Nasdaq:FLYW
Flywire Corp
Flywire Corp is a leading global payments technology provider enabling seamless cross-border transactions for higher education and healthcare sectors.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Flywire attractive due to its consistent revenue growth trajectory and successful transition to sustained profitability in 2025. The company's dominant position in the cross-border payments space for education offers stable, recurring revenue streams with high barriers to entry. Strong cash reserves of $330.3M provide flexibility for strategic acquisitions or shareholder returns while funding continued market expansion.
Bear Case
Potential buyers should be wary of the substantial accumulated deficit and retained earnings deficit of -$157.4M which suggests lingering historical inefficiencies or aggressive past accounting. The heavy reliance on the education sector creates volatility risk if universities reduce spending on international student recruitment or tuition fees. Additionally, the large non-operating losses and significant cash outflows in investing activities raise questions about the sustainability of current growth without further capital infusion.
About Flywire Corp
Flywire Corp (FLYW) operates as a global payments technology company providing cross-border payment solutions to higher education institutions, healthcare providers, and other organizations worldwide. The company leverages its proprietary platform to facilitate tuition payments, medical bill settlements, and other transactional needs across diverse international markets. With significant growth in revenue and net income over the last three years, Flywire has transitioned from a loss-making entity to a profitable one while maintaining a strong cash position.
Analysis
Management Discussion
Flywire Corp demonstrated a robust turnaround in 2025, posting $13.5M in net profit and growing revenue to $623.0M compared to $492.1M the prior year. While operating cash flow remains healthy at $100.2M, the company utilized $194.2M for investing activities and paid down debt with equal issuances, indicating a balanced capital structure. The reduction in net loss over the past three years from -$39.3M to profitability signals effective cost management and successful market expansion.
Industry Overview
The global cross-border payments industry is experiencing rapid digital transformation driven by the need for faster, cheaper international transactions in education and healthcare. Market participants are increasingly adopting technology-enabled platforms to replace legacy wire transfer systems, creating opportunities for specialized players like Flywire. Regulatory environments are tightening globally, favoring well-capitalized firms with robust compliance infrastructure over smaller, less secure competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $289.4M | $403.1M | $492.1M | $623.0M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $289.4M | $403.1M | $492.1M | $623.0M |
| Operating Expenses | $319.6M | $424.6M | $499.4M | $611.7M |
| Operating Income | $-30.2M | $-21.5M | $-7.3M | $11.3M |
| R&D | $50.3M | $62.0M | $66.6M | $70.2M |
| G&A | $82.9M | $107.6M | $125.8M | $135.5M |
| Marketing | $78.5M | $107.6M | $129.4M | $157.0M |
| Stock-Based Comp | $30.3M | $43.7M | $64.9M | $71.8M |
| D&A | $12.3M | $15.8M | $17.4M | $26.1M |
| Amortization | $9.1M | $11.5M | $12.3M | $20.1M |
| Other OpEx | $107.9M | $147.3M | $177.5M | $249.1M |
| Non-Operating Income | $-7.1M | $17.2M | $9.1M | $10.1M |
| Interest Expense | $1.2M | $372.0K | — | — |
| Interest Income | $3.2M | $13.3M | $21.4M | $5.6M |
| Pre-Tax Income | $-37.4M | $-4.4M | $1.9M | $21.4M |
| Income Tax | $2.0M | $4.2M | $-1.0M | $7.9M |
| Continuing Ops | $-39.3M | $-8.6M | $2.9M | $13.5M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-39.3M | $-8.6M | $2.9M | $13.5M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-39.3M | $-8.6M | $2.9M | $13.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $450.6M | $815.7M | $762.9M | $602.3M |
| Cash & Equivalents | $349.2M | $654.6M | $495.2M | $330.3M |
| Marketable Securities | — | — | $115.8M | $24.7M |
| Accounts Receivable | $13.7M | $18.2M | $23.7M | $34.8M |
| Prepaid Expenses | $17.5M | $18.2M | $22.5M | $36.5M |
| Other Current Assets | $70.2M | $124.6M | $105.6M | $176.0M |
| Long-Term Assets | $223.6M | $264.0M | $359.6M | $651.0M |
| PP&E (Net) | $13.3M | $15.1M | $17.2M | $22.1M |
| Intangibles | $97.6M | $108.2M | $118.7M | $189.1M |
| Goodwill | $97.8M | $121.6M | $149.6M | $406.5M |
| Operating Leases | $2.8M | $3.4M | $3.4M | $3.7M |
| LT Investments | — | — | $50.1M | $0 |
| Other LT Assets | $12.2M | $15.7M | $20.7M | $29.7M |
| Total Assets | $674.3M | $1.08B | $1.12B | $1.25B |
| Current Liabilities | $177.3M | $273.8M | $289.8M | $401.8M |
| Accounts Payable | $13.3M | $12.6M | $15.4M | $15.3M |
| Current Leases | $1.8M | $1.5M | $1.7M | $1.3M |
| Taxes Payable | $5.0M | $6.3M | $8.7M | $8.6M |
| Other Current Liab | $152.6M | $244.0M | $253.1M | $320.8M |
| Long-Term Liabilities | $15.1M | $19.8M | $17.9M | $16.4M |
| Long-Term Debt | $0 | — | — | — |
| LT Operating Leases | — | — | — | $2.4M |
| Other LT Liab | $15.1M | — | — | $14.0M |
| Total Liabilities | $192.4M | $293.6M | $307.7M | $418.1M |
| Shareholders' Equity | $481.9M | $786.1M | $814.8M | $835.2M |
| Paid-In Capital | $649.8M | $959.3M | $1.03B | $1.11B |
| Retained Earnings | $-165.2M | $-173.8M | $-170.9M | $-157.4M |
| AOCI | $-1.9M | $1.3M | $-2.1M | $2.5M |
| Treasury Stock | $748.0K | $747.0K | $46.3M | $118.6M |
| Total L&E | $674.3M | $1.08B | $1.12B | $1.25B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-39.3M | $-8.6M | $2.9M | $13.5M |
| Non-Cash Adjustments | $-52.9M | $-7.5M | $69.2M | $-32.4M |
| Working Capital Changes | $97.7M | $96.7M | $19.4M | $119.1M |
| Cash from Operations | $5.4M | $80.6M | $91.5M | $100.2M |
| Capital Expenditures | $7.1M | $1.0M | $924.0K | $1.4M |
| Cash from Investing | $-24.7M | $-38.8M | $-215.8M | $-194.2M |
| Debt Issuances | $0 | $0 | — | $125.0M |
| Debt Repayments | $25.9M | $0 | $0 | $125.0M |
| Cash from Financing | $-24.0M | $263.4M | $-37.6M | $-78.4M |
| FX Effect | $5.0M | $-1.8M | $2.6M | $7.5M |
| Net Change in Cash | $-38.2M | $303.4M | $-159.4M | $-164.9M |
| Beginning Cash | $389.4M | $351.2M | $654.6M | $495.2M |
| Ending Cash | $351.2M | $654.6M | $495.2M | $330.3M |
Frequently Asked Questions
How does Flywire Corp make money?
The company's revenue is primarily driven by its core platform serving the higher education market, which handles tuition and scholarship payments. Secondary segments include the healthcare sector managing medical billing and insurance claims settlements. Additional revenue streams come from other institutional clients utilizing Flywire's networked payment infrastructure for global remittances.
What are the main risks for FLYW?
The company faces significant concentration risk as a large portion of its revenue comes from the higher education sector, making it vulnerable to enrollment fluctuations or budget cuts in this industry. Regulatory changes in international payment corridors could impact transaction fees and operational compliance costs unexpectedly. High levels of goodwill on the balance sheet ($406.5M) present an impairment risk if acquired businesses underperform. Intense competition from larger fintech players may pressure margins despite Flywire's network effects.
What is FLYW's competitive advantage?
Flywire benefits from a massive global transaction network that creates high switching costs and deep data moats against competitors. Its proprietary technology stack offers superior security and compliance features essential for regulated industries like education and healthcare. The company's scale allows it to offer competitive pricing and extensive currency conversion options that smaller rivals cannot match.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.