BILL Holdings BILL shares have plunged 43.7% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 7% and the Zacks Internet - Software industry’s rise of 16.1%.\n\nThe underperformance can be attributed to the challenging macroeconomic environment, persistent inflation, and high interest rates, which are major concerns as SMBs tighten their spending budgets on digital initiatives.\n\nHowever, the company is benefiting from an expanding small and medium business (SMB) clientele, as well as a diversified business model. \n\nCan BILL Holdings rebound from its stock decline by leveraging its growing SMB customer base?\n\nBILL’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.\n\nThe company’s expanding SMB clientele, including Adyen ADYEY, Regions Financial RF and Xero, has been a key catalyst.\n\nBILL’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.\n\nThe 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.\n\nBILL is strengthening its position in the financial technology sector with an expanding portfolio, which has played a key role in driving its success. \n\nIn 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.\n\nFurther 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.\n\nIn 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.\n\nAs 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.\n\nBILL’s expanding SMB clientele and a robust portfolio are expected to benefit its top-line growth.\n\nFor 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.\n\nFor 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.\n\nThe 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%.\n\nThe consensus mark for the fourth quarter of fiscal 2025 revenues is pegged at $370.74 million, indicating year-over-year growth of 7.88%.\n\nThe Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.46 billion, indicating year-over-year growth of 13.02%.\n\nThe 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%.\n\nDespite expanding portfolio and customer base, BILL is suffering from stiff competition from accounting software providers such as SAP and Intuit INTU.\n\nIntuit has strengthened its position in SMB financial services by launching QuickBooks Bill Pay, directly challenging BILL’s role in digital payments. \n\nThis 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.\n\nBILL’s expanding customer base, robust product portfolio and focus on automation continue to drive strong growth and profitability, positioning the company for sustained success. \n\nHowever, macroeconomic uncertainties, including potential impacts from trade policies and FX volatility, remain a concern.\n\nBILL’s shares are also trading below the 200-day moving averages, indicating a bearish trend.\n\nBILL 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.

Should You Hold BILL Holdings Stock Despite Its 44% YTD Decline?

BILL Holdings (BILL) has experienced a 44% year-to-date stock decline, underperforming broader tech sectors. The company faces challenges from macroeconomic factors like inflation and high interest rates but is expanding its SMB client base and product portfolio. BILL reports strong transaction volumes and revenue projections for 2025, though competition from Intuit and SAP poses risks.