• Revenue: $36.1 million, up 8% year on year.

• Average Paid Members: 657,000, down 5% year on year.

• Total Interchange: 5.1%, up 43% year on year.

• Operating Cash Flow: $4.8 million.

• Free Cash Flow: $9.1 million, a 75% increase year on year and 45% increase quarter on quarter.

• GAAP Net Loss: $3.2 million.

• Non-GAAP Net Income: $4.8 million.

• Adjusted EBITDA: $8.4 million.

• April Paid Members: 655,000, slightly down from Q1.

• Expenseified Card Growth: $5.1 million, a 43% increase year on year.

• Expenseified Travel Growth: 166% quarter over quarter increase in Q1.

• Warning! GuruFocus has detected 3 Warning Signs with EXFY.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revenue increased by 8% year over year, reaching $36.1 million.

• Free cash flow saw a significant rise, increasing by 75% year over year to $9.1 million.

• The Expensify card experienced a 43% year-over-year growth, indicating strong adoption.

• Expensify Travel saw a 166% quarter-over-quarter increase, showing rapid growth and customer enthusiasm.

• The company introduced full Spanish support, expanding its accessibility and potential market reach.

Negative Points

• Average paid members decreased by 5% year over year, indicating a decline in user base.

• GAAP net loss was reported at $3.2 million, highlighting ongoing financial challenges.

• The company is facing macroeconomic uncertainties, including potential impacts from tariffs.

• April paid members slightly decreased, continuing a trend of declining user numbers.

• The upcoming F1 movie promotion will lead to a substantial increase in S&M expenses, impacting financials.

Q & A Highlights

Q: How is Expensify positioned to handle macroeconomic challenges and tariff impacts? A: Ryan Schaffer, CFO, stated that while no one wants a bad economy, Expensify is well-positioned to weather economic challenges. The company has restructured over the past year or two, resulting in strong free cash flow, which provides resilience in tough economic environments.

Q: There seems to be a disconnect between revenue growth and the decline in paid users. How does Expensify view this metric in the context of its business strategy? A: Ryan Schaffer explained that while paid members remain important, Expensify has diversified its revenue streams beyond subscriptions. This diversification allows the company to generate revenue through multiple channels, not solely relying on paid user growth.

Q: What impact is the Formula One promotion expected to have on Expensify's business? A: Ryan Schaffer noted that while the promotion's impact was not significant in Q1, it is expected to increase over time, particularly in Q3. The promotion is anticipated to drive web traffic and new business as it progresses.