Expensify, Inc. provides a digital platform accessible via the cloud, specializing in expense management for clients across the United States and globally. ...
Expensify, founded in 2008 by David Barrett, is a San Francisco-based technology company that provides a comprehensive digital platform for expense management. The platform streamlines financial operations including receipt scanning, expense report creation, corporate card management, bill payment, invoicing, and travel arrangements. It serves a diverse clientele from individual users ...Expensify, founded in 2008 by David Barrett, is a San Francisco-based technology company that provides a comprehensive digital platform for expense management. The platform streamlines financial operations including receipt scanning, expense report creation, corporate card management, bill payment, invoicing, and travel arrangements. It serves a diverse clientele from individual users to small businesses and large enterprises. The company went public in November 2021 and is listed on NASDAQ under EXFY. With 117 employees, Expensify generates high revenue per employee, serving over 12 million users globally. Financially, Expensify has a market cap of approximately $238 million, with a current ratio of 3.497 indicating strong liquidity. Despite negative net margins recently, the company maintains positive free cash flow, evidencing operational efficiency. The platform's key value proposition is automation, reducing manual work in expense management. Expensify's leadership, under David Barrett, emphasizes innovation and social impact through Expensify.org, a charity that launched in 2020. The company continues to expand its offerings, integrating travel booking and corporate cards into its suite, targeting both SMBs and large enterprises.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$142.1M
+2.1%
-0.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-21.4M
-112.7%
-64.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+50.3%
-6.5%
+1.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-12.7%
-2053.1%
-48.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-15.1%
-108.4%
-65.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$20.1M
+23.5%
+860.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+14.1%
+21.0%
+863.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
4.3%
-14.3%
-100.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.30x
-8.4%
+0.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Niki Wallroth: Hello, and thank you for joining us for Expensify's Q2 2026 Earnings Call. My name is Niki, and I'm going to start off with the legal disclosure, and then I'll hand things off to Ryan Schaffer, our CFO; and David Barrett, our Founder and CEO. Please note that all the information presented on today's call is unaudited. And during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Forward-looking statements in the earnings release that we issued today, along with comments on this call, are made only as of today and will not be updated as actual events unfold. Please refer to today's press release and our filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Please also note that on today's call, management will refer to certain non-GAAP financial measures. While we believe these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today's press release or the investor presentation for a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures. And with that, I'll hand it over to Ryan Schaffer, our CFO.
Ryan Schaffer: Thanks, Niki, and thanks, everyone, for joining today's call. Let's start with the Q2 financials. Revenue for the quarter was $33.9 million. Average paid members were 640,000. Expensify Card interchange revenue across both Classic and New Expensify was $5.9 million, up 12% year-over-year. While we continue to see some pressure on the top line, our focus remains firmly on the financials of the business and on executing the work required to return to sustainable growth. Even though revenue has declined year-over-year, we've been working hard to meaningfully improve profitability and cash flow. Operating cash flow was $8.4 million and free cash flow was $6.4 million. Our GAAP net loss improved to $3.9 million from $8.8 million a year ago. Non-GAAP net income was $3.4 million compared to a non-GAAP net loss last year, and adjusted EBITDA improved to $6.6 million from a negative adjusted EBITDA a year ago. These results reflect the discipline with which we're managing the business as we focus on improving execution, returning to growth and creating long-term value. Q2 free cash flow of $6.4 million was up 2% from the same period last year and up 162% from the previous quarter. Given that trajectory, we're raising our full year 2026 free cash flow guidance from $6 million …
