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Expensify, Inc. (EXFY)
:EXFY
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Expensify
(NASDAQ:EXFY)
56Neutral
Positive Factors
Cash Generation
The company is expected to have another year of solid cash generation in 2025, with a conservative guidance for adjusted free cash flow of $16-$20M.
Cost Management
The company removed almost $35M in operational expenses from the business, showcasing effective cost management.
Financial Performance
The company closed out 2024 on a positive note coming in ahead on both revenue and AEBITDA as the legacy subscription business and card revenue both outperformed estimates.
Negative Factors
Competitive Pressure
Expensify needs to demonstrate product-led growth to compete against well-funded competitors like Concur, Divvy, Ramp, and Brex.
Customer Growth
This is partially dampened by the continued decline of paid users and flat customer growth.
Subscription Business Challenges
The subscription business is still facing challenges, with no significant recovery expected in 2025, and growth coming only from interchange revenue.
Expensify (EXFY) vs. S&P 500 (SPY)
Market Cap
$219.92M
Dividend YieldN/A
Average Volume (3M)351.02K
Price to Earnings (P/E)―
Beta (1Y)2.08
Revenue Growth-1.63%
EPS Growth77.80%
CountryUS
Employees115
SectorTechnology
Sector Strength65
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.06
Shares Outstanding80,399,796
10 Day Avg. Volume383,831
30 Day Avg. Volume351,016
Financial Highlights & Ratios
PEG Ratio-0.17
Price to Book (P/B)2.17
Price to Sales (P/S)0.00
P/FCF Ratio17.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside68.07% Upside
Rating ConsensusHold
Number of Analyst Covering4
Expensify Business Overview & Revenue Model
Company DescriptionExpensify, Inc. provides a cloud-based expense management software platform to individuals, small businesses, and corporations in the United States and internationally. The company's platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.
How the Company Makes MoneyExpensify generates revenue primarily through a subscription-based model where businesses pay for access to its expense management platform. The company offers different pricing tiers based on the size of the organization and the features required, ranging from basic plans for small businesses to more comprehensive packages for large enterprises. Additionally, Expensify earns money through its Expensify Card, a corporate credit card that offers cashback rewards and is integrated with its expense management software. The company may also have partnerships with financial institutions and other technology providers to expand its service offerings and enhance platform capabilities, although specific details on such partnerships are not disclosed.
Expensify Financial Statement Overview
Summary
Expensify shows improved cash flow and reduced debt, indicating stronger financial health. However, declining revenue and consistent net losses highlight ongoing profitability challenges.Income Statement
Expensify's revenue has been volatile, showing a decline from $169.5M in 2022 to $150.7M in 2023, and further down to $139.2M in 2024. The gross profit margin in 2024 was approximately 53.85%, indicating moderate efficiency in cost management. However, the net profit margin remains negative at -7.22%, reflecting ongoing challenges in achieving profitability.55
Neutral
Balance Sheet
The debt-to-equity ratio improved significantly to 0.04 in 2024, indicating a low leverage level and reduced financial risk. The equity ratio has strengthened, with stockholders' equity covering 73.84% of total assets. This suggests a solid capital structure, though past years showed higher debt levels.60
Neutral
Cash Flow
The operating cash flow showed strong growth, increasing to $23.9M in 2024 from $1.6M in 2023. Free cash flow also turned positive, reaching $23.9M, reflecting better cash management. The free cash flow to net income ratio is high due to negative net income, highlighting the need for ongoing profitability improvements.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 139.24M | 150.69M | 169.50M | 142.84M | 88.07M | Gross Profit |
| 75.00M | 83.80M | 106.83M | 89.14M | 55.66M | EBIT |
| -820.00K | -33.15M | -15.23M | -10.25M | 5.67M | EBITDA |
| -820.00K | -27.98M | -9.84M | -5.05M | 7.92M | Net Income Common Stockholders |
| -10.05M | -41.46M | -27.01M | -13.56M | -1.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.77M | 47.51M | 103.79M | 98.40M | 34.40M | Total Assets |
| 173.68M | 176.78M | 210.24M | 183.21M | 87.73M | Total Debt |
| 5.74M | 29.55M | 67.78M | 69.97M | 51.70M | Net Debt |
| -43.03M | -17.96M | -36.00M | -28.43M | 17.30M | Total Liabilities |
| 45.44M | 76.04M | 113.00M | 106.60M | 118.77M | Stockholders Equity |
| 128.24M | 100.74M | 97.24M | 76.61M | -31.04M |
| Cash Flow | Free Cash Flow | |||
| 23.88M | -5.74M | 30.67M | -2.13M | 3.29M | Operating Cash Flow |
| 23.88M | 1.56M | 32.88M | 5.49M | 7.58M | Investing Cash Flow |
| -7.63M | -7.29M | -2.20M | -7.61M | -4.29M | Financing Cash Flow |
| -22.07M | -45.32M | -8.28M | 80.56M | 8.79M |
Expensify Technical Analysis
Negative
2.38
Price Trends
3.08
Negative
3.31
Negative
2.81
Negative
Market Momentum
-0.06
Positive
33.37
Neutral
47.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXFY, the sentiment is Negative. The current price of 2.38 is below the 20-day moving average (MA) of 2.84, below the 50-day MA of 3.08, and below the 200-day MA of 2.81, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 47.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXFY.
Expensify Risk Analysis
Expensify disclosed 72 risk factors in its most recent earnings report. Expensify reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Expensify Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $247.83M | 1.38 | -10.56% | 5.29% | -11.07% | 953.01% | |
63 Neutral | $264.21M | ― | -7.01% | ― | 4.52% | -20.60% | |
62 Neutral | $191.00M | ― | -12.48% | ― | 10.05% | -213.69% | |
60 Neutral | $10.96B | 10.27 | -6.73% | 2.97% | 7.73% | -11.60% | |
56 Neutral | $219.92M | ― | -7.83% | ― | -1.63% | 77.80% | |
56 Neutral | $230.34M | 2.78 | 35.11% | 1.24% | 3828.94% | 129.01% | |
50 Neutral | $198.08M | ― | -24.47% | ― | -8.39% | 7.79% |
* Technology Sector Average
Performance Comparison
EXFY
Expensify
2.38
0.64
36.78%
ASUR
Asure
9.98
2.61
35.41%
IMMR
Immersion
7.28
-0.75
-9.34%
SSTI
SoundThinking Inc
15.68
1.15
7.91%
MKTW
MarketWise
15.13
-12.61
-45.46%
ONTF
ON24
4.85
-1.61
-24.92%
Expensify Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -22.22%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a balanced outlook with both positive growth metrics such as revenue, free cash flow, and travel expansion, alongside challenges including a GAAP net loss, slight decline in paid members, and economic uncertainties. The impact of the F1 movie promotion is yet to be fully realized but presents a potential future benefit.Q1-2025 Updates
Positive Updates
Revenue Growth
The company's revenue was $36.1 million, reflecting an 8% increase year-on-year.
Free Cash Flow Increase
The free cash flow was $9.1 million, a significant 75% increase year-on-year and a 45% increase quarter-on-quarter.
Interchange Growth
Total interchange grew by 43% year-on-year.
Travel Segment Expansion
Expensify travel saw a 166% quarter-over-quarter increase in quarterly travel in Q1.
Spanish Language Support
The company announced full Spanish support in its product UI, messaging, and customer support.
AI and Product Enhancements
Completed AI features including conversational corrections and advanced policy violations detection. Initiated fraud reduction measures and virtual CFO functionality.
Successful Marketing Promotions
Expensify's F1 promotion led to a quadrupling of sign-ups after a specific event, highlighting effective marketing strategies.
Negative Updates
GAAP Net Loss
The company reported a GAAP net loss of $3.2 million.
Slight Decline in Paid Members
Paid members in April decreased slightly to 655,000, less than 0.5% down from Q1.
Economic and Tariff Concerns
The company expressed concerns about the impact of economic conditions and tariffs, leading to conservative financial guidance.
Impact of F1 Movie Promotion on Financials
The F1 movie expenses will be recognized in Q2, leading to a substantial increase in S&M expenses.
Company Guidance
During Expensify's Q1 2025 earnings call, CFO Ryan Schaffer provided updated guidance for the company's financial outlook. The company reported a revenue of $36.1 million, marking an 8% increase year-on-year, with average paid members at 657,000. Key financial metrics included a GAAP net loss of $3.2 million and a non-GAAP net income of $4.8 million, while adjusted EBITDA was noted at $8.4 million. Expensify's free cash flow for the quarter was $9.1 million, reflecting a 75% year-on-year increase and a 45% rise quarter-on-quarter. Due to economic uncertainties and tariff impacts, Expensify revised its annual free cash flow guidance upward to a range of $17 million to $21 million from the previously stated $16 million to $20 million. The company also highlighted significant growth in its Expensify Card and travel services, with a 43% and a 166% increase year-on-year, respectively. Additionally, Expensify's strategic adjustments to its pricing model and the introduction of AI-driven features were discussed, alongside the anticipated promotional impact from their involvement in Formula One and an upcoming movie release.Expensify Corporate Events
Business Operations and StrategyFinancial Disclosures
Expensify Reports Strong Q1 2025 Financial Results
Positive
May 8, 2025
On May 8, 2025, Expensify announced its Q1 2025 financial results, highlighting a 43% increase in interchange derived from the Expensify Card and an 8% rise in revenue compared to the previous year. The company also reported significant growth in cash flow and travel bookings, alongside preparations for a major brand placement opportunity in an upcoming Apple movie, indicating a strategic focus on enhancing brand visibility and operational capacity.
Spark’s Take on EXFY Stock
According to Spark, TipRanks’ AI Analyst, EXFY is a Neutral.
Expensify’s stock score reflects a mixed outlook with notable improvements in cash flow and balance sheet strength countered by ongoing income statement challenges. The technical indicators suggest a neutral to bearish sentiment, while the negative P/E ratio underscores profitability issues. However, positive earnings call insights and a new share buyback program highlight growth potential and management’s confidence in the company’s strategic direction.
To see Spark’s full report on EXFY stock, click here.
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Expensify Announces New $50 Million Share Buyback
Positive
Feb 27, 2025
On February 27, 2025, Expensify announced a new $50 million share repurchase program to replace its 2022 program, which was set to expire in March 2025. The company reported significant financial improvements for fiscal year 2024, including a 76% reduction in net loss and a 199% increase in adjusted EBITDA. Expensify also highlighted its advancements in AI technology, which have enhanced operational efficiency and customer service, and expressed its ambition to lead in AI within the fintech industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.