Expensify(EXFY) Plunges 22.22% on Earnings Miss, Revenue Decline

Expensify(EXFY) shares plummeted by 22.22%, hitting their lowest level since November 2024, with an intraday decline of 29.41%.

The strategy of buying EXFY shares after they reached a recent low and holding for 1 week yielded strong results over the past 5 years. The cumulative return was 37.6%, significantly outperforming the broader market's 13% return. This demonstrates the effectiveness of the strategy in capturing short-term price movements and generating substantial profits.

Expensify's stock price has been significantly impacted by recent developments. Lake Street analyst revised the price target for Expensify from $5 to $4.50, maintaining a Buy rating. This adjustment reflects the analyst's concerns about the company's financial performance and future prospects.

On May 8, 2025, Expensify released its Q1 2025 financial results, reporting a net loss of $3.2 million. Despite a 43% increase in revenue compared to the previous period, the company missed Q1 2025 earnings expectations by $0.10. This earnings miss, coupled with a decline in revenue, has negatively affected investor sentiment and contributed to the stock's decline.

Additionally, the company's average paid members decreased by 5% year over year, indicating a decline in the user base. This trend raises concerns about the sustainability of Expensify's business model and its ability to attract and retain customers. Insider activity also shows a negative sentiment, with more shares being sold than bought, further exacerbating the stock's downward spiral.