Expensify, Inc. (EXFY) · Nov 5, 2026 · Earnings
Miss — GAAP EPS $(0.04) vs ~$0.02 consensus; revenue $33.0M vs ~$33.9M consensus
Expensify’s earnings missed consensus as revenue declined, but improving cash generation and New Expensify growth lifted 2026 free-cash-flow guidance.
Expensify is in a transition: its legacy Classic product is a declining cash-flow base, while New Expensify is the growth engine management is building around expenses, cards, travel, integrations, and AI. That setup was already public after Q2, when the company highlighted rapid New Expensify adoption and guided to $12.0M-$14.0M of 2026 free cash flow.
The quarter missed the published financial bar. Revenue fell to $33.0M from $35.1M, below the roughly $33.9M consensus, while GAAP EPS was a $0.04 loss versus an expected $0.02 profit. The miss matters because the headline revenue base is still shrinking even as the company pivots toward New Expensify.
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guide |
|---|---|---|---|
| Revenue (Income Statement) | $33.0M (-5.8%) | $35.1M | ~$33.9M |
| GAAP EPS (Income Statement) | $(0.04) | $(0.03) | ~$0.02 |
| Free cash flow (Non-GAAP reconciliation) | $3.3M (+170%) | $1.2M | |
| FY 2026 free cash flow guidance (Shareholder letter) | $13.5M-$15.5M | $12.0M-$14.0M |
Cash generation was the clear offset. Q3 operating cash flow reached $4.0M and free cash flow reached $3.3M, with the company raising its full-year free-cash-flow range by $1.5M. That is a meaningful improvement to the transition story because it gives Expensify more room to fund product development and repurchases despite declining reported revenue.
The growth engine is showing traction, but not yet enough to reverse the consolidated trend. New Expensify revenue increased 30% from Q2 and 212% year over year, while management cited a 67% year-over-year improvement in cohort conversion. Travel bookings also reached a record quarter, up 40% year over year. These are better indicators for the strategy than the consolidated revenue line, but the filing does not show that New Expensify has yet overcome Classic's decline at the company level. 〔0〕 〔1〕
Margins and earnings quality remain mixed. Nine-month adjusted EBITDA rose to $18.9M from $13.6M, but Q3 adjusted EBITDA declined to $6.1M from $6.5M and the adjusted EBITDA margin narrowed to 18% from 19%. Free cash flow also benefited from working-capital movements and remains separate from GAAP profitability, which was still negative in the quarter.
Bottom line: Expensify is executing better on cash generation and the New Expensify product, but the actual quarter still missed consensus on both revenue and EPS. The filing modestly improves the transition story without yet proving that the new platform has reversed the underlying revenue decline.
Q4 2026 earnings and 2027 outlook
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