat)
- The company slightly lifted its revenue guidance for the full year to $1.61 billion at the midpoint from $1.61 billion
- Management raised its full-year Adjusted EPS guidance to $2.18 at the midpoint, a 3.8% increase
- Operating Margin: -5.2%, down from -2.1% in the same quarter last year
- Free Cash Flow Margin: 20.8%, up from 17.9% in the previous quarter
- Customers: 498,100, up from 493,800 in the previous quarter
- Market Capitalization: $4.73 billion
Company Overview
Transforming the messy back-office financial operations that plague small business owners, BILL (NYSE: BILL) provides a cloud-based platform that automates accounts payable, accounts receivable, and expense management for small and midsize businesses.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, BILL’s sales grew at an incredible 54.8% compounded annual growth rate over the last five years. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. BILL’s annualized revenue growth of 15% over the last two years is below its five-year trend, but we still think the results were respectable. 
This quarter, BILL reported year-on-year revenue growth of 10.4%, and its $395.7 million of revenue exceeded Wall Street’s estimates by 1.2%. Company management is currently guiding for a 10.2% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 10.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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Customer Base
BILL reported 498,100 customers at the end of the quarter, a sequential increase of 4,300. That’s a little worse than last quarter but in line with what we’ve observed in past quarters, suggesting the company still has decent sales momentum despite the weaker quarter.
Key Takeaways from BILL’s Q3 Results
It was great to see BILL raise its full-year revenue and EPS guidance. We were also glad this quarter's revenue, EPS, and EBITDA exceeded Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 5.7% to $46.94 immediately after reporting.
Big picture, is BILL a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
