Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc is expected to report FY2Q revenue in the range of $394.5 million to $404.5 million, reflecting a 9% to 12% growth, with core revenue anticipated to grow by 12% to 15%. The company's total revenues demonstrated a significant increase of 10.4% year-over-year, bolstered by a 13.7% rise in core revenue, which encompasses both subscription and transaction fees. Additionally, the firm has experienced strong growth in net new additions from the accounting channel, with a notable 24% year-over-year increase in that segment during F4Q25, highlighting sustained momentum in revenue generation.

BILL Holdings Inc. has experienced a significant decline in gross margins, which dropped 180 basis points year-over-year to 83.9%, primarily due to a shift away from float revenue. Customer growth has also slowed, with the accounts payable/accounts receivable segment adding only 4,000 customers compared to 4,700 in the previous quarter, indicating potential challenges in user acquisition and market penetration. The company's stock has faced an over 80% decline since its peak in November 2021, exacerbated by a slowdown in core revenue growth and a general lack of interest in small to mid-cap fintech companies, leading to negative estimate revisions.