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Flywire
(NASDAQ:FLYW)
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Rating:71Outperform
Price Target:
$19.00
▲(19.57% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by improving fundamentals (growth, profitability trajectory, strong cash flow, and low leverage) and a constructive earnings update with raised FY2026 guidance and margin expansion targets. Offsetting factors are a rich valuation (high P/E, no dividend support), mixed near-term technical momentum, and data-quality/volatility flags in the TTM financial snapshot plus margin/visa headwinds discussed on the call.
Positive Factors
Sustained revenue and payment volume growth
Flywire’s multi-year top-line acceleration and 40%+ TPV growth indicate scalable core demand across education, travel and healthcare. Persistent volume growth builds network effects for payment routing, FX and reconciliation services, underpinning durable fee revenue and platform stickiness over the medium term.
Negative Factors
Gross margin compression from mix
Mix shift into lower-margin domestic processing and health/B2B ramps has materially lowered blended gross margins. If these lower-margin streams continue gaining share, the firm may face sustained pressure on gross profitability even as EBITDA benefits from low incremental OpEx, limiting long-term gross margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and payment volume growth
Flywire’s multi-year top-line acceleration and 40%+ TPV growth indicate scalable core demand across education, travel and healthcare. Persistent volume growth builds network effects for payment routing, FX and reconciliation services, underpinning durable fee revenue and platform stickiness over the medium term.
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
$2.34B
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)69.7
Beta (1Y)1.34
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. Volume1,975,679
30 Day Avg. Volume2,285,529
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$21.09Price Target Upside32.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.4
Revenue Forecast (FY)$762.05M
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 10, 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 | 76.66M | 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
15.89
Price Trends
17.55
Positive
16.06
Positive
14.57
Positive
Market Momentum
0.55
Negative
57.46
Neutral
69.53
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 15.89 is below the 20-day moving average (MA) of 18.07, below the 50-day MA of 17.55, and above the 200-day MA of 14.57, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 69.53 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.95B | 58.85 | 14.80% | ― | 30.21% | 50.31% | |
71 Outperform | $2.34B | 69.70 | 4.08% | ― | 32.21% | 441.25% | |
67 Neutral | $278.38M | 16.91 | 22.15% | 4.94% | -9.12% | 5.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $356.11M | -1.78 | -32.65% | ― | 5.13% | -359.12% | |
44 Neutral | $1.52B | -2.90 | -63.91% | ― | -35.67% | -49.96% |
* Technology Sector Average
FLYW
Flywire
18.84
5.77
44.15%
HCKT
The Hackett Group
10.99
-9.02
-45.07%
PSFE
Paysafe
6.78
-7.27
-51.74%
AI
C3ai
9.70
-7.61
-43.96%
PAY
Paymentus Holdings
39.43
1.23
3.22%
Flywire Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Flywire Shareholders Back Directors, Auditor and Executive Pay
Positive
Jun 5, 2026
At its 2026 annual meeting held on June 2, Flywire Corporation shareholders considered standard governance items, including the election of Class II directors, ratification of the company’s external auditor and an advisory vote on executive ...
Business Operations and StrategyStock Buyback
Flywire Advances Share Repurchase Strategy With New Buyback
Positive
May 15, 2026
On May 13, 2026, Boston-based Flywire Corporation entered a privately negotiated agreement to repurchase about 1.87 million shares of its non-voting common stock from a pre-IPO shareholder for roughly $29 million, funded entirely with cash on its ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Flywire Delivers Strong Q1 Results and Raises Guidance
Positive
May 5, 2026
On May 5, 2026, Flywire reported strong first-quarter 2026 results, with revenue rising 41.0% year over year to $188.1 million and revenue less ancillary services up 43.0% to $184.0 million. The company swung to a GAAP net income of $12.5 million ...
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.