Starboard Value Takes a Hefty 8% Stake in Bill Holdings: Should Investors Buy Too?

Starboard Value LP established a new position in Bill Holdings (NYSE:BILL), 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:

1. Qorvo (NASDAQ:QRVO): $684.09 million (12.9% of AUM)
2. Autodesk (NASDAQ:ADSK): $417.10 million (7.8% of AUM)
3. Match Group (NASDAQ:MTCH): $391.01 million (7.4% of AUM)
4. Bill Holdings (NYSE:BILL): $372.11 million (7.0% of AUM)
5. Gen Digital (NASDAQ:GEN): $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.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Autodesk and Bill Holdings. The Motley Fool recommends Match Group and Qorvo. The Motley Fool has a disclosure policy.