Expensify, Inc. Q4 FY2025 earnings call

2025 was an exciting year. Title sponsor of Apple's F1 movie. Generated nearly $20 million in free cash flow. Incorporated more AI into user experience. Made progress on migration to new platform. Entered multiyear partnership with Uber for Business. Recognized with TrustRadius 2026 Buyers' Choice Award. Expensify travel bookings in Q4 up 434% compared to prior year. Expensify Card interchange increased 24% in fiscal year '25. Repurchased over 4.8 million shares of Class A common stock. New Expensify has full feature parity for 90% of revenue customers, rolled out to 63% of Classic customers. Beginning migration of approved accounting network. Launching new submit plan. AI side with Concierge being contextual, correctable, continuous.

Q4 revenue was $35.2 million. Average paid members were 650,000 and total interchange was $5.5 million. Q4 operating cash flow was $2.2 million, free cash flow was $3.2 million and net loss was $7.1 million. Non-GAAP net loss was $2.1 million and adjusted EBITDA was $3.3 million. Fiscal year '25 revenue was $142.1 million, average paid members was 650,000 and total interchange was $21.3 million. Operating cash flow was $20.1 million, free cash flow was $19.9 million and net loss was $21.4 million. Non-GAAP net income was $5.2 million and adjusted EBITDA was $16.9 million. Initiating fiscal year 2026 free cash flow guidance of $6 million to $9 million.

Fiscal year '25 free cash flow was $19.9 million, coming in at high end of initial guidance of $16 million to $20 million. Initiating fiscal year 2026 free cash flow guidance of $6 million to $9 million, lower due to conservative outlook and increased investment in sales, marketing and AI. Q1 flash numbers saw 626,000 paid members in January, seasonality in January with members usually increasing in future months.

Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially. Please refer to today's press release and filings with the SEC for detailed discussion of risks.

Q: Application software multiples have been hammered, what's Expensify's place in an AI world and primary moats?

A: David Barrett said AI is a challenge for some categories but not Expensify's. Collaboration and access to regulated financial networks are moats. AI can't do everything like issue virtual cards. Eventually AIs and agents create opportunities for more seats.

Q: What's the reason for small increase in paid members in 4Q '25?

A: Ryan Schaffer said it's primarily seasonal, Q4 generally performs better than Q3, and migration helps retain customers.