Why Bill Stock Rocketed Nearly 15% In After-Hours Trading

• After Starboard acquired a stake in Bill, it successfully negotiated for a seat on the company's board.
• Bill’s stock hasn’t moved appreciably following the first-quarter earnings released last week.
• The stock is down about 45% this year, which has shrunk its market cap to $4.67 billion.

Bill Holdings, Inc. (BILL) shares jumped nearly 15% in Tuesday’s extended session on a report that the provider of a financial operations platform for small and medium businesses (SMB) is eyeing a potential sale.

Bill’s stock has lost about 45% this year amid an inclement consumer spending environment and rising competition.

Bill On The Block?

A Bloomberg report, citing people familiar with the matter, stated that the company has begun discussing with a financial investor, considering offers from larger rivals as well as private-equity firms. The report, however, cautioned that no final decision has been made, and Bill could ultimately choose to stay independent.

The San Jose, California-based company has been under pressure from activist investor Starboard to restructure operations with an eye on profitability. After disclosing an 8.5% stake in Bill this year, the activist investor entered into a cooperation agreement with the company. Pursuant to the agreement, Bill appointed four new independent directors to its board, including a Starboard nominee. Following Starboard’s involvement, Bill announced the elimination of 6% of its workforce.

Elliott Management has also accumulated a 5% ownership stake in Bill this year. The payment processing industry is undergoing a wave of consolidation, with larger companies and private-equity firms acquiring smaller players. This included Capital One’s $35 billion acquisition of Discover Financial Services and Global Payments’ Worldpay deal. 

What Retail Feels About Bill Stock

Bill was among the top ten trending equity tickers on Stocktwits by late Tuesday. Retail sentiment toward the stock shifted to ‘bullish’ from the ‘bearish mood seen the day before. The message volume on the stream increased to ‘extremely high’ levels.

Retail watchers of the stock discussed the after-hours spike in Bill's shares..

Last week, Bill reported its fiscal year 2026 first-quarter results, which showed 10% year-over-year (YoY) revenue growth to $395.7 million. The quarterly adjusted earnings per share (EPS), however, fell to $0.61 from $0.63. The top and bottom-line results exceeded consensus estimates. The forward guidance aligned with average analysts’ estimates.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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