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BILL Holdings Inc. (BILL) offers a financial operations platform for small and midsize businesses worldwide. It had a falling out with investors beginning in November 2021. But its prospects are reviving due to a successful turnaround strategy focused on profitability and new AI-powered products, explains Clif Droke, editor of Cabot Turnaround Letter.

BILL Holdings provides software-as-a-service (SaaS), cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions. It also helps businesses connect with their suppliers and customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency.
 

Partly accounting for the stock’s weakness was a post-pandemic shift away from high-valuation tech stocks, as well as concerns over slowing growth. This was particularly true of SaaS companies like BILL Holdings, since rising interest rates and inflation pressures caused a broad re-evaluation of such firms among investors.

Moreover, BILL Holdings faced stiff competition from larger and more established players in the fintech space, including Intuit Inc. (INTU). That firm launched its own QuickBooks Bill Pay to directly compete for small- and medium-sized business (SMB) customers.

But in fiscal 2025 (ended June 30), the company reported its first profitable fiscal year since its 2019 IPO. This was achieved by carefully managing operating expenses which, while growing 3%, represented a major improvement compared to previous years.

What’s more, fiscal 2025 total revenue of $1.5 billion increased 13% year-over-year, while core revenue jumped 16%. BILL Holdings characterized 2025 as a “pivotal” year, as the company stated that it "drove growth and profitability, launched essential new software and payment products for customers and suppliers and expanded our market opportunity.”

On the new product front, BILL Holdings has attracted the attention of investors lately through its new offerings focused on AI-powered solutions to enhance its platform’s value for its SMB customers. For example, it has released a new Agentic AI platform, which has begun automating financial operations for clients. And for the full year, its AI features increased the number of fully automated bills by 80%, while stopping over eight million fraudulent attempts.

My recommended action would be to consider purchasing shares of BILL Holdings.

About the Author

Clif Droke is the chief analyst of Cabot SX Gold & Metals. For over 20 years, he has worked as a writer, analyst, and editor of several market-oriented advisory services and has written several books on technical trading in the stock market, including Channel Buster: How to Trade the Most Profitable Chart Pattern and The Stock Market Cycles.

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