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Flywire
(NASDAQ:FLYW)
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Rating:67Neutral
Price Target:
$21.00
▲(11.46% Upside)
Action:Downgraded
Date:09/24/26
The score is driven primarily by improving financial fundamentals (profitability and free cash flow with low leverage) and an upbeat earnings update with raised guidance and margin expansion targets. Offsetting this are weak technicals (downtrend) and a high valuation multiple, which increase sensitivity to execution and near-term risks like mix-driven gross margin pressure and visa/regulatory headwinds.
Positive Factors
Strong Revenue and Payment Volume Growth
Strong growth across revenue and payment volume indicates expanding platform adoption rather than isolated customer activity. Raised full-year guidance supports continued momentum over the next several quarters and strengthens Flywire’s ability to invest in its network, products, and international reach.
Negative Factors
Gross Margin Compression from Lower-Margin Mix
Rapid growth in lower-margin processing can dilute blended gross margin even when it contributes efficiently to EBITDA. If these payment ramps remain a larger share of revenue, Flywire may face sustained pressure on gross-profit quality and must rely on scale and cost control to offset it.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Payment Volume Growth
Strong growth across revenue and payment volume indicates expanding platform adoption rather than isolated customer activity. Raised full-year guidance supports continued momentum over the next several quarters and strengthens Flywire’s ability to invest in its network, products, and international reach.
Read all positive factors
Flywire Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks revenue down by business lines such as education, healthcare, travel and B2B to show which areas drive growth and profit. A diversified mix reduces reliance on any one market, while concentration in a single segment can boost near-term growth but increase vulnerability to sector-specific shocks.
Breaks revenue down by business lines such as education, healthcare, travel and B2B to show which areas drive growth and profit. A diversified mix reduces reliance on any one market, while concentration in a single segment can boost near-term growth but increase vulnerability to sector-specific shocks.
Data provided by:
The Fly
The FlyFlywire (FLYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.27B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)68.9
Beta (1Y)1.41
Revenue Growth32.21%
EPS Growth441.25%
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.27
Shares Outstanding121,667,670
10 Day Avg. Volume1,255,487
30 Day Avg. Volume1,373,718
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)2.07
Price to Sales (P/S)2.78
P/FCF Ratio17.53
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue2.60
Enterprise Value/Gross Profit4.53
Enterprise Value/Ebitda23.99
Forecast
1Y Price Target
$21.36Price Target Upside13.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.42
Revenue Forecast (FY)$762.29M
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, Europe, the Middle East, and Africa and the Asia Pacific. The company provides a payment platform that integrates into...
How the Company Makes Money
Flywire primarily makes money by charging fees tied to payment volume processed on its platform. Key revenue streams typically include: (1) Transaction and platform fees: Flywire earns revenue when clients (e.g., universities, healthcare providers...
Flywire Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: strong revenue and transaction volume growth, accelerating client signings, software‑led monetization (SFS) with clear ROI, meaningful adjusted EBITDA expansion, AI‑driven productivity gains, and upgraded guidance with a healthy cash position. Notable challenges include gross margin compression driven by mix (temporary lower‑margin payment ramps), visa and regulatory headwinds (particularly in the U.K. and U.S.), seasonality in Q2, and the potential for tougher comps next year due to accelerated ramps in 2026. Management frames margin pressure as mix‑related and expects durable operating leverage and free cash flow generation as transformation investments conclude. Overall, the positive operational momentum and upgraded outlook outweigh the manageable near‑term margin and macro risks.Positive Updates
Strong Top-Line Growth
Total revenue less ancillary services of $164M in Q2, up over 28% at spot and 27% FX‑neutral year‑over‑year; company raised full‑year FX‑neutral revenue guidance to 21%–27%.
Negative Updates
Gross Margin Compression
Adjusted gross margin declined to 56.6%, down approximately 450 basis points YoY. Management attributes the decline primarily to mix (≈300 bps from accelerated lower‑margin payment processing ramps in health care and B2B), FX and temporary ramp dynamics; reported full‑year gross margin decline expected closer to ~350 bps (≈200 bps normalized for current ramps).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue less ancillary services of $164M in Q2, up over 28% at spot and 27% FX‑neutral year‑over‑year; company raised full‑year FX‑neutral revenue guidance to 21%–27%.
Read all positive updates
Company Guidance
Flywire raised its full‑year 2026 outlook, now targeting FX‑neutral revenue growth of 21–27% (including ~3–4 points from B2B/health‑care payment ramps and ~1.5 points inorganic benefit from lapping Sertifi), with full‑year adjusted gross profit up in the high‑teens at spot and adjusted EBITDA margin expansion of ~200–400 bps to roughly 23% at the midpoint; Q3 guidance calls for FX‑neutral revenue growth of 16–22% YoY, low‑teens gross profit dollar growth at spot (with an ~1‑point FX‑on‑settlement headwind) and ~200 bps of adjusted EBITDA margin expansion at the midpoint. Q2 actuals underpinning the guide included revenue less ancillary services of $164M (+28% spot, +27% FX‑neutral), transaction revenue $135.9M (+35% YoY), TPV +43%, adjusted gross profit $93M (+19%), adjusted EBITDA $24M (14.6% margin, +160 bps YoY) and an adjusted gross margin of 56.6% (down ~450 bps, ~300 bps of which was mix from processing ramps; normalized decline ~150 bps); GAAP net loss was $8M (vs. $12M LY), corporate cash was ~$167M, and management reiterated targets of ~10% stock‑based comp as a percent of revenue, <2% dilution this year (<3% ongoing), 70–75% free cash flow conversion of adjusted EBITDA, a multiyear objective of $1B organic revenue and a ~30% adjusted EBITDA margin goal (with ~25% targeted by 2027 as transformation investment peaks).Flywire Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 713.54M | 623.02M | 492.14M | 403.09M | 289.38M | 201.15M |
| Gross Profit | 410.23M | 382.67M | 314.65M | 255.75M | 181.44M | 130.96M |
| EBITDA | 77.45M | 51.02M | 19.76M | 11.78M | -23.84M | -14.91M |
| Net Income | 34.03M | 13.50M | 2.90M | -8.57M | -39.35M | -28.09M |
Balance Sheet | ||||||
| Total Assets | 1.16B | 1.25B | 1.12B | 1.08B | 674.29M | 639.85M |
| Cash, Cash Equivalents and Short-Term Investments | 294.18M | 355.00M | 611.09M | 654.61M | 349.18M | 385.36M |
| Total Debt | 0.00 | 1.35M | 1.72M | 1.47M | 1.81M | 25.94M |
| Total Liabilities | 346.40M | 418.14M | 307.68M | 293.61M | 192.38M | 157.64M |
| Stockholders Equity | 816.59M | 835.17M | 814.77M | 786.12M | 481.90M | 482.20M |
Cash Flow | ||||||
| Free Cash Flow | 152.72M | 98.83M | 90.54M | 74.61M | -2.21M | 10.45M |
| Operating Cash Flow | 160.24M | 100.17M | 91.47M | 80.63M | 4.88M | 17.13M |
| Investing Cash Flow | 8.00M | -194.23M | -215.80M | -38.78M | -24.68M | -62.91M |
| Financing Cash Flow | -143.18M | -78.40M | -37.63M | 263.42M | -23.97M | 327.51M |
Flywire Technical Analysis
Positive
18.84
Price Trends
18.18
Positive
17.43
Positive
15.36
Positive
Market Momentum
0.21
Negative
55.44
Neutral
41.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLYW, the sentiment is Positive. The current price of 18.84 is above the 20-day moving average (MA) of 18.07, above the 50-day MA of 18.18, and above the 200-day MA of 15.36, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 41.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLYW.
Flywire Risk Analysis
Flywire disclosed 74 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $701.52M | 19.33 | 15.09% | 2.33% | 2.06% | 49.36% | |
75 Outperform | $881.94M | 54.79 | 30.13% | ― | 46.84% | 125.24% | |
71 Outperform | $1.90B | 20.95 | 15.04% | 0.62% | 12.36% | -28.24% | |
69 Neutral | $3.25B | 7.64 | 14.60% | 6.82% | 11.04% | 15.45% | |
67 Neutral | $2.27B | 68.92 | 4.08% | ― | 32.21% | 441.25% | |
66 Neutral | $1.07B | 10.15 | 14.63% | 5.23% | 0.30% | 71.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FLYW
Flywire
19.15
5.84
43.88%
CASS
Cass Information Systems
57.67
19.30
50.28%
DLX
Deluxe
23.87
5.75
31.71%
EVTC
Evertec
33.33
2.50
8.13%
PAGS
Pagseguro Digital
11.28
2.48
28.14%
PAYS
Paysign
15.21
9.53
167.78%
Flywire Corporate Events
Business Operations and StrategyExecutive/Board Changes
Flywire Appoints Sabrina Farmer to Board of Directors
Positive
Sep 23, 2026
On September 22, 2026, Flywire’s board of directors appointed Sabrina Farmer as a Class II director, expanding the board from nine to ten members and assigning her to the Nominating and Corporate Governance Committee, with her initial term r...
Business Operations and StrategyStock BuybackFinancial Disclosures
Flywire boosts guidance after strong Q2 2026 performance
Positive
Aug 4, 2026
Flywire reported strong second-quarter 2026 results on August 4, 2026, with revenue rising 27.2% year over year to $167.7 million and total payment volume up 38.2% to $8.2 billion. While still posting a net loss of $8.1 million, the company expand...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.