Revenue for the fourth quarter of fiscal 2025 totaled $35.2 million, a 5% decline from the $37.0 million reported in Q4 2024. Net loss for the quarter was $7.1 million, a sharp increase from the $1.3 million loss in the same period last year. Full‑year revenue reached $142.1 million, up 2% from $139.2 million in 2024, while the full‑year net loss expanded to $21.4 million, more than double the $10.1 million loss in 2024. The revenue dip was largely driven by weaker demand in the legacy expense‑management segment, whereas growth in Expensify Travel (bookings up 434% YoY) and Expensify Card interchange (up 24% YoY) helped offset the decline.
Operating cash flow for the year was $20.1 million and free cash flow was $19.9 million, both strong figures that demonstrate the company’s ability to generate cash even while operating at a loss. In Q4, operating cash flow was $2.2 million and free cash flow was $3.2 million. The robust cash generation is attributed to high‑margin AI‑driven features and the increasing adoption of the New Expensify platform.
The New Expensify platform has achieved feature parity for 90% of revenue‑generating customers and has been rolled out to 63% of Classic customers, becoming the default for all new customers. This migration is expected to reduce support costs and improve user experience, positioning the company for higher future revenue and margin expansion.
Management guided fiscal 2026 free cash flow to $6–$9 million, a significant reduction from the $19.9 million generated in fiscal 2025. CFO Ryan Schaffer explained that the lower guidance reflects a “conservative outlook on 2026, combined with the fact that we are expecting to increase investment in sales and marketing as well as AI this year.” The guidance signals a focus on long‑term growth at the expense of short‑term cash generation.
In aftermarket trading, the stock rose 0.79%, driven by the strong free cash flow and the progress in platform migration, which investors viewed as mitigating the revenue miss. The market reaction underscores confidence in the company’s cash‑generating capability and its strategic shift toward AI and new product lines.
Headwinds include a 5% YoY revenue decline, widening net loss, and increased investment in sales, marketing, and AI. Tailwinds are the rapid growth of Expensify Travel, the expansion of the Card interchange program, and the partnership with Uber for Business. CEO David Barrett noted that “New Expensify now has full feature parity with Classic for customers representing 90% of our revenue,” and that “We’ve now rolled it out to 63% of Classic customers.” These developments suggest that while short‑term profitability is under pressure, the company is positioning itself for a stronger, AI‑driven future.
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