Executive Summary

Q4 delivered sequential and year-over-year growth with revenue of $37.0M (+5% q/q; +5% y/y), Adjusted EBITDA of $12.4M (33% margin), and free cash flow of $6.3M, reflecting improved unit economics and full completion of the card program migration .
Management introduced FY2025 free cash flow guidance of $16.0–$20.0M and authorized a new $50M share repurchase program; the company is debt free after paying down $22.7M in 2024 .
Operational AI (“deep AI”) materially reduced costs and escalations (SmartScan at 25% prior cost; ~80% fewer human “escalations”), contributing to profitability and cash generation; Expensify Travel launched to all customers in February 2025, with early interest but too soon for trend calls .
Consensus (S&P Global) estimates for Q4 2024 were unavailable via our feed at time of analysis; we therefore do not declare beats/misses versus Street for Q4 2024. Values retrieved from S&P Global could not be accessed due to request limits.*

What Went Well and What Went Wrong

What Went Well
- Strong profitability and cash metrics: Q4 Adjusted EBITDA $12.4M (33% margin) and free cash flow $6.3M; FY24 free cash flow $23.9M, significantly above the original FY24 outlook .
- Card economics inflected with the new program fully migrated: Q4 interchange revenue $5.0–$5.1M and +62% y/y; FY24 interchange $17.2M (+54% y/y) .
- AI-driven operating leverage: CEO cited elimination of most human SmartScan intervention (25% of prior cost) and ~80% reduction in support escalations, with 97% increase in “perfect calls” in January 2025; “Expensify is gunning for AI supremacy in fintech” .
What Went Wrong
- Users remain below prior-year levels despite stabilization: paid members were 687k in Q4 (-4% y/y), with January seasonality dipping to 665k .
- GAAP profitability not yet achieved: Q4 GAAP net loss of $(1.3)M (EPS $(0.01)), although markedly improved y/y .
- Movie placement accounting will pressure reported OpEx when recognized: CFO noted Apple F1 movie costs already impacted free cash flow but will be expensed at release under GAAP, creating a step-up in reported sales & marketing .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$35.208	$33.288	$35.409	$37.004
GAAP EPS (Basic & Diluted)	$(0.09)	$(0.03)	$(0.02)	$(0.01)
Net Loss ($M)	$(7.204)	$(2.764)	$(2.198)	$(1.312)
Non-GAAP Net Income ($M)	$3.396	$5.617	$5.432	$8.690
Adjusted EBITDA ($M)	$5.854	$10.190	$9.676	$12.390
Adjusted EBITDA Margin (%)	17%	31%	27%	33%
Operating Cash Flow ($M)	$(0.543)	$9.317	$3.687	$7.402
Free Cash Flow ($M)	$(3.644)	$5.718	$6.679	$6.274

KPIs and revenue drivers

KPI	Q2 2024	Q3 2024	Q4 2024
Paid Members (k)	684 (-8% y/y)	684 (-5% y/y)	687 (-4% y/y; slight q/q increase)
Interchange Derived from Expensify Card ($M)	$4.0 (+48% y/y)	$4.6 (+48% y/y)	~$5.0–$5.1 (+62% y/y)
Card Program Migration	34% of spend on new program	94% of spend migrated	Fully migrated; all interchange in revenue

Notes:

Interchange “in revenue” language reflects accounting simplification post migration; in Q4, management stated all interchange is recognized in revenue going forward .
Q4 revenue grew 5% q/q and 5% y/y; Adjusted EBITDA margin expanded to 33% on AI-driven efficiencies and card economics mix .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Free Cash Flow ($M)	FY 2025	N/A	$16.0 – $20.0	New
Stock-based Compensation ($M, Total)	Q1 2025	$6.7 – $8.7	$6.9 – $8.9	Raised
Stock-based Compensation ($M, Total)	Q2 2025	$5.8 – $7.8	$6.3 – $8.3	Raised
Stock-based Compensation ($M, Total)	Q3 2025	$5.4 – $7.4	$6.2 – $8.2	Raised
Stock-based Compensation ($M, Total)	Q4 2025	N/A	$6.0 – $8.0	New

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
AI/Technology	New Expensify live; hybrid app delivered; platform set for AI at “chat speed”	“80/20” automation thesis; chat-centric design to automate the last 20%	Deep AI impact tangible: SmartScan at 25% cost; ~80% fewer support escalations; “Concierge everywhere”; “artificial engineers” and OpenAI SWE-Lancer benchmark tie-in	Improving
Expensify Card & Interchange	New card program live; 34% spend migrated; +20% take rate	94% spend migrated; $4.6M interchange; +48% y/y	Migration complete; ~$5.0–$5.1M interchange; +62% y/y; accounting simplified (all in revenue)	Improving
Travel	Launched; revenue expected in Q3	Beta completed; expanded to mid-market; generating revenue	Launched to all customers (2/25/25); early enthusiasm; too early for trends	Building
Paid Members & Macro	684k (-8% y/y)	684k (-5% y/y); Oct 693k	687k (-4% y/y); Jan seasonality at 665k	Stabilizing with seasonality
Pricing	—	—	Maintain near-term pricing; long-term pricing power as suite matures	Stable
Capital Allocation	Debt still on balance sheet	Opportunistic buybacks discussed	Debt free; new $50M buyback; debt paydown detailed (Sept 2024)	Improving
Guidance	FY24 FCF: $15–$16M	FY24 FCF raised to $19–$20M	FY25 FCF: $16–$20M (conservative macro stance)	Positive

Management Commentary

“We generated $23.9 million in Operating Cash Flow and $23.9 million in free cash flow – beating the high end of our 2024 forecast by 19%... And my personal favorite, we paid off $22.7 million in debt – making us debt free.” — Founder & CEO, David Barrett .
“We have virtually eliminated human intervention in the SmartScan process… at 25% the cost… and... ~80% fewer ‘escalations’ to our human team” .
“We are planning to add ‘Concierge everywhere’… transforming [the] chat-first design into an AI-first experience.” .
“Our initial [FY25 FCF] guidance is $16 million to $20 [million]... there’s some conservatism baked into this number” — CFO Ryan Schaffer .
On GAAP recognition of Apple F1 movie spend: “The money… already reflected in our free cash flow… but we have not recognized it in our sales and marketing expenses yet. So you can expect a large increase on the expense level [when the movie releases].” — CFO .

Q&A Highlights

AI roadmap and integrations: Deep AI (SmartScan/Concierge/QA) is live; “surface AI” (conversational corrections) in active development; “virtual CFO” prototypes underway; chat integrations (e.g., Slack/WhatsApp) considered where context allows .
Travel adoption: General availability launched; early enthusiasm; too soon for revenue trend calls; expectation is a “card-like” growth trajectory over time .
“New normal” by summer 2025: Aim for brand anchored in New Expensify with Apple F1 movie exposure; H1 focused on polishing and migration to capture H2 demand .
Pricing: Keep price steady near term; long-term suite breadth suggests material pricing power as products harden .
Capital allocation: Prioritized debt repayment given rates; open to buybacks; disciplined S&M investments with improving operating leverage .

Estimates Context

S&P Global consensus for Q4 2024 EPS and revenue could not be retrieved at time of analysis due to request limits. As a result, we do not provide beat/miss assessments versus Street for Q4 2024. Values retrieved from S&P Global were unavailable due to data access limitations at this time.*

Where estimates may need to adjust: Given Q4 revenue outperformance versus internal execution drivers (card migration, AI-driven efficiency) and FY25 free cash flow guidance of $16–$20M, we expect models to bias toward higher profitability assumptions (EBITDA/FCF) while embedding near-term SBC and movie-related OpEx recognition dynamics .

Key Takeaways for Investors

Profitability flywheel: AI-driven cost reductions and full card migration expanded Adjusted EBITDA margin to 33% in Q4; FY25 FCF guide suggests continued cash generation despite conservative macro gating .
Card economics are now clean and accretive: with migration complete, interchange recognized in revenue and growing strongly (+62% y/y in Q4) .
Product catalysts: Expensify Travel GA plus “Concierge everywhere” and virtual CFO roadmap build a differentiated chat-centric T&E suite; adoption could compound over 2025 .
Balance sheet/returns: Company is debt free; $50M repurchase authorization enhances capital return flexibility amid improved free cash flow .
Watch GAAP optics in 2025: Apple F1 marketing will elevate reported OpEx at release though cash impact already incurred; separates GAAP optics from underlying FCF .
Users stabilizing: Paid members ticked up q/q in Q4 (687k) but remain below prior year; January seasonality evident; sustained conversion/migration will be key .
Setup into 2H25: H1 focus on polish and migration ahead of Apple F1 release; potential demand capture and monetization of suite breadth could be a stock catalyst on improving narrative and KPIs .

Additional details and source excerpts

Financial and KPI references:

Q4 and FY24 press release with full GAAP/Non-GAAP reconciliations and KPI commentary .
Q3 2024 press release and transcript, including guidance raises and card migration progress .
Q2 2024 press release for earlier trend context .
Shareholder returns and balance sheet actions: debt paydown and share repurchases .

*Estimates disclaimer: We attempted to retrieve S&P Global consensus for Q4 2024 but were unable to due to request limits at this time.

Expensify, Inc. (EXFY)·Q4 2024 Earnings Summary