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Investing.com -- Bill Com Holdings Inc (NYSE:BILL) stock surged over 17% in after-hours trading Tuesday following a Bloomberg report that the financial software provider is exploring strategic options, including a potential sale.
The San Jose, California-based company, which provides cloud-based financial automation software, is reportedly working with a financial advisor to gauge interest from larger industry competitors and private equity firms, according to people familiar with the matter cited by Bloomberg.
The exploration comes amid pressure from activist investor Starboard Value LP, which disclosed an 8.5% stake in Bill Holdings in early September 2025. Starboard has been pushing for operational and governance changes at the company, criticizing its stagnant core revenue growth and below-peer profitability margins.
In October 2025, Starboard presented a detailed analysis highlighting Bill’s 9% adjusted EBITDA margin compared to peers’ median of approximately 29%, and its declining "Rule of 40" score of around 21%, well below competitors’ 40-50% range.
The activist pressure led to a cooperation agreement between Bill and Starboard in mid-October, resulting in a board refresh with four new independent directors, including Starboard’s Peter Feld.
Despite the reported discussions, no final decision has been made, and Bill could ultimately choose to remain independent, according to the Bloomberg report. The company has a market capitalization of nearly $4.7 billion, though its shares have dropped 45% over the past year.