Should You Hold BILL Holdings Stock Despite Its 44% YTD Decline?
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However, the company is benefiting from an expanding small and medium business (SMB) clientele, as well as a diversified business model. Can BILL Holdings rebound from its stock decline by leveraging its growing SMB customer base?
BILL's customer base continued to expand, with a growing number of small and medium-sized businesses adopting its platform to meet their digital payment and invoicing needs.The company's expanding SMB clientele, including Adyen ADYEY, Regions Financial RF and Xero, has been a key catalyst.BILL's partnership with Regions Bank to introduce Regions CashFlowIQSM, a digital solution aimed at simplifying payments and improving cash management for commercial clients, further solidifies its position as a leader in digital payment solutions.The company's partnership with Adyen integrates advanced acquiring and issuing capabilities into its financial operations platform for SMBs, enhancing accounts payable and receivable solutions with Adyen's technology.
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 June 2025, BILL launched Supplier Payments Plus, a new solution designed to streamline high-volume SMB payments for enterprise suppliers by automating AR workflows and accelerating digital payment processing.In April 2025, BILL also introduced procurement and financial automation innovations, unifying procure-to-pay workflows with AP, 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, the total number of customers using BILL, AP, and AR reached 164,800.
BILL's expanding SMB clientele and a robust portfolio are expected to benefit its 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 to be between 39 cents and 43 cents per share.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 to be between $2.06 and $2.09 per share.
The Zacks Consensus Estimate for fourth quarter fiscal 2025 earnings is pegged at 40 cents per share, which has remained unchanged over the past 30 days. The figure calls for a year-over-year decline of 29.82%.The consensus mark for the fourth quarter of fiscal 2025 revenues is pegged at $370.74 million, indicating year-over-year growth of 7.88%.The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.46 billion, indicating year-over-year growth of 13.02%.The consensus mark for earnings is pegged at $2.07 per share, which has remained unchanged over the past 30 days. The figure calls for a year-over-year decline of 2.36%.
BILL Holdings, Inc. price-consensus-chart | BILL Holdings, Inc. Quote
Despite expanding portfolio and customer base, BILL is suffering from stiff competition from accounting software providers such as SAP and Intuit INTU.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. Intuit delivers a seamless experience for small businesses already relying on QuickBooks, enhancing platform stickiness.
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. However, macroeconomic uncertainties, including potential impacts from trade policies and FX volatility, remain a concern.
BILL's shares are also trading below the 200-day moving averages, indicating a bearish trend.
Image Source: Zacks Investment Research
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. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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BY Inc. Listen to this Article More info 0:00 / 3:14 Midsize cities are where the growth is. That's according to new report from BILL, the payments management company used by nearly half a million small and medium-size businesses and that processes around 1% of U.S. GDP. The report analyzed business-to-business accounts payable spending of companies with between 2 and 200 employees from the largest 342 U.S. cities with a population of 100,000 or more. Here's what to know: While payments per company from large cities grew 11% year-over-year during the 12-month period ending May 2025, midsize cities have grown 32% over the same period. Since the beginning of the pandemic in March 2020, the growth in payments per company from midsize cities is two times that of large cities. While growth in midsize cities has increased by 200%, large cities growth escalated by just 113%. Since January 2025, one month before the introduction of new tariffs, midsize cities have outpaced payments growth from large cities by nearly three times, with payments in large cities growing by 1.9% and midsize cities growing 5.5% in payment volume per business. Below are the five U.S. cities with the fastest growing payments this year. All five are midsize cites. 1. Mesquite, Texas 2. El Monte, California 3. South Fulton, Georgia 4. Quincy, Massachusetts 5. Broken Arrow, Oklahoma BILL Chief Economist Fergus McCormick says he's never seen this trend before. 'Through the data from May, we're seeing really strong growth and resilience among SMBs in midsize cities,' he says. 'That's the key message.' The South and West regions of the U.S. have seen the fastest payments growth by city. This trend in data follows the exodus of people from larger cities during Covid-19, when an estimated 2 million migrated to the South and 957,000 to the West. According to the report, midsize cities in California and Texas saw the highest payments growth since May 2024. Those two states are also home to nine of the 25 fastest-growing cities this year, all midsize. Other factors drawing people to midsize cities include a lower cost of living, stronger schools, safer neighborhoods and the increased regularity of working remotely. McCormick says we are truly in the era of the midsize city. 'This payments data is a leading indicator of economic activity across the United States,' he says. 'To the extent that we can help people understand the trends in economic activity, that is absolute gold.' Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy. The early-rate deadline for Fast Company's Most Innovative Companies Awards is Friday, September 5, at 11:59 p.m. PT. Apply today. ABOUT THE AUTHOR Inc. Magazine: Everything you need to start and grow your business. More
