Flywire (NASDAQ:FLYW) Releases Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• Flywire’s Q2 revenue grew strongly, rising 27.2% year over year to $167.7 million and exceeding analyst expectations. Adjusted EBITDA increased to $24 million, while management raised its full-year 2026 revenue and EBITDA outlook.
• Profitability missed estimates: the company reported a $0.07 per-share loss versus the expected $0.02 loss, while adjusted EPS was $0.04 compared with the $0.09 estimate. Faster growth in expenses and cost of sales pressured results.
• Growth is broadening across travel, hospitality, healthcare and B2B, but education demand faces immigration-policy risks and the lower-margin healthcare and B2B mix reduced gross margins. Insider selling also remains a cautionary signal, with 15 sales and one purchase reported over the past six months.

Flywire (NASDAQ:FLYW - Get Free Report) released its quarterly earnings results on Tuesday. The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.05), Zacks reports. Flywire had a net margin of 4.45% and a return on equity of 3.78%. The business's quarterly revenue was up 27.2% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.10) EPS.

Here are the key takeaways from Flywire's conference call:

• Q2 results exceeded expectations: Revenue less ancillary services rose 27% year over year on an FX-neutral basis to $164 million, while adjusted EBITDA increased to $24 million and the margin expanded 160 basis points to 14.6%. Flywire raised its full-year 2026 revenue and EBITDA outlook, including 21%–27% FX-neutral revenue growth and approximately 23% adjusted EBITDA margin at the midpoint.
• Growth is broadening beyond traditional education markets, with travel and hospitality payments outperforming expectations, education revenue outside the “big four” markets up more than 30%, and B2B and healthcare becoming meaningful contributors. The company also signed more than 200 clients across 45 countries for the second consecutive quarter, with larger deals and increasing vendor consolidation.
• Flywire reported continued traction for its software-led strategy, including U.S. SFS signings with twice the ARR of the year-earlier quarter and more than 40 hospitality locations signed across Europe and Asia year to date. Management said software attachment is improving customer retention, deal economics, and payment-volume capture.
• Education demand remains exposed to immigration policy, including a projected 30% decline in U.S. visas and worsening U.K. visa trends; management expects U.K. growth to decelerate and exit below the company average. The accelerating mix of lower-margin healthcare and B2B payment processing also reduced adjusted gross margin by roughly 450 basis points in Q2 and is expected to produce about a 350-basis-point reported decline for the full year.
• Management emphasized a multi-year operating-leverage opportunity from systems consolidation, AI, and digital transformation, targeting approximately 25% adjusted EBITDA margin in 2027 and ultimately 30% alongside $1 billion of annual organic revenue. About 45% of customer inquiries are already resolved automatically, while free-cash-flow conversion is expected to remain 70%–75% of adjusted EBITDA and dilution below 2% in 2026.

Flywire Price Performance

Shares of NASDAQ:FLYW traded up $0.63 during midday trading on Tuesday, hitting $17.26. The company had a trading volume of 2,745,656 shares, compared to its average volume of 1,942,365. Flywire has a 12-month low of $10.10 and a 12-month high of $18.98. The company has a fifty day moving average of $16.51 and a two-hundred day moving average of $14.28. The company has a market cap of $2.13 billion, a price-to-earnings ratio of 69.29, a PEG ratio of 1.70 and a beta of 1.34.

Insider Activity at Flywire

In other news, General Counsel Peter Butterfield sold 6,528 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $15.08, for a total value of $98,442.24. Following the transaction, the general counsel owned 652,152 shares of the company's stock, valued at $9,834,452.16. This trade represents a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mohit Kansal sold 54,543 shares of Flywire stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $15.15, for a total value of $826,326.45. Following the transaction, the insider directly owned 504,320 shares in the company, valued at approximately $7,640,448. The trade was a 9.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 410,391 shares of company stock valued at $6,700,493 in the last ninety days. Corporate insiders own 5.00% of the company's stock.

Institutional Investors Weigh In On Flywire

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Global Retirement Partners LLC purchased a new position in Flywire during the fourth quarter valued at approximately $32,000. Daiwa Securities Group Inc. increased its stake in shares of Flywire by 78.4% in the second quarter. Daiwa Securities Group Inc. now owns 5,681 shares of the company's stock worth $66,000 after purchasing an additional 2,497 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Flywire during the 2nd quarter valued at $119,000. Royal Bank of Canada raised its position in shares of Flywire by 13.6% during the 4th quarter. Royal Bank of Canada now owns 9,025 shares of the company's stock valued at $128,000 after purchasing an additional 1,081 shares during the period. Finally, Russell Investments Group Ltd. raised its position in shares of Flywire by 220.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 10,216 shares of the company's stock valued at $138,000 after purchasing an additional 7,031 shares during the period. 95.90% of the stock is owned by hedge funds and other institutional investors.

Key Flywire News

Here are the key news stories impacting Flywire this week:

• Positive Sentiment: Second-quarter revenue rose 27.2% year over year to $167.7 million, exceeding the $160.3 million analyst estimate. Revenue excluding ancillary services increased 28.5%, while gross profit climbed to $93.0 million. Flywire Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Flywire raised its fiscal 2026 FX-neutral revenue growth guidance excluding ancillary services by 300 basis points at the midpoint and increased its adjusted EBITDA margin growth outlook by 25 basis points. Operating cash flow was $21.1 million, and the company ended the quarter with $311.9 million in cash and equivalents. Quarterly Financial Results
• Positive Sentiment: Third-quarter revenue guidance of $225.2 million to $236.8 million brackets the $227.8 million consensus estimate, while full-year guidance of $729.8 million to $765.9 million is broadly in line with the $745.0 million consensus. The market reaction was also supported by continued growth across all four business verticals.
• Neutral Sentiment: Analyst price targets remain moderately supportive, with a reported six-month median target of $19, compared with recent trading near the upper end of Flywire’s annual range.
• Negative Sentiment: Profitability was weaker than expected. GAAP net loss attributable to common shareholders was $8.1 million, or $0.07 per diluted share, versus a $0.02 loss consensus; adjusted earnings were reported at $0.04 per share versus a $0.09 estimate. Expenses and cost of sales grew faster than revenue.
• Negative Sentiment: Insider trading remains a cautionary signal: company insiders recorded 15 sales and only one purchase over the past six months.

Analyst Upgrades and Downgrades

FLYW has been the subject of a number of research reports. New Street Research set a $16.00 price objective on Flywire in a research report on Thursday, May 21st. Wall Street Zen cut Flywire from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. The Goldman Sachs Group boosted their price target on Flywire from $17.00 to $20.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Truist Financial restated a "hold" rating and set a $17.00 price target (down from $18.00) on shares of Flywire in a research note on Friday, July 24th. Finally, Zacks Research lowered shares of Flywire from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 10th. Eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Flywire presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.69.

About Flywire

Flywire Corp NASDAQ: FLYW is a global payments enablement and software company that specializes in facilitating complex cross-border transactions. Its cloud-based platform streamlines receivables and payer workflows across key verticals including education, healthcare, travel and hospitality, and commercial services. Flywire's technology integrates with institutional systems to automate payment posting, reconciliation and reporting, aiming to improve the payer experience and accelerate cash flow for its clients.

Founded in 2009 by entrepreneur Iker Marcaide as peerTransfer, the company rebranded as Flywire in 2015.

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