BILL Stock Rallies On Reported Buyout Talks Amid Upbeat Q2 Earnings

• The company has also reportedly drawn interest from other private equity suitors. 
• On Thursday, Bill reported Q2 earnings and revenue above Wall Street expectations. 
• Truist analyst Matthew Coad said they think Bill is an attractive takeout candidate.

Shares of business payments firm Bill Holdings Inc.(BILL) rallied 39% on Friday on the heels of reports that Hellman & Friedman has been in talks to acquire the firm.

Bloomberg reported the discussions on Friday, citing people familiar with the matter. Sources told Bloomberg that Hellman & Friedman has been talking to Bill Holdings and its financial adviser in recent weeks. The company has also reportedly drawn interest from other private equity suitors.

However, the talks are ongoing and there is no assurance that any of it will culminate in an agreement, the report noted.

In November, Bloomberg reported that Bill is exploring options, including a potential sale, following pressure from activist investor Starboard Value LP, and working with a financial adviser.

Q2 Earnings

San Jose, California-headquartered Bill Holdings is a platform used by about half a million businesses to manage payments. On Thursday, the company announced second-quarter (Q2) revenue of  $414.7 million, an increase of 14% year-over-year, and above an analyst estimate of $399.93 million, according to data from Fiscal AI.

Adjusted earnings came in at $0.64 per diluted share, above a Wall Street estimate of $0.56.

The company said that it processed $95 billion in total payment volume in the second quarter, marking an increase of 13% year-over-year.

For FY26, the company expects total revenue of $1.63 billion-$1.65 billion and adjusted net income per diluted share of $2.33-$2.41, above an estimated $2.27.

Analyst Take

Following the Bloomberg report, Truist analyst Matthew Coad acknowledged that some investors have questioned the likelihood of a takeout, given the current turbulence across the software sector.

The firm, however, thinks Bill is an attractive takeout candidate and believes that activist investors Elliott Investment Management and Starboard Value having sizable positions in the company created positive optionality for Bill shareholders.

Truist has a ‘Buy’ rating and a price target of $58 on the shares.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around BILL stock stayed within the ‘extremely bullish’ territory while message volume increased from ‘high’ to ‘extremely high’ levels.

A Stocktwits user expects a potential buyout deal to price shares of the company at $65-$85.

BILL stock has dropped 48% over the past 12 months. 

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