Flywire Q2 Earnings Call Highlights

Flywire exceeded its second-quarter expectations , with revenue less ancillary services rising 28% year over year to $164 million and adjusted EBITDA increasing to $24 million. Travel, hospitality, healthcare and B2B payment-processing ramps were key growth drivers. The company raised its 2026 outlook to 21%–27% FX-neutral revenue growth and approximately 23% adjusted EBITDA margin at the midpoint, while projecting more than $50 million in GAAP net income and 70%–75% free-cash-flow conversion. Flywire remains cautious about international education due to visa and regulatory pressures, but is diversifying geographically and expanding its Student Financial Services platform, hospitality business and AI-driven automation initiatives.

Flywire NASDAQ: FLYW reported second-quarter results that exceeded its expectations, led by travel performance, hospitality payment processing and stronger-than-anticipated contributions from healthcare and B2B payment-processing ramps. The company also raised its full-year revenue and adjusted EBITDA outlook, while maintaining a cautious posture toward international student visa trends in major education markets. Total revenue less ancillary services reached $164 million, up more than 28% year over year on a spot basis and 27% on an FX-neutral basis, Chief Financial Officer Cosmin Pitigoi said. Transaction revenue increased 35% to $135.9 million, supported by 43% growth in transaction payment volume. Adjusted gross profit rose 19% to $93 million, while adjusted EBITDA increased to $24 million, producing a 14.6% margin and approximately 160 basis points of year-over-year expansion.

The company recorded a GAAP net loss of $8 million in the quarter, improving from a $12 million loss in the prior-year period. Pitigoi said the second quarter is Flywire’s smallest revenue quarter seasonally and that net income and free cash flow are expected to be strongly positive for the full year. Travel, Healthcare and B2B Support Results Pitigoi said Flywire’s revenue outperformance versus the midpoint of its outlook was driven largely by travel, where hospitality payments ramped faster than expected. Education revenue also exceeded internal expectations. Payment processing in healthcare and the migration of B2B invoice customers added an approximately seven-point growth tailwind to payment processing during the quarter, above the mid-single-digit contribution Flywire had anticipated. The company expects that benefit to decelerate in the second half as it annualizes the related go-lives. Adjusted gross margin was 56.6%, down about 450 basis points year over year. Pitigoi attributed roughly 300 basis points of the decline to the mix effect of higher payment-processing revenue from healthcare and B2B. He said the remaining decline reflected continued changes in vertical mix, rather than pricing pressure or less-disciplined competition. “Processing volume carries the lower gross margin rate, but very little incremental OpEx because it runs over infrastructure and relationships we already have,” Pitigoi said, adding that these revenue streams can still convert gross profit dollars to EBITDA at a high rate.

Education Strategy Focuses on Software and Geographic Diversification Chief Executive Officer Mike Massaro said Flywire continues to operate in a difficult international education environment, citing negative visa trends in the United Kingdom, higher visa fees in Australia and more stringent regulations in the U.S. and U.K. The company’s guidance incorporates an assumed 30% decline in U.S. visas, which management described as a prudent approach. Despite those pressures, Flywire said it is