BILL Holdings Weighs Sale As Activists Push For Profitability Shift

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• BILL Holdings, trading as NYSE:BILL, is reported to be exploring a potential sale of the company.

• Private equity firm Hellman & Friedman is said to be in talks regarding a possible acquisition.

• The board is reviewing alternatives after activist investors pushed for improved profitability and changes to the business.

For shareholders, this comes at a time when NYSE:BILL is trading at $46.99, with returns showing a 7.1% decline year to date and a 21.4% decline over the past year. Over a 3-year period, the stock shows a 49.6% decline, and over 5 years, a 74.5% decline, which helps explain why activists are pressing for a different path.

If a sale or other transaction emerges from this review, it could reshape how you think about the risk and potential reward in holding NYSE:BILL. Until there is a formal decision, the key things to watch are any updates from the board on its process and whether other bidders or proposals enter the picture.

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The possible sale process comes at a time when BILL is still investing for growth but reporting losses, which is a key reason activists are pushing for change. In the latest quarter, revenue was US$414.67 million with a net loss of US$2.59 million, and for the first half of the fiscal year revenue was US$810.41 million with a net loss of US$5.55 million. Management is guiding to total revenue of US$397.5 million to US$407.5 million for the fiscal third quarter and US$1.631b to US$1.651b for the full year, so any buyer will likely focus on how quickly that revenue base could translate into consistent profitability. The recent US$148.26 million buyback and participation in several high profile investor conferences suggest the board is keen to signal confidence and keep BILL visible to both public and private market investors while it weighs alternatives, including a potential deal with Hellman & Friedman.

• The review of alternatives and talks with private equity align with the narrative that activist involvement could push for clearer execution on AI-powered products and embedded finance partnerships to support margins and earnings.

• The shift from net income a year ago to a loss in the latest quarter challenges expectations that operating leverage and new pricing models will quickly lift profitability.

• The buyback and ongoing conference participation reflect capital allocation and communication choices that are not fully captured in the earlier narrative, which focused more on product and revenue drivers than on ownership or control changes.

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• ⚠️ Execution risk if BILL tries to pursue both a sale process and a standalone plan at the same time, which could distract management from delivering on guidance and margin improvement.

• ⚠️ Competitive pressure from larger players such as Intuit, Block and PayPal that also target small and midsize businesses with payments and financial software, which could affect pricing and customer growth.

• 🎁 Growing use of AI-powered financial automation tools and multiproduct offerings, which management highlights as supporting transaction volumes and customer adoption.

• 🎁 Activist involvement and a completed buyback that together point to a focus on capital discipline and potential operational changes designed to support shareholder outcomes over time.

You may want to watch whether the board ultimately leans toward a full sale, a private equity partnership or a refreshed standalone plan, and how any path ties to clearer profitability targets. The next few earnings updates will be important for seeing if BILL stays within its revenue guidance ranges and whether losses narrow as AI-powered products, pricing changes and embedded finance efforts scale. It is also worth tracking customer and transaction trends, especially relative to competitors like Intuit and Block, to see if BILL is holding its position with small and midsize business clients.

To ensure you’re always in the loop on how the latest news impacts the investment narrative for BILL Holdings, head to the community page for BILL Holdings to never miss an update on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BILL.

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