Expensify Announces Q4 and Full Year Fiscal 2025 Results
SAN FRANCISCO--( BUSINESS WIRE)--Expensify, Inc. (Nasdaq: EXFY), a payments superapp that helps individuals and businesses around the world simplify the way they manage money across expenses, corporate cards and bills, today released a letter to shareholders from Founder and CEO David Barrett alongside results for its quarter and year ended December 31, 2025.
A Message From Our Founder
2025 was an extremely productive year. We continue to add cash to our debt-free balance sheet, with revenue, interchange, and card spend all up over 2024. But most exciting: New Expensify is now feature-complete for nearly all customers, rolled out to 63% of paying customers, and is the default for all new customers. While we are methodically "nudging" all of our Classic customers over to New Expensify, we are increasingly shifting our engineering focus toward new feature development, in three main areas:
We believe this AI-native design is unique in the marketplace and built to be viral, and its early form is already resonating with customers. Excitement has truly never been higher – especially in our sales and product teams – because this is the year we've been preparing for. To support this, we are pulling out all the stops (including setting a modest FCF target to free up resources for expected increased spend in sales, marketing, and AI) with the goal of moving from a "building" mindset back to the "growth" posture that established the leading brand we enjoy today. It has been a long and difficult road to get to this point, and we are eager to prove to everyone it was worth it.
-david
Founder and CEO of Expensify
Financial
Fourth Quarter 2025 Highlights
Full Year Fiscal 2025 Highlights
Business
Fourth Quarter 2025 Highlights
2025 Highlights
Financial Outlook
Expensify's outlook statements are based on current estimates, expectations and assumptions and are not a guarantee of future performance. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. There can be no assurance that the Company will achieve the results expressed by this guidance.
Free Cash Flow
Expensify estimates free cash flow of $6.0 million - $9.0 million for the fiscal year ending December 31, 2026.
The Company does not provide a reconciliation for free cash flow estimates on a forward-looking basis because it is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of net cash provided by operating activities and certain reconciling items on a forward-looking basis, which could be significant to the Company's results.
Stock Based Compensation
An estimate of expected stock-based compensation expense for the next four fiscal quarters is as follows, which is driven primarily by the pre-IPO grant of RSUs issued to all employees (which vest quarterly over eight years with approximately four years remaining).
Est. stock-based compensation (millions)
Q1 2026
Q2 2026
Q3 2026
Q4 2026
Low
High
Low
High
Low
High
Low
High
Cost of revenue, net
$
2.3
$
3.1
$
2.2
$
3.0
$
2.1
$
2.9
$
2.1
$
2.9
Research and development
1.4
2.0
1.4
2.0
1.3
1.9
1.3
1.9
General and administrative
0.8
1.2
0.8
1.2
0.8
1.2
0.8
1.2
Sales and marketing
0.5
0.7
0.5
0.7
0.5
0.7
0.5
0.7
Total
$
5.0
$
7.0
$
4.9
$
6.9
$
4.7
$
6.7
$
4.7
$
6.7
Availability of Information on Expensify’s Website
Investors and others should note that Expensify routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Expensify Investor Relations website at https://ir.expensify.com. While not all of the information that the Company posts to its Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Expensify to review the information that it shares on its Investor Relations website.
Conference Call
Expensify will host a video call to discuss the financial results and business highlights at 2:00 p.m. Pacific Time today. An investor presentation and the video call information is available on Expensify’s Investor Relations website at https://ir.expensify.com. A replay of the call will be available on the site for three months.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we provide certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP net (loss) income, and free cash flow.
We believe our non-GAAP financial measures are useful in evaluating our business, measuring our performance, identifying trends affecting our business, formulating business plans and making strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled metrics or measures presented by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP is at the end of this press release.
Adjusted EBITDA. We define adjusted EBITDA as net loss excluding provision for income taxes, other income (expense), net, depreciation and amortization, and stock-based compensation expense.
Non-GAAP net (loss) income. We define non-GAAP net (loss) income as net loss excluding stock-based compensation expense.
Free cash flow. We define free cash flow as net cash provided by operating activities excluding changes in settlement assets and settlement liabilities, which represent funds held for customers and customer funds in transit, respectively, reduced by the purchases of property and equipment and software development costs.
The tables at the end of the Consolidated Financial Statements provide reconciliations to the most directly comparable GAAP financial measure to each of these non-GAAP financial measures.
Forward-Looking Statements
Forward-looking statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our strategy, future financial condition, future operations, future cash flow, projected costs, prospects, plans, objectives of management and expected market growth, product developments and their potential impact and our stock-based compensation estimates and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “ambition,” “objective,” “seeks,” “outlook,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the impact on inflation on us and our members; our borrowing costs, which have and may continue to increase as a result of increases in interest rates; our expectations regarding our financial performance and future operating performance; our ability to attract and retain members, expand usage of our platform, sell subscriptions to our platform and convert individuals and organizations into paying customers; the timing and success of new features, integrations, capabilities and enhancements by us, or by competitors to their products, or any other changes in the competitive landscape of our market; the amount and timing of operating expenses and capital expenditures that we may incur to maintain and expand our business and operations to remain competitive; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to make required payments under and to comply with the various requirements of our current and future indebtedness; our cash flows, the prevailing stock prices, general economic and market conditions and other considerations that could affect the specific timing, price and size of repurchases under our stock repurchase program or our ability to fund any stock repurchases; geopolitical tensions, including the war in Ukraine and the conflict in Israel, Gaza and surrounding areas; our ability to effectively manage our exposure to fluctuations in foreign currency exchange rates; the size of our addressable markets, market share and market trends; anticipated trends, developments and challenges in our industry, business and the highly competitive markets in which we operate; any adverse impact on our business operations as a result of using artificial intelligence or other machine learning technologies in our services; our expectations regarding our income tax liabilities and the adequacy of our reserves; our ability to effectively manage our growth and expand our infrastructure and maintain our corporate culture; our ability to identify, recruit and retain skilled personnel, including key members of senior management; the safety, affordability and convenience of our platform and our offerings; our ability to successfully defend litigation brought against us; our ability to successfully identify, manage and integrate any existing and potential acquisitions of businesses, talent, technologies or intellectual property; general economic conditions in either domestic or international markets, including geopolitical uncertainty and instability, and their effects on software spending; our ability to protect against security incidents, technical difficulties, or interruptions to our platform; our ability to maintain, protect and enhance our intellectual property; the impact of tariffs and global trade disruptions on us, our customers and our vendors, including the impact on inflation, supply chains and consumer sentiment; and other risks discussed in our filings with the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
About Expensify
Expensify is the easiest way to do your expenses, travel, and corporate cards. Built for businesses of all sizes and trusted by 15 million members worldwide, Expensify is a top-rated app across G2, TrustRadius, Capterra, and more. Learn more at use.expensify.com.
Expensify, Inc.
Consolidated Balance Sheets
(unaudited, in thousands, except share and per share data)
As of December 31,
2025
2024
Assets
Cash and cash equivalents
$
63,080
$
48,772
Accounts receivable, net
12,617
12,701
Settlement assets, net
45,378
42,406
Prepaid expenses
5,588
12,089
Other current assets
26,344
20,908
Total current assets
153,007
136,876
Capitalized software, net
13,596
16,232
Property and equipment, net
13,016
13,621
Lease right-of-use assets
4,730
5,441
Deferred tax assets, net
494
499
Other assets
1,146
1,011
Total assets
$
185,989
$
173,680
Liabilities and stockholders' equity
Accounts payable
$
289
$
196
Accrued expenses and other liabilities
17,893
8,240
Lease liabilities, current
678
729
Settlement liabilities
27,545
28,845
Total current liabilities
46,405
38,010
Lease liabilities, non-current
5,061
5,738
Other liabilities
1,778
1,689
Total liabilities
53,244
45,437
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, par value $0.0001; 10,000,000 shares of preferred stock authorized; no shares of preferred stock issued and outstanding as of December 31, 2025 and 2024
—
—
Common stock, par value $0.0001;
Class A common stock; 1,000,000,000 shares authorized; 80,767,385 and 79,471,414 shares issued and outstanding as of December 31, 2025 and 2024, respectively
LT10 common stock; 21,871,197 shares authorized; 4,209,827 shares issued and outstanding as of December 31, 2025 and 2024
LT50 common stock; 24,967,114 shares authorized; 8,083,690 and 7,695,524 shares issued and outstanding as of December 31, 2025 and 2024, respectively
9
9
Additional paid-in capital
304,953
279,062
Accumulated deficit
(172,217
)
(150,828
)
Total stockholders' equity
132,745
128,243
Total liabilities and stockholders' equity
$
185,989
$
173,680
Expensify, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except share and per share data)
Three Months Ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Revenue
$
35,198
$
37,004
$
142,101
$
139,236
Cost of revenue, net (1)
17,888
18,148
70,574
64,239
Gross margin
17,310
18,856
71,527
74,997
Operating expenses:
Research and development (1)
5,262
6,702
20,683
24,638
General and administrative (1)
12,067
8,622
42,121
38,382
Sales and marketing (1)
3,918
3,067
26,742
12,797
Total operating expenses
21,247
18,391
89,546
75,817
(Loss) income from operations
(3,937
)
465
(18,019
)
(820
)
Other income (expense), net
417
(539
)
1,726
(1,572
)
Loss before income taxes
(3,520
)
(74
)
(16,293
)
(2,392
)
Provision for income taxes
(3,597
)
(1,238
)
(5,096
)
(7,663
)
Net loss
$
(7,117
)
$
(1,312
)
$
(21,389
)
$
(10,055
)
Net loss per share:
Basic and diluted
$
(0.08
)
$
(0.01
)
$
(0.23
)
$
(0.12
)
Weighted average shares of common stock used to compute net loss per share:
Basic and diluted
92,786,358
89,577,172
92,283,974
87,380,708
(1) Includes stock-based compensation expense as follows:
Three Months Ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Cost of revenue, net
$
2,198
$
3,845
$
10,637
$
12,506
Research and development
1,399
3,476
7,701
11,900
General and administrative
871
1,850
4,768
6,815
Sales and marketing
529
831
3,472
2,316
Total stock-based compensation expense
$
4,997
$
10,002
$
26,578
$
33,537
Expensify, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Year Ended
December 31,
2025
2024
Cash flows from operating activities:
Net loss
$
(21,389
)
$
(10,055
)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization
8,460
6,814
Reduction of operating lease right-of-use assets
575
547
Loss on impairment, receivables and sale or disposal of equipment
603
727
Stock-based compensation
26,578
33,537
Amortization of debt issuance costs
133
54
Deferred tax assets
5
(42
)
Changes in assets and liabilities:
Accounts receivable, net
(355
)
704
Settlement assets, net
(2,054
)
(2,469
)
Prepaid expenses
6,501
(1,490
)
Other current assets
(6,852
)
2,341
Other assets
(135
)
(167
)
Accounts payable
91
(1,091
)
Accrued expenses and other liabilities
9,727
(404
)
Operating lease liabilities
(588
)
8
Settlement liabilities
(1,300
)
(5,145
)
Other liabilities
89
8
Net cash provided by operating activities
20,089
23,877
Cash flows from investing activities:
Purchase of property and equipment
(17
)
—
Software development costs
(3,538
)
(7,628
)
Net cash used in investing activities
(3,555
)
(7,628
)
Cash flows from financing activities:
Principal payments of finance leases
(140
)
(129
)
Principal payments of outstanding debt
—
(22,671
)
Payments for debt issuance costs
(153
)
(71
)
Repurchases of early exercised stock options
—
(35
)
Proceeds from common stock purchased under Matching Plan
6,321
4,091
Proceeds from issuance of common stock on exercise of stock options
323
431
Payments for employee taxes withheld from stock-based awards
—
(2,179
)
Repurchase and retirement of common stock
(9,095
)
(1,510
)
Net cash used in financing activities
(2,744
)
(22,073
)
Net increase (decrease) in cash and cash equivalents and restricted cash
13,790
(5,824
)
Cash and cash equivalents and restricted cash, beginning of period
90,834
96,658
Cash and cash equivalents and restricted cash, end of period
$
104,624
$
90,834
Supplemental disclosure of cash flow information:
Cash paid for interest
$
—
$
1,362
Noncash investing and financing items:
Stock-based compensation capitalized as software development costs
$
1,618
$
2,688
Purchases of property and equipment and capitalized software in accounts payable and accrued expenses
$
111
$
37
Fair value of common stock issued to settle liability-classified restricted stock units
$
1,198
$
—
Cashless exercise of stock options
$
—
$
335
Reconciliation of cash and cash equivalents and restricted cash to the Consolidated Balance Sheets:
Cash and cash equivalents
$
63,080
$
48,772
Restricted cash included in other current assets
18,544
19,980
Restricted cash included in settlement assets, net
23,000
22,082
Total cash and cash equivalents and restricted cash
$
104,624
$
90,834
Expensify, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited, in thousands, except percentages)
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Net loss
$
(7,117
)
$
(1,312
)
$
(21,389
)
$
(10,055
)
Net loss margin
(20
)%
(4
)%
(15
)%
(7
)%
Add:
Provision for income taxes
3,597
1,238
5,096
7,663
Other (income) expense, net
(417
)
539
(1,726
)
1,572
Depreciation and amortization
2,240
1,923
8,299
6,655
Stock-based compensation expense
4,997
10,002
26,578
33,537
Adjusted EBITDA
$
3,300
$
12,390
$
16,858
$
39,372
Adjusted EBITDA margin
9
%
33
%
12
%
28
%
Non-GAAP Net (Loss) Income and Non-GAAP Net (Loss) Income Margin
Three Months Ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Net loss
$
(7,117
)
$
(1,312
)
$
(21,389
)
$
(10,055
)
Net loss margin
(20
)%
(4
)%
(15
)%
(7
)%
Add:
Stock-based compensation expense
4,997
10,002
26,578
33,537
Non-GAAP net (loss) income
$
(2,120
)
$
8,690
$
5,189
$
23,482
Non-GAAP net (loss) income margin
(6
)%
23
%
4
%
17
%
Free Cash Flow and Free Cash Flow Margin
Three Months Ended
December 31,
Year ended
December 31,
2025
2024
2025
2024
Net cash provided by operating activities
$
2,202
$
7,402
$
20,089
$
23,877
Operating cash flow margin
6
%
20
%
14
%
17
%
Changes in settlement assets and liabilities:
Settlement assets
(5,852
)
(10,733
)
2,054
2,469
Settlement liabilities
7,693
10,534
1,300
5,145
Less:
Purchases of property and equipment
—
—
(17
)
—
Software development costs
(798
)
(929
)
(3,538
)
(7,628
)
Free cash flow
$
3,245
$
6,274
$
19,888
$
23,863
Free cash flow margin
9
%
17
%
14
%
17
%