Expensify Lifts Full-Year Free Cash Flow Outlook
The company now estimates $12.0 million to $14.0 million of free cash flow for the year ending December 31, 2026, after a $6.4 million second-quarter print.
Expensify, Inc. (EXFY), the expense, corporate-card and travel software company, raised its free cash flow outlook for the fiscal year ending December 31, 2026, to $12.0 million to $14.0 million from the $6.0 million to $9.0 million range it had given after the first quarter.
The lift followed a second quarter in which the company generated $6.4 million of free cash flow, compared with $2.5 million in the first quarter, a figure that included a $2.6 million one-time payment to settle a shareholder class-action lawsuit. Cash from operating activities was $8.4 million in the June quarter.
Net revenue was $33.9 million, down 5% from a year earlier. That decline was a little narrower than the 6% drop recorded in the first quarter, when revenue was $34.0 million. Paid members were 640,000, down 2% from a year earlier, after a 4% year-over-year decline in the prior quarter.
Founder and Chief Executive David Barrett framed the quarter around a two-product story: Expensify Classic, which he described as a profitable workhorse on a slowly shrinking, closed customer base, and New Expensify, a redesign he said is growing quickly. Revenue from net-new customers who signed up on New Expensify and never used Classic grew more than 250% year over year, to more than $10 million of annual recurring revenue across more than 10,000 new customers, he said, excluding Classic customers who switched.
Interchange revenue from the Expensify Card was $5.9 million, up 12% from a year earlier. Customers can now set up Expensify, automate expenses and analyze spend using natural language via email, text or in-app, with AI-powered workflow agents in beta. The company launched the Expensify MCP to connect the platform to assistants such as ChatGPT, Claude and Cursor. It shipped more than 30 product improvements in the quarter across cards, mileage tracking, policy controls, bulk editing and AI-powered spend controls.
GAAP net loss was $3.9 million, or $0.04 a share, compared with $8.8 million, or $0.10 a share, a year earlier. Non-GAAP net income was $3.4 million. Adjusted EBITDA was $6.6 million, or a 19% margin. Sales and marketing expense was $4.7 million in the June quarter.
The company used cash to buy back stock. It repurchased about 6.1 million shares of Class A common stock at $1.20 a share in a modified Dutch auction tender offer that Barrett said was substantially undersubscribed, then bought about 712,000 additional shares at an average $1.63 a share. Total second-quarter repurchases of about 6.8 million shares represented an approximately 7% reduction in shares outstanding.
Cash and cash equivalents were $65.8 million at June 30, 2026. Barrett said the path back to sustained growth depends on migrating remaining Classic customers onto New Expensify and on scaling lead generation and self-service sales. The company estimates stock-based compensation of $5.4 million to $7.4 million in the third quarter of 2026, driven primarily by a pre-IPO RSU grant with about three years of vesting remaining.