EXPENSIFY ANNOUNCES Q3 2026 RESULTS
Expensify, Inc. (EXFY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 EXPENSIFY ANNOUNCES Q3 2026 RESULTS Revenue from New Expensify increased 30% from Q2, and is up 212% y/y. SAN FRANCISCO, CAL.--(BUSINESS WIRE)--November 5, 2026-- Expensify, Inc. (Nasdaq: EXFY), the easiest way to manage expenses, corporate cards, and travel, today r
How this was made
The 30-second read
Why it matters
The raised guidance could boost the stock despite mixed operating metrics.
Market read
First‑report earnings release with raised cash‑flow guidance offers a fresh catalyst for traders.
What to watch
Revenue contraction and decreasing paid members could pressure margins.
Expensify Announces Q3 2026 Results: revenue, net was $33.0 million, while free cash flow was $3.3 million and fiscal 2026 free cash flow guidance increased to $13.5 million - $15.5 million.
Revenue, net declined 6% year over year and paid members declined 2%, while Q3 free cash flow increased to $3.3 million, operating cash flow increased to $4.0 million, and New Expensify revenue increased 30% from Q2 and 212% year over year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, net, three months ended September 30GAAP | $33.02M | – | decrease of 6% |
| Cost of revenue, net, three months ended September 30GAAP | 18,089 | – | – |
| Gross margin, three months ended September 30GAAP | 14,932 | – | – |
| Research and development expense, three months ended September 30GAAP | 4,952 | – | – |
| General and administrative expense, three months ended September 30GAAP | 8,302 | – | – |
| Sales and marketing expense, three months ended September 30GAAP | 4,354 | – | – |
| Total operating expenses, three months ended September 30GAAP | 17,608 | – | – |
| Loss from operations, three months ended September 30GAAP | (2,676) | – | – |
| Net loss, three months ended September 30GAAP | −$3.33M | – | – |
| Net loss per share, basic and diluted, three months ended September 30GAAP | $ (0.04) | – | – |
| Weighted average shares of common stock used to compute net loss per share, basic and diluted, three months ended September 30GAAP | 91,529,433 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $6.08M | – | – |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 18 % | – | – |
| Non-GAAP net income, three months ended September 30non-GAAP | $3.11M | – | – |
| Non-GAAP net income margin, three months ended September 30non-GAAP | 9 % | – | – |
| Net cash provided by (used in) operating activities, three months ended September 30GAAP | $4.01M | – | up 510% from last year |
| Operating cash flow margin, three months ended September 30GAAP | 12 % | – | – |
| Free cash flow, three months ended September 30non-GAAP | $3.31M | – | up 170% from last year |
| Free cash flow margin, three months ended September 30non-GAAP | 10 % | – | – |
| Interchange revenue derived from the Expensify Card, three months ended September 30other | $5.8M | – | increase of 8% |
| Paid membersother | 630,000 | – | decrease of 2% |
| Revenue, net, nine months ended September 30GAAP | $100.9M | – | – |
| Gross margin, nine months ended September 30GAAP | 47,432 | – | – |
| Loss from operations, nine months ended September 30GAAP | (7,569) | – | – |
| Net loss, nine months ended September 30GAAP | −$9.52M | – | – |
| Net loss per share, basic and diluted, nine months ended September 30GAAP | $ (0.10) | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $18.89M | – | – |
| Non-GAAP net income, nine months ended September 30non-GAAP | $10.11M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | 12,566 | – | – |
| Free cash flow, nine months ended September 30non-GAAP | $12.21M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| New ExpensifyMajor feature launches, dozens of new GL and HR integrations, enhanced admin roles, bulk workspace management, and micro-optimizations along the conversion pipeline. | not disclosed | increased 30% from Q2 | up 212% y/y |
| Expensify CardLaunched across 13 European markets, including the UK, and added enhanced PIN/biometric controls, one-time/date-bound virtual cards, and real-time spend controls. | $5.8M | – | increase of 8% |
| Expensify TravelConsolidated travel billing enables customers to pay for all business travel on a single invoice and results in substantially more revenue to Expensify from each travel booking. | not disclosed | grew 13% from Q2 | grew 40% year over year |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fiscal year ending December 31, 2026 outlook
- NoteFree cash flow of $13.5 million - $15.5 million.
- NoteThe Company increased FY 2026 FCF guidance by $1.5 million to $13.5 million - $15.5 million.
- NoteEstimated total stock-based compensation: Q4 2026 $ 5.8 - $ 7.8 million; Q1 2027 $ 5.6 - $ 7.6 million; Q2 2027 $ 5.5 - $ 7.5 million; Q3 2027 $ 5.4 - $ 7.4 million.
Capital returns
- Repurchased 722,121 shares of Class A common stock, totaling approximately $1.3 million.
- Repurchase and retirement of common stock was (10,477) for the nine months ended September 30, 2026.
What drove it
- Revenue from New Expensify increased 30% from Q2 and was up 212% y/y.
- Cohort conversion increased 67% y/y through micro-optimizations along the conversion pipeline.
- Trips booked through Expensify Travel grew 40% year over year and 13% from Q2, with Q3 2026 the highest quarter on record.
- New MCP connections doubled last month and were still accelerating.
- The custom agent beta was adopted by thousands of customers and handled over 96% of real world requests received.
Concerns
- Revenue, net decreased 6% as compared to the same period last year.
- Paid members decreased 2% as compared to the same period last year.
- Net loss was $3.3 million, compared to $2.3 million for the same period last year.
- Adjusted EBITDA was $ 6,076, compared with $ 6,503 in the prior-year quarter.
- Non-GAAP net income was $ 3,113, compared with $ 4,348 in the prior-year quarter.
- Expensify Classic is described as a stable cash-flow engine whose customer base naturally declines over time.
What to watch
- Execution of the New Expensify growth engine and whether conversion pipeline improvements continue.
- Adoption and revenue contribution from Expensify Card expansion across 13 European markets, including the UK.
- The economics of consolidated travel billing and the pace of Expensify Travel bookings.
- Progress toward fiscal 2026 free cash flow guidance of $13.5 million - $15.5 million.
- Conversion of Visa referrals and adoption of the Claude for Small Business connector, MCP connections, and the custom agent beta.
Balance sheet and cash flow
- Cash and cash equivalents were $ 63,747 as of September 30, 2026, compared with $ 63,080 as of December 31, 2025.
- Total assets were $ 190,313 as of September 30, 2026, compared with $ 185,989 as of December 31, 2025.
- Total liabilities were 52,852 as of September 30, 2026, compared with 53,244 as of December 31, 2025.
- Settlement assets, net were 57,356 as of September 30, 2026, compared with 45,378 as of December 31, 2025.
- Settlement liabilities were 36,144 as of September 30, 2026, compared with 27,545 as of December 31, 2025.
- Total stockholders' equity was 137,461 as of September 30, 2026, compared with 132,745 as of December 31, 2025.
- Net cash used in investing activities was (3,257) for the nine months ended September 30, 2026, compared with (2,757) in the prior-year period.
- Net cash used in financing activities was (894) for the nine months ended September 30, 2026, compared with net cash provided by financing activities of 1,244 in the prior-year period.
- Cash and cash equivalents and restricted cash at end of period was $ 113,039, compared with $ 104,381.
Analysis
Expensify reported Q3 revenue, net of $33.0 million, a decrease of 6% from the same period last year. The company also reported 630,000 paid members, a decrease of 2%. The central split in the shareholder letter is between Expensify Classic, which management describes as a stable cash-flow engine with a naturally declining customer base, and New Expensify, where revenue increased 30% from Q2 and was up 212% y/y. Management attributed New Expensify growth to integrations, product releases, and conversion-pipeline micro-optimizations that increased cohort conversion by 67% y/y.
Profitability remained positive on the company's non-GAAP measures but declined from the prior-year quarter. Adjusted EBITDA was $6.1 million, with an 18% adjusted EBITDA margin, compared with $6.5 million and 19% in the prior-year period. Non-GAAP net income was $3.1 million, compared with $4.3 million, while GAAP net loss was $3.3 million versus $2.3 million. Gross margin was 14,932 and total operating expenses were 17,608 in the Q3 financial statements, with lower general and administrative expense and sales and marketing expense versus the prior-year quarter but higher research and development expense.
Cash generation improved sharply in the quarter. Net cash provided by operating activities was $4.0 million, compared with cash used in operating activities of $(980) in the prior-year quarter, and free cash flow was $3.3 million compared with $1.2 million. For the nine months ended September 30, however, net cash provided by operating activities was 12,566 versus 15,060 and free cash flow was $12,213 versus $16,643. The balance sheet reported $ 63,747 of cash and cash equivalents, $ 190,313 of total assets, and 52,852 of total liabilities at September 30, 2026.
Card and travel initiatives supplied specific operational momentum. Interchange revenue derived from the Expensify Card grew to $5.8 million, an increase of 8% year over year. Expensify Travel trips booked grew 40% year over year and 13% from Q2, and the company launched consolidated travel billing, which management said generates substantially more revenue from each travel booking. The company also entered into a Visa referral agreement and expanded the Expensify Card to 13 European markets, including the UK.
Capital allocation included the repurchase of 722,121 Class A shares totaling approximately $1.3 million in Q3. Expensify increased fiscal 2026 free cash flow guidance by $1.5 million to $13.5 million - $15.5 million. The filing did not provide revenue, margin, operating expense, or tax-rate guidance. The key reported tension is improving quarterly cash flow and rapid New Expensify growth against declining consolidated revenue, member count, and year-over-year adjusted EBITDA and non-GAAP net income.
Management, verbatim
Cash flow remains strong.
David Barrett, Founder and CEO of Expensify
As we outlined last quarter, Expensify Classic is a stable cash-flow engine whose customer base naturally declines over time, while New Expensify is our growth engine.
David Barrett, Founder and CEO of Expensify
As we enter the final stretch of 2026, I'm extremely proud of what we accomplished, and cannot wait to reveal what we've got in store for 2027.
David Barrett, Founder and CEO of Expensify
Not in the filing
stated, not guessed- Previous-quarter revenue, gross margin, operating expenses, net loss, EPS, adjusted EBITDA, non-GAAP net income, operating cash flow, and free cash flow.
- Absolute revenue for New Expensify.
- Revenue by reportable operating segment.
- GAAP gross margin percentage.
- Debt balance or long-term debt balance.
- Dividend declaration or dividend payment.
- Fiscal 2026 revenue guidance.
- Fiscal 2026 gross margin guidance.
- Fiscal 2026 operating expense guidance.
- Fiscal 2026 tax-rate guidance.
- Prior-release outlook needed to compare reported results with prior guidance.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Expensify filed an 8‑K announcing Q3 2026 financial results and updated free cash flow guidance.
Ticker impact
Expensify reported Q3 2026 results with revenue down 6% YoY, free cash flow guidance raised to $13.5‑$15.5 million.
likely upside as market prices in raised free cash flow guidance
The raised FCF guidance suggests improved profitability, which may attract buyers and lift the stock.
Market effects
Expense‑management SaaS sector may see heightened investor interest.
US technology market
Limited to niche SaaS space
Counterpoint
Guidance raise may be insufficient given revenue and paid‑member declines.
Key entities
- CompanyExpensify, Inc.
Expense‑management SaaS provider listed on Nasdaq.
