Expensify stock rating reiterated by JMP amid international expansion

Published 02/07/2025, 09:56
Expensify stock rating reiterated by JMP amid international expansion

Investing.com - Citizens JMP has reiterated its Market Perform rating on Expensify Inc (NASDAQ:EXFY), following the company’s announcement of expanded support for international customers last week. According to InvestingPro data, the company maintains a healthy balance sheet with a current ratio of 3.25x, indicating strong liquidity to support its international expansion.

The expense management software company has seen its stock decline 23% year-to-date, compared to a 5% increase for the Russell 3000 index during the same period.

Expensify disclosed yesterday that it has repurchased approximately $3.0 million of its shares at an average price of $2.33 during the current quarter to date.

The company recently gained visibility as a title sponsor for Apple (NASDAQ:AAPL) Studios’ Formula 1 movie, which debuted with approximately $144 million in global box office receipts this past weekend, including $55.6 million domestically and $88.4 million internationally.

JMP’s assessment comes amid competitive developments in the expense management sector, as privately held competitor Ramp secured funding at a $16 billion valuation on June 15.

In other recent news, Expensify Inc. reported its Q1 2025 earnings, missing forecasts on both earnings per share and revenue. The company posted an EPS of -$0.03, falling short of the expected $0.07, and revenue of $36.1 million, slightly below the forecast of $36.36 million. Despite this, Expensify increased its annual free cash flow guidance to $17–21 million, reflecting confidence in its cash-generating capabilities. Additionally, the company completed a share buyback program, repurchasing over 1.2 million shares of its Class A common stock, amounting to approximately $3.0 million.

Shareholders recently approved the election of eight board members and ratified KPMG LLP as the independent auditor for the fiscal year. The board nominees received significant support, and the compensation of named executive officers was also approved on an advisory basis. Expensify continues to invest in AI-driven product innovations and expects a positive impact from its Formula 1 movie marketing strategy in the coming quarters. The company has streamlined its pricing structure and expanded its product to include full Spanish support.

Despite a decrease in the average number of paid members, Expensify reported an 8% year-over-year increase in revenue and a 75% increase in free cash flow. Analysts from Citi and Citizens GMP discussed the impact of macroeconomic factors and tariffs on Expensify’s business during the earnings call. The company expressed optimism about its diversified revenue streams and resilience in the face of economic challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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