BILL Stock Down 24%, Core Revenue Up 17%: Why a 14% Portfolio Bet Signals Conviction

Barington Companies Management significantly increased its holding in BILL Holdings (NYSE:BILL), adding 325,000 shares in the fourth quarter, an estimated $16.70 million trade based on quarterly average pricing, according to a February 12, 2026, SEC filing.

What happened

According to an SEC filing dated February 12, 2026, Barington Companies Management purchased 325,000 shares of BILL Holdings during the fourth quarter. The estimated transaction value was $16.70 million, based on the average unadjusted closing price for the quarter. As a result, the fund’s quarter-end BILL position increased in value by $17.83 million, a figure that includes both trading activity and price changes.

What else to know

• The buy brought BILL to 13.96% of Barington’s 13F reportable AUM as of December 31, 2025
• Top five holdings after the filing:
  • NYSE: M: $28.66 million (18.8% of AUM)
  • NASDAQ: MATW: $26.12 million (17.1% of AUM)
  • NYSE: VSCO: $23.02 million (15.1% of AUM)
  • NYSE: BILL: $21.27 million (14.0% of AUM)
  • NYSE: GIL: $15.94 million (10.5% of AUM)
• As of February 12, 2026, shares of BILL Holdings were priced at $46.37, down 24.1% over the past year and underperforming the S&P 500 by 37.0 percentage points.

Company overview

Company snapshot

• Bill.com Holdings offers cloud-based software for automating accounts payable, accounts receivable, and spend management; main revenue is generated from subscription fees and payment transaction services.
• The company operates a software-as-a-service (SaaS) model, earning income through recurring subscriptions and value-added payment solutions for financial operations.
• It serves small and midsize businesses, accounting firms, financial institutions, and software companies seeking to digitize and streamline back-office financial workflows.

Bill.com Holdings, Inc. is a leading provider of cloud-based financial operations software, focused on automating and simplifying back-office processes for small and midsize enterprises. Leveraging a SaaS platform, the company enables clients to efficiently manage payments, cash flow, and expense reporting. Its SaaS solutions and presence across accounting firms, financial institutions, and software companies support the digital transformation of business financial management.

What this transaction means for investors

Concentrated bets tell you what an investor truly believes about a business. And at nearly 14% of assets, this is not a toe in the water.

BILL delivered $414.7 million in second quarter revenue, up 14% year over year, with core revenue climbing 17% to $375.1 million. Transaction fees grew 20%, underscoring platform engagement, while total payment volume reached $95 billion. The company also repurchased $133 million of stock, shrinking the share count even as GAAP earnings swung to a small loss.

Guidance calls for full year revenue between $1.63 billion and $1.65 billion and non GAAP EPS of up to $2.41. Nearly 500,000 businesses now use the platform.

Within a portfolio dominated by consumer and retail names like Macy’s and Victoria’s Secret, this allocation slightly shifts the center of gravity toward software and financial infrastructure. Shares are down 24% over the past year, but the operating engine remains intact, and that might be why Barington seems bullish.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bill Holdings. The Motley Fool has a disclosure policy.