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Expensify (EXFY)
NASDAQ:EXFY
US Market

Expensify (EXFY) AI Stock Analysis

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Expensify

(NASDAQ:EXFY)

Rating:58Neutral
Price Target:
$2.50
▲(2.46%Upside)
Expensify's overall stock score is influenced primarily by its financial performance struggles, including ongoing losses and negative margins. Technical indicators provide mixed signals, while the earnings call offers a more optimistic view with revenue and cash flow growth. Valuation remains a concern with a negative P/E ratio. Strategic initiatives and promotional efforts could drive future growth, but economic uncertainties pose ongoing risks.
Positive Factors
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.
Revenue Growth
Card revenue experienced another terrific quarter, up 35% q/q to $5.0M, and further double-digit sequential growth is expected throughout 2025.
Negative Factors
Customer Growth
This is partially dampened by the continued decline of paid users and flat customer growth.
Market Competition
Expensify trades at substantial discounts to the peer group median multiple, justified by its slower relative growth rate and intense competition.

Expensify (EXFY) vs. SPDR S&P 500 ETF (SPY)

Expensify Business Overview & Revenue Model

Company DescriptionExpensify, Inc. is a financial technology company that provides an expense management platform designed to simplify the process of recording receipts and managing expenses for individuals and businesses. Founded in 2008 and headquartered in San Francisco, California, Expensify operates within the software and technology sectors, offering a suite of products that enable users to streamline financial operations, automate expense reports, and improve compliance with financial regulations.
How the Company Makes MoneyExpensify primarily generates revenue through subscription fees for its software-as-a-service (SaaS) platform. The company offers tiered pricing plans tailored to different types of users, including individual freelancers, small businesses, and large enterprises, each with varying levels of features and support. Key revenue streams include monthly and annual subscription fees, depending on the plan chosen by the customer. Expensify also partners with various financial institutions and third-party applications to enhance its service offerings, which can contribute to revenue through integration fees or revenue-sharing agreements. Additionally, Expensify may derive income from transaction fees for specific financial services offered through its platform, although this is not the primary source of revenue.

Expensify Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -20.26%|
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 Financial Statement Overview

Summary
Expensify faces significant challenges in achieving profitability, with ongoing net losses and negative profit margins. While the balance sheet is stable with a low debt-to-equity ratio and solid equity ratio, improvements in operational efficiency and cash flow generation are necessary for long-term viability. Revenue volatility and declining free cash flow growth pose risks to financial stability.
Income Statement
45
Neutral
Expensify shows declining revenue and profitability metrics. The gross profit margin has decreased over time, with a recent figure of 52.2% in TTM. Net profit margins remain negative, indicating ongoing losses with a TTM net profit margin of -6.7%. Revenue growth is volatile, with a decline of 5.7% from 2023 to 2024. Despite improvements, EBIT and EBITDA margins are still negative, reflecting operational challenges.
Balance Sheet
60
Neutral
The balance sheet is relatively stable with a low debt-to-equity ratio of 0.04 and a solid equity ratio of 71.2% as of TTM. However, the company has been unable to deliver positive ROE, with a TTM figure of -7.0%, highlighting profitability issues. The equity base is strong, but ongoing losses could erode this strength over time.
Cash Flow
55
Neutral
Cash flow metrics indicate modest improvements. The operating cash flow to net income ratio is positive, suggesting some operational efficiency. However, the free cash flow growth rate is negative at -14.3% from 2024 to TTM, which is concerning. The free cash flow to net income ratio of -2.2 in TTM reflects challenges in converting earnings into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue141.78M139.24M150.69M169.50M142.84M88.07M
Gross Profit74.09M75.00M83.80M106.83M89.14M55.66M
EBITDA1.45M5.99M-27.98M-9.84M-5.05M7.92M
Net Income-9.44M-10.05M-41.46M-27.01M-13.56M-1.71M
Balance Sheet
Total Assets189.24M173.68M176.78M210.24M183.21M87.73M
Cash, Cash Equivalents and Short-Term Investments59.63M48.77M47.51M103.79M98.40M34.40M
Total Debt5.56M6.47M29.55M67.78M69.97M51.70M
Total Liabilities54.59M45.44M76.04M113.00M106.60M118.77M
Stockholders Equity134.65M128.24M100.74M97.24M76.61M-31.04M
Cash Flow
Free Cash Flow20.48M23.88M-5.74M30.67M-2.13M3.29M
Operating Cash Flow25.28M23.88M1.56M32.88M5.49M7.58M
Investing Cash Flow-5.43M-7.63M-7.29M-2.20M-7.61M-4.29M
Financing Cash Flow-21.64M-22.07M-45.32M-8.28M80.56M8.79M

Expensify Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.44
Price Trends
50DMA
2.48
Positive
100DMA
2.84
Negative
200DMA
2.85
Negative
Market Momentum
MACD
0.03
Negative
RSI
53.36
Neutral
STOCH
51.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXFY, the sentiment is Neutral. The current price of 2.44 is above the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.48, and below the 200-day MA of 2.85, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 51.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$306.23M1.70-10.56%4.00%-11.07%953.01%
62
Neutral
$306.23M1.70-10.56%4.00%-11.07%953.01%
59
Neutral
$308.20M-7.01%4.52%-20.60%
59
Neutral
$308.20M-7.01%4.52%-20.60%
58
Neutral
$225.47M-7.83%-1.63%77.80%
58
Neutral
$250.42M2.9635.11%2.22%3828.94%129.01%
58
Neutral
$250.42M2.9635.11%2.22%3828.94%129.01%
56
Neutral
HK$13.71B5.07-5.77%5.42%9.48%-42.73%
54
Neutral
$173.24M-10.44%7.65%-96.35%
54
Neutral
$173.24M-10.44%7.65%-96.35%
54
Neutral
$229.37M-24.47%-8.39%7.79%
54
Neutral
$229.37M-24.47%-8.39%7.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EXFY
Expensify
2.44
0.44
22.00%
ASUR
Asure
10.79
2.60
31.75%
ASUR
Asure
10.79
2.60
31.75%
IMMR
Immersion
7.73
-1.84
-19.23%
IMMR
Immersion
7.73
-1.84
-19.23%
SSTI
SoundThinking Inc
13.67
2.12
18.35%
SSTI
SoundThinking Inc
13.67
2.12
18.35%
MKTW
MarketWise
18.55
-1.75
-8.62%
MKTW
MarketWise
18.55
-1.75
-8.62%
ONTF
ON24
5.47
-0.35
-6.01%

Expensify Corporate Events

Executive/Board ChangesShareholder Meetings
Expensify Holds Annual Stockholders Meeting, Elects Directors
Positive
Jun 16, 2025

On June 13, 2025, Expensify held its Annual Meeting of Stockholders, where several key decisions were made. The company’s stockholders elected eight directors to the board, ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation for the company’s named executive officers. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (EXFY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Expensify stock, see the EXFY Stock Forecast page.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025