BILL Holdings Plunges 47% Year to Date: Should You Buy the Stock on Dip?

BILL Holdings BILL shares have plummeted 46.8% in the year-to-date period compared with the Zacks Computer & Technology sector’s decline of 10.4% and the Zacks Internet - Software sector’s decrease of 5.6%.

BILL stock has also underperformed its peers, such as SAP SAP and Intuit INTU, which are also making strong efforts to enhance their offerings, especially within the SMB sector. SAP and Intuit shares have gained 19.7% and 14.5%, respectively, in the year-to-date period.

The underperformance can be attributed to a broader market weakness in the tech sector and persistent fear over mounting tariffs by the U.S government. A challenging macroeconomic environment, persistent inflation and high interest rates are major concerns as SMBs tighten their spending budgets on digital initiatives.

However, BILL’s increased platform adoption, AI-driven automation, expanded payment solutions, and developing partnerships enhancing its SMB ecosystem will help the company fend off its competitors, like SAP and Intuit, in the SMB sector.

BILL Holdings, Inc. Price and Consensus

BILL Holdings, Inc. price-consensus-chart | BILL Holdings, Inc. Quote

Will BILL’s Strong Portfolio Aid Prospects?

BILL is strengthening its position in the financial technology sector with an expanding portfolio, which has played a key role in driving its success.

In the fiscal third quarter of 2025, BILL processed nearly $79 billion in payment volume across 30 million transactions, helping over 488,600 businesses automate financial operations. This strong engagement reflects the platform’s success in helping SMBs to streamline their financial processes.

Further expanding its portfolio, in April 2025, BILL introduced procurement and financial automation innovations, unifying procure-to-pay workflows with Accounts Payable (AP), Accounts Receivable (AR), Spend & Expense, and Insights & Forecasting to help businesses gain control of their cash flow and scale with confidence. 

As a result of these enhancements and continued market demand, in fiscal third-quarter 2025, the company added 4,200 net new BILL, AP, AR customers, mainly through the accounting channel. As of March 31, 2025, total customers using BILL, AP and AR reached 164,800.

BILL Expands SMB Reach With Key Partnerships

BILL’s expanding SMB clientele, including Adyen, Regions Financial RF and Xero, has been a key catalyst.

In April 2025, BILL and Xero launched integrated online bill payment capabilities in the United States, enabling Xero users to pay bills directly within the platform for streamlined financial management.

BILL’s partnership with Regions Bank has been noteworthy. Together, they introduced Regions CashFlowIQSM, a digital solution designed to simplify payments and enhance cash management for commercial clients. This collaboration with Regions Bank further solidifies BILL’s position as a leader in digital payment solutions.

BILL Holdings Provides Steady Q4 & FY25 Guidance

BILL’s robust portfolio and expanding clientele is expected to benefit the company’s top-line growth.

For the fourth quarter of fiscal 2025, BILL expects revenues between $370.5 million and $380.5 million, suggesting year-over-year growth of 8-11%. Non-GAAP earnings are projected between 39 cents and 43 cents per share.

The Zacks Consensus Estimate for the fourth quarter of fiscal 2025 revenues is pegged at $375.13 million, indicating year-over-year growth of 9.15%. The consensus mark for earnings is pegged at 39 cents per share, which has increased by a penny in the past 30 days. 

For fiscal 2025, BILL Holdings expects revenues between $1.45 billion and $1.46 billion, implying 12-13% year-over-year growth. Non-GAAP earnings are expected between $2.06 per share and $2.09 per share.

The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.46 billion, indicating year-over-year growth of 12.83%. The consensus mark for earnings is pegged at $2.05 per share, which has increased 5.6% in the past 30 days.

What Should Investors Do With BILL Stock?

BILL’s expanding customer base, robust product portfolio and focus on automation continue to drive strong growth and profitability, positioning the company for sustained success.

The company also maintained strong cash generation, with a free cash flow margin of 25% in the fiscal third quarter of 2025, demonstrating the success of its efforts to balance growth with profitability.

BILL Holdings currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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