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Overview of BILL Holdings’ Performance
BILL Holdings has experienced a significant decline in its stock value, with shares falling by 43.7% year-to-date. This underperformance is notably worse than the Zacks Computer & Technology sector, which saw a return of 7%, and the Zacks Internet – Software industry, which increased by 16.1%. The drop can be attributed to several factors, including a challenging macroeconomic environment, persistent inflation, and high interest rates. These conditions have led small and medium-sized businesses (SMBs) to tighten their budgets, reducing their spending on digital initiatives.
Despite these challenges, BILL Holdings continues to benefit from an expanding SMB clientele and a diversified business model. The company’s ability to attract and retain customers is a key factor in its potential for recovery.
Expanding SMB Reach Through Strategic Partnerships
BILL has successfully expanded its reach among SMBs through strategic partnerships with major players in the financial technology space. Notable collaborations include Adyen, Regions Financial, and Xero. These partnerships have enabled BILL to offer more comprehensive solutions tailored to the needs of SMBs.
One such partnership is with Regions Bank, where they introduced Regions CashFlowIQSM, a digital solution aimed at simplifying payments and improving cash management for commercial clients. Additionally, the collaboration with Adyen integrates advanced acquiring and issuing capabilities into BILL’s financial operations platform, enhancing accounts payable and receivable solutions with Adyen’s technology.
Strengthening Its Portfolio and Market Position
BILL is continuously strengthening its position in the financial technology sector by expanding its product portfolio. In the fiscal third quarter of 2025, the company processed nearly $79 billion in payment volume across 30 million transactions, helping over 488,600 businesses automate their financial operations. This strong engagement highlights the platform’s effectiveness in streamlining financial processes for SMBs.
In June 2025, BILL launched Supplier Payments Plus, a new solution designed to streamline high-volume SMB payments for enterprise suppliers. This innovation automates AR workflows and accelerates digital payment processing. In April 2025, the company also introduced procurement and financial automation innovations that unify procure-to-pay workflows with AP, AR, Spend & Expense, and Insights & Forecasting.
These enhancements have contributed to the company’s growth, as it added 4,200 net new BILL, AP, AR customers in the fiscal third quarter of 2025, mainly through the accounting channel. As of March 31, 2025, the total number of customers using BILL, AP, and AR reached 164,800.
Financial Guidance and Earnings Estimates
For the fourth quarter of fiscal 2025, BILL expects revenues between $370.5 million and $380.5 million, indicating year-over-year growth of 8-11%. Non-GAAP earnings are projected to be between 39 cents and 43 cents per share. For fiscal 2025, the company anticipates revenues between $1.45 billion and $1.46 billion, representing 12-13% year-over-year growth. Non-GAAP earnings are expected to be between $2.06 and $2.09 per share.
The Zacks Consensus Estimate for the fourth quarter of fiscal 2025 earnings is pegged at 40 cents per share, which has remained unchanged over the past 30 days. However, this figure calls for a year-over-year decline of 29.82%. The consensus mark for the fourth quarter of fiscal 2025 revenues is $370.74 million, indicating year-over-year growth of 7.88%.
Competitive Landscape and Investor Considerations
Despite its growth and product innovations, BILL faces stiff competition from accounting software providers such as SAP and Intuit. Intuit has strengthened its position in SMB financial services by launching QuickBooks Bill Pay, directly challenging BILL’s role in digital payments. This move allows Intuit to offer built-in bill payment and cash flow tools within its widely adopted platform, enhancing platform stickiness for small businesses already relying on QuickBooks.
Investors considering BILL stock should weigh the company’s expanding customer base, robust product portfolio, and focus on automation against macroeconomic uncertainties, including potential impacts from trade policies and FX volatility. Currently, BILL’s shares are trading below the 200-day moving averages, indicating a bearish trend.
Zacks Rank and Investment Outlook
BILL Holdings currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to accumulate the stock. While the company shows promise, investors should remain cautious and monitor market conditions closely.
