Expensify switches to KPMG as new auditor

Expensify (NASDAQ:EXFY), Inc., a prepackaged software services company, has announced a change in its certifying accountant. On Monday, the Audit Committee of the company’s Board of Directors decided to replace Ernst & Young LLP (EY) with KPMG LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2025.

The decision was made public through an 8-K filing with the Securities and Exchange Commission (SEC). According to the filing, the reports of EY on the company’s consolidated financial statements for the fiscal years ended December 31, 2024, and 2023, contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles. For investors seeking deeper insights, InvestingPro offers comprehensive financial analysis and reveals that analysts expect the company to become profitable this year, with a forecasted EPS of $0.22 for FY2025.

Furthermore, during the fiscal years in question and the subsequent interim period leading up to the dismissal on March 5, 2025, there were no disagreements or reportable events between Expensify and EY that would have required mention in their reports.

As part of the transition process, Expensify has provided EY with a copy of the disclosure report and requested that EY furnish a letter to the SEC confirming their agreement with the statements made regarding their relationship. EY’s letter to the SEC, dated today, is attached as an exhibit to the filing.

The company also disclosed that prior to the engagement of KPMG, there were no consultations between Expensify and KPMG regarding the application of accounting principles to a specified transaction, audit opinions on the company’s financial statements, or any matter that was the subject of a disagreement or reportable event.

The change in accountants is a notable shift for Expensify, which is incorporated in Delaware and headquartered in Portland, Oregon. The company’s Class A Common Stock is listed on The Nasdaq Stock Market under the ticker EXFY.

This move comes as Expensify prepares for its financial reporting for the fiscal year ending December 31, 2025, with KPMG now responsible for auditing the company’s financial statements. The information reported is based on the company’s recent SEC filing.

In other recent news, Expensify reported its fourth-quarter 2024 earnings, revealing a net loss per share of $0.01, missing the anticipated earnings per share of $0.07. However, the company’s revenue exceeded expectations, reaching $37 million compared to the forecasted $36.15 million. Expensify also announced a significant improvement in free cash flow, which increased by 272% year-over-year to $6.3 million in the fourth quarter. The company has successfully reduced its debt to zero, enhancing its financial stability. Additionally, Expensify launched new product initiatives, including Expensify Travel and advancements in AI technology. The company projects free cash flow between $16 million and $20 million for 2025, with plans to complete customer migration to the "New Expensify" platform by summer 2025. Despite the earnings miss, analysts from firms like Loop Capital and Citi have shown interest in Expensify’s AI integration and product developments.

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