Expensify, Inc.

Q2 revenue was $33.9 million. Average paid members were 640,000. Expensify Card interchange revenue across Classic and New Expensify was $5.9 million, up 12% year over year. Operating cash flow was $8.4 million and free cash flow was $6.4 million, up 2% year over year and up 162% sequentially. GAAP net loss improved to $3.9 million from $8.8 million a year ago; non-GAAP net income was $3.4 million versus a non-GAAP net loss last year; adjusted EBITDA improved to $6.6 million from negative adjusted EBITDA a year ago. Management raised full-year 2026 free cash flow guidance to $12 million to $14 million from $9 million to $12 million. For July 2026, paid members were 634,000.

David Barrett framed the quarter as evidence that Expensify’s product direction is working, especially around AI-driven workflow automation and New Expensify adoption. He emphasized that much of the workflow is “routing” rather than judgment, and said agent rules, custom agents, and the MCP integration with third-party AI tools are central to the company’s Level 3 and Level 4 automation strategy. His tone was upbeat but candid: he repeatedly acknowledged that the company’s story is “confusing” because Classic is shrinking while New Expensify is growing quickly, but argued both pieces are valuable and that New Expensify is addressing a much larger market.

Ryan Schaffer highlighted a quarter of improving financial discipline, with $33.9 million of revenue, $8.4 million of operating cash flow, $6.4 million of free cash flow, and a narrower GAAP net loss of $3.9 million. He said the free cash flow outlook improved because sales and marketing deployment is underway, AI spend is being managed more carefully, and the Q1 class action settlement is now behind them. On capital allocation, he said the company repurchased about 6.1 million shares via a modified Dutch auction at $1.20 per share and another 712,000 shares in the open market at $1.63, totaling about 6.8 million shares and roughly a 7% reduction in shares outstanding.

Analysts focused on why free cash flow guidance was raised and how much of the improvement reflects sales and marketing timing, AI spending, and the Q1 legal settlement. Management said spending is scaling but being controlled, and that having the settlement behind them makes cash flow more predictable. Questions also centered on New Expensify’s growth rate, monetization, and whether it is meaningful relative to the total business; management said New Expensify reached over $10 million in ARR, was around 12,000 customers, and that roughly 56% of users are now on New Expensify. On monetization, management said the business model is fundamentally the same but new revenue opportunities are being layered in through Consolidated Travel Billing, possible usage-based AI pricing, and future bill pay.