Hold Rating for Bill.com Holdings Amid Mixed Financials and Challenging Business Environment

Robert W. Baird analyst David Koning has maintained their neutral stance on BILL stock, giving a Hold rating on May 9.

David Koning has given his Hold rating due to a combination of factors affecting Bill.com Holdings. The company’s recent financial results were mixed, with core revenue meeting expectations but earnings per share surpassing them, partly due to a one-time gain. However, the core incremental EBIT margins were negative, and the guidance for fiscal year 2025 was lowered, reflecting a challenging macroeconomic environment for small and midsize businesses.
Despite the stock’s underperformance relative to the S&P 500 since January, the risk/reward profile has improved. Nonetheless, concerns about the company’s ability to navigate the current business climate remain, particularly as customers have reduced their transaction volumes. Additionally, the increased reward expenses for Divvy, a part of Bill.com, have also contributed to the cautious outlook, leading to the Hold recommendation.