Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. has provided revenue guidance for FY2Q of $394.5-$404.5 million, representing year-over-year growth of 9%-12%, with core revenue projected to rise by 12%-15%. The company's total revenues have increased by 10.4% year-over-year, supported by a 13.7% growth in core revenue, indicating strong performance in subscription and transaction fees. Furthermore, the accounting channel has demonstrated significant growth, with net new additions up 24% year-over-year in F4Q25, reflecting robust demand and market expansion for BILL's cloud-based financial solutions.

BILL Holdings Inc. has experienced a significant decline in gross margins, which decreased by 180 basis points year-over-year to 83.9%, primarily due to a shift away from float revenue. Additionally, while the non-GAAP operating margin increased to 17.2%, this was largely attributed to reduced research and development expenditures, indicating potential limitations in growth initiatives. Furthermore, customer acquisition in both the accounts payable/accounts receivable and spend & expense segments showed a decline compared to the previous quarter, reflecting challenges in sustaining revenue growth and market interest amid a broader downturn for small- to mid-cap fintech companies.