Expensify (EXFY) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $36.1 million, up 8% year-over-year, with 657,000 average paid members and Expensify Card interchange volume up 43% to $5.1 million.

• Free cash flow for Q1 was $9.1 million, up 75% year-over-year and 45% sequentially, with a 25% margin.

• Net loss narrowed to $3.2 million from $3.8 million year-over-year; non-GAAP net income was $4.8 million, and adjusted EBITDA was $8.4 million.

• Expensify Travel bookings surged 166% quarter-over-quarter, outpacing card adoption rates.

• New simplified pricing for Collect plan and AI-driven features, including conversational corrections and advanced policy violation detection, were launched.

Financial highlights

• Revenue for Q1 2025 was $36.1 million, with gross margin at 51% and Expensify Card interchange revenue at $5.1 million.

• Net loss was $3.2 million; non-GAAP net income was $4.8 million; adjusted EBITDA was $8.4 million.

• Free cash flow reached $9.1 million, up from $5.2 million in Q1 2024 and $6.3 million in Q4 2024.

• Operating expenses fell for G&A and R&D, while sales and marketing rose 5%.

• Cash and cash equivalents were $59.6 million as of March 31, 2025, with no outstanding debt.

Outlook and guidance

• FY 2025 free cash flow guidance raised to $17–$21 million, up from $16–$20 million.

• Management expects a one-time increase in sales and marketing expense in Q2 2025 due to F1 film promotions.

• Stock-based compensation expense projected at $5.1–$7.9 million per quarter for the next year.

• April paid members were 655,000, essentially flat from Q1, reflecting typical seasonal softness.

• Existing cash resources are expected to be sufficient for operations and growth for at least the next 12 months.