Expensify (EXFY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $34.0 million, down 6% year-over-year, with average paid members at 632,000, down 4% year-over-year.

• Interchange revenue grew 10% year-over-year to $5.5 million, reflecting product and partnership expansion.

• Net loss for Q1 2026 was $2.3 million, an improvement from $3.2 million in Q1 2025, with a net loss margin of 7% versus 9% last year.

• April 2026 paid active members increased to 641,000, signaling a potential return to growth.

• Over 30 product improvements were shipped, and new integrations and partnerships were established with major banks and ERP providers.

Financial highlights

• Operating cash flow was $0.1 million; free cash flow was $2.5 million, impacted by a one-time $2.6 million legal payment.

• Adjusted EBITDA was $6.2 million (18% margin); non-GAAP net income was $3.6 million (11% margin).

• Free cash flow margin for Q1 2026 was about 7%, down from 25% in Q1 2025.

• Cash and cash equivalents totaled $66.5 million as of March 31, 2026, with no outstanding debt.

• Excluding the legal payment, free cash flow would have been approximately $5 million.

Outlook and guidance

• Full-year 2026 free cash flow guidance reiterated at $6 million–$9 million.

• Major AI capabilities launching June 15th and new revenue streams expected.

• April 2026 paid active members rose to 641,000, above the Q1 average, indicating potential for growth.

• Stock-based compensation for the next four quarters is estimated between $4.3 million and $6.7 million per quarter.

• Management expects continued macroeconomic headwinds, including inflation and potential recession, to impact small and medium business customers.