Flywire (NASDAQ:FLYW) executives highlighted broad-based fourth-quarter strength, continued profitability improvement, and a more cautious 2026 outlook that assumes meaningful visa headwinds in key education markets, according to the company’s fourth-quarter 2025 earnings call.
Management frames Flywire as an embedded receivables platform
CEO Mike Massaro said Flywire has evolved since its IPO into a “diversified, resilient, and increasingly profitable” company, emphasizing its focus on large-value, cross-border receivables in complex verticals where compliance and reconciliation are critical. He said Flywire’s model is designed to embed into mission-critical financial workflows and expand over time through higher payment volume and software attach.
He also highlighted Flywire’s global payments network, which he said supports transactions across more than 240 countries and territories, in over 140 currencies, and through more than 1,200 local payment methods. Massaro added that the company is embedding automation and AI across routing, reconciliation, compliance, and client-facing software, arguing that value will concentrate in platforms that already control trusted workflows and transaction data.
Go-to-market execution: client adds, education expansion, and travel momentum
President and COO Rob Orgel said Flywire’s go-to-market engine is organized around vertical specialization and deep workflow integrations. He said Flywire signed approximately 750 net new clients in 2025, excluding additional properties added through Sertifi, invoiced-only software clients, and upsells to existing customers.
In education, Orgel said growth is driven primarily by expansion within the existing client base, including Student Financial Software (SFS) adoption, broader full-suite deployments, and deeper ERP integrations. He cited particularly strong U.S. momentum, stating that projected ARR from signed SFS deals grew more than threefold year-over-year. He said the U.K. is seeing growth from deeper integrations, SFS deployments, and expansion into domestic tuition and accommodation payments, citing full-suite wins at University of Cumbria and the University of the West of England. Orgel added Flywire is working on SFS support for Oracle Fusion and expects initial U.K. launch clients to be signed and live this year.
Orgel also highlighted expansion outside Flywire’s “Big 4” education markets, saying more than 50% of new education clients signed in 2025 came from outside those countries and revenue from these markets grew more than 30% year-over-year. In Q&A, he clarified that this growth is not being driven by SFS, but rather by Flywire’s core cross-border and domestic payment capabilities.
In travel, Orgel pointed to customer wins and the integration of the Sertifi acquisition. He cited Villa Finder as an example of a cross-border travel provider that selected Flywire to modernize its payment infrastructure and integrate payments into booking workflows. He also said payment volume in Sertifi has nearly doubled year-over-year, driven primarily by higher payment attachment within the installed base, and Flywire expects continued cross-sell and international expansion opportunities as it unifies contracting, booking workflows, and Flywire payments.
In healthcare, Orgel said the company signed Jackson Health System during the quarter, along with several midsize and community hospital wins, and is progressing through a phased rollout at Cleveland Clinic. He said initial payment processing components are live, with additional phases—including a “robust patient financial experience solution”—expected to roll out in Q2.
In B2B, Orgel said new clients are increasingly adopting both software and payments from day one, and that Flywire will “shortly” introduce new AI-powered features to its invoice platform.
On go-to-market efficiency, Orgel said pipeline creation entering 2026 increased by approximately 35% year-over-year and that signed ARR grew over 35% year-over-year in 2025, excluding the impact of large payment processing contracts in healthcare. He also said sales and marketing expense declined from approximately 25% to approximately 20% of revenue from 2022 to 2025.
Q4 results: revenue beat, margin expansion, and GAAP profitability
CFO Cosmin Pitigoi said Flywire delivered Q4 revenue “almost eight points above the midpoint” of guidance and continued to expand EBITDA margins, with performance described as broad-based across verticals and geographies.
- Revenue: $152.7 million, up 32.6% on an FX-neutral basis. FX-neutral organic growth (excluding Sertifi) was 20%.
- Drivers of the beat: strength in the healthcare payment processing ramp, followed by travel, and better-than-expected macro conditions across many education markets.
- Transaction revenue: up 33%, driven by 42% growth in transaction payment volume.
- Platform and other revenues: up 50% year-over-year, supported by Sertifi and momentum in healthcare patient affordability solutions; platform-related volumes increased 11%.
- Adjusted gross profit: $93.7 million, up nearly 24% year-over-year.
- Adjusted gross margin: 61.3%, reflecting mix and ramp dynamics and roughly two points of FX settlement pressure versus a benefit last year.
- Adjusted EBITDA margin: 16.6%, up 190 basis points year-over-year and above guidance.
Pitigoi said Flywire generated $13.5 million in GAAP net income for the full year and ended with a $200 million net cash position. He also said the company deployed $118 million toward share buybacks since launching its repurchase program, with about $180 million remaining authorized. Diluted weighted average shares outstanding declined year-over-year, as repurchases more than offset dilution, resulting in negative net dilution for 2025.
2026 outlook: prudent visa assumptions, margin pressure from ramps, and EBITDA expansion
For 2026, Pitigoi guided to approximately 15% to 21% FX-neutral revenue growth, including roughly two points from B2B migrations and the Cleveland Clinic ramp and about one point from inorganic contribution as the company laps the Sertifi acquisition.
He said Flywire expects adjusted gross profit margin to decline about 200 to 300 basis points year-over-year due to payment processing programs scaling and early-stage ramp economics. Excluding ramp impacts, he said the company would expect margin dynamics closer to the lower end of that range, in line with historical mix shifts. Pitigoi also said the incremental ramp-related pressure is “temporary” and largely complete by the end of 2026, with normalization expected in 2027.
Flywire’s 2026 macro assumptions include U.S. first-year visas down about 30%, Canada down 10%, and flat visa issuance in the U.K. and Australia. Under those assumptions, Pitigoi said U.S. total education revenue is expected to grow low single digits, with cross-border modestly down but more than offset by domestic strength and continued SFS penetration. He said Canada education revenue is expected to exceed 10% growth despite visa headwinds, citing the impact of new contracts signed last year and expansion into domestic payments. EMEA and U.K. education revenue growth is expected at or above the company average.
On profitability, Pitigoi said Flywire expects 150 to 350 basis points of adjusted EBITDA margin expansion in 2026, reaching 22.5% at the midpoint, and reiterated a longer-term target of 24% to 25% adjusted EBITDA margin for 2027. He also said the company expects GAAP net income to grow approximately 3x to 4x versus 2025 and targets stock-based compensation of about 10% of revenue in 2026, with a long-term goal of keeping net dilution around 3% over time.
For Q1 2026, Pitigoi guided to approximately 28% FX-neutral revenue growth at the midpoint and 225 basis points of margin expansion. He said Q1 includes tailwinds that will moderate as the year progresses, including contributions from lapping Sertifi and payment processing ramps.
Q&A: SFS focus, healthcare ramp dynamics, capital allocation, and stablecoins
In Q&A, management repeatedly characterized 2026 guidance assumptions as prudent. On U.S. visas, Pitigoi said Flywire’s internal data showed first-year payers down in the “high teens” last year and that the company selected a 30% decline assumption for 2026 as it remains early in the year and external data is limited. On Australia, he said Flywire had assumed a worse environment last year than what ultimately occurred, and it is taking a cautious approach again.
Orgel said Flywire had about 13 full-suite wins in 2025 supporting the threefold increase in signed SFS ARR in the U.S. He said the company is focused primarily on SFS in the U.S. and U.K. in the near term, while growth outside the Big 4 is being driven by core payments offerings rather than SFS.
Asked about deal sizes, Orgel said Flywire saw growth in average deal size across verticals, reflecting both targeting larger ARR opportunities and, in education, selling the full suite.
On M&A and capital allocation, Massaro said the company views its stock as “quite dislocated” and expects to continue buying back shares, while remaining disciplined on acquisitions amid valuation dislocations between private and public markets. He said Flywire continues to focus on targets in “critical workflows” that combine software and payments monetization, and added that recent acquisitions have produced synergies that are “playing out quite well.”
On stablecoins, Massaro said Flywire is live, testing demand, and processing payments, with an initial focus on more volatile currency markets. He also described a second use case aimed at internal settlement processes to settle currencies quicker and more cost effectively.
About Flywire (NASDAQ:FLYW)
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.
