Should You Buy Bill Holdings Stock in 2025? Here's What to Know Before You Invest

📌 Summary first: Bill Holdings is down more than 85% from its peak, but it's still growing at over 20% annually. With a massive total addressable market and strong profitability metrics, it could be a long-term winner—if you're ready for a bumpy ride.

When a stock drops over 80% from its all-time high, most investors take it as a red flag. But every now and then, one of those beaten-down stocks can turn out to be a hidden gem. That might just be the case with Bill Holdings (NYSE: BILL). Here's why it's worth putting on your radar—even if you’re not ready to hit ‘buy’ just yet.

1. What Does Bill Holdings Actually Do?

Bill Holdings is a SaaS (Software-as-a-Service) company that focuses on helping small and midsize businesses (SMBs) manage their finances. Its platform lets businesses:

• Automate accounts payable and receivable
• Optimize cash flow management
• Connect with vendors and clients
• Gain real-time insights into their financial performance

What's more, they’ve started integrating AI features to boost automation and efficiency for clients—something every modern business is looking for.

As of 2025, over 480,000 businesses are using Bill’s services.

2. The Growth Story (Slower Now, But Still Solid)

Bill really hit its stride during the pandemic, when companies rushed to digitize and automate. While that hyper-growth phase has cooled, the company still posted 22% year-over-year revenue growth in fiscal year 2024 (ending June 2024).

Let’s put that in context:

That 85% gross margin? That’s SaaS royalty material—on the same level as some of the best software companies out there.

3. The Market Opportunity: Huge and Untapped

There are 34 million small and midsize businesses in the U.S. alone—and more than 72 million globally. Bill’s current reach? Just 480,000 customers.

That’s less than 2% market penetration.

Translation: There’s a massive growth runway if the company can keep acquiring and retaining clients.

But that last part—retention—is where things get murky...

4. The Not-So-Great News: Customer Spending Is Down

One red flag is Bill's net dollar-based retention rate, which stands at 92%, significantly lower than peers like ServiceNow or Salesforce, which often report rates above 110%.

That means customers are either spending less over time—or some are churning out entirely.

For a SaaS company, retention is everything. A rate below 100% signals that the company must work harder just to stand still in terms of revenue growth.

5. The Volatility Factor: Not For the Faint-Hearted

Let’s talk price action. Since going public, Bill Holdings has traded in a wide range:

• All-time high: $349
• All-time low: ~$27
• Current price (Mar 27, 2025): $48.50

If you’re someone who checks your portfolio every day, owning Bill is not for the faint of heart. But if you're a long-term investor who believes in the power of automation and the inevitability of digitization in SMBs, this might actually be a buy-low opportunity.

6. Should You Buy Bill Stock in 2025?

Let’s recap what works—and what doesn’t.

✅ Pros

• 22% revenue growth YoY
• 85% gross margins
• Massive addressable market
• Over 480,000 active customers

⚠️ Cons

• Low retention rate (92%), signaling potential churn
• Growth has slowed post-pandemic
• Highly volatile stock performance

💡 Final Thoughts: Long-Term Bet With Short-Term Bumps

Bill Holdings isn't without flaws. But it's still growing at a meaningful clip, it's highly efficient, and it sits in one of the largest underserved markets on the planet.

If you believe in long-term digital transformation for SMBs and you don't mind some volatility along the way, BILL could be a stock worth buying and holding for the next decade.

👉 As always, diversify and invest based on your risk tolerance and financial goals. But don’t be surprised if this humble SaaS stock stages a comeback when no one’s watching.

📈 Will BILL recover to $100, $200, or even back to its all-time highs someday? Only time will tell—but investors willing to think long-term just might get the last laugh.

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Always do your own research before investing.