Bill Holdings has a strong business, but you wouldn't know it by looking at the performance of its stock.Bill Holdings (BILL +1.36%) offers a portfolio of software products designed to help small and medium-sized businesses (SMBs) manage their accounts receivable, accounts payable, and budgeting workflows more efficiently. Software stocks have fallen out of favor recently as investors worry that artificial intelligence (AI) will shrink the workforce (and therefore demand for software licenses), and also hel ...

Company Overview - BILL Holdings, Inc. is a leading provider of cloud-based financial operations software, focusing on automating and simplifying back-office processes for small and midsize enterprises [6] - The company operates a software-as-a-service (SaaS) model, generating revenue primarily from subscription fees and payment transaction services [8] - BILL's market capitalization is $4.64 billion, with a trailing twelve months (TTM) revenue of $1.55 billion and a net income of -$24.21 million [4] Recent Developments - Barington Companies Management significantly increased its holding in BILL Holdings by purchasing 325,000 shares in the fourth quarter, valued at approximately $16.70 million [1][2] - This transaction increased Barington's quarter-end BILL position value by $17.83 million, reflecting both trading activity and price changes [2] - As of February 12, 2026, shares of BILL Holdings were priced at $46.37, representing a 24.1% decline over the past year, underperforming the S&P 500 by 37.0 percentage points [7] Financial Performance - BILL reported $414.7 million in second quarter revenue, marking a 14% year-over-year increase, with core revenue climbing 17% to $375.1 million [10] - Transaction fees grew by 20%, indicating strong platform engagement, while total payment volume reached $95 billion [10] - The company has provided guidance for full-year revenue between $1.63 billion and $1.65 billion, with non-GAAP EPS projected to be up to $2.41 [11] Investor Insights - The recent purchase by Barington, which now represents 13.96% of its reportable assets under management (AUM), indicates a strong belief in BILL's business potential [7] - The allocation towards BILL slightly shifts Barington's portfolio focus from consumer and retail names towards software and financial infrastructure [11]

Core Insights - BILL Holdings is a cloud-based software provider focused on financial operations for small and medium-sized businesses, competing in the financial technology sector [1] Financial Performance - BILL Holdings reported second-quarter earnings for fiscal 2026 with an EPS of 64 cents, exceeding the Zacks Consensus Estimate of 56 cents and up from 56 cents in the same quarter last year [3][6] - The company's revenues reached $414.7 million, surpassing the consensus forecast of $399.8 million, reflecting a year-over-year growth of 14.4% [3][6] Revenue Drivers - Revenue growth was driven by strong customer adoption and increased payment volumes, with core revenues, including subscription and transaction fees, rising by 17.4% [4][6] - Total payment volume (TPV) grew by 13% to $95 billion, and the number of transactions increased by 16%, indicating the platform's resilience and user attraction [4] Future Outlook - Despite a decline in float revenues, the company anticipates third-quarter revenues between $397.5 million and $407.5 million, with non-GAAP EPS expected to range from 53 to 57 cents, both above current consensus estimates [5] - BILL is valued at 2.2 times its enterprise value to FY26 revenue and 16.9 times its FY26 price-to-earnings ratio, suggesting potential for future growth [5]

Hellman & Friedman has been in talks to acquire business payments firm Bill Holdings, people familiar with the matter said, in what would be another sizable buyout of a financial software company https://t.co/HSAMeSVsJd ...

Core Insights - BILL Holdings reported earnings of 64 cents per share in Q2 FY2026, exceeding the Zacks Consensus Estimate of 56 cents and up from 56 cents in the same quarter last year [1][9] - Revenues reached $414.7 million, surpassing the consensus mark of $399.8 million and reflecting a 14.4% year-over-year increase, driven by growth in subscription and transaction fees [1][9] Revenue Breakdown - Core revenues totaled $375.1 million, marking a 17.4% increase year over year, with subscription fees at $72.1 million (up 6%) and transaction fees at $303.1 million (up 20%) [3] - Float revenues, which consist of interest on funds held for customers, decreased to $39.5 million, down 7.9% from the prior-year quarter [3] Customer Metrics - The company processed $95 billion in total payment volume (TPV), an increase of approximately 13% year over year, and handled 35 million transactions, up roughly 16% from the previous year [4] Profitability and Margins - Non-GAAP gross profit was $347.8 million, compared to $308.9 million in the year-ago quarter, although the non-GAAP gross margin slightly contracted to 83.9% from 85.2% [5] - Non-GAAP operating income rose to $74.1 million, an 18% increase from $62.8 million in the prior-year period [5] Cash Flow and Balance Sheet - As of December 31, 2025, cash, cash equivalents, and short-term investments totaled $2.24 billion, up from $2.22 billion at the end of fiscal 2025 [6] - The company generated $105.3 million in cash flow from operations in Q2, compared to $78.7 million a year ago, with free cash flow of $91.1 million in the reported quarter [6] Future Guidance - For Q3 FY2026, BILL expects revenues between $397.5 million and $407.5 million, indicating 11-14% year-over-year growth, with core revenues projected between $364.5 million and $374.5 million [7] - For FY2026, the company projects revenues between $1.631 billion and $1.651 billion, implying 12-13% year-over-year growth, with core revenues expected to range between $1.4895 billion and $1.5095 billion [8]

Core Insights - The bank is projecting higher revenue and lower costs, indicating a positive outlook for future financial performance [1] Group 1 - The bank reported a stronger net profit for the fourth quarter, suggesting improved financial health [1]

Group 1 - The article emphasizes the rapid advancements in AI technology, moving beyond simple chatbots to more sophisticated agents that can integrate into daily workflows and automate repetitive tasks [1] - The author, Gary Alexander, has extensive experience in the technology sector, having worked on Wall Street and in Silicon Valley, and advises startups, which provides him with insights into current industry trends [1] - Alexander has been a contributor to Seeking Alpha since 2017 and his work is featured in various trading applications, indicating his influence and reach within the investment community [1]

Core Insights - BILL Holdings reported revenue of $414.67 million for the quarter ended December 2025, reflecting a year-over-year increase of 14.4% and surpassing the Zacks Consensus Estimate by 3.73% [1] - The company's EPS for the quarter was $0.64, up from $0.56 in the same quarter last year, resulting in an EPS surprise of 14.96% compared to the consensus estimate [1] Financial Performance Metrics - Total Payment Volume for BILL AP/AR reached $79.9 billion, exceeding the average estimate of $79.38 billion [4] - Total Payment Volume for BILL Spend & Expense was $6.5 billion, above the $6.26 billion average estimate [4] - Overall Total Payment Volume amounted to $95.1 billion, surpassing the average estimate of $93.86 billion [4] - The number of businesses using BILL Spend & Expense solutions was 44,000, slightly above the average estimate of 43,868 [4] - The total number of businesses using BILL solutions was 498,500, which was below the average estimate of 503,904 [4] - Embedded Solutions & Other customers totaled 277,000, exceeding the average estimate of 236,650 [4] - Total Payment Volume for Embedded Solutions & Other was $8.7 billion, higher than the estimated $8.07 billion [4] - Transactions for BILL Spend & Expense reached 19.8 million, compared to the average estimate of 19.45 million [4] - Transactions for BILL AP/AR were 12.8 million, below the average estimate of 13.64 million [4] - Revenue from subscription and transaction fees was $375.13 million, exceeding the average estimate of $364.64 million and representing a 17.4% increase year-over-year [4] - Revenue from interest on funds held for customers was $39.54 million, slightly above the average estimate of $35.97 million, but showed a year-over-year decline of 7.9% [4] Stock Performance - Shares of BILL Holdings have decreased by 33.9% over the past month, while the Zacks S&P 500 composite has increased by 0.5% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

分组1 - BILL Holdings reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing an increase from $0.56 per share a year ago, resulting in an earnings surprise of +14.96% [1] - The company achieved revenues of $414.67 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.73%, and up from $362.55 million year-over-year [2] - BILL Holdings has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - Despite the positive earnings report, BILL Holdings shares have declined approximately 31.7% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.52 on revenues of $396.5 million, and for the current fiscal year, it is $2.22 on revenues of $1.62 billion [7] 分组3 - The Internet - Software industry, to which BILL Holdings belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - BILL Holdings currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6]

Revenue and Growth - Revenue for the three months ended December 31, 2025, was $414.7 million, an increase of 14.4% from $362.6 million in the same period of 2024[138] - Total Payment Volume (TPV) for the three months ended December 31, 2025, was $95.1 billion, representing a 13% increase from $84.5 billion in the same period of 2024[157] - The number of businesses using the company's solutions reached approximately 498,500 as of December 31, 2025, a growth of 4% from 481,300 in 2024[157] - The company processed approximately 34.7 million transactions during the three months ended December 31, 2025, a 16% increase from 30.0 million transactions in the same period of 2024[157] - Total Payment Volume for the six months ended December 31, 2025, was $184.4 billion, a 12% increase from $164.5 billion in the same period of 2024[157] - Subscription and transaction fees revenue increased by 17% to $375.1 million for the three months ended December 31, 2025, compared to $319.6 million in the same period of 2024[183] - Total revenue for the three months ended December 31, 2025, was $414.7 million, reflecting a 14% increase from $362.6 million in the prior year[183] - Revenue for the three months ended December 31, 2025, was $414.7 million, an increase from $362.6 million in the same period of 2024, representing a growth of 14.5%[205] Profitability and Loss - The company generated a net loss of $2.6 million for the three months ended December 31, 2025, compared to a net income of $33.5 million in the same period of 2024[138] - Net loss for the three months ended December 31, 2025, was $(2.6) million, a significant decrease from a net income of $33.5 million in the same period of 2024[183] - Operating loss improved by 17% to $(18.1) million for the three months ended December 31, 2025, compared to $(21.7) million in the same period of 2024[183] - Gross profit for the three months ended December 31, 2025, was $331.1 million, a 12% increase from $295.9 million in the same period of 2024[183] - Gross profit for the three months ended December 31, 2025, was $331.1 million, with a gross margin of 79.8%, down from 81.6% in the prior year period[186] - Non-GAAP gross profit for the six months ended December 31, 2025, was $679.9 million, compared to $615.9 million in the prior year, reflecting a year-over-year increase of 10.4%[205] Expenses and Costs - Service costs rose by 23% to $69.2 million for the three months ended December 31, 2025, compared to $56.3 million in the same period of 2024[183] - Total operating expenses increased by 10% to $349.2 million for the three months ended December 31, 2025, compared to $317.7 million in the same period of 2024[183] - Research and development expenses decreased by 2% to $82.8 million for the three months ended December 31, 2025, compared to $84.8 million in the same period of 2024[183] - Sales and marketing expenses increased by 17% to $155.4 million for the three months ended December 31, 2025, compared to $132.5 million in the same period of 2024[183] - Operating expenses as a percentage of revenue decreased to 84% for the three months ended December 31, 2025, compared to 88% in the prior year period[186] - Research and development expenses decreased to 20% of revenue for the three months ended December 31, 2025, down from 22% in the prior year period[187] - Sales and marketing expenses increased by $22.9 million during the three months ended December 31, 2025, remaining flat at 37% of revenue[192] - General and administrative expenses increased by $8.4 million during the three months ended December 31, 2025, remaining flat at 20% of total revenue[193] Cash Flow and Financial Position - Free cash flow for the six months ended December 31, 2025, was $173.4 million, up from $153.1 million in the same period of 2024, indicating a growth of 13.2%[206] - Cash and cash equivalents as of December 31, 2025, totaled $1.1 billion, with an additional $1.1 billion in available-for-sale short-term investments[208] - Net cash provided by operating activities increased to $202.2 million for the six months ended December 31, 2025, compared to $167.3 million in the prior year, a growth of 20.9%[219] - Net cash provided by investing activities was $27.9 million during the six months ended December 31, 2025, a significant improvement from net cash used of $129.7 million in the prior year[221] Strategic Initiatives - The company launched BILL AI in October 2025, introducing AI agents designed to autonomously collect and validate W-9s and reconcile receipts[137] - The company has established partnerships with over 85 of the top 100 accounting firms and six of the top ten largest financial institutions for SMBs in the U.S.[136] - The company announced a reduction in force impacting approximately 6% of employees to improve organizational agility and efficiency[142] - The company authorized a share repurchase program of up to $300.0 million in August 2025, with no mandated end date[214] Debt and Borrowing - The company has a total borrowing capacity of $600.0 million from its Revolving Credit Facilities, with $330.0 million drawn as of December 31, 2025[210] - As of December 31, 2025, the company had outstanding borrowings from its 2027 Notes and 2030 Notes, with $123.5 million of 2027 Notes remaining after repurchases[213] - The company has a total borrowing capacity of $300.0 million under the 2021 Credit Facility, with $180.0 million borrowed as of December 31, 2025[232] - The 2025 Credit Facility also has a total borrowing capacity of $300.0 million, with $150.0 million borrowed as of December 31, 2025[233] - The company borrowed $330.0 million from its Revolving Credit Facilities as of December 31, 2025, with interest rates indexed to a floating rate mechanism[251] Risk Factors - The company is exposed to credit risk from card receivable balances and loans held for investment, with potential defaults due to various factors[257] - A hypothetical 0.5%-2.0% increase or decrease in interest rates would not have a material effect on the company's financial results[251] - A 10% change in the relative value of the U.S. dollar to other foreign currencies would have an immaterial effect on cash flows and operating results[260] - The company evaluates the realizability of deferred tax assets quarterly, which may result in a material release of valuation allowance in the future[242]