BILL Stock Down 24%, Core Revenue Up 17%: Why a 14% Portfolio Bet Signals Conviction

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]