Flywire (NASDAQ:FLYW) Issues Earnings Results, Misses Estimates By $0.05 EPS

Flywire (NASDAQ:FLYW) posted its quarterly earnings results on Tuesday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.05), Zacks reports. Flywire had a return on equity of 4.06% and a net margin of 4.77%.The company had revenue of $163.80 million for the quarter, compared to the consensus estimate of $156.47 million. During the same quarter in the previous year, the business earned ($0.10) earnings per share. Flywire’s revenue was up 27.2% compared to the same quarter last year.

Here are the key takeaways from Flywire’s conference call:

• Q2 results exceeded expectations: Revenue less ancillary services rose 27% year over year on an FX-neutral basis to $164 million, while adjusted EBITDA increased to $24 million and the margin expanded 160 basis points to 14.6%. Flywire raised its full-year 2026 revenue and EBITDA outlook, including 21%–27% FX-neutral revenue growth and approximately 23% adjusted EBITDA margin at the midpoint.
• Growth is broadening beyond traditional education markets, with travel and hospitality payments outperforming expectations, education revenue outside the “big four” markets up more than 30%, and B2B and healthcare becoming meaningful contributors. The company also signed more than 200 clients across 45 countries for the second consecutive quarter, with larger deals and increasing vendor consolidation.
• Flywire reported continued traction for its software-led strategy, including U.S. SFS signings with twice the ARR of the year-earlier quarter and more than 40 hospitality locations signed across Europe and Asia year to date. Management said software attachment is improving customer retention, deal economics, and payment-volume capture.
• Education demand remains exposed to immigration policy, including a projected 30% decline in U.S. visas and worsening U.K. visa trends; management expects U.K. growth to decelerate and exit below the company average. The accelerating mix of lower-margin healthcare and B2B payment processing also reduced adjusted gross margin by roughly 450 basis points in Q2 and is expected to produce about a 350-basis-point reported decline for the full year.
• Management emphasized a multi-year operating-leverage opportunity from systems consolidation, AI, and digital transformation, targeting approximately 25% adjusted EBITDA margin in 2027 and ultimately 30% alongside $1 billion of annual organic revenue. About 45% of customer inquiries are already resolved automatically, while free-cash-flow conversion is expected to remain 70%–75% of adjusted EBITDA and dilution below 2% in 2026.

Flywire Price Performance

NASDAQ:FLYW traded down $0.27 during mid-day trading on Thursday, hitting $18.38. The company’s stock had a trading volume of 766,620 shares, compared to its average volume of 1,997,767. The stock has a market cap of $2.27 billion, a price-to-earnings ratio of 70.68, a PEG ratio of 1.76 and a beta of 1.34. Flywire has a 1 year low of $10.55 and a 1 year high of $18.98. The business’s fifty day moving average is $16.60 and its two-hundred day moving average is $14.34.

Analyst Ratings Changes

Several brokerages have commented on FLYW. Citigroup restated a “neutral” rating on shares of Flywire in a report on Thursday. Raymond James Financial restated an “outperform” rating and issued a $22.00 price target on shares of Flywire in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft raised Flywire to an “outperform” rating in a report on Wednesday, May 27th. New Street Research set a $16.00 target price on Flywire in a research report on Thursday, May 21st. Finally, JPMorgan Chase & Co. raised Flywire from an “underweight” rating to a “neutral” rating and lifted their price objective for the stock from $14.00 to $16.00 in a research note on Thursday, May 21st. Eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $19.38.

Insider Activity

In other Flywire news, General Counsel Peter Butterfield sold 6,528 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $15.08, for a total transaction of $98,442.24. Following the completion of the sale, the general counsel directly owned 652,152 shares in the company, valued at approximately $9,834,452.16. The trade was a 0.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mohit Kansal sold 3,650 shares of Flywire stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $16.96, for a total transaction of $61,904.00. Following the sale, the insider directly owned 500,670 shares in the company, valued at approximately $8,491,363.20. This trade represents a 0.72% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 304,889 shares of company stock worth $4,958,590. 5.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Flywire

Several institutional investors and hedge funds have recently bought and sold shares of the company. Wellington Management Group LLP boosted its position in shares of Flywire by 43.8% during the fourth quarter. Wellington Management Group LLP now owns 4,828,197 shares of the company’s stock worth $68,367,000 after buying an additional 1,470,011 shares during the period. Marshall Wace LLP raised its holdings in Flywire by 32.8% during the third quarter. Marshall Wace LLP now owns 1,851,327 shares of the company’s stock worth $25,067,000 after purchasing an additional 456,783 shares in the last quarter. Primecap Management Co. CA raised its stake in Flywire by 1.8% during the 4th quarter. Primecap Management Co. CA now owns 1,572,500 shares of the company’s stock worth $22,267,000 after acquiring an additional 27,260 shares in the last quarter. Franklin Resources Inc. boosted its position in shares of Flywire by 1.6% in the 3rd quarter. Franklin Resources Inc. now owns 1,388,639 shares of the company’s stock valued at $18,802,000 after purchasing an additional 22,188 shares during the period. Finally, Millennium Management LLC lifted its stake in Flywire by 15.1% in the first quarter. Millennium Management LLC now owns 1,330,971 shares of the company’s stock valued at $12,644,000 after buying an additional 175,007 shares during the last quarter. 95.90% of the stock is currently owned by institutional investors and hedge funds.

Flywire Company Profile

Flywire Corp (NASDAQ: FLYW) is a global payments enablement and software company that specializes in facilitating complex cross-border transactions. Its cloud-based platform streamlines receivables and payer workflows across key verticals including education, healthcare, travel and hospitality, and commercial services. Flywire’s technology integrates with institutional systems to automate payment posting, reconciliation and reporting, aiming to improve the payer experience and accelerate cash flow for its clients.

Founded in 2009 by entrepreneur Iker Marcaide as peerTransfer, the company rebranded as Flywire in 2015.