Flywire Corporation

What they do

Flywire provides a global payments platform that enables clients and their payers to process cross-border and domestic payments. It operates across four verticals: education, travel and events, healthcare, and B2B. The platform includes software integrations, payment processing, and ancillary services such as identity verification and reconciliation.

Revenue drivers

• Education vertical — The primary revenue driver, including tuition and student financial services (SFS). Education revenue outside the core 'Big Four' markets grew 30%+ year-over-year, with roughly two of three new education clients from outside those markets.
• Travel and events vertical — Experiential travel deal sizes rose as clients consolidated vendors; over 42 hospitality software deals signed across Europe and Asia in the first half of 2026.
• Healthcare and B2B verticals — Newer verticals that contribute to revenue growth; management noted momentum across all four verticals with larger accounts and faster expansion within existing ones.

Recent performance

In Q2 2026, revenue increased 27.2% year-over-year to $167.7 million, and revenue less ancillary services rose 28.5% to $163.8 million (FX-neutral up 26.9%). Total Payment Volume grew 38.2% to $8.2 billion. Adjusted EBITDA rose 44.5% to $24.0 million, with margin up 160 bps to 14.6%. The company remains net income positive on a trailing-twelve-month basis ($13.5M in FY2025), though it reported a GAAP net loss of ($8.1) million in Q2 2026.

Strategy

Management is focused on expanding within existing accounts, signing larger enterprise clients, and consolidating manual workflows onto a single platform. The company is unifying its global platforms and introducing agentic capabilities to improve client and payer experience. It continues to expand geographically, particularly in education outside core markets and in hospitality software. Recent investments include the Sertifi acquisition and integrations with Workday and Driftwood Hospitality deployments.

Risks

• Cross-border economic and political risks — Fluctuations in foreign currency exchange rates, inflation, tariffs, and international trade conflicts can affect cross-border commerce and payment volumes.
• Integration risk from acquisitions — The Sertifi acquisition and other integrations may not achieve expected benefits, synergies, or financial results.
• Competition in payments — Increased competition in payments and software could reduce pricing power or market share.
• Dependence on third-party partners — Relationships with financial institutions and strategic partners are critical; disruptions could impair service delivery.

Outlook

Flywire raised its full-year fiscal 2026 guidance for FX-neutral revenue less ancillary services growth by 300 basis points at the midpoint, and adjusted EBITDA margin growth by 25 basis points at the midpoint. Management reiterated a long-term target of $1 billion in revenue and 30% adjusted EBITDA margin.