Expensify Inc (NASDAQ: EXFY) reported second-quarter fiscal year 2026 revenue of $33.9 million while raising its full-year free cash flow guidance to $12–14 million. The expense management platform also repurchased approximately 6.8 million Class A common shares, reducing its total shares outstanding by about 7%.

Financial Performance

The company’s GAAP net loss narrowed to $3.9 million from $8.8 million a year earlier. Non-GAAP net income stood at $3.4 million, compared to a non-GAAP net loss in the same period last year. Adjusted EBITDA improved to $6.6 million from a negative figure previously.

Operating cash flow reached $8.4 million, with free cash flow at $6.4 million. This represents a 2% increase year over year and a 162% rise from the previous quarter. Management cited disciplined execution and improved profitability as key drivers behind the upward revision in cash flow expectations.

Product Growth and Metrics

Expensify Card interchange revenue across both Classic and New Expensify platforms grew 12% year over year to $5.9 million. Average paid members for the quarter were 640,000, with July 2026 paid members dipping slightly to 634,000 due to seasonal summer travel patterns.

The New Expensify product line saw net-new revenue grow more than 250% year over year to over $10 million in annual recurring revenue (ARR). More than 56% of users are now on New Expensify, marking a shift from the legacy Classic platform. Management noted that Classic serves as a stable cash flow engine, while New Expensify targets rapid growth in an untapped market segment.

Capital Allocation

In a significant capital return move, Expensify completed a modified Dutch auction tender offer, repurchasing approximately 6.1 million shares at $1.20 per share. Following the undersubscribed tender, the company bought an additional 712,000 shares on the open market at an average price of $1.63 per share.

What the Numbers Show

The divergence between top-line pressure and bottom-line improvement highlights Expensify’s operational leverage. While revenue faced headwinds, the company generated $6.4 million in free cash flow against a GAAP net loss of just $3.9 million. This suggests that core operating expenses are being managed efficiently relative to cash generation, even as the business transitions its user base from the legacy Classic platform to the newer, high-growth New Expensify interface.

Expensify, Inc. (NASDAQ: EXFY) has extended the reach of its Expensify Card spend rules to 14 countries, introducing a mechanism for businesses to enforce expense policies before transactions occur. The expansion allows administrators to define precise usage parameters for each card, ensuring that only compliant purchases are authorized.

Unlike traditional corporate cards that depend on retrospective expense audits, the Expensify Card applies policy enforcement at the point of sale. Administrators configure rules once, and the system automatically validates transactions against these criteria.

Key Spend Control Features

The updated functionality provides several specific controls for managing corporate spend:

• Subscription locking: Virtual cards can be tied to recurring SaaS tools, restricting charges to expected amounts and preventing payment disruptions if cardholders change teams.
• Single-use limits: Virtual cards for one-time purchases, such as event registrations or contractor payments, can be capped at exact amounts to prevent duplicate charges.
• Date-based expiration: Cards can be linked to specific trips, projects, or temporary assignments, automatically deactivating when the designated period ends.
• Merchant category restrictions: Cards can be limited to specific merchants or categories, such as office supplies, while blocking unrelated purchases like electronics.
• Currency controls: International spend can be restricted to approved currencies to mitigate unauthorized or unexpected foreign exchange charges.

Jason Mills, Chief Product Officer at Expensify, noted that most corporate cards treat control as a post-purchase review process. He stated that spend rules invert this approach by defining usage parameters upfront, eliminating the need for manual approvals and reconciliation surprises.

Geographic Availability

The Expensify Card is now available to businesses in the US, UK, Ireland, Netherlands, Spain, Poland, Sweden, Denmark, Finland, Belgium, Luxembourg, Latvia, Lithuania, and Gibraltar.

The Expensify Visa® Commercial Card is issued by The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc. for US-based customers. For EEA customers, it is issued by Transact Payments Malta Limited, and for UK-based customers, by Transact Payments Limited, both pursuant to licenses from Visa Europe Limited. Transact Payments Malta Limited is regulated by the Malta Financial Services Authority under the Financial Institution Act 1994, and Transact Payments Limited is regulated by the Gibraltar Financial Service Commission.