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PORTLAND, Ore. - Expensify , Inc. (NASDAQ:EXFY), known for its all-in-one financial management app, has announced the launch of a new share repurchase initiative. The program, authorized by the company’s Board of Directors, allows for the buyback of up to $50 million of its Class A common stock, representing approximately 18% of the company’s current market capitalization of $282 million.
This new buyback strategy comes as a replacement for the 2022 repurchase program, which was nearing its expiration in March 2025. The decision to initiate a new program is a reflection of Expensify’s robust financial health, marked by a significant rise in free cash flow following successful cost-reduction efforts and the achievement of a debt-free status last year. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.87 and holds more cash than debt on its balance sheet.
CFO Ryan Schaffer expressed confidence in the buyback as an "attractive potential buying opportunity" that aligns with the company’s aim to leverage its free cash flow in ways that benefit shareholders.
The repurchase program is designed to mitigate dilution from stock issuances and to progressively decrease the share count. The company may repurchase shares via open market transactions, private negotiations, or other methods, including trading plans in line with Rule 10b5-1 under the Securities Exchange Act of 1934. The execution and scale of the buybacks will be subject to various factors, including market and economic conditions, stock prices, and regulatory requirements. The program is set to expire on March 31, 2028, but it may be suspended or terminated at any time, and there’s no obligation for Expensify to acquire a specific number of shares.
The press release also contains forward-looking statements, which are not guarantees of future performance. These statements outline the company’s intentions regarding the repurchase program and its anticipated benefits for shareholders. However, actual outcomes could vary due to a range of factors, such as market conditions, interest rates, and operational costs.
Investors should note that these forward-looking statements are based on current expectations and assumptions, which are inherently uncertain, and that actual results may differ materially. InvestingPro analysis suggests the stock is currently undervalued, with analysts forecasting profitability this year despite recent challenges. For deeper insights, investors can access comprehensive analysis and 10 additional ProTips through InvestingPro’s detailed research reports.
Expensify, serving over 15 million people globally, streamlines financial tasks such as expense tracking, travel booking, employee reimbursement, and bill payment through its platform. The company generated revenue of $137.44 million in the last twelve months, maintaining a healthy gross profit margin of 54.45%.
This news article is based on a press release statement from Expensify, Inc.
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