Expensify (NASDAQ:EXFY) management highlighted free cash flow generation, continued product migration progress, and a growing focus on AI during the company’s fourth-quarter and full-year 2025 earnings call. Executives also discussed expanding travel and card-related activity, a new product-led growth initiative, and a more conservative free cash flow outlook for fiscal 2026 as planned investments rise.
Quarterly and full-year results
Chief Financial Officer Ryan Schaffer said fourth-quarter revenue was $35.2 million, with average paid members of 650,000 and total interchange of $5.5 million. Expensify reported operating cash flow of $2.2 million and free cash flow of $3.2 million for the quarter. Net loss was $7.1 million, while non-GAAP net loss was $2.1 million. Adjusted EBITDA for Q4 was $3.3 million.
2026 free cash flow guidance and early Q1 member trends
Schaffer noted that 2025 free cash flow came in at the high end of the company’s initial guidance range of $16 million to $20 million. For fiscal year 2026, Expensify initiated free cash flow guidance of $6 million to $9 million, which Schaffer attributed to a “conservative outlook on 2026” and expectations for increased investment in sales and marketing and AI.
The company also provided a “Q1 flash” update for January, reporting 626,000 paid members. Management emphasized typical seasonality, saying January is generally down versus December and that paid members usually increase in subsequent months.
Business highlights: partnerships, travel growth, and share repurchases
Schaffer pointed to several operating updates from fiscal 2025, including a multi-year integration partnership with Uber for Business aimed at automating travel and meal receipts and strengthening policy controls across travel and expense workflows. Expensify also said it received the TrustRadius 2026 Buyer’s Choice Award in the expense management category, which management described as being based directly on customer reviews.
Expensify Travel was cited as an area of growth, with management reporting that bookings in Q4 were up 434% compared to Q4 of 2024. Schaffer also said the Expensify Card continued to perform well, with interchange increasing 24% year over year in fiscal 2025.
In capital allocation, Schaffer said the company repurchased more than 4.8 million shares of Class A common stock during 2025 for approximately $9 million, which he said reflected management’s confidence in the long-term opportunity.
Product roadmap: New Expensify migration and product-led growth
Founder and CEO David Barrett said the company is nearing the end of its migration push to the New Expensify platform. According to Barrett, New Expensify now has full feature parity with Classic for customers representing 90% of revenue, meeting the company’s stated target. He said Classic is not being discontinued, but emphasized that New Expensify is now “feature complete for essentially everyone.”
Barrett said New Expensify has been rolled out to 63% of Classic customers through a cohort “nudging” process, and that customers can switch back if they prefer. He characterized the migration results as positive, saying “the vast majority simply stay” on New Expensify.
As the migration progresses, Barrett said the company is beginning migration of its “approved accounting network,” describing it as a significant portion of the customer base. He also highlighted new reporting and charting tools and “virtual CFO insights” designed to increase accountants’ visibility into client financials.
Barrett also discussed Expensify’s support for existing card infrastructure, saying the company connects to more than 10,000 global banks and that more than 80% of card imports occur through direct bank connections at “zero marginal cost” to Expensify. He described new capabilities including merchant-based rules for automated coding and “integrated online reconciliation.”
Looking to growth, Barrett said the company is returning focus to product-led growth, arguing that many customers discover Expensify through employees rather than leadership. He announced a new “Submit plan,” which he described as free for all members and intended to put free expense and chat capabilities “into the hands of employees” at businesses that have signed up over the years, with the goal of driving broader adoption.
AI strategy and management’s view of competitive moats
Barrett described Expensify’s AI approach as “accountable intelligence,” centered on its Concierge feature. He said Concierge is designed to be contextual within the product experience, correctable when automation is wrong, and continuous—working in the background to monitor and flag issues.
In response to a question about Expensify’s position in an AI-driven world and the risk of lower barriers to building expense tools, Barrett outlined what he sees as key moats, including collaboration and access to regulated financial networks. He argued that while AI can help automate individual tasks, applications that are “highly collaborative” are harder to replicate with current AI tools, and that AI does not inherently provide compliance or access to payment rails such as issuing cards or transferring funds through networks like ACH.
Barrett also suggested that as AI agents become more involved in purchasing workflows, spend controls will still be needed, potentially creating additional “seats” on platforms like Expensify. While acknowledging uncertainty, he said he is “way more excited about the opportunity” AI creates than the risks.
On paid member trends, management attributed the quarter-over-quarter increase in Q4 paid members primarily to seasonality, with Barrett noting that Q4 is typically stronger than Q3 and that January tends to be weaker. He added that migration may help retention and could support growth as the company completes rollout to remaining customers.
About Expensify (NASDAQ:EXFY)
Expensify, traded on NASDAQ under the ticker EXFY, is a software-as-a-service (SaaS) company specializing in automated expense management and reporting. Its flagship platform enables employees to capture receipts via mobile app or email, automatically extract expense details through optical character recognition (OCR) and artificial intelligence, and submit streamlined expense reports. The solution is designed to eliminate manual data entry and reduce approval cycle times, serving a broad range of industries from small businesses to large enterprises.
Founded in 2008 by entrepreneur David Barrett, Expensify has grown from a simple receipt-scanning app into a comprehensive spend management suite.
