Exploring Bill.com Holdings, Inc. (BILL) Investor Profile: Who’s Buying and Why?

You've seen the headlines: Bill.com Holdings, Inc. (BILL) booked a full-year 2025 total revenue of over $1.46 billion, a solid 13% jump from the prior year, but the stock price volatility suggests the market is asking a different question: who is actually buying, and what are they betting on? We're not talking about retail investors; we're focused on the heavy hitters, the ones who move the needle. For instance, The Vanguard Group, Inc. and BlackRock, Inc. are two of the largest stakeholders, holding a combined ownership stake that sits near 20% of the company as of late September 2025, signaling a long-term conviction in the platform's core revenue growth, which hit $1.3 billion. But here's the defintely interesting wrinkle: the emergence of activist investor Starboard Value LP, which holds a significant 7.01% stake and is pushing for change, a move the company countered with a new $300 million share repurchase program. So, is this a pure fintech growth story, or is it now a value play driven by institutional pressure? That's what we need to unpack.

Who Invests in Bill.com Holdings, Inc. (BILL) and Why?

The investor profile for Bill.com Holdings, Inc. (BILL) is dominated by large institutional money, but the recent entry of a major activist hedge fund has shifted the narrative from pure growth to a focus on unlocking value. You're looking at a stock where the investment thesis is a mix of long-term growth in the small and midsize business (SMB) financial operations market and near-term catalyst speculation.

Key Investor Types: Institutional Dominance

The ownership structure of Bill.com Holdings, Inc. shows a clear preference from large, established investment firms. As of late 2025, institutional investors hold a commanding position, owning a total of over 110 million shares. This massive stake means that the stock's price movements are largely driven by the buying and selling patterns of these professional money managers.

Retail investors-people like you and me managing our own brokerage accounts-hold the remaining portion, which is significant but less influential than the institutional bloc. Hedge funds, a subset of institutional investors, are where the most aggressive action happens, as seen recently.

Investment Motivations: Growth and Catalysts

The primary attraction to Bill.com Holdings, Inc. for most investors is its position as a leading financial operations platform for SMBs, a massive and still-digitizing market. The company's fiscal year 2025 performance clearly shows this growth engine at work: total revenue hit $1,462.6 million, an increase of 13% year-over-year. Core revenue, which comes from subscription and transaction fees, grew even faster, rising 16% to $1,300.8 million.

But growth isn't the only story. The company is actively working to balance growth with profitability, with non-GAAP operating income doubling in the first quarter of fiscal year 2025 to $67.1 million, up 101% year-over-year. This push toward expanding profitability is defintely a key motivator for long-term holders. For a deeper dive into the company's financial footing, you should check out Breaking Down Bill.com Holdings, Inc. (BILL) Financial Health: Key Insights for Investors.

• Revenue Growth: Aiming to return to a 20% core revenue growth rate.
• Profitability Improvement: Demonstrated by the doubling of non-GAAP operating income.
• Strategic Expansion: Driven by the Emerging portfolio, which saw 40% year-over-year growth in Q1.
• Potential Sale: The recent exploration of strategic options, including a potential sale, acts as a powerful near-term catalyst.

Investment Strategies: Long-Term Growth Meets Activist Value

You see two main strategies at play here. The first is a classic long-term growth strategy, favored by giants like Vanguard Group Inc. and BlackRock, Inc. They view Bill.com Holdings, Inc. as a high-quality Software-as-a-Service (SaaS) company with a durable business model and an 81.4% gross margin in FY2025. They buy and hold, betting on the continued digitization of the SMB back-office over many years.

The second, more urgent strategy is activist value investing. This is exemplified by Starboard Value LP, which took a significant new stake in the second half of 2025. Starboard's move is a clear signal that they believe the company is undervalued and that operational changes or a sale are needed to close the gap. This is a shorter-term, event-driven strategy that pressures management to act, which is why the stock surged on rumors of a potential sale. Honesty, this activist pressure is forcing the company to sharpen its focus on capital allocation and efficiency, which benefits all shareholders.

Here's the quick math: when a major activist fund takes an estimated 8% stake, they aren't just looking for a 5% bump; they want a fundamental change that can deliver a 20%+ return, often through a sale or a major operational overhaul.

Institutional Ownership and Major Shareholders of Bill.com Holdings, Inc. (BILL)

You're looking at Bill.com Holdings, Inc. (BILL) and trying to figure out who is really pulling the strings, and the answer is clear: institutional investors own the vast majority of the company. As of late 2025, these large funds and institutions hold a total of over 110,251,255 shares, making them the dominant force in the stock's direction and strategy.

This level of ownership-often around 87.83% of the float-means that retail investors are following the lead of the giants. If you're holding BILL, your investment thesis needs to align with the long-term views of these massive, sophisticated players. Here's the quick math: when nearly nine out of every ten shares are held by institutions, their collective buying or selling is what truly moves the price.

Top Institutional Investors: Who's Holding the Largest Stakes?

The investor profile for Bill.com Holdings, Inc. is a who's who of passive and active management firms. These are the funds that manage trillions in assets, so their positions are strategic and often long-term. The top three holders alone account for a significant chunk of the company's market capitalization.

The largest shareholders are typically index fund behemoths, which hold the stock because it's part of a major index, but also active managers who see a clear growth runway. For BILL, the top holders as of the most recent 2025 filings are:

• Vanguard Group Inc.: Holding approximately 10.83% of shares.
• Price T Rowe Associates Inc: Holding approximately 10.70% of shares.
• BlackRock, Inc.: Holding approximately 8.56% of shares.

These firms, including BlackRock, Inc. and Vanguard Group Inc., are primarily passive investors, meaning they are less likely to sell based on short-term news. Still, their sheer size gives them significant voting power on major corporate actions like board elections or mergers. You defintely need to watch their filings.

The table below breaks down the largest positions, showing the sheer scale of institutional commitment to the financial operations platform:

Changes in Ownership: The Near-Term Selling Trend

What's critical for any investor is not just who owns the stock, but whether they are buying or selling. The recent trend in late fiscal year 2025 shows a mixed, but net-negative, picture for Bill.com Holdings, Inc. While some institutions are aggressively accumulating shares, the overall volume of selling has been higher.

In the last quarter of 2025, institutions bought approximately 99.8M shares but sold a larger volume of 190.3M shares. This net selling pressure is likely a factor in the stock price decline from over $86 per share in late 2024 to around $50 per share in November 2025.

However, you still see conviction buys. Nomura Holdings Inc. increased its stake by an astonishing +7,753.6% in August 2025, a clear sign of a highly bullish, concentrated bet. On the flip side, Harber Asset Management LLC cut its position by -70.7% in November 2025. This divergence tells you that while the market is debating the company's valuation, a few large players are making extreme, high-conviction moves in both directions.

Impact of Institutional Investors on Stock and Strategy

Institutional investors don't just hold stock; they influence the company's direction. Their role is to push management toward decisions that maximize shareholder value. For Bill.com Holdings, Inc., this influence is directly tied to their financial performance in FY25.

The company reported strong fiscal year 2025 results, with Total Revenue hitting $1.5 Billion and Non-GAAP operating income rising to $239.5 million, up 22% year-over-year. This focus on profitability is exactly what institutional investors demand, especially in a tighter capital market.

A concrete action resulting from this focus was the August 2025 announcement of a $300 million share repurchase program. This move signals to the market that management, under pressure from shareholders, believes the stock is undervalued and is committing capital to reduce the share count, which boosts earnings per share. This is a classic move to create long-term shareholder value, a core mandate of the institutional base. If you want to understand the strategic direction the company is taking, you should also review the Mission Statement, Vision, & Core Values of Bill.com Holdings, Inc. (BILL).

The sheer size of institutional holdings means that any major shift in their collective sentiment-for instance, if they decided the company wasn't growing fast enough or its net income of $23.8 million for FY25 wasn't sustainable-could lead to a significant stock price correction. Your action here is to monitor the next round of 13F filings for continued net selling or a reversal of the trend.

Key Investors and Their Impact on Bill.com Holdings, Inc. (BILL)

If you're looking at Bill.com Holdings, Inc. (BILL), the first thing to understand is that the stock is overwhelmingly held by large institutions, not retail investors. Institutional ownership sits at a staggering 96.19% as of the third quarter of fiscal year 2025, meaning the big decisions-and the biggest price swings-are driven by a handful of major players. This isn't a stock where small retail movements set the tone; it's a battleground for titans.

The investor profile is a mix of passive giants and a newly aggressive activist fund. The passive funds, like Vanguard Group Inc. and BlackRock, Inc., hold massive stakes because Bill.com Holdings, Inc. is a key component of the major indices they track. Their buying and selling is often mechanical, tied to index rebalancing, but their sheer size gives them a silent, powerful influence on governance.

• Vanguard Group Inc.: Holds over 10.47% of the company.
• BlackRock, Inc.: Holds approximately 8.86% of the company.
• T. Rowe Price Associates Inc.: Another major institutional holder, with significant capital.

The Activist Catalyst: Starboard Value's Big Move

The most important recent development, and the one that defintely changes the near-term risk/opportunity map, is the emergence of Starboard Value LP. Starboard, a well-known activist investment firm, established a major new position in the company, acquiring 7,024,848 shares for an estimated $372.11 million as of a November 14, 2025, SEC filing. This move gives them an approximate 8% stake, instantly making them a top-tier shareholder.

Starboard's entry is a clear signal that they see a disconnect between the company's operational performance and its stock valuation, which was trading around $50.35 per share in mid-November 2025. They aren't just buying to hold; they are seeking a seat on the Bill.com Holdings, Inc. board and pushing for strategic change. Their goal is to either enhance the company's profitability-which is a reasonable focus, given the stock-based compensation (SBC) issues the company has faced-or, more dramatically, to generate shareholder value through a potential sale of the company. This activism is why the stock saw a 6.5% surge on rumors of a sale.

Investor Influence and Recent Company Actions

When an activist like Starboard takes an 8% position, the board listens. This investor influence directly impacts the company's capital allocation strategy. For instance, the company's strong fiscal year 2025 performance, with Total Revenue reaching $1,462.6 million and Core Revenue at $1,300.8 million, provided the financial muscle for a direct response to shareholder concerns about value. The Bill.com Holdings, Inc. board reacted by announcing a new $300 million share repurchase program, a classic move to signal confidence and boost earnings per share (EPS), which was $0.53 for Q4 FY2025.

Here's the quick math: a massive buyback program, enabled by strong cash flow, acts as a floor for the stock price and tells the market management believes the shares are undervalued. This is a direct action to counter the pressure from activists and market skeptics, all while the company continues to grow its platform, serving approximately half a million businesses. If you want to dive deeper into the company's foundation, you can check out Bill.com Holdings, Inc. (BILL): History, Ownership, Mission, How It Works & Makes Money.

The table below summarizes the key data points that are driving this investor interest and strategic pressure:

So, the current investor profile is one of passive stability from the index funds, but with a highly active, focused push from Starboard Value LP that is forcing the company to sharpen its focus on profitability and capital returns. The next step for you, as an investor, is to track Starboard's board nominations and the company's progress on the $300 million buyback. That will defintely tell you which way the wind is blowing.

Market Impact and Investor Sentiment

You might be looking at Bill.com Holdings, Inc. (BILL) and seeing a battleground stock, and you wouldn't be wrong. Investor sentiment is defintely bifurcated right now, caught between the confidence of massive passive funds and the aggressive push of activist investors. While institutional ownership accounts for nearly 98% of the stock, the narrative is being driven by the few who are actively demanding change.

The largest institutional holders-like Vanguard Group Inc. and BlackRock, Inc.-have accumulated shares, holding positions valued at approximately $574.39 million and $138.27 million, respectively, over the last two years. Their presence signals long-term belief in the core Software-as-a-Service (SaaS) business model. But the real heat came from activist investor Starboard Value LP, who disclosed an 8.5% stake in early September 2025.

Starboard is pushing hard on operational efficiency, specifically calling out Bill.com Holdings, Inc.'s profitability margins as below its peers. Management's response has been swift, including a cooperation agreement that led to a board refresh and the announcement of a $300 million share repurchase program in August 2025, which is a classic signal of confidence in the stock's undervaluation. Activist pressure works, plain and simple.

• Vanguard Group Inc. is a top holder.
• Starboard Value LP is driving governance changes.
• The company is buying back $300 million in stock.

Recent Market Reactions to Ownership Shifts

The stock market has reacted violently to the activist news and the resulting strategic review. When reports surfaced in November 2025 that Bill.com Holdings, Inc. was exploring strategic options, including a potential sale to larger industry rivals or private equity, the stock surged by more than 13% in premarket trading. This jump shows investors are pricing in a significant acquisition premium, largely fueled by the activist's critique and the company's solid, if slowing, financial foundation.

Here's the quick math: Analysts estimated the company's enterprise value was roughly $5 billion at the time of the sale reports, but the premarket jump suggested the asking price would be a fair amount higher. This volatility is the market's way of re-rating the stock, moving it from a pure growth play to a potential takeover target. The core business is still intact, but the market is demanding faster shareholder returns.

The key takeaway from these reactions is that the market sees more immediate value in a strategic exit or a significant operational overhaul than in the current pace of organic growth alone. You can't ignore a 13%+ single-day move.

Analyst Perspectives on Key Investors' Impact

Analysts are generally optimistic, but their confidence is tempered by the need for Bill.com Holdings, Inc. to execute on its profitability goals, which is exactly what the activist investors are demanding. The consensus recommendation from 25 brokerage firms sits at an 'Outperform' rating, suggesting a belief that the company will do better than the broader market.

The average one-year price target is around $60.15, which implies a substantial upside from the trading price in late 2025. This optimism is grounded in the company's ability to deliver on its fiscal year 2025 results: total revenue hit $1,462.6 million, a 13% year-over-year increase, and non-GAAP operating income rose to $239.5 million. For a deeper look at those financials, you can check out Breaking Down Bill.com Holdings, Inc. (BILL) Financial Health: Key Insights for Investors.

The future hinges on management's ability to hit their stated goal of returning to a 20% core revenue growth rate, a target they communicated in November 2025. The table below shows how the company's core performance in FY2025 provides the foundation for this analyst confidence, despite the activist noise.