Expensify (EXFY) investor relations material

Executive summary

• Q1 2026 revenue was $34.0 million, down 6% year-over-year, with average paid members at 632,000, down 4% year-over-year.

• Interchange revenue grew 10% year-over-year to $5.5 million, reflecting product and partnership expansion.

• Net loss for Q1 was $2.3 million, an improvement from $3.2 million in Q1 2025, with a net loss margin of 7% versus 9% last year.

• April paid active members increased to 641,000, signaling a potential return to growth.

• Over 30 product improvements shipped in Q1, with new integrations and partnerships established with major banks and ERP providers.

Financial highlights

• Adjusted EBITDA was $6.2 million (18% margin), down from $8.4 million (23% margin) in Q1 2025.

• Non-GAAP net income was $3.6 million (11% margin), compared to $4.8 million (13% margin) last year.

• Free cash flow was $2.5 million (7% margin), impacted by a one-time $2.6 million legal settlement payment.

• Operating cash flow was $0.1 million.

• Cash and cash equivalents totaled $66.5 million as of March 31, 2026, with no outstanding debt.

Outlook and guidance

• Full-year 2026 free cash flow guidance reiterated at $6 million–$9 million.

• Management sees encouraging signs for Q2 with paid active members rising in April.

• Major AI capabilities launching June 15th and new revenue streams expected.

• Stock-based compensation for the next four quarters is estimated between $4.3 million and $6.7 million per quarter.

• The company believes existing cash resources are sufficient for at least the next 12 months.