Expensify Inc (NASDAQ:EXFY) Reports Mixed Q3 2025 Results, Stock Falls on Revenue Miss

Expensify Inc - A (NASDAQ:EXFY) reported financial results for the third quarter of 2025, delivering a performance that fell short of analyst expectations on the top line while surpassing bottom-line estimates on an adjusted basis. The market reaction was decisively negative, with the stock declining sharply in after-hours trading following the announcement.

Earnings and Revenue Performance

The company’s results presented a mixed financial picture when measured against Wall Street forecasts. While profitability metrics on a non-GAAP basis showed strength, the headline revenue figure disappointed.

• Revenue: The company reported revenue of $35.1 million for the quarter, a slight decrease of 1% compared to the $35.4 million reported in the same period last year. This result missed the analyst consensus estimate of $36.5 million.
• Earnings Per Share: On a non-GAAP basis, which excludes items like stock-based compensation, Expensify reported net income of $4.3 million. This translated to a non-GAAP EPS of $0.04, which exceeded the analyst estimate of $0.03 per share.

Market Reaction and Strategic Highlights

The immediate market response was unfavorable, with the stock price dropping over 10% in after-market trading. This sell-off appears to be primarily driven by the revenue miss and a decline in paid members, despite the company's positive performance in other business areas and its reiteration of full-year free cash flow guidance.

Key business highlights from the quarter include:

• Paid Member Base: The number of paid members decreased 6% year-over-year to 642,000, a metric that likely contributed to investor concerns about top-line growth.
• Growth Areas: The company saw significant growth in its newer initiatives. Interchange revenue from the Expensify Card grew 18% year-over-year to $5.4 million. Furthermore, Expensify Travel bookings increased 36% quarter-over-quarter and have grown 95% since the first quarter of 2025.
• Product Development: Founder and CEO David Barrett announced a significant upgrade to "Concierge," the company's AI assistant, describing it as a "Hybrid Multi-Modal Contextual Expense Agent." The company also completed the migration of its "Collect" customers to the "New Expensify" platform.
• Capital Return: Expensify repurchased approximately 1.6 million shares of its Class A common stock for a total of $3.0 million during the quarter.

Financial Outlook and Analyst Estimates

Looking ahead, Expensify provided specific guidance for free cash flow but did not issue an outlook for revenue or EPS for the upcoming quarter or the full 2025 fiscal year.

• Company Guidance: The company reaffirmed its free cash flow guidance for the full year 2025, projecting it to be in the range of $19.0 million to $23.0 million.
• Analyst Expectations: For the fourth quarter of 2025, analysts are estimating revenue of $37.1 million and an EPS of $0.07. For the full 2025 fiscal year, the consensus sales estimate stands at $146.8 million.

The absence of formal revenue or EPS guidance from the company makes a direct comparison with analyst forecasts for the next quarter challenging and may be a factor in the market's cautious posture post-earnings.

Conclusion

Expensify's third-quarter results paint a picture of a company in transition. While it beat non-GAAP profit expectations and demonstrated robust growth in its card and travel segments, the miss on revenue and the contraction of its core paid member base have taken center stage for investors. The market's negative reaction underscores the high priority placed on sustainable top-line growth. The company's ability to reaccelerate its member growth while successfully monetizing its newer product lines will be critical to restoring investor confidence in the coming quarters.

For a more detailed breakdown of future earnings estimates and historical performance, review the earnings and estimates data for EXFY.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making investment decisions.