Shares of Bill Holdings (BILL) jumped more than 14% in after-hours trading on Tuesday, after reports emerged that the expense management software provider is exploring a potential sale. The move comes amid growing pressure from activist investors Starboard Value LP and Elliott Investment Management, both of which have accumulated significant stakes in the company. Starboard disclosed an 8.5% stake in September, while Elliott has also built a sizable position.
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BILL shares have fallen about 45% so far in 2025, bringing the company’s market capitalization down to roughly $4.2 billion. Bill Holdings, once a fast-growing company after going public, now faces tougher competition from smaller rivals that offer more features to small and midsize businesses at lower costs.
Why Bill Holdings Is Considering a Sale
Activist investors have been urging Bill to explore strategic options that could boost shareholder value. According to sources familiar with the matter, the company is evaluating the possibility of selling itself to a larger industry player, believing that its current market valuation does not reflect its true long-term prospects.
In October, Bill undertook a major board overhaul, appointing four new independent directors, including one nominee from Starboard. The San Jose-based company is reportedly working with a financial adviser to gauge interest from both strategic acquirers and private equity firms. However, discussions remain in very early stages, and the company may still choose to remain independent.
Bill’s Financials Remain Strong
Despite market headwinds, Bill continues to post solid financial results. Last week, the company reported first-quarter fiscal 2026 earnings per share (EPS) of $0.61, beating the consensus of $0.51. Revenue of $395.74 million also exceeded the consensus estimate of $391.81 million.
Bill also raised its fiscal 2026 EPS guide to be in the range of $2.11 and $2.25, up from $2.00-$2.20 and higher than the consensus of $2.14. Similarly, FY26 revenue is now projected between $1.5965 billion and $1.6265 billion, in-line with the consensus of $1.61 billion.
Is BILL Stock a Buy, Hold, or Sell?
Analysts remain divided on Bill Holdings’ long-term outlook. On TipRanks, BILL stock has a Moderate Buy consensus rating based on 14 Buys and seven Hold ratings. The average Bill Holdings price target of $60.83 implies 30.6% upside potential from current levels.
