The Legacy Product Is Shrinking. A New One is Growing 250%

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Friday, August 7, 2026

Artificial intelligence is reshaping enterprise software as companies move past simple automation toward workflows that complete tasks, analyze spending, and take instructions in plain language. Expense management sits squarely in that shift, with providers racing to fold AI into products that help businesses control costs and strip out manual work.

Shares of Expensify, Inc. (Nasdaq: EXFY) are climbing Friday after the company posted second-quarter 2026 results following Thursday's closing bell, headlined by rapid growth in its redesigned platform, a sharp swing in profitability, and an expanding AI product set.

Founder and CEO David Barrett calls the quarter the company's most exciting in years, pointing to adoption of New Expensify, a full redesign and rewrite of the platform that established the company in the market. Revenue from customers who have never touched the legacy product grew more than 250% year over year to over $10 million in annual recurring revenue across more than 10,000 new customers. The company frames its two products as separate businesses under one roof: Expensify Classic as a closed pool of customers throwing off steady cash, and New Expensify as the growth engine aimed at a market it believes is 10 to 100 times larger.

Revenue, net came in at $33.9 million, down 5% from a year ago, as the shrinking Classic base continues to weigh on the top line. Profitability moved the other way. Net loss narrowed to $3.9 million from $8.8 million, non-GAAP net income reached $3.4 million against a $1.9 million loss last year, and adjusted EBITDA swung to $6.6 million from a negative $1.4 million. Operating cash flow was $8.4 million and free cash flow was $6.4 million. 

Interchange revenue from the Expensify Card rose 12% to $5.9 million. Paid members totaled 640,000, down 2%.

On the product side, customers can now set up accounts, automate expense reporting, and analyze spending in natural language through email, text, or the app, with AI-powered workflow agents in beta. The company launched the Expensify MCP, connecting the platform to AI assistants including ChatGPT, Claude, and Cursor for natural-language access to expense data. More than 30 product improvements shipped during the quarter across cards, mileage tracking, policy controls, bulk editing, and AI-powered spend controls, and the platform was named Expense Management Platform of the Year at the TravelTech Breakthrough Awards.

Expensify also repurchased roughly 6.8 million Class A shares in the quarter, including 6.1 million at $1.20 through a modified Dutch auction tender, cutting shares outstanding by about 7%. The company guides to $12 million to $14 million in free cash flow for the full year.

Shares of EXFY are up 34.9% to $2.67 in Friday early afternoon trading.

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