Expensify Q3 Earnings Call Highlights

Key Points

• Q3 revenue was $33 million, with $3.3 million in free cash flow, up 170% year over year. Expensify raised its full-year free cash flow forecast to $13.5 million–$15.5 million, though it reported a $3.3 million GAAP net loss.
• New Expensify direct-customer ARR topped $13 million, up 212% year over year, but growth has not yet offset declines in the Classic business. Executives said new-customer growth could exceed Classic revenue attrition next year if current trends continue.
• Expensify Card interchange revenue increased 8% year over year to $5.8 million, while Travel bookings rose 40% year over year to a quarterly record. The company also expanded its card availability in Europe and the U.K.

Expensify NASDAQ: EXFY reported third-quarter 2026 revenue of $33 million and raised its full-year free cash flow forecast, even as executives said growth in its newer platform has yet to offset declines in its legacy business.

The expense-management company generated $3.3 million in free cash flow during the quarter, up 170% from a year earlier, Chief Financial Officer Ryan Schaffer said on the earnings call. Expensify now expects full-year free cash flow of $13.5 million to $15.5 million, up from its previous forecast of $12 million to $14 million.

Schaffer said the company continues to face pressure on its top line while working to improve profitability and cash flow. The quarter’s results included:

• Average paid members: 630,000.
• Operating cash flow: $4 million.
• GAAP net loss: $3.3 million.
• Non-GAAP net income: $3.1 million.
• Adjusted EBITDA: $6.1 million.

Expensify had 636,000 paid members in October. Schaffer noted that October is generally strong compared with the third quarter. The company also repurchased 722,121 Class A shares for approximately $1.3 million during the quarter.

New Platform Growth and Legacy Attrition

Founder and CEO David Barrett said annual recurring revenue from customers who signed up directly on New Expensify exceeded $13 million, up 30% from the second quarter and 212% from a year earlier. The figure excludes Classic customers who migrated to the newer platform. Expensify had said the figure crossed $10 million last quarter.

Barrett said older customer cohorts continue to convert to paying customers over time and that newer cohorts are outperforming earlier ones.

Asked when growth from new customers could consistently exceed revenue attrition from Classic, Schaffer said the company believes that could happen next year if current trends hold. Better or worse performance than projected could change the timing, he said.

Barrett said the timing is difficult to predict because the growing New Expensify platform and declining Classic customer base are largely separate. He added that reducing churn remains a priority, with work underway in customer support, account management and reliability.

Card and Travel Businesses Expand

Expensify Card interchange revenue across the Classic and New platforms rose 8% year over year to $5.8 million. Barrett said the company is now issuing cards in pounds and euros across 13 European and U.K. markets. It also added controls including one-time and date-bound virtual cards and rules designed to block out-of-policy purchases.

Trips booked through Expensify Travel increased 13% from the second quarter and 40% year over year, making the third quarter its largest on record by booking volume, Barrett said. He added that consolidated travel billing, which combines a company’s bookings into one monthly debit, produces substantially more revenue per booking for Expensify.

On the call, Barrett said the initial priority for offering travel was to reduce customer churn, although the service also helps generate leads and expand relationships with existing customers. Schaffer said Expensify previously saw customers leave for combined travel-and-expense providers such as Navan, but is now also attracting customers from Navan.

Schaffer said he believes travel could eventually rival the Expensify Card, though it has not reached that level.

AI and Partnerships

Barrett said Expensify joined Anthropic’s Claude for Small Business plugin in September, allowing users on paid Claude plans to connect their expense data and ask questions in plain English. A joint webinar with Anthropic in October drew more than 1,000 registrants, he said.

While Barrett said the partnership has increased attention to Expensify’s AI integration, he cautioned that its long-term effect on customer acquisition remains to be seen. He described the relationship as the start of a long-term partnership.

Expensify also announced a referral agreement under which Visa can refer eligible clients and corporate card programs to the company. Barrett said the arrangement supports Expensify’s strategy of serving businesses that want to retain their existing Visa cards and banking relationships.

Barrett said Expensify’s agent handles more than 96% of what users ask it to do, without constraints on their requests. He also highlighted new integrations with Rillet and DualEntry, as well as a revenue-sharing agreement with Rillet.

About Expensify (NASDAQ:EXFY)

Expensify, Inc develops cloud-based software for expense management and business payments. Its platform is designed to help individuals and organizations capture receipts, create and submit expense reports, manage reimbursements, and automate accounting-related workflows.

The company's products and services include receipt scanning, expense tracking, corporate cards, bill payment, invoicing, travel-related expense management, and integrations with accounting and enterprise software. Expensify serves businesses of various sizes, as well as self-employed professionals and individuals who need tools for managing work-related spending.

Expensify was founded in 2008 and is headquartered in San Francisco, California.

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