Bill Holdings: Value Proposition for SMB Software
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy BILL?
Source: Fool
- Enhanced Customer Value: Bill Holdings simplifies invoice management for small businesses through its cloud-based digital inbox, enabling clients to receive payments twice as fast, significantly improving cash flow management efficiency and enhancing its appeal in a competitive market.
- Robust Revenue Structure: Approximately 73% of the company's revenue comes from transaction fees, with only 17% from software licensing, which allows it to maintain strong revenue stability even if AI impacts customer workforces, thereby reducing business risk.
- Massive Market Potential: As of December 2025, Bill has 498,500 customers, compared to an estimated 72 million small businesses in its target market, indicating significant growth opportunities, especially given the $135 trillion in annual B2B payment volume.
- Analysts Bullish Outlook: According to The Wall Street Journal, 15 out of 24 analysts recommend buying the stock, with an average price target of $57.73, suggesting a 25% upside potential over the next 12 months, reflecting a positive market sentiment towards Bill's stock.
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Analyst Views on BILL
Wall Street analysts forecast BILL stock price to rise
16 Analyst Rating
9 Buy
7 Hold
0 Sell
Moderate Buy
Current: 41.940
Low
42.00
Averages
54.92
High
75.00
Current: 41.940
Low
42.00
Averages
54.92
High
75.00
About BILL
BILL Holdings, Inc. provides a financial operations platform for small and midsize businesses (SMBs). The Company offers software-as-a-service, cloud-based payments, and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency. Its artificial intelligence (AI)-enabled financial software platform creates seamless connections between its customers, their suppliers, and their clients. Businesses on its platform generate and process invoices, streamline approvals, make and receive payments, manage employee expenses, sync with their accounting system, foster collaboration, and manage their cash flow. Its integrated platform also includes BILL Spend and Expense, its spend and expense management product, which provides a solution for businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bill Holdings: Value Proposition for SMB Software
- Enhanced Customer Value: Bill Holdings simplifies invoice management for small businesses through its cloud-based digital inbox, enabling clients to receive payments twice as fast, significantly improving cash flow management efficiency and enhancing its appeal in a competitive market.
- Robust Revenue Structure: Approximately 73% of the company's revenue comes from transaction fees, with only 17% from software licensing, which allows it to maintain strong revenue stability even if AI impacts customer workforces, thereby reducing business risk.
- Massive Market Potential: As of December 2025, Bill has 498,500 customers, compared to an estimated 72 million small businesses in its target market, indicating significant growth opportunities, especially given the $135 trillion in annual B2B payment volume.
- Analysts Bullish Outlook: According to The Wall Street Journal, 15 out of 24 analysts recommend buying the stock, with an average price target of $57.73, suggesting a 25% upside potential over the next 12 months, reflecting a positive market sentiment towards Bill's stock.
See More
Bill Holdings Stock Hits Historic Low Amid Profit Focus
- Profitability Shift: Bill Holdings is shifting its focus from revenue growth to profitability, with Q1 revenue at $810.4 million, reflecting a modest 12% year-over-year increase; however, this strategy has disappointed investors, contributing to an 86% decline in stock price since its 2021 peak.
- Customer Base and Market Potential: As of December 31, 2025, Bill has 498,500 customers, a small fraction of the estimated 72 million SMBs in its addressable market, yet the $135 trillion in annual B2B payment volume presents a significant growth opportunity for the company.
- Analyst Ratings Optimistic: Among 24 analysts covering Bill, 15 have issued buy ratings, with an average price target of $57.73 suggesting a 25% upside over the next 12 months, while the highest target of $84 implies an 82% potential increase.
- Software Product Advantages: Bill's cloud-based digital inbox streamlines billing processes for SMBs, enabling clients to get paid twice as fast, with 73% of revenue derived from transaction fees, providing a stable income source even as AI technology may impact customer demand.
See More
BILL Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $35.00 put option is 50 cents, and if an investor sells this contract, they commit to buying the stock at $35.00 while collecting the premium, effectively lowering their cost basis to $34.50, which represents a 23% discount from the current price of $45.72, making it attractive for those interested in BILL shares.
- Yield Potential: Should the put option expire worthless, it would yield a 1.43% return on the cash commitment, or an annualized yield of 9.00%, referred to as YieldBoost, highlighting the potential attractiveness of this investment strategy.
- Call Option Returns: The $50.00 call option has a current bid of $1.20, and if an investor buys BILL shares at $45.72 and sells this call, the total return could reach 11.99% if the stock is called away at expiration, showcasing the potential profitability of this strategy.
- Risk Assessment: Current data indicates a 59% chance that the $50.00 call option will expire worthless, allowing investors to retain both their shares and the collected premium, thereby enhancing the safety and return potential of the investment.
See More
Starboard Value Reports 2025 AUM and Portfolio Changes
- AUM Overview: As of the end of 2025, Starboard Value reported an AUM of $5.29 billion, slightly down from $5.53 billion the previous year, indicating a stable asset base despite a broader market increase of 16%.
- Portfolio Additions: In 2025, Starboard added several new positions, including over 7.5 million shares of Qorvo (QRVO), valued at over $634 million, reflecting a strong belief in the semiconductor sector's growth potential.
- Stake Adjustments: The fund increased its stake in Kenvue (KVUE) to over 27 million shares worth $471 million, while also boosting its holdings in Salesforce (CRM) by 68%, demonstrating confidence in these companies' future performance.
- Exit and Reduction Strategy: Starboard completely exited positions in companies like Pfizer (PFE) in 2025 and reduced holdings in Match Group (MTCH), showcasing its adaptive strategy in response to market conditions.
See More
Barington Companies Acquires Additional BILL Holdings Shares
- Increased Holdings: Barington Companies Management acquired an additional 325,000 shares of BILL Holdings in Q4, with an estimated transaction value of $16.70 million, indicating strong confidence in the company's prospects.
- Value Growth: The quarter-end position value of BILL increased by $17.83 million due to trading activity and stock price movements, reflecting positive market expectations for its future development.
- Financial Performance: BILL Holdings reported $414.7 million in Q2 revenue, a 14% year-over-year increase, with core revenue climbing 17%, demonstrating strong user engagement and market demand for its platform.
- Future Outlook: The company projects full-year revenue between $1.63 billion and $1.65 billion, with non-GAAP EPS potentially reaching $2.41, indicating sustained growth potential in the financial management software sector.
See More
Barington Companies Increases Stake in BILL Holdings Significantly
- Increased Holdings: Barington Companies Management significantly increased its stake in BILL Holdings by purchasing 325,000 shares in Q4 2026, with an estimated transaction value of $16.70 million, indicating strong confidence in the company.
- Value Appreciation: This acquisition raised the value of Barington's BILL position by $17.83 million at quarter-end, reflecting the positive impact of both trading activity and price changes on the investment.
- Portfolio Allocation Shift: BILL Holdings now represents 13.96% of Barington's 13F reportable AUM, highlighting its significance within the portfolio, particularly amidst a focus on consumer and retail sectors.
- Financial Performance: Despite a 24.1% decline in BILL's stock price over the past year, the company reported $414.7 million in Q2 revenue, a 14% year-over-year increase, demonstrating the robustness of its business fundamentals and future growth potential.
See More
Bill Holdings: Value Proposition for SMB Software
- Enhanced Customer Value: Bill Holdings simplifies invoice management for small businesses through its cloud-based digital inbox, enabling clients to receive payments twice as fast, significantly improving cash flow management efficiency and enhancing its appeal in a competitive market.
- Robust Revenue Structure: Approximately 73% of the company's revenue comes from transaction fees, with only 17% from software licensing, which allows it to maintain strong revenue stability even if AI impacts customer workforces, thereby reducing business risk.
- Massive Market Potential: As of December 2025, Bill has 498,500 customers, compared to an estimated 72 million small businesses in its target market, indicating significant growth opportunities, especially given the $135 trillion in annual B2B payment volume.
- Analysts Bullish Outlook: According to The Wall Street Journal, 15 out of 24 analysts recommend buying the stock, with an average price target of $57.73, suggesting a 25% upside potential over the next 12 months, reflecting a positive market sentiment towards Bill's stock.
See More
Bill Holdings Stock Hits Historic Low Amid Profit Focus
- Profitability Shift: Bill Holdings is shifting its focus from revenue growth to profitability, with Q1 revenue at $810.4 million, reflecting a modest 12% year-over-year increase; however, this strategy has disappointed investors, contributing to an 86% decline in stock price since its 2021 peak.
- Customer Base and Market Potential: As of December 31, 2025, Bill has 498,500 customers, a small fraction of the estimated 72 million SMBs in its addressable market, yet the $135 trillion in annual B2B payment volume presents a significant growth opportunity for the company.
- Analyst Ratings Optimistic: Among 24 analysts covering Bill, 15 have issued buy ratings, with an average price target of $57.73 suggesting a 25% upside over the next 12 months, while the highest target of $84 implies an 82% potential increase.
- Software Product Advantages: Bill's cloud-based digital inbox streamlines billing processes for SMBs, enabling clients to get paid twice as fast, with 73% of revenue derived from transaction fees, providing a stable income source even as AI technology may impact customer demand.
See More
BILL Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $35.00 put option is 50 cents, and if an investor sells this contract, they commit to buying the stock at $35.00 while collecting the premium, effectively lowering their cost basis to $34.50, which represents a 23% discount from the current price of $45.72, making it attractive for those interested in BILL shares.
- Yield Potential: Should the put option expire worthless, it would yield a 1.43% return on the cash commitment, or an annualized yield of 9.00%, referred to as YieldBoost, highlighting the potential attractiveness of this investment strategy.
- Call Option Returns: The $50.00 call option has a current bid of $1.20, and if an investor buys BILL shares at $45.72 and sells this call, the total return could reach 11.99% if the stock is called away at expiration, showcasing the potential profitability of this strategy.
- Risk Assessment: Current data indicates a 59% chance that the $50.00 call option will expire worthless, allowing investors to retain both their shares and the collected premium, thereby enhancing the safety and return potential of the investment.
See More
Starboard Value Reports 2025 AUM and Portfolio Changes
- AUM Overview: As of the end of 2025, Starboard Value reported an AUM of $5.29 billion, slightly down from $5.53 billion the previous year, indicating a stable asset base despite a broader market increase of 16%.
- Portfolio Additions: In 2025, Starboard added several new positions, including over 7.5 million shares of Qorvo (QRVO), valued at over $634 million, reflecting a strong belief in the semiconductor sector's growth potential.
- Stake Adjustments: The fund increased its stake in Kenvue (KVUE) to over 27 million shares worth $471 million, while also boosting its holdings in Salesforce (CRM) by 68%, demonstrating confidence in these companies' future performance.
- Exit and Reduction Strategy: Starboard completely exited positions in companies like Pfizer (PFE) in 2025 and reduced holdings in Match Group (MTCH), showcasing its adaptive strategy in response to market conditions.
See More
Barington Companies Acquires Additional BILL Holdings Shares
- Increased Holdings: Barington Companies Management acquired an additional 325,000 shares of BILL Holdings in Q4, with an estimated transaction value of $16.70 million, indicating strong confidence in the company's prospects.
- Value Growth: The quarter-end position value of BILL increased by $17.83 million due to trading activity and stock price movements, reflecting positive market expectations for its future development.
- Financial Performance: BILL Holdings reported $414.7 million in Q2 revenue, a 14% year-over-year increase, with core revenue climbing 17%, demonstrating strong user engagement and market demand for its platform.
- Future Outlook: The company projects full-year revenue between $1.63 billion and $1.65 billion, with non-GAAP EPS potentially reaching $2.41, indicating sustained growth potential in the financial management software sector.
See More
Barington Companies Increases Stake in BILL Holdings Significantly
- Increased Holdings: Barington Companies Management significantly increased its stake in BILL Holdings by purchasing 325,000 shares in Q4 2026, with an estimated transaction value of $16.70 million, indicating strong confidence in the company.
- Value Appreciation: This acquisition raised the value of Barington's BILL position by $17.83 million at quarter-end, reflecting the positive impact of both trading activity and price changes on the investment.
- Portfolio Allocation Shift: BILL Holdings now represents 13.96% of Barington's 13F reportable AUM, highlighting its significance within the portfolio, particularly amidst a focus on consumer and retail sectors.
- Financial Performance: Despite a 24.1% decline in BILL's stock price over the past year, the company reported $414.7 million in Q2 revenue, a 14% year-over-year increase, demonstrating the robustness of its business fundamentals and future growth potential.
See More
