$BILL just dropped Q4 2026 earnings. Payment volumes continue climbing as more SMBs shift to digital AP/AR workflows. The take rate remains stable around 0.9%, which tells you they're not squeezing merchants yet. Revenue growth is solid but decelerating—classic SaaS maturation pattern.
Margins are the real story here. They've finally hit positive operating cash flow after years of burning through capital on sales and marketing. The unit economics are starting to make sense now that customer acquisition costs have normalized.
Valuation sits around 6x forward revenue. Not cheap by historical standards, but reasonable if you believe SMB digitization is still early innings. The risk is competition—Square, Stripe, and traditional banks are all pushing into this space. $BILL needs to prove their moat is deeper than just being first to market.
Watch the customer retention metrics and net revenue retention in the next few quarters. That'll tell you whether they're building a sticky platform or just riding a temporary wave.
Margins are the real story here. They've finally hit positive operating cash flow after years of burning through capital on sales and marketing. The unit economics are starting to make sense now that customer acquisition costs have normalized.
Valuation sits around 6x forward revenue. Not cheap by historical standards, but reasonable if you believe SMB digitization is still early innings. The risk is competition—Square, Stripe, and traditional banks are all pushing into this space. $BILL needs to prove their moat is deeper than just being first to market.
Watch the customer retention metrics and net revenue retention in the next few quarters. That'll tell you whether they're building a sticky platform or just riding a temporary wave.