Flywire delivered a calendar Q3 marked by robust client demand and strong execution across its core verticals, with the market responding positively to the company’s results. Management highlighted the addition of over 200 new clients and ongoing traction outside traditional education markets as key drivers. CEO Michael Massaro attributed the outperformance to Flywire’s ability to consolidate payment flows for clients, noting that their Student Financial Software platform and expansion in regions such as the U.K. and Asia played a significant role. Additionally, diversified revenue streams in travel, healthcare, and B2B contributed, with product innovation and operational efficiency supporting margin gains.
Is now the time to buy FLYW? Find out in our full research report (it’s free for active Edge members).
Flywire (FLYW) Q3 CY2025 Highlights:
- Revenue: $200.1 million vs analyst estimates of $185.8 million (27.6% year-on-year growth, 7.7% beat)
- Adjusted EPS: $0.37 vs analyst estimates of $0.35 (5.8% beat)
- Adjusted Operating Income: $55.7 million vs analyst estimates of $28.21 million (27.8% margin, 97.5% beat)
- Revenue Guidance for Q4 CY2025 is $147 million at the midpoint, above analyst estimates of $141.9 million
- Operating Margin: 16.1%, up from 12.9% in the same quarter last year
- Market Capitalization: $1.66 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Flywire’s Q3 Earnings Call
- Cristopher Kennedy (William Blair) asked about the relative penetration of Flywire’s U.K. clients versus other markets. President Rob Orgel explained that only 12 U.K. clients are above 90% adoption, highlighting significant opportunity for increased wallet share through deeper integration.
- John Davis (Raymond James) questioned why management anticipates similar macro headwinds in 2026 despite perceived improvement. CEO Michael Massaro and CFO Cosmin Pitigoi said their outlook was data-driven and prudent, citing continued policy uncertainty in the U.S. and Canada as justification for maintaining a cautious approach.
- Christopher Svensson (Deutsche Bank Securities) asked about the ramp time for new SFS clients. Orgel clarified that implementations are timed to academic cycles, so new deals typically go live ahead of the next enrollment peak, with full revenue realization following the academic calendar.
- Daniel Perlin (RBC Capital Markets) inquired about the impact and size of new education wins outside the Big 4 markets. Orgel responded that while individual deals may be smaller, the aggregate contribution from these regions is meaningful and growing faster than the corporate average.
- Tien-Tsin Huang (JPMorgan) asked what differentiates Flywire’s domestic payment offering for educational institutions. Orgel emphasized integrated back-office efficiency, enhanced payment plans, and improved student experiences as core factors driving adoption beyond just pricing.
Catalysts in Upcoming Quarters
Looking ahead, our team will be monitoring (1) Flywire’s ability to deepen client relationships and expand wallet share in the U.K. and key Asia-Pacific markets, (2) the pace of new client wins and product adoption in non-education verticals like travel and healthcare, and (3) the impact of ongoing automation and AI investments on operating margins. Execution in these areas will be crucial for sustaining revenue growth and margin expansion despite external headwinds.
Flywire currently trades at $13.59, down from $13.83 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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