Expensify reported Q3 2025 revenue of $35.1 million, a 1% decline from $35.4 million in the same quarter last year, and an EPS loss of $0.03, missing the consensus estimate of $0.07. The revenue miss reflects a 6% year‑over‑year drop in paid members to 642,000, indicating weaker core subscription demand that outweighed the gains in newer segments.
Interchange revenue rose 18% year‑over‑year to $5.4 million, the largest segment of the company’s business. Travel bookings surged 95% from Q1, driven by the launch of Expensify Travel and the company’s new partnership as the official travel and expense partner of the Brooklyn Nets. These growth areas offset the core revenue decline but were insufficient to lift overall top‑line performance.
The company reaffirmed its fiscal 2025 free‑cash‑flow guidance of $19.0 million to $23.0 million, unchanged from the prior guidance. Management highlighted that the full migration of all Collect customers to the new chat‑centric platform is complete, and the upgraded Concierge AI—described by CEO David Barrett as a “Hybrid Multi‑Modal Contextual Expense Agent”—is now live. These initiatives are positioned to drive long‑term revenue growth and improve operating leverage.
CFO Ryan Schaffer noted that operating cash flow was $4.2 million and free cash flow was $1.2 million, underscoring the company’s ability to generate cash even amid a revenue miss. Barrett emphasized that the company’s focus on AI and platform migration is a key driver of future profitability, while Schaffer highlighted the importance of maintaining cost discipline as the company invests in high‑return verticals.
Market reaction was muted, with investors focusing on the revenue miss and the decline in paid members. The company’s guidance for free cash flow remains positive, suggesting confidence in its cash‑generating capacity, but the earnings miss signals short‑term pressure on core business growth. The company’s strategic moves—AI enhancements, platform migration, and the Brooklyn Nets partnership—are viewed as long‑term growth levers that may offset current headwinds.
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