Flywire (NASDAQ:FLYW) Posts Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Flywire (NASDAQ:FLYW) issued its earnings results on Tuesday. The company reported ($0.07) earnings per share (EPS) 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%. During the same period in the prior year, the company posted ($0.10) EPS. The company’s revenue for the quarter was up 27.2% on a year-over-year basis.

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 Stock Up 3.8%

NASDAQ FLYW traded up $0.63 during trading on Tuesday, hitting $17.26. 2,745,656 shares of the stock traded hands, compared to its average volume of 1,942,365. The company has a market capitalization of $2.13 billion, a P/E ratio of 69.29, a price-to-earnings-growth ratio of 1.70 and a beta of 1.34. The firm has a 50-day simple moving average of $16.51 and a 200-day simple moving average of $14.28. Flywire has a 12-month low of $10.10 and a 12-month high of $18.98.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on FLYW. Deutsche Bank Aktiengesellschaft raised shares of Flywire to an “outperform” rating in a report on Wednesday, May 27th. JPMorgan Chase & Co. raised shares of Flywire from an “underweight” rating to a “neutral” rating and boosted their target price for the stock from $14.00 to $16.00 in a report on Thursday, May 21st. Zacks Research lowered shares of Flywire from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. Truist Financial reaffirmed a “hold” rating and set a $17.00 target price (down from $18.00) on shares of Flywire in a research note on Friday, July 24th. Finally, BTIG Research reiterated a “buy” rating and issued a $20.00 price target on shares of Flywire in a report on Tuesday, July 21st. Eight research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $18.69.

Insider Buying and Selling at Flywire

In other news, Director Phillip John Riese sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $15.43, for a total transaction of $77,150.00. Following the sale, the director directly owned 234,493 shares of the company’s stock, valued at $3,618,226.99. This represents a 2.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Rob Orgel sold 178,980 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $17.00, for a total value of $3,042,660.00. Following the transaction, the chief operating officer owned 959,061 shares of the company’s stock, valued at $16,304,037. This represents a 15.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 410,391 shares of company stock worth $6,700,493. Company insiders own 5.00% of the company’s stock.

Hedge Funds Weigh In On Flywire

Several institutional investors have recently bought and sold shares of FLYW. Wellington Management Group LLP lifted its position in Flywire by 173.3% in the third quarter. Wellington Management Group LLP now owns 3,358,186 shares of the company’s stock worth $45,470,000 after buying an additional 2,129,514 shares during the last quarter. Cooper Creek Partners Management LLC bought a new position in Flywire during the third quarter valued at $15,433,000. Ameriprise Financial Inc. increased its position in Flywire by 430.7% during the second quarter. Ameriprise Financial Inc. now owns 1,289,540 shares of the company’s stock valued at $15,088,000 after acquiring an additional 1,046,544 shares during the last quarter. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Flywire in the fourth quarter valued at $8,560,000. Finally, UBS Group AG raised its stake in shares of Flywire by 166.0% in the third quarter. UBS Group AG now owns 891,176 shares of the company’s stock valued at $12,067,000 after acquiring an additional 556,142 shares during the period. Institutional investors own 95.90% of the company’s stock.

More 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.

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.