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1. Company Snapshot

1.a. Company Description

Expensify, Inc.provides a cloud-based expense management software platform to individuals, small businesses, and corporations in the United States and internationally.The company's platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel.


It also offers track and submit plans for individuals.The company was founded in 2008 and is based in Portland, Oregon.

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1.b. Last Insights on EXFY

Expensify's recent performance faced challenges due to decelerating growth momentum. Despite generating free cash flow and growing interchange by 18% year-over-year, the company's Q3 2025 results revealed a cautious outlook. Although travel bookings surged 95% since Q1, concerns may arise from the company's ability to sustain growth. The introduction of a hybrid AI expense agent, Concierge, showcases innovation, but its impact on short-term performance remains uncertain. With a maintained free cash flow guidance of $19.0-23.0 million, investors await further updates on the company's growth strategy.

1.c. Company Highlights

2. Expensify's Q3 2025 Earnings: A Closer Look

Expensify reported revenue of $35.1 million for Q3 2025, with an average of 642,000 paid members and $5.4 million in total interchange. The company's operating cash flow was $4.2 million, and free cash flow was $1.2 million. The net loss was $2.3 million, but non-GAAP net income was $4.3 million, and adjusted EBITDA was $6.5 million. The actual EPS came out at $0.04, slightly lower than the estimated $0.04612.

Publication Date: Nov -25

📋 Highlights
  • Revenue and Interchange Growth:: Q3 revenue reached $35.1M, with $5.4M in total interchange, driven by 642K average paid members.
  • Strong Cash Flow Metrics:: Operating cash flow of $4.2M and free cash flow of $1.2M, alongside a $6.5M adjusted EBITDA, despite a $2.3M net loss.
  • New Expensify Migration:: 90% feature parity achieved, with all new customers now on New Expensify and nearly all Collect users migrated.
  • AI-First Design Leadership:: Concierge AI’s hybrid system (AI + human) and chat-first UI positioned as a competitive edge in natural language-driven interfaces.
  • Monetization Potential:: New Expensify users expected to reduce support costs and boost revenue via enhanced travel functionality, with Q4 paid member growth noted.

Financial Performance

The company's financial performance was largely in line with expectations, with revenue growth driven by the increasing adoption of New Expensify. The migration to New Expensify has been successful, with 90% feature parity achieved, and nearly all Collect customers have been migrated. As David Barrett mentioned, "We're nudging customers over to New Expensify, and nearly all Collect customers have been migrated, with most choosing to stay on New Expensify."

Operational Highlights

Expensify has made significant advancements in its Concierge AI, a hybrid system that seamlessly switches between AI and human agents. The company is also investing in AI-first design, which is expected to bring a chat-first design everywhere into the product. The management reiterated its fiscal year 2025 free cash flow guidance of $19 million to $23 million.

Valuation Metrics

Expensify's current valuation metrics indicate a mixed picture. The P/E Ratio is -8.61, and the P/S Ratio is 0.94. The EV/EBITDA ratio is -6.74, while the Free Cash Flow Yield is 18.06%. These metrics suggest that the market is pricing in a certain level of growth, but the company's current financial performance may not be entirely reflected in its valuation.

Growth Prospects

Analysts estimate next year's revenue growth at 0.7%. While this is a relatively modest growth rate, Expensify's management is optimistic about the future possibilities, driven by the adoption of New Expensify and advancements in AI. The company's focus on user sessions and small changes to get everyone over to New Expensify is expected to drive growth in the coming quarters.

3. NewsRoom

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Expensify and Uber for Business Collaborate to Automate Travel and Meal Receipts

Dec -02

Source: businesswire.com

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Expensify Earns 2026 Buyer's Choice Award from TrustRadius

Nov -19

Source: businesswire.com

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Acadian Asset Management LLC Boosts Holdings in Expensify, Inc. $EXFY

Nov -14

Source: defenseworld.net

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Expensify, Inc. (EXFY) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Expensify Announces Q3 2025 Results

Nov -06

Source: businesswire.com

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Expensify Launches First Hybrid “Contextual” AI Expense Agent

Nov -04

Source: businesswire.com

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Expensify to Announce Q3 2025 Results

Oct -23

Source: businesswire.com

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Expensify: Tough To Argue With Solid Cash Flow

Sep -19

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Cloud-based Expense Management Software Platform

Expected Growth: 1.0%

Expensify's cloud-based expense management software platform growth is driven by increasing adoption of digital expense tracking, rising demand for automation and AI-powered expense reporting, and growing need for real-time expense visibility and compliance among SMBs and enterprises. Additionally, the shift towards remote work and the need for streamlined expense management processes also contribute to the growth.

7. Detailed Products

Expensify Card

A corporate card that automates expense tracking and eliminates the need for expense reports.

Expensify Expense Tracking

A cloud-based expense tracking software that allows users to track and manage expenses on-the-go.

Expensify Invoicing

A cloud-based invoicing software that allows users to create and send professional invoices.

Expensify Reimbursement

A reimbursement software that automates the reimbursement process for employees.

Expensify Travel

A travel booking and management platform that integrates with Expensify's expense tracking software.

Expensify Concierge

A premium service that provides personalized support for Expensify users.

8. Expensify, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Expensify's unique features and user-friendly interface make it difficult for substitutes to emerge, reducing the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative expense management solutions, Expensify's strong brand reputation and customer loyalty mitigate this threat.

Bargaining Power Of Suppliers

Expensify's suppliers, such as payment processors and data providers, have limited bargaining power due to the company's strong market position and ability to negotiate favorable terms.

Threat Of New Entrants

While new entrants may emerge in the expense management market, Expensify's established brand, strong customer base, and continuous innovation make it challenging for new entrants to gain significant market share.

Intensity Of Rivalry

The expense management market is highly competitive, with established players like Concur and Zoho Expense, as well as new entrants, creating a high level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.68%
Debt Cost 11.35%
Equity Weight 77.32%
Equity Cost 11.35%
WACC 11.35%
Leverage 29.34%

11. Quality Control: Expensify, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vacasa

A-Score: 4.4/10

Value: 7.5

Growth: 3.6

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Expensify

A-Score: 3.7/10

Value: 8.5

Growth: 2.7

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Cerence

A-Score: 3.7/10

Value: 7.0

Growth: 1.1

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Sprout Social

A-Score: 3.5/10

Value: 6.7

Growth: 6.0

Quality: 4.6

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Exela Technologies

A-Score: 3.3/10

Value: 10.0

Growth: 4.2

Quality: 5.3

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Presto Automation

A-Score: 3.2/10

Value: 10.0

Growth: 3.7

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.6$

Current Price

1.6$

Potential

-0.00%

Expected Cash-Flows