BILL Holdings, Inc.BILL

BILL Holdings, Inc. Leases Disclosure

10-KFiled Aug 28, 20251 min read
LEASES
The Company has non-cancelable operating leases for office and other facilities in various locations, which expire through 2031. Also, the Company subleases part of its office facility in Draper, Utah under a non-cancellable operating lease that expires in December 2030. The Company's leases do not contain any material residual value guarantees.
As of June 30, 2025, the weighted average remaining term of these operating leases is 6.0 years and the weighted-average discount rate used to estimate the net present value of the operating lease liabilities was 5.0%.
The total payment for amounts included in the measurement of operating lease liabilities was $13.4 million, $13.9 million, and $14.9 million during the years ended June 30, 2025, 2024, and 2023, respectively.
The total amount of ROU assets obtained in exchange for new operating lease liabilities was $4.8 million, $0.0 million, and $2.0 million during the years ended June 30, 2025, 2024, and 2023, respectively.
The components of lease expense during the years ended June 30, 2025, 2024, and 2023 are shown in the table below (in thousands):
Year ended June 30
202520242023
Operating lease expense (1)
$12,627 $12,877 $14,081 
Variable lease expense, net of credit2,412 2,461 2,251 
Sublease income(842)(581)(586)
Total lease cost$14,197 $14,757 $15,746 
(1) Includes short-term lease, which is not material for the fiscal years ended June 30, 2025, 2024, and 2023.

Historical Timeline

Fiscal YearFiled
2025Aug 28, 2025Showing above
2024Aug 23, 2024
2023Aug 29, 2023
2022Aug 22, 2022
2021Aug 30, 2021

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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