BILL NYSE BILL Investor Deck February 2026 Safe harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond ou ...

"We accelerated core revenue growth while strengthening our margin profile," said Rohini Jain, BILL CFO. "Our Q2 performance underscores the durability of our business and the discipline of our investment approach. Looking ahead, we are focused on extending differentiation, driving efficiency, and delivering long‑term shareholder value." Financial Highlights for the Second Quarter of Fiscal Year 2026: Business Highlights and Recent Developments: Financial Outlook We are providing the following guidance for ...

Core Viewpoint - Analysts project that BILL Holdings (BILL) will report quarterly earnings of $0.56 per share, with revenues expected to reach $399.75 million, reflecting a 10.3% increase year over year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating stability in analysts' projections [1] - Revenue from 'Interest on funds held for customers' is estimated at $35.97 million, showing a decline of 16.2% year over year [4] - Revenue from 'Subscription and transaction fees' is projected to be $364.64 million, indicating a growth of 14.1% year over year [4] Group 2: Detailed Revenue Breakdown - 'Subscription fees' under 'Subscription and transaction fees' is expected to reach $68.80 million, reflecting a 1.6% increase from the previous year [5] - 'Transaction fees' under 'Subscription and transaction fees' is estimated at $295.76 million, indicating a growth of 17.4% year over year [5] Group 3: Key Metrics and Market Performance - Total Payment Volume is projected at $93.86 billion, compared to $84.00 billion from the previous year [6] - The number of 'Transactions Processed' is expected to reach 35.11 million, up from 30.00 million year over year [6] - Over the past month, shares of BILL Holdings have decreased by 22.4%, while the Zacks S&P 500 composite has increased by 1.8% [6] - BILL Holdings currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance in the near future [6]

Group 1 - Parnassus Investments reported a 5.49% return for the Parnassus Mid Cap Fund in Q3 2025, outperforming the Russell Midcap Index which returned 5.33% [1] - The Russell Mid Cap Index continued to rise following a strong second quarter, indicating a positive market trend [1] Group 2 - Parnassus Core Equity Fund highlighted BILL Holdings, Inc. (NYSE:BILL) as a key investment, noting a one-month return of 16.66% despite a 52-week decline of 45.78% [2] - BILL Holdings, Inc. closed at $51.76 per share on December 03, 2025, with a market capitalization of $5.196 billion [2] - The company is positioned in a large and underpenetrated market for small and medium-sized businesses, with potential for revenue growth as digitization of back-office workflows increases [3] - BILL Holdings benefits from strong distribution partnerships and network effects, providing a competitive advantage in its market [3] Group 3 - BILL Holdings, Inc. was held by 52 hedge fund portfolios at the end of Q3 2025, an increase from 45 in the previous quarter [4] - Despite its potential, some analysts believe that certain AI stocks may offer greater upside potential and lower downside risk compared to BILL Holdings [4]

Company Overview - BILL Holdings has a total revenue of $1.50 billion and a net income of $11.93 million for the trailing twelve months (TTM) [4] - The company's stock price is currently at $55.23, reflecting a one-year price change of -38% [4] Investment Activity - Totem Point Management initiated a new position in BILL Holdings, acquiring 71,225 shares valued at approximately $3.77 million as of September 30 [2][3] - This new position represents 3.36% of Totem Point's total reportable U.S. equity assets under management [3] Business Model and Performance - BILL operates a cloud-based platform that automates financial operations for small and midsize enterprises, generating revenue primarily through a software-as-a-service (SaaS) model [6][9] - In the most recent quarter, BILL reported total revenue of $395.7 million, a 10% year-over-year increase, with core revenue growing 14% [10] - The platform processed $89 billion in payment volume during the quarter, serving nearly 500,000 businesses, indicating steady adoption despite market challenges [10] Market Position and Outlook - Despite a significant stock price decline, the underlying business fundamentals remain strong, suggesting a disconnect between market pricing and business performance [1][11] - The new investment by Totem Point Management aligns with a portfolio focused on durable growth franchises, indicating a belief in BILL's long-term potential as a discounted compounder [11]

Core Viewpoint - Barington Capital Group urges BILL Holdings to implement a comprehensive cost reduction plan and explore strategic alternatives, including a potential sale or merger, due to the company's slowing fundamentals and prolonged share price underperformance [1]. Group 1: Company Performance - BILL is positioned in the growing B2B financial automation sector, but faces challenges with slowing monetization trends and increasing industry competition, raising concerns about its long-term independence [2]. - The company has struggled to deliver operating profitability, which has led to market skepticism regarding its ability to maintain its leadership position [1][2]. Group 2: Strategic Recommendations - Barington recommends that the Board ensure management operates with greater cost discipline to better convert revenue growth into profitability and stronger cash flows [2]. - The firm suggests that BILL engage a financial advisor and form a special committee of independent directors to explore all strategic alternatives, including a potential sale or merger, given the strong private market valuations of similar companies [3]. Group 3: Investment Perspective - Barington believes that BILL would be an attractive acquisition candidate for both strategic and financial buyers, highlighting the disparity between the public market's valuation and the company's technology leadership and transaction network [3].

Core Insights - 13D Activist Fund reported a Q3 2025 return of 8.88%, underperforming the Russell 2000 Index which returned 12.39% [1] - The Russell 2000 outperformed the S&P 500 by the largest margin in three years, with returns of 12.39% compared to 8.12% for the S&P 500 [1] Company Overview: BILL Holdings, Inc. - BILL Holdings, Inc. provides cloud-based software solutions aimed at simplifying and automating back-office financial operations for small and midsize businesses (SMBs) [2][3] - The stock of BILL Holdings, Inc. had a one-month return of 16.66%, but it has lost 45.78% of its value over the past 52 weeks, closing at $51.76 per share with a market capitalization of $5.196 billion on December 03, 2025 [2] Revenue Breakdown - BILL's revenue for 2025 was $1.45 billion, with the following contributions: - Accounts Payable/Accounts Receivable generated $668 million, accounting for 46% of total revenue, with one-third from subscription fees and the remainder from payment processing fees [3] - BILL Spend and Expense, which includes the BILL Divvy Card, contributed $555 million, representing 38% of total revenue [3] - Embedded and Other Solutions, including white label solutions and Invoice2go, generated $78 million, or 5% of total revenue [3] - Interest on funds held for customers contributed $162 million, making up 11% of total revenue [3]

Investment & Stake - Activist investor Barington takes a stake in business payments firm Bill Holdings [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Summary of BILL Holdings (NYSE:BILL) 2025 Conference Call Company Overview - **Company**: BILL Holdings (NYSE:BILL) - **Event**: 2025 Conference Call - **Date**: December 03, 2025 Key Points Strategic Priorities - **Durable Growth**: The CFO emphasized the importance of driving durable growth through three main initiatives: 1. **AI Integration**: Utilizing AI to enhance customer experiences and modernize services [11][12] 2. **Supplier Payment Plus (SPP)**: Aiming to monetize a large Total Payment Volume (TPV) on the platform, with a focus on revenue growth [12] 3. **Embed Work**: Targeting specific customer segments and expanding channels like accountants to capture market opportunities [13] Cost Structure and Profitability - **Cost Refinement**: There are opportunities to optimize the cost structure to enhance profitability and shareholder value [14] - **Balancing Growth and Profitability**: The CFO highlighted the importance of revenue growth as a pathway to profitability, with a goal to achieve the Rule of 40 [19][20] Mid-Market Focus - **Reallocation of Resources**: The company is reallocating resources to focus on mid-market initiatives rather than smaller customers, which may lead to fluctuations in Net New Adds (NNA) in the short term [24][25] - **Customer Segmentation**: BILL is refining its target customer profile to focus on higher-end mid-market customers who require comprehensive services [31][36] Key Performance Indicators (KPIs) - **NNA and ARPU**: The company will monitor NNA and Average Revenue Per User (ARPU) as key metrics to gauge success in the mid-market transition [29][30] - **TPV and Revenue Growth**: The CFO expects to see increases in TPV and revenue per customer as the mid-market strategy unfolds [30][49] Pricing Strategy - **Modular Pricing**: BILL is introducing modular pricing to align the value provided with the price charged, allowing customers to pay for specific features as needed [51][53] - **Long-term Pricing Framework**: A comprehensive pricing strategy is being developed to ensure clarity and structure in pricing across the business [52][53] Take Rate and Emerging Portfolio - **Take Rate Growth**: The company reported a 0.3 basis point expansion in take rate, with expectations for continued growth driven by the emerging portfolio [55] - **Supplier Payment Plus (SPP)**: SPP is anticipated to contribute significantly to take rate growth in the following year [59] Embed Partnerships - **Partnerships with Major Players**: BILL has formed partnerships with companies like NetSuite and Paychex, which are expected to enhance market reach and customer acquisition [60][62] - **Revenue Sharing**: These partnerships include revenue-sharing models that simplify sales processes and reduce costs for BILL [62][63] Future Outlook - **Optimism for Growth**: The CFO expressed confidence in achieving growth targets and improving profitability through strategic initiatives and market focus [20][49] Additional Insights - **Customer Experience Improvements**: Efforts are underway to modernize the platform and reduce onboarding friction, which is expected to decrease churn rates [26] - **Market Conditions**: The company is not anticipating significant macroeconomic changes that could impact performance, focusing instead on internal execution and customer needs [43][44] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting BILL Holdings' focus on growth, profitability, and market positioning.