Expensify, Inc.

Expensify operates in the cloud-based expense management software industry, serving businesses of all sizes from the smallest to the largest. The company has grown its community to over 15 million members and has processed and automated over 1.8 billion expense transactions on its platform as of December 31, 2025 ¹. For the quarter ended December 31, 2025, an average of 650,000 paid members across an average of 39,700 companies and over 200 countries and territories utilized Expensify's platform ². The industry is characterized by small and medium-sized businesses (SMBs) increasingly seeking to modernize back-office functions, moving away from manual, inefficient processes like paper-based expense management. SMBs prioritize technologies that are easy to discover, implement, purchase, manage, and use, often relying on online channels and recommendations.

Expensify's core business model revolves around its cloud-based expense management software platform, which simplifies money management for businesses. The company generates revenue primarily from subscription fees based on the number of monthly active members and the level of service. These subscriptions are offered as either month-to-month or annual arrangements, with most revenue generated from customers with credit or debit cards on file that are automatically charged monthly. The business model is described as viral and bottom-up, starting with individual employees using the free mobile application or website to submit expenses, who then champion the platform internally, leading to company-wide adoption and paid subscriptions. The company also monetizes transactions from the Expensify Card through interchange fees and generates booking fees from Expensify Travel.

The company's platform strategy is hyper-focused on the employee, aiming for ease of use and configuration for everyone from individual employees to finance departments. Key features include SmartScan, a patented scanning technology for receipt transcription, and Concierge, an AI-powered customer support engine. The platform is designed to be highly integrated, offering over 50 pre-built integrations with accounting, HR, and travel systems, as well as business and employee bank accounts and credit cards. This integration allows for real-time data synchronization across a customer's technology ecosystem.

Expensify's product and service lines include core expense management, the Expensify Card, Expensify Travel, and Invoicing & Bill Pay. The expense management feature streamlines the capture, approval, and payment phases of expenses, utilizing SmartScan for receipt capture, multi-level approval workflows, intelligent auditing, and integrations with platforms like QuickBooks and NetSuite. Payments are facilitated through next-day ACH direct deposit and global reimbursement in 5 currencies across 200 countries and territories.

The Expensify Card, powered by the Visa network, is a natural extension of the expense management platform. It offers streamlined card application and setup, unlimited virtual cards with spend limits, continuous automatic reconciliation, real-time compliance, and spend control with Smart Limits. Customers with settled spend in the U.S. over $250,000 per month on their Expensify Cards under the Updated Card Program receive 2% cashback for all U.S. purchases, while those under $250,000 receive 1% ³. The Updated Card Program, launched in February 2024, covers substantially all cardholders and operates under an agreement with The Bancorp Bank, N.A. (Bancorp) as the issuing bank ⁴.

Expensify Travel is a travel platform that integrates booking, approvals, payments, and collaboration. It offers seamless bookings for flights, hotels, rail, and car rentals, smart policy-driven approvals, streamlined centralized virtual card payments and automated reporting, and real-time collaboration through dedicated chat rooms. The Invoicing & Bill Pay features provide multiple payment options (credit/debit card, ACH, check), automatic SmartScan of bills sent to a company's @expensify.cash address, real-time communication on invoices, and extensive integrations with accounting systems.

For the fiscal year ended December 31, 2025, Expensify reported total revenue of $142.101 million ⁵. Cost of revenue, net, was $70.574 million ⁶, resulting in a gross margin of $71.527 million ⁷ or 50% ⁸. Operating expenses totaled $89.546 million ⁹, leading to a loss from operations of $(18.019) million ¹⁰. Other income, net, was $1.726 million ¹¹, and the provision for income taxes was $(5.096) million ¹². The company reported a net loss of $(21.389) million ¹³, with basic and diluted EPS of $(0.23) ¹⁴. Net cash provided by operating activities was $20.089 million ¹⁵. As of December 31, 2025, cash and cash equivalents stood at $63.080 million ¹⁶, with no outstanding indebtedness and a $7.5 million letter of credit outstanding ¹⁷.

Comparing the fiscal year 2025 to 2024, total revenue increased by $2.865 million ¹⁸, or 2% ¹⁹. This increase was primarily driven by a rise in interchange revenue, which grew from $9.178 million in 2024 to $21.284 million in 2025 ²⁰, largely due to a shift in cardholder spend to the Updated Card Program. This was partially offset by a decrease in subscription fees, which fell from $138.822 million in 2024 to $130.537 million in 2025 ²¹, and an increase in cashback rewards from $8.946 million in 2024 to $10.085 million in 2025 ²². Cost of revenue, net, increased by $6.335 million ²³, or 10% ²⁴, primarily due to decreased consideration from the Legacy Card Program, increased payment processing fees, and higher amortization expense on capitalized software. Gross margin decreased from 54% in 2024 to 50% in 2025 ²⁵. Research and development expenses decreased by $3.955 million ²⁶, or 16% ²⁷, while general and administrative expenses increased by $3.739 million ²⁸, or 10% ²⁹, mainly due to a $9.5 million estimated liability for a putative class action lawsuit ³⁰ and related legal fees, partially offset by lower business insurance costs. Sales and marketing expenses saw a significant increase of $13.945 million ³¹, or 109% ³², primarily due to increased advertising spend related to the title sponsorship of F1® The Movie.

During the fiscal year 2025, Expensify reached an agreement-in-principle to settle a putative securities class action lawsuit for an aggregate sum of $9.5 million ³³. This liability is included in Accrued expenses and other liabilities, partially offset by a $6.7 million receivable for insurance recoveries ³⁴. The company recorded an expense of $2.8 million for this settlement, net of insurance receivable, within General and administrative expenses ³⁵. The company also terminated its revolving credit facility under the 2024 Amended Loan and Security Agreement on July 1, 2025, with no borrowings outstanding at the time of termination ³⁶. A new Letter of Credit Facility and Security Agreement was entered into on October 9, 2025, maintaining a $7.5 million letter of credit ³⁷.

Expensify intends to drive business growth by executing several strategies, including building new features that create additional value for existing members and attract new members beyond those who submit expenses. The company plans to monetize the segment of customers' employees not currently submitting expense reports by adding features usable by all employees. A key focus is to build viral loops into the member experience to increase adoption by new customers, replicating the frictionless adoption seen with expense management in invoicing and bill payment features.

The company aims to expand and monetize transaction volume from existing and new customers, specifically by increasing the promotion of the Expensify Card to drive adoption. Furthermore, Expensify plans to continue strengthening its market consensus as a dominant expense management platform for SMBs through targeted marketing strategies, including industry conferences, influencers, and partner marketing. The company also intends to expand integrations and strengthen partnerships with accounting, HR, and travel software providers, as well as technology providers that generate receipts for members.

Expensify sees significant opportunity for international expansion. The company has experienced member growth outside its core geographies without marketing or regional sales forces due to word-of-mouth adoption. It plans to accelerate this international growth by investing in marketing, developing localized platform experiences, and expanding international partnerships and integrations.

Operationally, Expensify prioritizes research and development above other investments, with a product-led growth strategy focused on innovating and delivering quality features based on member feedback. The company expects research and development expenses to increase as new products and enhancements are developed. General and administrative expenses are expected to remain consistent, particularly those associated with being a publicly traded company. Sales and marketing expenses are anticipated to decrease following the title sponsorship of F1® The Movie, which was released in June 2025.

The company's capital allocation plans include continued investment in product development and infrastructure to support growth. On February 25, 2025, the Executive Committee authorized a new share repurchase program for up to $50.0 million of Class A common stock, expiring on March 31, 2028 ³⁸. As of December 31, 2025, approximately $41.0 million remained under this authorization ³⁹. The company does not intend to pay cash dividends in the foreseeable future, instead retaining funds to support business development and growth.

Management has flagged several structural headwinds and execution risks. The business is susceptible to economic downturns or uncertainty, particularly affecting SMB customers who may reduce spending or become more price-sensitive. The company relies on a single third-party vendor, issuing bank, and card network for the Expensify Card, and a single third-party vendor and travel management company for Expensify Travel, posing risks of service interruptions or inability to replace services on competitive terms if these relationships are lost. Cybersecurity risks and incidents, including those related to the use of artificial intelligence technologies, are ongoing concerns that could damage reputation, incur financial penalties, and result in legal liability. The regulatory framework governing AI technologies is rapidly evolving, with new laws in the EU (EU Artificial Intelligence Act effective August 1, 2024, with substantive requirements from August 2, 2026 ⁴⁰) and potential changes in the U.S., which could impact the company's ability to offer AI-leveraged products or services and increase compliance costs.

Expensify faces several material risks, including fluctuations in quarterly and annual results of operations due to factors such as demand for platform features, customer retention, pricing strategies, and competitive landscape changes. The company's expense management feature drives the majority of subscriptions, making its market acceptance critical. Rapidly changing technology, evolving industry standards, and customer preferences necessitate continuous platform adaptation. The ability to attract new customers cost-effectively, convert free users to paying customers, and expand usage within organizations is crucial for revenue growth. Economic downturns or uncertainty could negatively impact customers, particularly SMBs, leading to decreased revenue. Payments and financial services-related laws and regulations, including those concerning money transmission, anti-money laundering, and PCI-DSS compliance, are extensive and complex, with non-compliance potentially leading to significant fines, penalties, and criminal/civil liability. The company's reliance on a single third-party vendor, issuing bank, and card network for the Expensify Card, and a single third-party vendor and travel management company for Expensify Travel, exposes it to service interruptions and additional expenses if these relationships are lost. Cybersecurity risks and incidents, including those related to third-party providers and AI technologies, could damage reputation, incur financial penalties, and result in legal liability. The use of generative AI Technologies carries risks of producing inaccurate or infringing content, leading to reputational damage and legal challenges. The regulatory framework for AI Technologies is rapidly evolving, with new laws like the EU Artificial Intelligence Act (effective August 1, 2024, with substantive requirements from August 2, 2026 ⁴¹) and the revised EU Product Liability Directive (in force December 2024, implemented by December 2026 ⁴²) potentially increasing compliance costs and civil claims. Failure to offer a high-quality customer experience could harm the business and reputation. The company must attract and retain highly qualified personnel, including an on-demand workforce, to execute its strategy. Misconduct by employees, commercial partners, or vendors, including noncompliance with regulatory standards, poses risks of fraudulent or illegal activity. The multiple class structure of common stock and concentrated voting control with the Voting Trust limit public stockholders' influence over corporate matters. International operations expose the company to foreign currency exchange rate fluctuations, with revenue from outside the U.S. being $12.5 million (9% of total revenue) for the year ended December 31, 2025 ⁴³. The company is also subject to anti-corruption, anti-bribery, anti-money laundering, and trade sanctions laws.

Management's message to shareholders emphasizes a product-led growth strategy, prioritizing investment in product development over traditional sales to create easy-to-use, powerful features that encourage viral, bottom-up adoption. They believe that delighting members will continue to drive platform adoption and expansion. A key strategic priority is to maintain market consensus that Expensify is a category leader in expense management software, supported by large-scale brand advertising, such as the title sponsorship of F1® The Movie, which was released in theaters in June 2025. This approach aims to attract new customers without high marginal acquisition costs. Another strategic focus is the expansion and monetization of transaction volume from existing and new customers, particularly through the increased promotion and adoption of the Expensify Card and Expensify Travel. Management also highlights the importance of strengthening integrations and partnerships with accounting, HR, and travel software providers to provide a seamless customer experience and embed Expensify within organizations. The company's unique culture, centered on "Live Rich, Have Fun, Save The World," is presented as a critical driver of success, fostering employee happiness and long-term commitment.