Expensify Reports 7% Revenue Growth to $35.8 Million in Q2 2025, Faces Increased Net Loss

Expensify, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 7% to $35.8 million compared to $33.3 million in the same period last year. For the first half of 2025, total revenue reached $71.8 million, an 8% rise from $66.8 million in the prior year. Despite this growth, the company experienced a net loss of $8.8 million for the quarter, significantly higher than the $2.8 million loss reported in Q2 2024. The loss per share for the quarter was $(0.10), compared to $(0.03) in the previous year.

The increase in revenue was primarily driven by a rise in interchange revenue, attributed to a shift in cardholder spending from the Legacy Card Program to the Updated Card Program. However, this growth was partially offset by a decrease in billable activity and an increase in contra revenue related to cashback payments. The cost of revenue also rose by 20% to $17.2 million, leading to a gross margin decline to 52% from 57% in the prior year. The increase in costs was largely due to a decrease in consideration earned under the Legacy Card Program and higher payment processing fees.

In terms of operational metrics, Expensify reported an average of 652,000 paid members across approximately 42,800 companies as of June 30, 2025, a decrease from 684,000 paid members in the same quarter last year. The company has continued to expand its geographic reach, with operations in multiple countries, including the U.S., Australia, Canada, the Netherlands, and the UK. The Expensify Card, which allows real-time control over employee spending, has been a significant focus, with cashback rewards increasing as adoption grows.

Strategically, Expensify has made substantial investments in sales and marketing, with expenses surging by 367% to $14.3 million in Q2 2025, largely due to advertising related to its title sponsorship of "F1® The Movie." The company has also been actively managing its capital structure, with $60.5 million in cash and cash equivalents as of June 30, 2025, and no outstanding debt. Looking ahead, Expensify anticipates that its existing cash resources will be sufficient to support its operations and growth strategy for the next 12 months, despite the ongoing challenges posed by macroeconomic conditions such as inflation and potential recession risks.