Expensify's revenue and paid member count declined year over year in the second quarter, though founder and CEO David Barrett said those numbers don't reflect the growth of its "New Expensify" product.
The company reported net revenue of $33.9 million for the quarter, down 5 percent year over year, and paid members declined 2 percent year over year to 640,000. In an earnings call, Barrett said the results reflect a "confusing story" that the company has for the moment following the launch of the "mobile-first, chat-first" New Expensify, in which it is essentially acting as two companies.
Expensify continues to have customers on the "Expensify Classic" product, which is the "traditional design" for T&E management, but it is not signing up new customers to the Classic product as it converts current customers to New Expensify. As such, the company said even though "most" Classic customers have switched to the New Expensify product, any churn among the Classic customer base cannot be replaced. It has a "large but deliberately shrinking" pool of customers, Barrett said.
The company reported that new customer growth on New Expensify—those who were not previously on the Classic product—was up 250 percent year over year to more than 10,000 customers with annual recurring revenue of more than $10 million. The New Expensify was designed to support a much broader portion of the global market, as the company said the traditional T&E design is usable only by a "tiny corner of a vast market."
"Having a super-fast-growing expense management startup, combined with a super cash-flow-positive traditional product, both of those are really, really nice to have," Barrett said. "When you combine them, it looks like a single company with nothing going on. We're trying to clarify that there is something rocking and rolling here."
Barrett said the New Expensify launched more than 30 new features over the quarter, including its Model Context Protocol server and new AI agents.
Expensify continued to grow interchange revenue from its Expensify Card product during the second quarter, increasing 12 percent year over year to $5.9 million. In July, the company announced it had expanded availability of its card productinto 13 markets outside of the U.S.
The company reported a net loss of $3.9 million in the second quarter, an improvement from a net loss of $8.8 million in the second quarter of 2025.
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