Summary
Expensify closed fiscal 2025 with a fourth quarter that snapped a year of modest growth. Revenue for the quarter ended December 31, 2025 was $35.2 million, down 5% from $37.0 million in the prior year quarter. Full year revenue was $142.1 million, up 2% from $139.2 million. Subscription fees contributed $130.5 million of that total, down from $138.8 million in 2024, while Expensify Card interchange climbed 24% to $21.3 million. Gross profit for the quarter was $17.3 million, down 8.2%, and gross margin slipped to 49.2% from 51.0%. For the full year, gross margin was 50.3% against 53.9%. Cost of revenue rose on higher payment processing fees, less vendor consideration under the legacy card program, and more amortization of capitalized software. Cashback rewards paid to card customers also rose, which reduced reported revenue.
Profitability went backwards. The quarter produced an operating loss of $3.9 million, against operating income of $0.5 million a year earlier. The full year operating loss was $18.0 million against a loss of $0.8 million. Net loss was $7.1 million for the quarter, against a net loss of $1.3 million, and $21.4 million for the year, against a net loss of $10.1 million. Full year diluted loss per share was $0.23, wider than the $0.12 loss per share reported for 2024. Non-GAAP adjusted EBITDA was $3.3 million for the quarter and $16.9 million for the year. On the same basis, non-GAAP net loss was $2.1 million in the quarter, while the full year produced non-GAAP net income of $5.2 million. The difference between the two sets of numbers is largely stock-based compensation.
Cash generation cooled at the same time. Operating cash flow was $2.2 million in the quarter, down 70.3% from $7.4 million a year earlier, and $20.1 million for the full year, down 15.9% from $23.9 million. Free cash flow, a non-GAAP measure that excludes changes in settlement assets and liabilities, was $3.2 million for the quarter and $19.9 million for the year. Capital expenditures for the full year were $0.02 million. Deferred revenue, current portion, stood at $0.56 million at December 31, 2025, up 14.9% from a year earlier.
The expense base explains the swing in profitability. Sales and marketing rose 109% to $26.7 million, driven by the title sponsorship of F1 The Movie. General and administrative rose 10% to $42.1 million, mostly from an estimated liability tied to a putative class action and higher legal fees. Research and development fell 16% to $20.7 million as engineering time shifted toward other priorities.
Operationally, the user base is still shrinking year over year but stopped sliding sequentially. Paid members averaged 650,000 in the quarter, down 5% from a year earlier but up 1% from 642,000 in the third quarter. Card interchange grew 9% to $5.5 million in the quarter. Travel bookings grew 434% versus the same period last year. Management says New Expensify is feature complete for nearly all customers, is the default for new customers, and has reached 63% of paying customers. Retention held firm. Gross logo retention was 81% in both 2025 and 2024, and net seat retention was 88% in 2025 against 86% in 2024. The company repurchased 4,823,118 Class A shares during 2025 for about $9.1 million.
Guidance covers only the full fiscal year ending December 31, 2026, and calls for free cash flow of $6.0 million to $9.0 million. Executives described that as a modest target, set to free up resources for expected increases in sales, marketing, and AI spending. Estimated stock-based compensation is $5.0 million to $7.0 million in the first quarter of 2026, then $4.9 million to $6.9 million, $4.7 million to $6.7 million, and $4.7 million to $6.7 million across the following three quarters.
The risks are the familiar ones. Paid members are down year over year, and the model leans on converting free users and word-of-mouth adoption rather than a large direct sales force. Inflation, tariffs, trade uncertainty, and weaker conditions for small and midsize businesses could pressure spending. General and administrative costs are being pushed up by litigation, including the putative class action and related fees. Sales and marketing is expected to fall now that the film sponsorship has run its course, which leaves the new product features and the card and travel businesses to carry growth into 2026.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $35.2M | $35.1M | +0.4% | $37.0M | -4.9% |
| Gross profit | $17.3M | $17.4M | -0.5% | $18.9M | -8.2% |
| Gross margin | 49.2% | 49.6% | -0.4 pp | 51.0% | -1.8 pp |
| Research & development | $5.3M | $4.9M | +7.3% | $6.7M | -21.5% |
| Sales & marketing | $3.9M | $4.9M | -20.6% | $3.1M | +27.7% |
| General & administrative | $12.1M | $9.8M | +23.0% | $8.6M | +40.0% |
| Total operating expenses | $21.2M | $19.7M | +8.1% | $18.4M | +15.5% |
| Operating income (loss) | -$3.9M | -$2.3M | -74.4% | $465.0K | -946.7% |
| Operating margin | -11.2% | -6.4% | -4.7 pp | 1.3% | -12.4 pp |
| Net income (loss) | -$7.1M | -$2.3M | -207.4% | -$1.3M | -442.5% |
| Net margin | -20.2% | -6.6% | -13.6 pp | -3.5% | -16.7 pp |
| Diluted EPS | -$0.08 | -$0.03 | -$0.05 | -$0.02 | -$0.06 |
Risks
As of December 31, 2025, businesses with fewer than 1,000 employees accounted for approximately 95% of customers by revenue, exposing Expensify to SMB spending cuts. MD&A also cites elevated inflation, tariff and trade uncertainty, and potential recession as risks that could reduce paid members and transaction volume.
Average paid members fell to 650,000 in Q4 2025 from 687,000 in Q4 2024, and subscription revenue decreased to $130.5 million for FY2025 from $138.8 million in FY2024. Total revenue decreased 4.9% in Q4 2025 versus prior year, while risk factors highlight challenges in converting free users and retaining subscriptions.
FY2025 gross margin decreased 3.5 percentage points to 50.3% and Q4 gross margin decreased 1.8 percentage points to 49.2%. Cost of revenue, net increased 10% due to payment processing fees, software amortization, and the loss of $7.2 million of Legacy Card Program consideration that was immaterial in FY2025.
The Expensify Card relies on a single vendor Marqeta, issuing bank Bancorp, and card network Visa; Expensify Travel relies on Spotnana and Solutions Travel. Interchange revenue grew to $21.3 million for FY2025 from $9.2 million in FY2024, making any vendor loss or transition disruption materially harmful.
Expensify Payments is a licensed money transmitter in most U.S. states and has previously been subject to fines and penalties by state regulators. The collapse of Synapse Financial Technologies has increased recordkeeping requirements and regulator inquiries, raising compliance costs.
Sales and marketing expenses increased 109% to $26.7 million for FY2025, driven by the F1 The Movie title sponsorship, while research and development expenses decreased 16%. MD&A notes advertising may not generate customer awareness or offset the expenses incurred.
Expensify uses third-party AI from OpenAI and Anthropic for receipt processing, customer support, and marketing, but cannot control availability or pricing. The EU AI Act enters substantive application in August 2026 with fines up to 7% of worldwide annual turnover, and California automated decision-making rules create a patchwork compliance risk.
General and administrative expenses increased 10% for FY2025 partly due to an estimated liability related to a Putative Class Action and related legal fees. Risk factors also note exposure to securities class action litigation following stock volatility.
Expensify relies on professional services firms for a portion of its finance function; losing those outsourced teams could cause material weaknesses in disclosure controls and internal control over financial reporting. Competition for software engineers and specialized on-demand workers also creates execution risk.
The Voting Trust held 84.7% of voting power as of December 31, 2025, and Expensify relies on controlled company exemptions, including no majority independent directors and no nominating and corporate governance committee. The Executive Committee is delegated board authority while the Voting Trust holds at least 50% voting power.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA margin
Free cash flow
Paid members
Free cash flow margin
Interchange Derived from Expensify Card
Operating cash flow margin
Non-GAAP Net Loss
Operating Cash Flow
Summary, forecast, risks and KPIs are extracted from Expensify, Inc.'s SEC filings for Q4 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.