Expensify, Inc.

What they do

Expensify provides a cloud-based expense management platform that allows businesses to scan receipts, track expenses, reimburse employees, manage corporate cards, and handle invoices, bills, and travel. The company operates two products: Expensify Classic, its established platform, and New Expensify, a redesigned version targeting a larger market. Revenue comes from subscription fees and interchange revenue from the Expensify Card, issued in partnership with The Bancorp Bank.

Revenue drivers

• Subscription fees — Monthly or annual fees based on the number of active members; generated $30.8 million in Q2 2026, down from $32.9 million in Q2 2025.
• Interchange revenue from Expensify Card — Revenue from card transactions, recognized gross; grew 12% year-over-year to $5.9 million in Q2 2026.
• New Expensify net new customers — Revenue from customers who signed up on New Expensify and never used Classic; grew over 250% year-over-year to over $10 million ARR across over 10,000 customers.

Recent performance

For Q2 2026, total revenue was $33.9 million, down from $35.2 million in Q1 2026 and $35.1 million in Q2 2025 (implied). Subscription revenue declined 6% year-over-year, while interchange revenue grew 12%. The company repurchased 6.8 million shares in Q2 2026 for $23.8 million, reducing shares outstanding by 7%. For the full year 2025, revenue was $142.1 million with a net loss of $21.4 million.

Strategy

Management is migrating remaining Expensify Classic customers to New Expensify to improve retention and expand usage. They are investing in New Expensify to capture a larger market, scaling lead generation and self-service sales. The company also repurchased shares aggressively, including a $25 million tender offer, to return capital to shareholders.

Risks

• Revenue decline — Total revenue has decreased from $169.5 million in 2022 to $142.1 million in 2025, and recent quarterly revenue continues to decline.
• Customer churn in Classic — The Classic customer base is shrinking as it is no longer available for new signups, and churn will gradually reduce this base.
• Macroeconomic headwinds — Inflation, tariffs, and geopolitical uncertainty could negatively impact SMB customers and travel-related spending.
• Transition execution — The success of New Expensify depends on effective migration and customer acquisition, with no guarantee of sustained growth.

Outlook

Management expects continued investment in New Expensify to drive rapid growth, with revenue from net new customers growing over 250% year-over-year. They aim to retain and expand Classic customers by migrating them to New Expensify. However, the company faces ongoing revenue declines in the legacy business and uncertain macroeconomic conditions.