Bill Holdings (NYS:BILL) — mrkt cap $6.2B; Price $61.49; EV/EBITDA NA
PASS. BILL built a strong business automating accounts payable and accounts receivable for small businesses, with integrations into QuickBooks and a solid reputation in the accounting channel. However, competition has intensified and switching costs are low. The company has tried moving upmarket into mid-sized businesses, particularly after acquiring Divvy for spend management, but execution has been inconsistent. Despite a sharp 35% drop after an earnings miss, the stock still isn’t cheap. Slowing growth and rising competition suggest BILL may struggle to justify its valuation unless it can differentiate from competitors and drive sustainable mid-market adoption.
Hydreight Tech (OTCQB:HYDTF) — mrkt cap $24mm; Price $1.04; EV/EBITDA NA
PASS. Hydreight started as a niche platform touted as the “uber for nurses” enabling entrepreneurial nurses to monetize their licenses independently rather than working in traditional hospital settings. By building an extensive compliance, physician, and pharmacy network, the company provided a turnkey solution that allowed nurses to offer IV therapy and wellness services without regulatory headaches. The company has since offered white-label solutions for medspas and clinics, allowing them to add mobile services under their brand. More recently, the company has entered a new high-growth vertical—facilitating B2C telehealth brands by providing the infrastructure needed to sell prescription-based treatments (GLP-1s, peptides, TRT, etc.) across all 50 states. This essentially lets any emerging Hims or Roman competitor to bypass regulatory barriers and launch nationwide almost instantly. After a strong stock run-up, shares have retraced 50% from their highs following a capital raise. While we like the core business and the optionality from new verticals, nurse adoption on the platform appears to have stalled (following considerable growth). This could be worth revisiting once we see signs of traction in newer verticals or increased nurse engagement.
Identiv (NAS:INVE) — mrkt cap $85mm; Price $3.58; EV/EBITDA NA
MORE RESEARCH NEEDED. Identiv specializes in IoT, focusing on RFID and BLE technology (low-energy devices). The company recently divested its physical security division for $145 million in cash and currently trades at approximately 60% of that value. The remaining business consists of a subscale RFID segment, generating around $20 million in annual revenue with a cost base of $20 million. With gross margins of 25%, Identiv is expected to incur annual losses of approximately $15–20 million. The new CEO plans to drive growth both organically and inorganically, allocating about 60% of the company’s cash balance toward these initiatives. While promising, we will wait to see further crystallization of both the strategy and decision making of management.