Expensify, Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2025, reaching $142.1 million, up 2% from $139.2 million in 2024. The growth was primarily driven by a significant rise in interchange revenue, which surged to $21.3 million from $9.2 million the previous year, attributed to the transition of cardholder spending from the Legacy Card Program to the Updated Card Program. However, this increase was partially offset by a decrease in billable activity and an increase in contra revenue related to cashback payments, which totaled $10.1 million for the year.
The company's cost of revenue also rose, increasing by 10% to $70.6 million, leading to a gross margin decline from 54% in 2024 to 50% in 2025. This increase in costs was driven by higher payment processing fees and increased amortization expenses related to capitalized software. Operating expenses surged by 18% to $89.5 million, largely due to a 109% increase in sales and marketing expenses, which were significantly impacted by the company's title sponsorship of the film "F1® The Movie." As a result, Expensify reported a net loss of $21.4 million, compared to a net loss of $10.1 million in the prior year.
In terms of operational metrics, Expensify maintained an average of 650,000 paid members across approximately 39,700 companies in over 200 countries. The company continues to focus on expanding its user base and enhancing product features, with a particular emphasis on converting free users to paid subscriptions. The gross logo retention rate remained stable at 81%, while the net seat retention rate improved to 88% from 86% in the previous year.
Looking ahead, Expensify aims to drive growth through the introduction of new features and enhancements to its platform, including the Expensify Card and Expensify Travel. The company is also focused on maintaining its market consensus as a leading expense management platform for small and medium-sized businesses (SMBs). Despite the challenges posed by macroeconomic conditions, including inflation and potential economic downturns, Expensify believes its existing cash resources, totaling $63.1 million as of December 31, 2025, will be sufficient to support its operations and growth strategy for the foreseeable future.
About Expensify, Inc.
Expensify is a cloud-based expense management platform that simplifies business financial processes for organizations of all sizes. It offers features such as receipt scanning, expense approval, corporate card management, bill pay, and travel booking. Its viral, bottom-up adoption model leverages user experience and integrations, targeting small to large businesses globally. The company emphasizes ease of use, automation, and a scalable, product-led approach to streamline preaccounting workflows.
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