Expensify — Q3 2026 Earnings Summary

Financial Performance:

• Net revenue was $33.0 million, a 6% decrease year-over-year compared to $35.1 million in Q3 2025.
• Operating cash flow was $4.0 million, a 510% increase year-over-year.
• Free cash flow was $3.3 million, a 170% increase year-over-year.
• Net loss was $3.3 million, compared to a net loss of $2.3 million in the same period last year.
• Non-GAAP net income was $3.1 million.
• Adjusted EBITDA was $6.1 million, with an adjusted EBITDA margin of 18% (down from 19% in Q3 2025).
• Interchange revenue from the Expensify Card grew to $5.8 million, an 8% increase year-over-year.
• Cash and cash equivalents were $63.7 million as of September 30, 2026, compared to $63.1 million as of December 31, 2025.

Guidance and Future Outlook:

• Fiscal year 2026 free cash flow guidance was increased by $1.5 million to a range of $13.5 million to $15.5 million.
• Estimated stock-based compensation for the next four fiscal quarters is provided, ranging from $5.4 million to $7.8 million per quarter.
• Management indicated that Expensify Classic remains a stable cash-flow engine with a naturally declining customer base, while New Expensify serves as the growth engine targeting a massive, largely untapped market.

Business Segments and Product Lines:

• Revenue from New Expensify increased 30% from Q2 and 212% year-over-year.
• Paid members totaled 630,000, a 2% decrease year-over-year.
• Expensify Travel bookings grew 40% year-over-year and 13% from Q2, marking the highest quarter on record.
• Consolidated travel billing was launched, allowing customers to finance travel bookings for a single monthly debit.
• The Expensify Card expanded to the UK and 12 EU countries (13 markets total) for GBP and EUR bank accounts.
• AI features saw explosive adoption, with new MCP connections doubling last month; the custom agent beta handles over 96% of real-world requests.
• New integrations launched include AI-native ERPs Rillet and DualEntry, a Claude for Small Business connector, and native integrations with Workday, HiBob, BambooHR, and Certinia.
• Cohort conversion increased 67% year-over-year due to micro-optimizations in the conversion pipeline.

Market and Competitive Landscape:

• Entered into a referral agreement with Visa, allowing Visa to refer eligible clients and corporate card programs to Expensify.
• Selected for the Claude for Small Business bundle, driving adoption of AI features.
• The company operates in a highly competitive market with ongoing focus on converting individuals and organizations into paying customers.

Risks and Challenges:

• Forward-looking statements involve risks including inflation, borrowing costs, interest rate increases, and general economic conditions.
• Risks include the ability to attract and retain members, expand platform usage, and successfully defend litigation.
• Potential impacts from geopolitical tensions, foreign currency exchange rate fluctuations, and reliance on third parties (issuing bank, payment processor, card network) are noted.
• Risks related to AI technology adoption, security incidents, and maintaining Nasdaq listing requirements are disclosed.

Management Commentary and Tone:

• Founder and CEO David Barrett described the quarter as "another strong quarter" regarding financial results and product functionality.
• Management expressed pride in accomplishments and anticipation for 2027, characterizing the New Expensify growth engine as taking on a massive, largely untapped market.
• The tone highlighted the success of the "growth engine" (New Expensify) versus the "stable cash-flow engine" (Expensify Classic).

Other Key Points:

• The Company repurchased 722,121 shares of Class A common stock, returning approximately $1.3 million to shareholders.
• A conference call to discuss results was scheduled for 2:00 p.m. Pacific Time on November 5, 2026.
• The company has 15 million members worldwide.
• The press release includes detailed reconciliations of GAAP to Non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP net income, and Free Cash Flow.