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Flywire (FLYW)
NASDAQ:FLYW

Flywire (FLYW) AI Stock Analysis

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Flywire

(NASDAQ:FLYW)

67Neutral
Flywire's strong revenue growth and strategic client acquisitions contribute positively to its overall stock score. However, the high P/E ratio and bearish technical indicators present significant challenges. While the company exhibits potential through strategic initiatives and market expansion, caution is warranted due to valuation concerns and potential macroeconomic risks.
Positive Factors
Acquisition
Flywire announced the acquisition of Sertifi for $330 million, expanding its capabilities within the travel vertical to luxury hotels/properties, and catering services.
Earnings
March-quarter adjusted revenue and adjusted EBITDA exceeded Street consensus by 4% and 8.5%, respectively.
Financial Performance
Encouragingly, EBITDA margins continue to expand, Flywire was GAAP net income positive in 2024, and it generated $53 million of adjusted free cash flow.
Negative Factors
Market Dynamics
Flywire's growth algorithm is currently challenged, with uncertain market dynamics and headwinds.
Revenue Outlook
FLYW shares are down 20% following a disappointing 2025 revenue outlook that calls for 10%-14% adjusted FX-neutral organic growth.
Visa Policy Impact
Uncertainty in U.S. student visa trends is a major concern for Flywire Corporation's growth.

Flywire (FLYW) vs. S&P 500 (SPY)

Flywire Business Overview & Revenue Model

Company DescriptionFlywire Corporation (FLYW) is a global payments enablement and software company that specializes in providing integrated payment solutions for a variety of sectors, including education, healthcare, travel, and business payments. Its core products and services are designed to simplify the complexities of cross-border transactions and enhance the payment experience for both payers and receivers. Flywire's platform is built to handle high-value, high-stakes payments and offers tailored payment solutions that address the specific needs of its diverse clientele.
How the Company Makes MoneyFlywire 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes income from different business units, highlighting which areas are driving growth and which may need strategic adjustments.
Chart InsightsFlywire's Transaction revenue has shown strong growth, particularly in 2024, driven by strategic acquisitions and expansion in the travel vertical, which grew over 50% organically. Despite challenges in the education sector due to policy changes in Canada and Australia, the company remains optimistic, projecting 10% to 14% revenue growth in 2025. The acquisition of Sertifi is expected to significantly bolster the travel segment, while investments in data and AI aim to enhance productivity and efficiency across operations.
Data provided by:Main Street Data

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. Overall, the financial health of the company appears to be on an upward trajectory, with opportunities for further profitability enhancements and cash flow stability.
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
80
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
492.14M403.09M289.38M201.15M131.78M
Gross Profit
314.65M255.75M181.44M130.96M83.98M
EBIT
-7.25M-21.52M-30.22M-13.26M-15.81M
EBITDA
19.76M13.57M-22.05M-14.66M-8.95M
Net Income Common Stockholders
2.90M-8.57M-39.35M-27.96M-11.11M
Balance SheetCash, Cash Equivalents and Short-Term Investments
611.09M654.61M349.18M385.36M104.05M
Total Assets
1.12B1.08B674.29M639.67M271.44M
Total Debt
1.72M1.47M1.81M25.94M24.35M
Net Debt
-493.52M-653.14M-347.37M-359.42M-79.70M
Total Liabilities
307.68M293.61M192.38M157.35M353.20M
Stockholders Equity
814.77M786.12M481.90M482.33M-81.76M
Cash FlowFree Cash Flow
90.54M74.61M-2.21M10.45M-16.36M
Operating Cash Flow
91.47M80.63M4.88M17.13M-14.22M
Investing Cash Flow
-215.80M-38.78M-24.68M-62.91M-81.54M
Financing Cash Flow
-37.63M263.42M-23.97M327.51M119.05M

Flywire Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price10.89
Price Trends
50DMA
9.69
Positive
100DMA
14.50
Negative
200DMA
16.49
Negative
Market Momentum
MACD
0.18
Negative
RSI
66.26
Neutral
STOCH
88.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLYW, the sentiment is Neutral. The current price of 10.89 is above the 20-day moving average (MA) of 9.34, above the 50-day MA of 9.69, and below the 200-day MA of 16.49, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 66.26 is Neutral, neither overbought nor oversold. The STOCH value of 88.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLYW.

Flywire Risk Analysis

Flywire disclosed 71 risk factors in its most recent earnings report. Flywire reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Flywire Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.34B43.092.20%7.98%-40.59%
PAPAY
73
Outperform
$4.39B87.9610.80%47.78%74.61%
72
Outperform
$1.15B103.592.42%18.72%347.70%
67
Neutral
$1.22B873.040.63%20.97%
60
Neutral
$10.94B10.37-6.73%2.98%7.75%-12.61%
58
Neutral
$886.44M42.372.51%6.48%
39
Underperform
$1.17B-78.94%53.70%-72.91%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLYW
Flywire
10.89
-6.32
-36.72%
GDYN
Grid Dynamics Holdings
13.95
3.80
37.44%
APLD
Applied Digital Corporation
5.39
1.91
54.89%
PSFE
Paysafe
15.47
-0.20
-1.28%
PAY
Paymentus Holdings
36.85
18.31
98.76%
NABL
N-able
7.52
-4.98
-39.84%

Flywire Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 8.47%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
Flywire demonstrates strong resilience and growth through strategic client acquisition and geographic expansion, particularly in the education and travel sectors. However, geopolitical and macroeconomic challenges present potential obstacles, particularly in North American education markets.
Q1-2025 Updates
Positive Updates
Strong Client Acquisition
Flywire signed 200 new clients in the first quarter of 2025, indicating strong demand for its solutions despite a challenging macroeconomic environment.
Resilient Business Model
Flywire continues to demonstrate resilience with low client churn rates and a strong pipeline, emphasizing the effectiveness of its software-driven payments platform.
Expansion in International Education
Flywire is capitalizing on growth in non-traditional education markets like Germany, France, Japan, and Singapore, with new client acquisitions in these regions.
Travel Segment Growth
The travel vertical showed strong customer acquisition and revenue growth, with notable new clients and cross-selling opportunities with recent acquisitions like Sertifi.
Revenue and EBITDA Growth
Revenue less ancillary services was $128.7 million in Q1, representing a 16.8% year-over-year growth rate. Adjusted EBITDA grew to $21.6 million, up 56% compared to Q1 2024.
U.K. Market Leadership
The U.K. is now Flywire's largest market in education, with strong growth driven by new products like SFS and StudyLink.
Negative Updates
Challenges in U.S. and Canadian Education
Flywire anticipates low single-digit revenue growth in the U.S. education market due to geopolitical tensions and visa issues. Canadian higher education revenue faced macro headwinds, impacting growth.
Australia Education Sector Uncertainty
Despite a better-than-expected start in Australia, there is potential uncertainty in policy shifts following recent elections, which could impact enrollment.
Macroeconomic Headwinds
The macroeconomic environment remains challenging, with Flywire indicating a cautious growth outlook due to potential global recession risks and geopolitical tensions.
Company Guidance
During the Flywire Corporation's first quarter 2025 earnings call on May 6, 2025, the company provided guidance reflecting a strong start to the year, with revenue less ancillary services reaching $128.7 million, marking a 16.8% year-over-year growth. Including the recent acquisition of Sertifi, revenue growth is projected to be 17% to 23% on an FX-neutral basis for the full year 2025. The company highlighted robust client acquisition momentum, particularly in the education and travel verticals, with over 200 new client signings and strong product adoption in new and existing markets. Adjusted EBITDA for Q1 2025 was $21.6 million, with Flywire maintaining guidance for significant margin expansion throughout the year. Despite macroeconomic challenges, the company remains confident in its strategic initiatives, focusing on operational efficiencies, innovative payment solutions, and geographic expansion, aiming to sustain long-term growth and profitability.

Flywire Corporate Events

Business Operations and StrategyFinancial Disclosures
Flywire Reports Strong Q1 2025 Financial Results
Positive
May 6, 2025

On May 6, 2025, Flywire reported its first-quarter financial results, showcasing a 17% year-over-year revenue increase to $133.5 million and a reduction in net loss to $4.2 million. The company signed over 200 new clients, expanded its travel vertical, and strengthened its presence in India, indicating strong business momentum and strategic growth. Flywire’s performance exceeded expectations in FX Neutral Revenue and Adjusted EBITDA Margin Growth, reaffirming its fiscal year 2025 guidance and highlighting its focus on strategic investments and operational efficiency.

Spark’s Take on FLYW Stock

According to Spark, TipRanks’ AI Analyst, FLYW is a Neutral.

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.

To see Spark’s full report on FLYW stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Flywire Acquires Sertifi to Boost Travel Vertical
Neutral
Feb 25, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.