Expensify(US:EXFY)2025-11-06 21:27Revenue and Financial Performance - For the three months ended September 30, 2025, revenue was $35.1 million, a decrease of $0.3 million or 1% compared to $35.4 million in the same period of 2024[132]. - Revenue increased by $4.7 million, or 5%, to $106.9 million for the nine months ended September 30, 2025, compared to $102.2 million in 2024[141]. - The net loss for the three months ended September 30, 2025, was $2.3 million, compared to a net loss of $2.2 million in the same period of 2024[131]. - For the nine months ended September 30, 2025, the company reported a net loss of $14,272,000, compared to a net loss of $8,743,000 in 2024, with a net loss margin of 13% versus 9%[180]. Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2025, were $19.7 million, an increase from $18.0 million in the same period of 2024[131]. - Cost of revenue, net increased by $0.5 million, or 3%, to $17.7 million for the three months ended September 30, 2025, compared to $17.1 million in 2024[133]. - General and administrative expenses increased by $0.7 million, or 8%, to $9.8 million for the three months ended September 30, 2025, compared to $9.1 million in 2024[136]. - Research and development expenses for the three months ended September 30, 2025, were $4.9 million, a decrease from $5.6 million in the same period of 2024[131]. - Sales and marketing expenses increased to $4.9 million for the three months ended September 30, 2025, compared to $3.3 million in the same period of 2024[131]. Profitability Metrics - Adjusted EBITDA for the three months ended September 30, 2025, was $6.5 million, with an adjusted EBITDA margin of 19%, compared to $9.7 million and 27% in 2024[174]. - Non-GAAP net income for the three months ended September 30, 2025, was $4.3 million, representing a margin of 12%, down from $5.4 million and 15% in 2024[176]. - Free cash flow for the three months ended September 30, 2025, was $1.2 million, with a free cash flow margin of 4%, compared to $6.7 million and 19% in 2024[177]. - Non-GAAP net income for the nine months ended September 30, 2025, was $7,308,000, down from $14,792,000 in 2024, resulting in a non-GAAP net income margin of 7% compared to 14% in the prior year[180]. Membership and Transaction Metrics - The number of paid members averaged 642,000 across 38,800 companies as of September 30, 2025[114]. - As of September 30, 2025, the average number of paid members was 642, a decrease from 684 in the same period of 2024[171]. - Expensify has processed and automated 1.8 billion expense transactions on its platform as of September 30, 2025[114]. Cash and Financing - Net cash provided by operating activities was $17.9 million for the nine months ended September 30, 2025, compared to $16.5 million in 2024[153]. - As of September 30, 2025, the company had $61.5 million in cash and cash equivalents, with no outstanding indebtedness[150]. - The company had $44.0 million remaining under the 2025 Share Repurchase Program as of September 30, 2025[159]. - The company repaid the outstanding balance of $7.6 million on the amortizing term mortgage in August 2024[160]. - The 2024 Amended Loan and Security Agreement provided for a $25.0 million revolving credit facility, which was terminated on July 1, 2025, with no borrowings outstanding at that time[161][166]. - The company entered into a new Letter of Credit Facility and Security Agreement on October 9, 2025, maintaining a Letter of Credit of $7.5 million[167]. Risk and Compliance - The company is subject to customary covenants under the LOC Security Agreement, restricting certain financial activities[168]. - The company has not reported any material changes in contractual obligations and commitments as of September 30, 2025[182]. - There are no off-balance sheet financing arrangements or relationships with unconsolidated entities as of the reporting date[185]. - The company has not experienced any material changes in market risk compared to the previous year[189]. - There have been no material changes to critical accounting policies and estimates compared to the previous annual report[187].