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

Flywire (NASDAQ:FLYW) released its quarterly earnings data 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 company’s revenue for the quarter was up 27.2% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.10) earnings per share.

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

Flywire stock traded up $0.63 during mid-day trading on Tuesday, hitting $17.26. 2,745,656 shares of the company were exchanged, 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 market capitalization of $2.13 billion, a P/E ratio of 69.29, a PEG ratio of 1.70 and a beta of 1.34. The business’s 50 day simple moving average is $16.51 and its two-hundred day simple moving average is $14.28.

Flywire News Summary

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.

Wall Street Analysts Forecast Growth

FLYW has been the topic of several research reports. Citigroup upped their target price on Flywire from $13.00 to $16.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. JPMorgan Chase & Co. raised Flywire from an “underweight” rating to a “neutral” rating and lifted their price target for the stock from $14.00 to $16.00 in a research note on Thursday, May 21st. Raymond James Financial reiterated an “outperform” rating and issued a $22.00 price objective on shares of Flywire in a research report on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft raised shares of Flywire to an “outperform” rating in a research note on Wednesday, May 27th. Finally, Zacks Research downgraded shares of Flywire from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Eight equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $18.69.

Insiders Place Their Bets

In related news, COO Rob Orgel sold 178,980 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $17.00, for a total transaction of $3,042,660.00. Following the sale, the chief operating officer owned 959,061 shares of the company’s stock, valued at $16,304,037. This trade represents a 15.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Peter Butterfield sold 6,528 shares of Flywire 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 sale, the general counsel owned 652,152 shares of the company’s stock, valued at approximately $9,834,452.16. This represents a 0.99% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 410,391 shares of company stock valued at $6,700,493. Insiders own 5.00% of the company’s stock.

Hedge Funds Weigh In On Flywire

Hedge funds have recently made changes to their positions in the business. Royal Bank of Canada lifted its stake in Flywire by 13.6% during the fourth quarter. Royal Bank of Canada now owns 9,025 shares of the company’s stock valued at $128,000 after buying an additional 1,081 shares in the last quarter. Global Retirement Partners LLC purchased a new position in shares of Flywire in the fourth quarter worth approximately $32,000. Daiwa Securities Group Inc. raised its holdings in shares of Flywire by 78.4% during the second quarter. Daiwa Securities Group Inc. now owns 5,681 shares of the company’s stock valued at $66,000 after acquiring an additional 2,497 shares during the period. Swiss National Bank raised its holdings in shares of Flywire by 2.2% during the fourth quarter. Swiss National Bank now owns 213,800 shares of the company’s stock valued at $3,027,000 after acquiring an additional 4,600 shares during the period. Finally, Russell Investments Group Ltd. lifted its position in shares of Flywire by 220.8% in the 3rd quarter. Russell Investments Group Ltd. now owns 10,216 shares of the company’s stock valued at $138,000 after acquiring an additional 7,031 shares in the last quarter. Hedge funds and other institutional investors own 95.90% of the company’s stock.

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.