Summary
Expensify started fiscal 2025 with steady top-line growth but weaker gross profit. Revenue rose 7.6% year over year to $36.1 million in the first quarter. Gross profit slipped 3.7% to $18.2 million. Gross margin was 50.6%, down 5.9 percentage points. The company still narrowed its operating loss to $1.5 million, an improvement of 17.1%. Net loss narrowed to $3.2 million. Diluted loss per share narrowed to $0.03. Operating margin was -4.1%, up 1.2 percentage points. Operating cash flow rose 38.4% to $4.8 million. Deferred revenue, current portion, fell 59.0% to $0.5 million.
The earnings release points to the Expensify Card and travel as growth engines. Total interchange derived from the Expensify Card grew to $5.1 million, up 43% from the same period last year. Expensify Travel reported a 166% increase in quarterly travel bookings and is now fully launched to all customers. Management said companies are adopting travel at more than twice the rate they adopted the Expensify Card at launch. The company also updated Collect plan pricing to a flat $5 per member per month. On the product side, Concierge AI now handles basic violations through natural language chat by email or SMS, and a Talk to Concierge button gives the assistant a voice. Paid members averaged 657,000, down 5% from the prior-year period.
The MD&A attributes the revenue increase mainly to card interchange from the shift in cardholder spend from the Legacy Card Program to the Updated Card Program. That gain was partly offset by lower billable activity across the user base, including pay-per-use activity that carries a higher average fee per member, and by higher cashback contra revenue. Cost pressure showed up in gross margin. The company also faces a one-time promotional charge in the second quarter of 2025 tied to the F1 movie. Expensify is the top sponsor of Brad Pitt's F1 team, and the film premieres on June 25. Management called it Apple's largest movie launch to date and expects global brand exposure.
Profitability metrics outside GAAP looked stronger. Non-GAAP net income was $4.8 million. Adjusted EBITDA was $8.4 million. Free cash flow was $9.1 million, which management said was over 50% of the bottom end of its prior full-year free cash flow forecast. Expensify raised full-year 2025 free cash flow guidance to $17.0 million to $21.0 million. The outlook applies to the fiscal year ending December 31, 2025, not the next quarter. The company had no outstanding indebtedness as of March 31, 2025, and $24.0 million of capacity available under its revolving line of credit. It also had $50.0 million remaining under its 2025 Share Repurchase Program.
Risks remain. Expensify serves many small and medium-sized businesses, so slower economic growth, a potential recession, elevated inflation, and tariff and trade uncertainty could hurt demand. Management also flagged travel and business continuity risks. The paid member decline of 5% and lower billable activity across the user base are headwinds. The company faces competition, execution risk on new features and integrations, and the need to convert individuals and organizations into paying customers. Security incidents, technical difficulties, and the use of artificial intelligence or machine learning in services could disrupt operations. The F1 marketing push and the Collect pricing change may pressure near-term expenses even as they aim to drive leads. Free cash flow guidance is forward-looking and not guaranteed. The company does not provide a reconciliation for forward-looking free cash flow estimates because it cannot estimate certain reconciling items without unreasonable effort.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $36.1M | $37.0M | -2.5% | $33.5M | +7.6% |
| Gross profit | $18.2M | $18.9M | -3.3% | $19.0M | -3.7% |
| Gross margin | 50.6% | 51.0% | -0.4 pp | 56.5% | -5.9 pp |
| Research & development | $5.4M | $6.7M | -20.1% | $5.9M | -9.6% |
| Sales & marketing | $3.5M | $3.1M | +15.5% | $3.4M | +4.7% |
| General & administrative | $10.8M | $8.6M | +25.6% | $11.4M | -5.3% |
| Total operating expenses | $19.7M | $18.4M | +7.3% | $20.7M | -4.9% |
| Operating income (loss) | -$1.5M | $465.0K | -419.8% | -$1.8M | +17.1% |
| Operating margin | -4.1% | 1.3% | -5.4 pp | -5.3% | +1.2 pp |
| Net income (loss) | -$3.2M | -$1.3M | -141.5% | -$3.8M | +16.2% |
| Net margin | -8.8% | -3.5% | -5.2 pp | -11.3% | +2.5 pp |
| Diluted EPS | -$0.03 | -$0.02 | -$0.01 | -$0.04 | +$0.01 |
Risks
Expensify is exposed to fraudulent travel bookings made using stolen credit or debit cards and related charge-backs, and it depends on travel partners to detect and prevent certain kinds of fraudulent bookings. If fraud or charge-backs increase, partners and Expensify may face fines, higher transaction fees, or card network revocation of partners' access, which would prevent card payments and materially hurt results.
The rapid evolution and increased adoption of AI technologies increases the risk of fraudulent bookings, and Expensify has not broadly adopted protective capabilities such as mobile application-based multi-factor authentication or third-party identity verification. This could result in significantly increased fraudulent activity on the platform.
Revenue rose 7.6% in FY2025 Q1 versus FY2024 Q1, but MD&A attributes the increase primarily to interchange revenue from the shift to the Updated Card Program, partially offset by a decrease in billable activity and an increase in cashback contra revenue. This creates dependence on the Bancorp/Visa card program and cardholder spend.
Gross margin fell to 50.6% in FY2025 Q1 from 56.5% in FY2024 Q1, a decrease of 5.9 percentage points, and MD&A reports gross margin decreased to 51% from 57%. Cost of revenue, net increased 22% year over year primarily due to a decrease in Consideration from a vendor, net from the Legacy to Updated Card Program shift.
Expensify's small and medium-sized business customers depend on the overall economy, and MD&A warns they could be negatively impacted by slower economic growth, a potential recession, elevated inflation, and tariff and trade uncertainty. This may reduce business continuity and travel, which could negatively impact Expensify.
Average paid members were 657,000 in the quarter ended March 31, 2025, compared with 688,000 in the prior-year period. MD&A also cites a decrease in billable activity, including pay-per-use billable activity, which has a higher average fee per member than annual members.
MD&A expects sales and marketing expenses to increase quarter over quarter due to a one-time charge expected in Q2 2025 for a promotional marketing opportunity to feature Expensify in Apple's film F1. If the promotion does not drive sufficient member growth, the added expense could pressure profitability.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA margin
Free cash flow
Paid members
Non-GAAP net income
Non-GAAP net income margin
Free cash flow margin
Average companies
Summary, forecast, risks and KPIs are extracted from Expensify, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.