Flywire (FLYW) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 767.0
• Beta (1Y): 0.90
• Revenue Growth: 22.09%
• EPS Growth: N/A
• Country: US
• Employees: 1,250
• Sector: Technology
• Sector Strength: 45
• Industry: Information Technology Services
• EPS (TTM): 0.01
• Shares Outstanding: 120,004,210
• 10 Day Avg. Volume: 3,193,254
• 30 Day Avg. Volume: 2,619,262
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.50
• Price to Cash Flow (P/CF): -7.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.89
• Price Target Upside: 68.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Flywire's strong financial performance, characterized by robust revenue growth and a healthy balance sheet, is a key strength. However, the stock's high P/E ratio and bearish technical indicators present significant challenges. The positive aspects of the recent earnings call, including strategic acquisitions and growth plans, are tempered by sector-specific challenges and restructuring. Overall, while Flywire shows potential, caution is warranted due to valuation concerns and market momentum.

Positive Factors

Cash Flow and Profitability

Encouragingly, EBITDA margins continue to expand, Flywire was GAAP net income positive in 2024, and it generated $53 million of adjusted free cash flow.

Strategic Review

The company announced a strategic portfolio review and a reduction in force of approximately 10%, which helped support adjusted EBITDA margin outlook in line with prior expectations.

Travel Vertical Growth

Travel remains a bright spot, and the company is doubling down there with the acquisition of Sertifi – hotel management software including $3B in monetizable payment flow.

Negative Factors

Education Vertical Challenges

More education visa headwinds emerged to drive a 4Q miss on sales and 2025 FXN growth guidance of 10-14% that came in below expectations for 20%+.

Market Headwinds

Flywire continues to see deterioration of international student visa trends across key geographies, including Canada, Australia, and the US, which is expected to lead to softer NRR trends.

Revenue Guidance Concerns

Shares of Flywire (FLYW) are down significantly after hours following a disappointing 4Q print and initial F25 guide.

Flywire Business Overview & Revenue Model

Company Description

Flywire Corporation, together with its subsidiaries, operates as a payment enablement and software company in the United States, Canada, and the United Kingdom, and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company's platform facilitates payment flows across multiple currencies, payment types, and payment options; and provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. Flywire Corporation was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Flywire makes money primarily through transaction fees charged on the payments processed via its platform. The company earns revenue by facilitating cross-border transactions and offering value-added services such as currency conversion and payment tracking. Key revenue streams include processing fees from educational institutions, healthcare providers, travel agencies, and businesses that utilize Flywire's payment solutions to manage international payments. Additionally, partnerships with banks and financial institutions play a significant role in expanding its reach and capabilities, contributing to its overall earnings by enhancing the platform's efficiency and broadening its customer base.

Flywire Financial Statement Overview

Summary

Flywire demonstrates strong revenue growth and improving profitability metrics, underscoring its potential in the software industry. The balance sheet reflects a healthy financial position with no debt and substantial equity. While cash flows are generally positive, historical volatility and significant investing activities represent areas for further monitoring.

Income Statement

Flywire's revenue has shown strong growth over recent years, with a notable increase from $201 million in 2021 to $492 million in 2024. The gross profit margin in 2024 was 100%, indicating efficient cost management. However, the company has struggled with consistent profitability, as evidenced by negative EBIT and EBITDA figures across several years, despite achieving a positive net income of $2.9 million in 2024. The improvement in net profit margin to 0.59% is promising but still indicates potential for further enhancement.

Balance Sheet

Flywire maintains a strong balance sheet with no total debt reported in 2024, highlighting financial stability. The equity ratio improved to 72.6%, reflecting a solid capital structure. However, the historical negative equity in previous years suggests past financial challenges, though recent trends indicate recovery and strengthening equity position.

Cash Flow

The company's cash flow position is improving, with positive free cash flow growth from 2023 to 2024. The operating cash flow to net income ratio is robust, reflecting effective cash generation relative to net income. However, fluctuations in free cash flow in earlier years and significant investing outflows suggest areas for potential improvement in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
492.14M	403.09M	289.38M	201.15M	131.78M
	Gross Profit
314.65M	255.75M	181.44M	130.96M	83.98M
	EBIT
-7.25M	-21.52M	-30.22M	-13.26M	-15.81M
	EBITDA
19.76M	13.57M	-22.05M	-14.66M	-8.95M
	Net Income Common Stockholders
2.90M	-8.57M	-39.35M	-27.96M	-11.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
611.09M	654.61M	349.18M	385.36M	104.05M
	Total Assets
1.12B	1.08B	674.29M	639.67M	271.44M
	Total Debt
1.72M	1.47M	1.81M	25.94M	24.35M
	Net Debt
-493.52M	-653.14M	-347.37M	-359.42M	-79.70M
	Total Liabilities
307.68M	293.61M	192.38M	157.35M	353.20M
	Stockholders Equity
814.77M	786.12M	481.90M	482.33M	-81.76M
Cash Flow		Free Cash Flow
90.54M	74.61M	-2.21M	10.45M	-16.36M
	Operating Cash Flow
91.47M	80.63M	4.88M	17.13M	-14.22M
	Investing Cash Flow
-215.80M	-38.78M	-24.68M	-62.91M	-81.54M
	Financing Cash Flow
-37.63M	263.42M	-23.97M	327.51M	119.05M

Flywire Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLYW, the sentiment is Negative. The current price of 8.82 is below the 20-day moving average (MA) of 9.01, below the 50-day MA of 11.35, and below the 200-day MA of 16.92, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 37.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLYW.

Flywire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	78 Outperform	$3.48B	80.45	9.65%	―	41.86%	96.57%
NABL	68 Neutral	$1.27B	40.67	4.21%	―	10.49%	30.42%
FLYW	63 Neutral	$1.07B	766.96	0.36%	―	22.09%	―
GDYN	63 Neutral	$1.17B	305.90	0.90%	―	12.04%	―
Sector *	59 Neutral	$10.59B	10.09	-6.37%	3.05%	7.44%	-10.67%
PSFE	55 Neutral	$904.24M	43.22	2.51%	―	6.48%	―
APLD	37 Underperform	$1.18B	―	-78.94%	―	53.70%	-72.91%

Flywire Corporate Events

Flywire Acquires Sertifi to Boost Travel Vertical

On February 24, 2025, Flywire Corporation acquired Sertifi LLC, a software and payments platform for the hospitality industry, for $330 million in cash and contingent considerations. This acquisition is expected to enhance Flywire’s travel vertical by integrating Sertifi’s hotel property management system across over 20,000 hotel locations worldwide. Additionally, Flywire announced a restructuring plan on February 23, 2025, to improve operational efficiencies, which includes reducing its workforce by 10%. The company also reported a 17% increase in fourth-quarter revenue for 2024 and outlined plans for an operational and business portfolio review to optimize investments and drive productivity.