BILL Holdings BILL shares have plummeted 49.7% 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%.

The underperformance can be attributed to a broader market weakness in the tech sector and persistent fear over mounting tariffs by the current government. The decline was also due to challenges from FX volatility which is impacting monetization.

However, the company is benefiting from increased platform adoption, AI-driven automation, expanded payment solutions, and expanding partnerships enhancing its SMB ecosystem.

Hence, investors should ask this question — Given the near term macroeconomic and regulatory headwinds does BILL’s expanding client base and robust portfolio position it as a good long-term investment? Let’s analyze.

Will BILL’s Strong Portfolio Aid Prospect?

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

Further expanding its portfolio, in December 2024, the company introduced new features, including embedded 1099 functionality, which simplified tax form filing. This enhancement increased the platform’s appeal to small and medium-sized businesses, driving further customer engagement. Since launch, 5% of customers have completed nearly 200,000 1099 filings, reducing administrative burdens for SMBs.

In the second quarter of fiscal 2025, BILL’s platform was used by more than 480,000 businesses, and nearly $85 billion in payment volume was transacted across 30 million transactions. This strong engagement reflects the platform’s success in helping SMBs streamline its financial processes.

BILL Expands SMB Reach With Key Partnerships

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

The company’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.

BILL’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 Holdings’ Q3 Guidance

For the third quarter of fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, suggesting year-over-year growth of 9-11%. Non-GAAP earnings are projected to be between 35 cents and 38 cents per share.

For fiscal 2025, BILL Holdings expects revenues between $1.45 billion and $1.47 billion, implying 13-14% year-over-year growth. Non-GAAP earnings are expected to be between $1.87 and $1.97 per share.

Earnings Estimate Shows Mixed Trend

The Zacks Consensus Estimate for the third quarter of fiscal 2025 revenues is pegged at $355.27 million, indicating year-over-year growth of 9.98%.

The consensus mark for earnings is pegged at 38 cents per share, which has remained unchanged in the past 30 days. The figure calls for a year-over-year decline of 40%

The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.46 billion, indicating year-over-year growth of 13.19%.

The consensus mark for earnings is pegged at $1.83 per share, which has increased by a couple of pennies over the past 30 days. The figure calls for a year-over-year decline of 36.67%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Hold BILL Stock For Now

Despite expanding its SMB clientele and maintaining a robust portfolio, BILL is facing stiff competition from accounting software providers such as SAP and Intuit INTU, which are also making strong efforts to enhance its offerings, especially within the SMB sector.

For instance, in March 2025, Intuit launched Tap to Pay on iPhone for QuickBooks Online customers in the United States, enabling small and mid-market businesses to accept seamless, secure, contactless payments without additional hardware. 

This move highlights Intuit’s focus on strengthening its foothold in the SMB space, directly challenging BILL’s market position. Intuit shares have lost 4.8%, outperforming BILL’s shares in the year-to-date period.

BILL currently carries Zacks Rank #3 (Hold), which suggests that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Regions Financial Corporation (RF) : Free Stock Analysis Report

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Adyen N.V. Unsponsored ADR (ADYEY) : Free Stock Analysis Report

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

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