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

Flywire (NASDAQ:FLYW) posted its quarterly earnings data on Tuesday. The company reported ($0.07) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.05), Zacks reports. The company had revenue of $163.80 million during the quarter, compared to analyst estimates of $156.47 million. Flywire had a net margin of 4.45% and a return on equity of 3.78%. The business’s revenue for the quarter was up 27.2% on a year-over-year basis. During the same quarter 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 Stock Performance

Shares of FLYW stock traded up $0.97 during trading hours on Wednesday, hitting $18.23. 1,676,851 shares of the company were exchanged, compared to its average volume of 1,978,411. The company has a 50 day simple moving average of $16.54 and a two-hundred day simple moving average of $14.30. The firm has a market cap of $2.25 billion, a P/E ratio of 79.26, a P/E/G ratio of 1.70 and a beta of 1.34. Flywire has a fifty-two week low of $10.55 and a fifty-two week high of $18.98.

Insider Buying and Selling at Flywire

In other Flywire news, COO Rob Orgel sold 178,980 shares of Flywire stock in a transaction 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 completion of the sale, the chief operating officer directly owned 959,061 shares of the company’s stock, valued at approximately $16,304,037. The trade was a 15.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael Massaro sold 50,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $15.26, for a total transaction of $763,000.00. Following the transaction, the chief executive officer directly owned 2,678,051 shares in the company, valued at $40,867,058.26. This trade represents a 1.83% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 306,369 shares of company stock valued at $4,985,259 over the last 90 days. Insiders own 5.00% of the company’s stock.

Institutional Trading of Flywire

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Royal Bank of Canada grew its holdings in shares of 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 during the last quarter. Global Retirement Partners LLC bought a new stake in shares of Flywire during the fourth quarter worth about $32,000. Daiwa Securities Group Inc. raised its holdings in shares of Flywire by 78.4% in the 2nd quarter. Daiwa Securities Group Inc. now owns 5,681 shares of the company’s stock worth $66,000 after acquiring an additional 2,497 shares during the last quarter. Swiss National Bank raised its holdings in shares of Flywire by 2.2% in the 4th quarter. Swiss National Bank now owns 213,800 shares of the company’s stock worth $3,027,000 after acquiring an additional 4,600 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its position in 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. Institutional investors own 95.90% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on FLYW shares. Morgan Stanley reiterated an “overweight” rating and issued a $22.00 price target on shares of Flywire in a research report on Wednesday. Wall Street Zen downgraded Flywire from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. B. Riley Financial reaffirmed a “buy” rating on shares of Flywire in a research note on Wednesday. The Goldman Sachs Group reiterated a “neutral” rating on shares of Flywire in a report on Wednesday. Finally, New Street Research set a $16.00 target price on shares of Flywire in a research report on Thursday, May 21st. Eight equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $18.85.

Key Stories Impacting Flywire

Here are the key news stories impacting Flywire this week:

• Positive Sentiment: Second-quarter revenue rose 27.2% year over year to approximately $164 million-$168 million, exceeding Wall Street expectations. Revenue excluding ancillary services increased 28.5%, with growth across all four of Flywire’s vertical markets. Flywire Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its fiscal 2026 FX-neutral revenue-excluding-ancillary-services growth outlook by 300 basis points at the midpoint and increased adjusted EBITDA margin growth guidance by 25 basis points, signaling improving operating momentum. Flywire 2026 Q2 Results Presentation
• Positive Sentiment: Operating cash flow reached $21.1 million, while cash and equivalents totaled $311.9 million, providing financial flexibility to fund continued growth investments. Flywire Stock Rises on Q2 Earnings
• Neutral Sentiment: Third-quarter revenue guidance of $225.2 million-$236.8 million brackets the roughly $227.8 million analyst estimate, while fiscal-year guidance of $729.8 million-$765.9 million is centered near the $745.0 million consensus. Flywire Earnings Conference Call
• Negative Sentiment: Profitability remained a concern. Flywire reported a net loss of approximately $0.07 per diluted share, below consensus estimates, as expenses and cost of sales grew faster than revenue. Flywire Q2 Earnings Miss
• Negative Sentiment: Recent insider activity was heavily weighted toward selling, including transactions by senior executives, which may temper investor enthusiasm.

Flywire Company Profile

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.