Flywire Corp
NASDAQ:FLYW
Flywire Corp
Flywire Corporation, founded in 2011, emerged as a solution to the complex challenges of global payments. Picture a bustling tapestry of cross-border transactions, where institutions and individuals often struggle to make seamless, timely, and cost-effective payments. Flywire entered this scene extending its hand primarily to sectors like education, healthcare, and travel, where large, often diverse international payments occur with regular frequency. By leveraging a secure, cloud-based platform, Flywire alleviates the headaches of currency fluctuations, cumbersome banking processes, and opaque transaction fees, providing both operational ease and cost savings. The company’s software matches payments with expected receivables, simplifying reconciliation for institutions and offering transparency and fairness for the payers.
The business model that Flywire operates is inherently commission-driven. By facilitating transactions across borders, it charges fees—sometimes to the payer and sometimes to the recipient institution or corporation. Additionally, Flywire capitalizes on currency conversion margins when transactions involve multiple currencies. Unlike traditional methods, its platform is geared toward reducing administrative burdens and accelerating funds transfers, creating a value proposition attractive to both small and large enterprises. As Flywire expands its footprint globally, it continues to acquire more institutions, not merely as clients seeking a transactional service, but as partners desiring integrated payment infrastructures that fit seamlessly into their existing systems. This enables Flywire to embed itself within the core operations of key industries, ensuring a recurrent and growing income stream as its network scales.
Flywire Corporation, founded in 2011, emerged as a solution to the complex challenges of global payments. Picture a bustling tapestry of cross-border transactions, where institutions and individuals often struggle to make seamless, timely, and cost-effective payments. Flywire entered this scene extending its hand primarily to sectors like education, healthcare, and travel, where large, often diverse international payments occur with regular frequency. By leveraging a secure, cloud-based platform, Flywire alleviates the headaches of currency fluctuations, cumbersome banking processes, and opaque transaction fees, providing both operational ease and cost savings. The company’s software matches payments with expected receivables, simplifying reconciliation for institutions and offering transparency and fairness for the payers.
The business model that Flywire operates is inherently commission-driven. By facilitating transactions across borders, it charges fees—sometimes to the payer and sometimes to the recipient institution or corporation. Additionally, Flywire capitalizes on currency conversion margins when transactions involve multiple currencies. Unlike traditional methods, its platform is geared toward reducing administrative burdens and accelerating funds transfers, creating a value proposition attractive to both small and large enterprises. As Flywire expands its footprint globally, it continues to acquire more institutions, not merely as clients seeking a transactional service, but as partners desiring integrated payment infrastructures that fit seamlessly into their existing systems. This enables Flywire to embed itself within the core operations of key industries, ensuring a recurrent and growing income stream as its network scales.
Revenue Beat: Flywire exceeded the top end of its Q3 2025 revenue and adjusted EBITDA guidance, driven by strong execution and favorable macro conditions in key education markets.
Guidance Raised: Management raised full-year 2025 revenue and EBITDA guidance, now expecting FX-neutral revenue growth of 23% to 25% and adjusted EBITDA margin expansion of 330 to 370 basis points.
Diversified Growth: The company signed over 200 new clients across all four verticals, with more than half of education wins from outside its Big 4 markets, and saw significant contributions from travel, B2B, and health care.
Education Strength: Strong performance in the U.K., Australia, and the U.S. education markets, with robust adoption of the Student Financial Software (SFS) platform and strategic upsell activity.
Margin Trends: Adjusted gross profit margin declined by about 170 basis points due to mix shifts, but adjusted EBITDA margin improved by 155 basis points year-over-year.
Operational Efficiency: Cost discipline and automation drove improved support efficiency, with a self-service rate up 28% and contact rates down year-over-year.
2026 Outlook: Management expects continued mid-single-digit macro headwinds in 2026, mainly from the U.S., with diversification and international expansion helping offset softness in Canada and Australia.
