Starboard Value LP established a new position in Bill Holdings (BILL 1.43%), adding 7,024,848 shares for an estimated $372.11 million, according to its Nov. 14, 2025, SEC filing.
What happened
According to a filing with the Securities and Exchange Commission dated Nov. 14, 2025, Starboard Value initiated a new stake in Bill Holdings, acquiring 7,024,848 shares.
The estimated value of the position at quarter-end was $372.1 million, making it a significant addition to the fund’s portfolio during the third quarter.
What else to know
This is a new position for Starboard Value, comprising 7% of its 13F reportable assets under management.
The firm’s top holdings after the filing:
- Qorvo (QRVO 3.94%): $684.09 million (12.9% of AUM)
- Autodesk (ADSK 2.48%): $417.10 million (7.8% of AUM)
- Match Group (MTCH 2.17%): $391.01 million (7.4% of AUM)
- Bill Holdings (BILL 1.43%): $372.11 million (7.0% of AUM)
- Gen Digital (GEN 1.64%): $345.53 million (6.5% of AUM)
As of Nov. 14, 2025, shares of Bill Holdings were priced at $50.35, down 42% over the past year, underperforming the S&P 500 by 56 percentage points.
Company Overview
Bill Holdings generated $12 million in net income from $1.5 billion in sales over the last year.
The stock’s sales grew by 13% over the trailing twelve months; however, its stock price is down 42% over the same period.
Company Snapshot
Bill Holdings:
- Offers cloud-based software for automating back-office financial operations, including accounts payable, accounts receivable, and spend management solutions.
- Generates revenue primarily through a software-as-a-service (SaaS) subscription model, complemented by payment processing and related support services.
- Serves small and midsize businesses, accounting firms, financial institutions, and software companies seeking to streamline financial workflows and improve efficiency.
Bill Holdings is a leading provider of cloud-based financial automation solutions for small and midsize businesses.
The company leverages a SaaS model to deliver scalable, recurring revenue while addressing critical pain points in back-office financial processes.
With a robust platform focused on digitizing and automating payments and expense management, Bill enables clients to enhance operational efficiency and improve cash flow visibility.
Its market position is supported by a diverse customer base and a comprehensive suite of automation tools.
Foolish take
Starboard Value’s significant 8% stake in Bill Holdings is undoubtedly something for prospective or current investors to take notice of.
The activist investment firm has already secured a seat on Bill’s board and is seeking to enhance the company’s profitability or potentially generate value for shareholders through a sale.
After growing sales by 64% annually over the last five years, Bill’s revenue growth rate slowed to 13% in its last quarter. Making matters worse, stock-based compensation (SBC) still equals 16% of the company’s revenue.
This heavy compensation results in a below-average net profit margin of just 1%.
This less-than-ideal profitability — paired with Bill’s leadership position in providing cloud-based back-office solutions to small and medium-sized businesses — made the company ripe for an activist investor like Starboard.
The activist has a strong track record of success, so if anything, their interest in shaking things up at Bill Holdings only increases my interest in the stock.
That said, I personally prefer not to get involved in overly complicated investment situations, so I will likely follow this one from the sidelines.
However, I can definitely see the buy thesis for investors with the risk tolerance and patience to wait out a unique situation like this — especially with shares trading at just 16 times FCF, not including SBC.
Glossary
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
13F Reportable Assets: Securities that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Stake: The ownership interest or share that an investor holds in a company.
Position: The amount of a particular security or asset owned by an investor or fund.
Quarter-End: The last day of a fiscal quarter, used for financial reporting and valuation.
SaaS (Software-as-a-Service): A software delivery model where applications are accessed online via subscription rather than purchased outright.
Back-Office Financial Operations: Administrative and support processes like accounting, billing, and payments that are not client-facing.
Accounts Payable: Money a company owes to suppliers for goods or services received but not yet paid for.
Accounts Receivable: Money owed to a company by its customers for goods or services delivered but not yet paid for.
Spend Management: The process of controlling and optimizing a company’s expenditures and purchasing activities.
Cloud-Based: Services or software hosted on remote servers and accessed via the internet, not installed locally.
TTM: The 12 months ending with the most recent quarterly report.
