Expensify Inc. (NASDAQ:EXFY) Q2 2025 Earnings: Revenue Growth Offset by Wider-Than-Expected Loss

Expensify Inc. (NASDAQ:EXFY) Reports Q2 2025 Results: Revenue Growth but Wider-Than-Expected Loss

Expensify Inc. released its second-quarter 2025 financial results, revealing mixed performance relative to analyst expectations. The company reported revenue of $35.8 million, a 7% year-over-year increase but below the consensus estimate of $36.9 million. Earnings per share (EPS) came in at -$0.10, significantly missing the projected $0.0265 profit.

Key Financial Highlights vs. Estimates

• Revenue: $35.8M (vs. $36.9M expected) – miss by ~3%
• EPS: -$0.10 (vs. +$0.0265 expected) – wider loss than anticipated
• Net Loss: $8.8M (compared to $2.8M loss in Q2 2024)
• Free Cash Flow (FCF): $6.3M (up 10% YoY)

The market reaction was negative, with shares declining ~7.2% in after-hours trading, reflecting investor disappointment over the earnings miss and widening losses.

Business and Operational Highlights

Despite the earnings shortfall, Expensify highlighted several operational successes:

• International Expansion: The Expensify Card is set to launch in the UK and EU, broadening access to over 30 million businesses.
• Brand Awareness: The company cited a 350% increase in brand recognition among the 18-24 demographic, attributed to its marketing tie-in with F1® The Movie.
• Interchange Revenue Growth: Revenue from the Expensify Card rose 31% YoY to $5.3M.
• Share Repurchases: The company bought back 1.28 million shares for approximately $3.0 million.

Outlook vs. Analyst Expectations

Expensify raised its full-year 2025 Free Cash Flow (FCF) guidance midpoint by $2.0 million, now expecting $19.0M–$23.0M. However, the company did not provide explicit revenue or EPS guidance for upcoming quarters. Analysts currently forecast:

• Q3 2025 Revenue: $37.7M
• Full-Year 2025 Revenue: $150.1M

The lack of a formal outlook on top-line growth may have contributed to the post-earnings selloff, as investors sought clearer signals on future profitability.

Conclusion

While Expensify continues to expand its global footprint and improve free cash flow, the Q2 earnings miss and deeper-than-expected losses have weighed on investor sentiment. The company’s focus on AI-driven financial tools and international growth could provide long-term upside, but near-term execution risks remain.

For more detailed earnings estimates and historical performance, visit Expensify’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.