Expensify Reports Third Quarter 2025 Results, Showcases Growth in Travel and Expands AI Capabilities
Expensify, Inc. (Nasdaq: EXFY), a leading platform for expense management, corporate cards, and travel booking solutions, released its financial results for the quarter ended September 30, 2025, accompanied by a detailed shareholder letter from Founder and CEO David Barrett. The quarter reflects steady operational performance, continued investment in technological innovation, and strategic progress toward strengthening customer adoption of the company’s next-generation platform, New Expensify.
CEO Message: A New Phase of Product and Platform Evolution
In the shareholder letter, CEO David Barrett highlighted Expensify’s strong progress during the quarter, particularly in advancing the company’s transition from its legacy platform to New Expensify. According to Barrett, Expensify successfully migrated all Collect plan customers to New Expensify, noting that the majority of users opted to remain on the modern interface rather than reverting to the older Classic version. Migration efforts for Control plan customers are now underway.
Barrett emphasized that the company is now beginning to see the results of years of foundational development work. New Expensify has been engineered to deliver a unified and interactive experience centered around conversational workflows. This approach is reflected most clearly in the company’s flagship intelligent assistant, Concierge AI, which Barrett described as the world’s first Hybrid Multi-Modal Contextual Expense Agent.
He outlined three core attributes that define Concierge:
- Hybrid – The AI works alongside real human support agents. If the system cannot independently resolve a task or answer a question, it seamlessly escalates the issue to a live support specialist—without requiring the user to switch help channels.
- Multi-Modal – Concierge is designed to handle a broad range of tasks, including processing receipts, correcting expense errors, enforcing policy rules, answering support inquiries, and coordinating approvals—all within a single interface.
- Contextual – Rather than functioning as a separate chatbot window, Concierge is embedded directly inside the workflow interface. Users can engage with it while viewing an expense report, transaction, or policy, enabling real-time, context-aware assistance.
Barrett stated that while many companies have begun to incorporate AI-driven tools, Expensify’s approach goes further by treating conversational input as the primary user interface. He expressed confidence that this conversational model will become the standard for business financial software in the future.
Key Business Highlights for Q3 2025
Despite a modest decline in paid membership count, Expensify achieved several strategic and operational milestones during the quarter:
- Paid Members: Expensify reported 642,000 paid members, representing a 6% decline year-over-year. The company continues to focus on quality of member engagement, platform depth of usage, and expanding cross-product adoption.
- Expensify Travel Gains Momentum: The company’s integrated corporate travel solution continues to scale, with quarterly travel bookings increasing by 36% compared to the prior quarter. Travel bookings are now up 95% since the first quarter of 2025, reflecting a significant recovery in business travel and strong product-market alignment.
- High-Profile Customer Adoption: Expensify announced a marquee partnership with the Brooklyn Nets, a long-time customer that has now officially adopted Expensify Travel. As part of the new agreement, Expensify becomes the official Travel and Expense partner of the team, expanding visibility and reinforcing the platform’s trust among enterprise and mid-market organizations.
- Share Repurchase Program: Expensify repurchased approximately 1.58 million shares of Class A common stock during the quarter for roughly $3.0 million, demonstrating continued confidence in the company’s long-term valuation and financial health.
Financial Results Overview
For the third quarter of 2025, Expensify generated revenue of $35.1 million, representing a slight 1% decrease compared to the same quarter in 2024. The company attributed the decline primarily to working capital timing differences and ongoing adjustments related to customer transitions to the new platform.
Key financial performance metrics include:
| Metric | Q3 2025 Result | Comparison |
|---|---|---|
| Revenue | $35.1 million | Down 1% YoY |
| Operating Cash Flow | $4.2 million | Positive cash generation maintained |
| Free Cash Flow | $1.2 million | Impacted by working capital timing |
| Net Loss | $2.3 million | Compared to $2.2 million loss YoY |
| Non-GAAP Net Income | $4.3 million | Positive performance improvement |
| Adjusted EBITDA | $6.5 million | Reflects continued cost efficiency |
| Interchange Revenue | $5.4 million | Up 18% YoY driven by Expensify Card adoption |
Growth in interchange revenue reflects increasing use of the Expensify Card for corporate spending, positioning the company to continue improving recurring transaction-based revenue.
Free Cash Flow and Fiscal Year 2025 Outlook
The company reaffirmed its full-year free cash flow guidance of $19.0 million to $23.0 million for the year ending December 31, 2025. Management noted that this outlook is based on current macroeconomic assumptions and continued platform adoption.
The company also provided projected stock-based compensation expenditure ranges across operating functions for the next four fiscal quarters, largely reflecting vesting schedules associated with pre-IPO equity grants.
The company noted that its forward-looking projections are subject to risks including economic volatility, interest rate fluctuations, changes in business travel demand, competition from emerging financial technology platforms, and the pace of customer transition to New Expensify. Additionally, increased investment in AI functionality introduces operational and regulatory considerations that may evolve over time.
The third quarter of 2025 marked an important period of transition and innovation for Expensify. The company is seeing momentum in travel adoption and continues to strengthen platform usage among new and existing customers. At the same time, the launch of its upgraded Concierge AI demonstrates Expensify’s commitment to redefining how businesses interact with expense and finance workflows.
As the company advances its strategic priorities—driving deeper product adoption, scaling Expensify Travel, and transitioning customers fully to New Expensify—it remains focused on generating sustainable free cash flow and maintaining long-term financial discipline.
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