Financial Data and Key Metrics Changes - In Q4 2025, revenue was $35.2 million, with a net loss of $7.1 million and a non-GAAP net loss of $2.1 million. Adjusted EBITDA was $3.3 million [3] - For the full fiscal year 2025, revenue reached $142.1 million, with a net loss of $21.4 million primarily due to stock-based compensation and expenses related to the F1 movie. Non-GAAP net income was $5.2 million, and adjusted EBITDA was $16.9 million [4] - Free cash flow for fiscal year 2025 was $19.9 million, exceeding initial guidance of $16 million to $20 million [4][5] Business Line Data and Key Metrics Changes - Average paid members remained stable at 650,000 for both Q4 and fiscal year 2025 [3][4] - Total interchange revenue increased to $21.3 million for fiscal year 2025, a 24% increase year-over-year [4][8] - Travel bookings in Q4 2025 surged by 434% compared to Q4 2024, indicating strong customer adoption [7] Market Data and Key Metrics Changes - The company reported a decrease in paid members to 626,000 in January 2026, typical for the seasonality observed in Q1 [5] - The company has entered a multi-year integration partnership with Uber for Business, enhancing its market position in corporate travel and expense workflows [6] Company Strategy and Development Direction - The company is focused on migrating existing customers to the New Expensify platform, achieving full feature parity for 90% of revenue-generating customers [9] - The strategy includes leveraging AI to enhance user experience, with a focus on "accountable intelligence" through its Concierge feature [14][18] - The company aims to create grassroots pressure for company-wide adoption of its services through a new free Submit plan for employees [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities presented by AI, viewing it as a chance for growth rather than a threat [29] - The company acknowledges the challenges posed by AI in the expense management sector but believes its collaborative features and compliance capabilities provide a competitive moat [26][27] - Management anticipates that increased investment in sales, marketing, and AI will impact free cash flow guidance for 2026, projecting $6 million to $9 million [5] Other Important Information - The company repurchased over 4.8 million shares of Class A common stock in 2025, totaling approximately $9 million, reflecting management's confidence in long-term business prospects [8] - The company received the TrustRadius 2026 Buyer's Choice Award in the expense management category, based on customer reviews [6] Q&A Session Summary Question: What is Expensify's place in an AI world? - Management believes that while AI may disrupt certain applications, Expensify's focus on collaboration and access to regulated financial networks provides a competitive advantage [25][26][27] Question: What contributed to the increase in paid members in Q4 2025? - Management attributed the increase to seasonal trends, noting that Q4 typically performs better than Q3, while the migration to the new platform also aids in customer retention [34]

Financial Data and Key Metrics Changes - Q4 revenue was $35.2 million, with a fiscal year 2025 revenue of $142.1 million, reflecting growth [3][4] - Average paid members remained stable at 650,000 for both Q4 and fiscal year 2025 [3][4] - Total interchange increased to $21.3 million in fiscal year 2025, up from $5.5 million in Q4 [3][4] - Q4 operating cash flow was $2.2 million, while fiscal year 2025 operating cash flow reached $20.1 million [3][4] - Free cash flow for fiscal year 2025 was $19.9 million, exceeding initial guidance [4][5] - Net loss for fiscal year 2025 was $21.4 million, primarily due to stock-based compensation and expenses related to the F1 movie [4] Business Line Data and Key Metrics Changes - Expensify Travel bookings in Q4 increased by 434% compared to Q4 of 2024, indicating strong customer adoption [7] - The Expensify Card saw a 24% year-over-year increase in interchange revenue [8] Market Data and Key Metrics Changes - The company entered a multi-year integration partnership with Uber for Business, enhancing its market position in corporate travel and expense workflows [6] Company Strategy and Development Direction - The company is focused on migrating existing customers to the New Expensify platform, achieving full feature parity for 90% of revenue-generating customers [9] - The strategy includes leveraging AI to enhance user experience and operational efficiency, with a focus on product-led growth [12][17] - The introduction of a new free Submit plan aims to increase grassroots adoption among employees [13] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for fiscal year 2026, anticipating lower free cash flow guidance of $6 million to $9 million due to increased investments in sales, marketing, and AI [5] - The management believes that AI presents more opportunities than risks for Expensify, positioning the company to thrive amid AI advancements [25][26] Other Important Information - The company repurchased over 4.8 million shares of Class A common stock throughout 2025, totaling approximately $9 million, reflecting management's confidence in long-term business prospects [8] Q&A Session Summary Question: What is Expensify's place in an AI world? - Management acknowledged that while AI poses challenges, Expensify's collaborative nature and access to regulated financial networks provide significant competitive advantages [21][23] Question: What contributed to the increase in paid members in Q4 2025? - Management attributed the increase primarily to seasonal trends, with migration to the new product also playing a role in customer retention [30]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $35.2 million, with a net loss of $7.1 million and a non-GAAP net loss of $2.1 million, while adjusted EBITDA was $3.3 million [3][4] - For fiscal year 2025, total revenue reached $142.1 million, with a net loss of $21.4 million primarily due to stock-based compensation and expenses related to the F1 movie [4] - Fiscal year 2025 free cash flow was $19.9 million, exceeding initial guidance of $16 million-$20 million [4][5] - The company is initiating fiscal year 2026 free cash flow guidance of $6 million-$9 million, reflecting a conservative outlook [5] Business Line Data and Key Metrics Changes - Average paid members remained stable at 650,000 for both Q4 2025 and fiscal year 2025 [3][4] - Total interchange revenue for fiscal year 2025 was $21.3 million, a 24% increase year-over-year [4][7] - Expensify Travel bookings in Q4 2025 increased by 434% compared to Q4 2024, indicating strong customer adoption [6] Market Data and Key Metrics Changes - The company reported a total interchange of $5.5 million in Q4 2025, contributing to the overall growth in revenue [3] - The company repurchased over 4.8 million shares of Class A common stock throughout 2025, totaling approximately $9 million, reflecting management's confidence in long-term opportunities [7] Company Strategy and Development Direction - The company is focused on migrating existing customers to the New Expensify platform, achieving full feature parity for 90% of revenue-generating customers [9] - A multi-year integration partnership with Uber for Business was established to automate travel and meal receipts, enhancing policy controls [6] - The company is emphasizing AI integration into its user experience, with a focus on "accountable intelligence" through its Concierge AI feature [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to thrive in an AI-driven world, viewing AI as an opportunity rather than a threat [25][26] - The company acknowledged the challenges posed by advances in AI but highlighted its unique collaborative capabilities as a competitive advantage [21][22] - Management noted that the increase in paid members in Q4 2025 was primarily seasonal, with expectations for continued growth as migration progresses [31] Other Important Information - The company received the TrustRadius 2026 Buyer's Choice Award in the expense management category, based on customer reviews [6] - The New Expensify platform is designed to facilitate product-led growth, with a focus on grassroots adoption among employees [12][13] Q&A Session Summary Question: What is Expensify's place in an AI world? - Management acknowledged that while AI could disrupt certain applications, Expensify's focus on collaboration and access to regulated financial networks provides a competitive moat [21][22][23] Question: What contributed to the increase in paid members in Q4 2025? - Management attributed the increase to seasonal trends and the positive impact of the migration to the New Expensify platform [31]

FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-41043 EXPENSIFY, INC. (Exact name of registrant as specified in its charter) | Delaware | 27-0239450 | | --- | --- | | (State or other jurisdict ...

Exhibit 99.1 EXPENSIFY ANNOUNCES Q4 AND FULL YEAR FISCAL 2025 RESULTS The company generated $20.1 million in operating cash flow and $19.9 million in free cash flow in fiscal year 2025 SAN FRANCISCO, Cal.--(BUSINESS WIRE)--February 26, 2026-- Expensify, Inc. (Nasdaq: EXFY), a payments superapp that helps individuals and businesses around the world simplify the way they manage money across expenses, corporate cards and bills, today released a letter to shareholders from Founder and CEO David Barrett alongsid ...

Group 1 - The core viewpoint of the article highlights that while the market appears stable, AI-native companies are experiencing a threefold increase in growth, which is impacting margins and R&D positions. The traditional SaaS logic is failing, leading to a brutal efficiency war [1][6][7]. Group 2 - The 2025 SaaS Benchmark Report is based on a survey of over 800 B2B SaaS companies, aiming to provide insights into growth rates, personnel size, pricing strategies, and operational efficiency [2][3]. - The report identifies key performance indicators for SaaS companies, including growth rates, net revenue retention (NRR), gross margins, and revenue per full-time employee (FTE) [3][5]. Group 3 - The efficient growth matrix suggests that traditional metrics like LTV:CAC should be reconsidered, emphasizing the importance of combining CAC payback period and NRR for clearer insights into long-term profitability [6][10]. - AI-native startups are growing at a significantly faster rate than traditional B2B SaaS companies, with a notable difference in growth rates across various annual recurring revenue (ARR) brackets [11][19]. Group 4 - AI is reshaping technology roles, particularly in engineering, with significant reductions in workforce due to AI integration. The most affected roles include engineering, customer success, and marketing [17][21]. - The report indicates that companies with higher productivity, measured by revenue per employee, are achieving substantial gains, with top companies exceeding $580,000 in revenue per employee [18]. Group 5 - Pricing sweet spots have been identified, with optimal transaction sizes for growth and retention being between $10,000-$25,000 and $50,000-$100,000. Companies in these ranges tend to experience the best growth rates and retention [22][25][26].

Core Insights - Expensify, Inc. has been recognized as a 2026 Buyer's Choice award winner in the expense management category by TrustRadius, highlighting its strong customer satisfaction and effectiveness in managing expenses, corporate cards, and travel [1] Company Recognition - The Buyer's Choice awards are based entirely on vetted customer reviews, indicating that the recognition is derived from actual user experiences and feedback [1] - Customer testimonials describe Expensify as a "game changer" for organizations, particularly noting its simplicity and effectiveness for nonprofit organizations [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $35.1 million, with a net loss of $2.3 million and non-GAAP net income of $4.3 million [4] - Average paid members increased to 642,000, with a rise to 653,000 in October [4] - Operating cash flow was $4.2 million, and free cash flow was $1.2 million, slightly lower than previous quarters due to seasonal timing [4] - The company reiterated its fiscal year 2025 free cash flow guidance of $19 million to $23 million [4] Business Line Data and Key Metrics Changes - The "Expense by Travel" segment saw bookings grow by 36% from Q2 and 95% since Q1, indicating strong performance in this area [5] - The company repurchased approximately $3 million worth of Class A common stock [6] Market Data and Key Metrics Changes - The company is now the official travel and expense partner of the Brooklyn Nets, showcasing its growing market presence [5] Company Strategy and Development Direction - The company is focused on migrating existing customers to the new Expensify platform, targeting 90% feature parity with the Classic version [7][8] - The design of the new Expensify anticipates modern AI integration, aiming for a hybrid system that combines AI and human support [12][14] - The company emphasizes a chat-first design for AI interactions, aiming to enhance user experience and functionality [26][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential risks from government shutdowns affecting travel but noted that it could lead to increased spending in certain scenarios [41][42] - The company is optimistic about the migration to new Expensify and expects significant progress by the end of the year [48][50] Other Important Information - The company is focused on reducing support costs by migrating customers to the new platform, which is expected to handle issues more efficiently than Classic [53][54] Q&A Session Summary Question: Insights on chat as the UI for AI and competitive advantages - Management highlighted the importance of built-in AI functionality within the product, allowing users to interact contextually without leaving their current task [31][33] Question: Impact of government shutdowns on travel - Management noted that uncertainty is generally not favorable for business, but the impact would depend on how travelers adjust their plans [40][42] Question: Migration progress from Classic to New Expensify - Less than 50% of revenue is currently from New Expensify, with a focus on migrating existing customers while ensuring their comfort with the transition [47][48] Question: Incremental monetization and cost savings from concierge agent - Management indicated that migrating to New Expensify should reduce support costs and enhance monetization opportunities through improved functionality [53][55]

Financial Performance - Total revenue for Q3 2025 was $35.1 million, a decrease of 1% compared to the same period last year[8] - Total revenue for the three months ended September 30, 2025, was $35,065, a decrease of 1% compared to $35,409 in the same period of 2024[29] - Non-GAAP net income for Q3 2025 was $4.3 million, with adjusted EBITDA at $6.5 million[8] - Adjusted EBITDA for the three months ended September 30, 2025, was $6,503, down 33% from $9,676 in 2024, resulting in an adjusted EBITDA margin of 19%[32] - Non-GAAP net income for the three months ended September 30, 2025, was $4,348, a decrease of 20% from $5,432 in 2024, with a non-GAAP net income margin of 12%[32] - Net loss for the nine months ended September 30, 2025, was $14,272, compared to a net loss of $8,743 in 2024, representing a 63% increase in losses[31] Cash Flow and Guidance - Free cash flow for Q3 2025 was $1.2 million, primarily impacted by unfavorable timing of cash payments related to working capital[8] - Free cash flow for the three months ended September 30, 2025, was $1,228, significantly down from $6,679 in 2024, reflecting a free cash flow margin of 4%[32] - Free cash flow guidance for the fiscal year ending December 31, 2025, is estimated to be between $19.0 million and $23.0 million[10] Membership and Engagement - Paid members decreased by 6% year-over-year, totaling 642,000[8] - Expensify Travel bookings increased by 36% quarter-over-quarter and 95% since Q1 2025[8] Stock and Shareholder Activity - The company repurchased 1,579,763 shares of Class A common stock for approximately $3.0 million[8] Operational Metrics - Gross margin for the nine months ended September 30, 2025, was $54,217, down from $56,141 in 2024, reflecting a decrease of approximately 3%[29] - Total operating expenses for the nine months ended September 30, 2025, increased to $68,299, up 19% from $57,426 in 2024[29] Assets and Liabilities - Cash and cash equivalents at the end of the period were $104,381, an increase from $85,254 at the end of September 2024[31] - Total assets as of September 30, 2025, were $186,835, an increase of 8% from $173,680 as of December 31, 2024[27] - Total liabilities as of September 30, 2025, were $51,175, up 12% from $45,437 as of December 31, 2024[27] Product and Partnership Developments - The upgraded Concierge AI was introduced, designed to enhance user interaction and support[3][5] - Expensify became the official Travel and Expense partner of the Brooklyn Nets in Q3 2025[8]

Revenue and Financial Performance - For the three months ended September 30, 2025, revenue was $35.1 million, a decrease of $0.3 million or 1% compared to $35.4 million in the same period of 2024[132]. - Revenue increased by $4.7 million, or 5%, to $106.9 million for the nine months ended September 30, 2025, compared to $102.2 million in 2024[141]. - The net loss for the three months ended September 30, 2025, was $2.3 million, compared to a net loss of $2.2 million in the same period of 2024[131]. - For the nine months ended September 30, 2025, the company reported a net loss of $14,272,000, compared to a net loss of $8,743,000 in 2024, with a net loss margin of 13% versus 9%[180]. Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2025, were $19.7 million, an increase from $18.0 million in the same period of 2024[131]. - Cost of revenue, net increased by $0.5 million, or 3%, to $17.7 million for the three months ended September 30, 2025, compared to $17.1 million in 2024[133]. - General and administrative expenses increased by $0.7 million, or 8%, to $9.8 million for the three months ended September 30, 2025, compared to $9.1 million in 2024[136]. - Research and development expenses for the three months ended September 30, 2025, were $4.9 million, a decrease from $5.6 million in the same period of 2024[131]. - Sales and marketing expenses increased to $4.9 million for the three months ended September 30, 2025, compared to $3.3 million in the same period of 2024[131]. Profitability Metrics - Adjusted EBITDA for the three months ended September 30, 2025, was $6.5 million, with an adjusted EBITDA margin of 19%, compared to $9.7 million and 27% in 2024[174]. - Non-GAAP net income for the three months ended September 30, 2025, was $4.3 million, representing a margin of 12%, down from $5.4 million and 15% in 2024[176]. - Free cash flow for the three months ended September 30, 2025, was $1.2 million, with a free cash flow margin of 4%, compared to $6.7 million and 19% in 2024[177]. - Non-GAAP net income for the nine months ended September 30, 2025, was $7,308,000, down from $14,792,000 in 2024, resulting in a non-GAAP net income margin of 7% compared to 14% in the prior year[180]. Membership and Transaction Metrics - The number of paid members averaged 642,000 across 38,800 companies as of September 30, 2025[114]. - As of September 30, 2025, the average number of paid members was 642, a decrease from 684 in the same period of 2024[171]. - Expensify has processed and automated 1.8 billion expense transactions on its platform as of September 30, 2025[114]. Cash and Financing - Net cash provided by operating activities was $17.9 million for the nine months ended September 30, 2025, compared to $16.5 million in 2024[153]. - As of September 30, 2025, the company had $61.5 million in cash and cash equivalents, with no outstanding indebtedness[150]. - The company had $44.0 million remaining under the 2025 Share Repurchase Program as of September 30, 2025[159]. - The company repaid the outstanding balance of $7.6 million on the amortizing term mortgage in August 2024[160]. - The 2024 Amended Loan and Security Agreement provided for a $25.0 million revolving credit facility, which was terminated on July 1, 2025, with no borrowings outstanding at that time[161][166]. - The company entered into a new Letter of Credit Facility and Security Agreement on October 9, 2025, maintaining a Letter of Credit of $7.5 million[167]. Risk and Compliance - The company is subject to customary covenants under the LOC Security Agreement, restricting certain financial activities[168]. - The company has not reported any material changes in contractual obligations and commitments as of September 30, 2025[182]. - There are no off-balance sheet financing arrangements or relationships with unconsolidated entities as of the reporting date[185]. - The company has not experienced any material changes in market risk compared to the previous year[189]. - There have been no material changes to critical accounting policies and estimates compared to the previous annual report[187].