BILL Holdings Sees Surge in Options Activity Ahead of Earnings, Analysts Cautiously Optimistic

Options activity for Bill.com Holdings (BILL) has surged ahead of its earnings report, with volume reaching 4.5 times the usual level. The activity shows a slight preference for call options over puts in a 10:9 ratio, indicating a potential stock movement of 14.1%. Historically, BILL has experienced a median stock movement of 12.1% following its earnings announcements over the last eight quarters. The company's financial health is mixed, with robust revenue growth but challenges in converting sales into profit. BILL Holdings' valuation is undervalued, with a price-to-sales ratio of 3.06 and price-to-book ratio of 1.11. Analyst sentiment is cautiously optimistic.

Bill.com Holdings, Inc. (BILL) reported its fiscal fourth quarter 2025 earnings, showcasing a mixed financial performance with robust revenue growth but challenges in converting sales into profit. The company's earnings call, held on August 27, 2025, highlighted several key metrics and strategic initiatives.

Key Financial Highlights:

- Total Revenue: Bill.com reported total revenue of $1.5 billion for fiscal year 2025, representing a significant increase from previous years.
- Non-GAAP Operating Income: The company's non-GAAP operating income for the year exceeded initial full-year guidance by 23%, or $45 million, reaching $240 million.
- Q4 Core Revenue: Core revenue for the fourth quarter of fiscal 2025 was $346 million, up 15% year over year.
- AI Feature Adoption: Over 40,000 customers were using two or more AI platform features by year-end, demonstrating the company's commitment to leveraging artificial intelligence.

Strategic Initiatives:

- Supplier Payments Plus: A new product launched in the fourth quarter, shifting from a buyer flat fee to a supplier ad valorem fee in ACH transactions.
- Mid-Market Growth: The company's mid-market customer growth outpaced overall Bill APAR customer growth by five percentage points.
- AI Platform: Bill.com's AI platform, AgenTeq AI, is poised to launch intelligent finance agents in 2026, aimed at improving customer retention and accelerating multi-product adoption.

Stock Performance and Valuation:

Options activity for Bill.com Holdings has surged ahead of its earnings report, with volume reaching 4.5 times the usual level. The activity shows a slight preference for call options over puts in a 10:9 ratio, indicating a potential stock movement of 14.1%. Historically, BILL has experienced a median stock movement of 12.1% following its earnings announcements over the last eight quarters. The company's valuation is undervalued, with a price-to-sales ratio of 3.06 and a price-to-book ratio of 1.11.

Analyst Sentiment:

Analyst sentiment is cautiously optimistic, with the company's strategic initiatives and robust revenue growth being noted as positive factors. However, the challenges in converting sales into profit and the potential impact of macroeconomic headwinds on SMBs are areas of concern.

Looking Ahead:

Bill.com's fiscal 2026 guidance projects total revenue between $1.59 billion and $1.63 billion, with core revenue expected to be between $1.45 billion and $1.49 billion. The company's management is committed to disciplined expense control, further cost optimization, and enhanced stock-based compensation practices to reduce dilution.

References:

[1] https://www.fool.com/earnings/call-transcripts/2025/08/27/billcom-bill-q4-2025-earnings-call-transcript/