Overview

• U.S. expense management firm's Q1 revenue fell 6% yr/yr, missing analyst expectations

• Company posted a Q1 net loss of $2.3 mln, improved from prior year

• Expensify Card interchange revenue grew 10% yr/yr to $5.5 mln

Outlook

• Expensify estimates fiscal 2026 free cash flow of $6.0 mln to $9.0 mln

• Company expects stock-based compensation of $4.7 mln to $6.7 mln in Q2 2026

• Expensify says expanded partnerships and product improvements position business for future growth

Result Drivers

• INTERCHANGE REVENUE GROWTH - Expensify Card interchange revenue rose 10% yr/yr to $5.5 mln

• DECLINE IN PAID MEMBERS - Paid members fell 4% yr/yr, which may have contributed to lower revenue

• NEW PARTNERSHIPS AND INTEGRATIONS - Co launched integrations with Campfire ERP, Rillet ERP, and American Airlines, and announced strategic partnerships with Xero, ANZ Bank, Kiwi Bank, and the Institute of Commercial Payments

Company press release: ID:nBw6dZSvha

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$33.97 mln	$35.07 mln (3 Analysts)
Q1 EPS		-$0.02
Q1 Net Income		-$2.34 mln
Q1 Income from Operations		-$1.97 mln
Q1 Operating Expenses		$18.14 mln
Q1 Pretax Profit		-$1.80 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Expensify Inc is $1.50, about 36.4% above its May 6 closing price of $1.10

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

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