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Should You Buy, Sell or Hold BILL Stock Before Q4 Earnings?

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Key Takeaways

  • BILL expects Q4 revenues of $370.5-$380.5M, up 811%, with EPS of $0.39-$0.43.
  • Core revenues are projected at $335-$345M, with strong growth in transaction fees driving gains.
  • BILL is expected to have processed 32.4M Q4 transactions, showing strong SMB engagement.

BILL Holdings, Inc. (BILL - Free Report) is set to report its fourth-quarter 2025 results on Aug. 27.

For the fiscal fourth quarter of 2025, management has guided revenues of $370.5 to $380.5 million, denoting growth in the 8-11% range, and non-GAAP EPS between 39 and 43 cents.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $375.70 million, indicating an increase of 9.3% from the year-ago quarter’s reported figure. The consensus mark for earnings stands at 41 cents per share, calling for a decline of 28.07% from the figure reported in the year-ago quarter.

For fiscal 2025, management has projected revenues in the band of $1.45-$1.46 billion, calling for 12-13% growth, and non-GAAP EPS between $2.06 and $2.09.

For fiscal 2025, the Zacks Consensus Estimate for BILL’s revenues is pegged at $1.45 billion, implying a rise of 12.77% year over year. The consensus mark for full-year EPS stands at $2.09, suggesting a 1.42% year-over-year fall.

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Image Source: Zacks Investment Research

This company, providing a financial operations platform for small and midsize businesses, has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 26.69%.

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Image Source: Zacks Investment Research

Here Is What Our Quantitative Model Predicts for BILL:

Our proprietary model does not conclusively predict an earnings beat for BILL Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

BILL Holdings has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

BILL: Factors at Play

BILL continues to advance strategically, broadening its offerings for larger enterprises, strengthening its payments portfolio, extending its presence in the accounting channel and ramping up its AI-driven initiatives focused on SMBs.
 
BILL is focusing on strengthening its position in the financial technology sector with an expanding portfolio, which has played a key role in driving its success. 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 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.

That said, the operating backdrop remains difficult, as economic headwinds create uncertainty for small and mid-sized businesses. Shifts in fiscal and trade policies are influencing spending behavior, prompting SMBs to adjust their investment and cost priorities.

BILL: Projections for Q4 and Fiscal 2025

BILL’s expanding SMB clientele and robust portfolio are expected to benefit its top-line growth. For the fiscal fourth quarter, management expects core revenues in the range of $335-$345 million, suggesting 11-15% year-over-year growth.

The Zacks Consensus Estimate for core revenues, which consists of subscription and transaction fees, is currently pegged at $339.06 million, up from $320.3 million in the prior quarter and $301.31 million in the year-ago period.

The consensus mark for Subscription fees currently stands at $67.01 million, down from $68.2 million in the prior quarter but up from $65.8 million in the year-ago period. The consensus estimate for Transaction fees is pegged at $270.80 million, up from $252.10 million in the prior quarter and $235.50 million in the year-ago period.

For the fourth quarter, management expects non-GAAP operating income in the range of $43-$48 million, reflecting proactive adjustments to operating expenses to increase efficiency, which includes embracing AI tools across the company.

The Zacks Consensus Estimate for BILL’s total payment volume (TPV) in the fiscal fourth quarter is pegged at around $83.4 billion, up from $79 billion in the prior quarter and $76 billion in the year-ago period. Moreover, during the fiscal fourth quarter, BILL is expected to have processed 32.4 million transactions, up from 30 million in the prior quarter and 28 million in the year-ago period. This strong engagement reflects the platform’s success in helping SMBs streamline their financial processes.

For fiscal 2025, management expects core revenues in the range of $1.29-$1.30 billion, calling for 15-16% year-over-year growth.

BILL’s Price Performance & Valuation

BILL shares have declined 4.8% in the past three months compared to the Zacks Internet - Software industry’s appreciation of 14% and the S&P 500 composite’s increase of 11.9%. In contrast, its peers, SAP (SAP - Free Report) and Intuit (INTU - Free Report) , have dropped 8.1% and 8%, respectively, over the same time frame.

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Image Source: Zacks Investment Research

From a valuation perspective, in terms of forward 12-month Price/Sales (P/S), BILL is currently trading at 2.60X, which is at a discount to the industry average of 5.70X. Moreover, compared with its peers, the stock trades at a discount to SAP and Intuit. At present, SAP and INTU have P/S multiples of 7.25 and 8.76, respectively.

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Image Source: Zacks Investment Research

BILL: Buy, Sell or Hold?

BILL’s growing customer base, comprehensive product suite and emphasis on automation are fueling solid growth and profitability, supporting its long-term trajectory. Even so, lingering macroeconomic headwinds, ranging from trade policy shifts to currency volatility, pose ongoing risks, with SMBs tightening their spending budgets. For existing shareholders, BILL seems a worthwhile hold, while continued monitoring of earnings and developments will be key to reassessing future upside potential.

BILL Holdings has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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