Moving on, our paid members were 719,000 and our net interchange was $3.1 million, which is a 65% increase year-on-year and a 16% increase quarter-over-quarter. So we’re quite proud of about that. Our operating cash flow was a negative $5.1 million that is including customer funds. Our free cash flow was negative $7.1 million that excludes customer funds. Our GAAP net loss was $17 million. Our non-GAAP net loss was $6.7 million, and our adjusted EBITDA was negative $3.5 million. All right. So interchange. Get this question every quarter, it’s my favorite topic, I’m going to be sad when I can’t talk about it anymore. But we’re going to talk about it right now. So we expect to start issuing our new Expensify cards with the new revenue treatment before the end of the year.
Now as a reminder, if you haven’t been tuning into all these quarterly updates, Expensify is stepping in as the program manager for the Expensify card. So there’s a couple benefits to that. One is that we get 20% more interchange. Right now, we get about 2%. We’ll be getting 2.4% because we’re not sharing it with our current program manager. We’ll be able to keep that ourselves. But also, and the most exciting — I mean, more interchange is exciting. But well, what I’m very excited about is that the accounting treatment is different under this new program, and in that we will be able to count our interchange as revenue. Right now, it is contra expense and cost of revenue. So we still get the cash, but the accounting treatment is really not what, I think, most people expect, and it has this weird dynamic where, as the card continues to succeed, it is pulling down revenue and not adding the revenue.
So accounting treatment wise, it’s still the same amount of cash into the business, excluding — obviously, we’re getting 20% more interchange. But going forward, we will be able to count the interchange from the card as revenue, so it’ll no longer pull it down, it’ll push it up. So that will be, I think, a welcome change, for many, and I can’t stop talking about this every quarter. So this transition from the old card program to the new card program, for all members is expected to start very soon, in Q4, And we’re going to — we expect to be finished by end of year 2024. We’re giving them some time to transition over because the last thing you want to do is anger all of your customers by saying, All right, knife switch. All your cards are off.
You got to use this new card. So we’re going to gracefully transition them over a several quarter period, but we expect that to be done by the end of year 2024. All right. So now I want to talk about expense reductions. Reducing our internal expenses is an area of focus for us right now. We’re adapting to the current economic conditions. The percentage of customers, this is based on our internal data, who are citing their business closing or their business downsizing as the reason for reducing their subscription size is jumped nearly 50% from earlier this year. So that’s a pretty big jump. And I think it’s telling on the conditions out there for SMB customers. It’s a challenging environment, and they are our customers, so their challenge kind of makes its way to us.
So it’s tough out there, but as Anu said, we have a lot of plans and we’re really excited for the future. But there is some headwinds to growth there. How are we adjusting to that? We’re controlling our internal costs. So you might have seen in our release, we’ve reduced our debt by $36 million in October. That’s, reducing our projected Q4 and fiscal year 2024 expense by about a $1 million in Q4 — a little under $1 million in Q4, and $3.8 million for fiscal year 2024. So that’s just an expense we don’t need. The money was sitting in the bank. So just costing us, substantially. So we’ve paid that down, so that should increase our cash efficiency. We’ve also done a series of internal expense cuts, and, we expect to reduce our operating costs by $15 million in 2024.
These changes combined, give us confidence that we will be cash flow positive for 2024 and beyond. Now, we show — share this every quarter. Basically, we don’t give guidance on next quarter, but we do tell you how this current quarter is going. So for Q4, some good news, we actually saw, a nice jump in paid members in October. Like I said, our subscription members are increasing. We’re doing a lot of good things there, a lot of good news. But the decrease in paid members from the activity based paper use — user segment has, been outstripping that. That is not the case for October. So we are seeing an uptick in paid members in October, so we’re very excited about that. Summarize Q3. Our net interchange increased 16% quarter-over-quarter, 65% year-over-year.
The Expensify card continues to grow. We remain in a rebuilding phase as we continue transition to our new platform in Q4. Anu spent a lot of time talking about all the benefits of that, so we’re very excited to get that out in the wild. The early reception to this new platform, as we’ve been kind of going around to conferences, doing activations, demoing it, has been very positive. And, we continue to push forward on our ambitious and aggressive roadmap. And, internally, we’re focusing on eliminating costs, and we expect to be free cash flow positive in 2024 and, and beyond. Now we’ll take you to the Q&A. Thank you all for joining us. And let’s hear from some analysts. Thank you.
Operator: Wait. We’re going to switch over. Do we have Citi on the line to start us off?
Steve Enders : You have Steve Enders from Citi. I appreciate you all taking the question today. I guess maybe to start here, I just want to ask on — I think there was a comment in the letter that said that you’re seeing clear skies emerging. I guess, what’s giving that view? And I guess, what are you seeing out there that maybe is leading to that outlook. Can you maybe just kind of clarify that comment?
