Core Points - A class action has been filed against Flywire Corporation on behalf of investors who acquired its securities between February 28, 2024, and February 25, 2025 [1] - Allegations include that Flywire misled investors about the sustainability of its revenue growth and downplayed the negative impact of permit and visa-related restrictions on its business [2] - On February 25, 2025, Flywire announced disappointing financial results for Q4 and FY 2024, expecting revenue declines of over 30% year-over-year in Canadian and Australian markets due to policy changes and new visa rules [3] Company Performance - Flywire's stock price fell by $6.59 per share, or 37.36%, closing at $11.05 per share on February 26, 2025, following the announcement of poor financial results and subsequent analyst downgrades [3] Legal Proceedings - Shareholders may be eligible to participate in the class action against Flywire, with options to serve as lead plaintiff or remain an absent class member [4]

Company Overview - Flywire Corporation is a global payments enablement and software company that combines a proprietary global payments network, next-gen payments platform, and vertical-specific software to manage complex payments for clients and their customers [3][4]. - The company supports over 4,600 clients with diverse payment methods in more than 140 currencies across over 240 countries and territories [5]. Financial Results Announcement - Flywire will release its second quarter financial results after market close on August 5, 2025, and will host a conference call at 5:00 pm ET on the same day [1]. - The conference call will be led by CEO Mike Massaro, President and COO Rob Orgel, and CFO Cosmin Pitigoi [1]. Conference Call Details - The conference call will be webcast live from Flywire's investor relations website, with a replay available afterward [2].

Core Viewpoint - Flywire has been appointed to the PCI Security Standards Council (PCI SSC) 2025-2027 Board of Advisors, marking its second consecutive term, which underscores its commitment to enhancing payment security standards and protocols [1][2][3] Group 1: Company Representation and Expertise - Flywire's CTO, David King, and CIO/CISO, Barbara Cousins, will represent the company on the PCI SSC Board, leveraging their extensive experience in security and payments [1][2] - David King was part of the original team that drafted the initial version of PCI DSS 1.0, bringing valuable insights to the Board [2] Group 2: Commitment to Security and Compliance - Flywire is PCI DSS Level 1 certified, the highest level for credit card data security, and undergoes annual SOC II Type II audits to ensure strong information management processes [3] - The company actively manages global regulatory requirements, including comprehensive Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) programs, and complies with various data protection laws such as GDPR, CCPA, PIPEDA, HIPAA, and FERPA [3] Group 3: Client Trust and Security Differentiation - Flywire's security capabilities are a key differentiator for its global clients, as evidenced by Nordic Visitor's decision to select Flywire for its international payments due to robust security and compliance features [4] - The company emphasizes that being a leader in security and compliance is about building trust with clients and their customers, not just meeting regulatory requirements [5] Group 4: Industry Collaboration - The PCI SSC Board of Advisors provides industry expertise that influences the development of PCI security standards and programs, highlighting the collaborative effort to enhance payment data security globally [5][6]

Core Insights - Flywire Corporation has been accepted into Virtuoso's exclusive portfolio of luxury travel partners, enhancing its sales and marketing opportunities within the luxury travel sector [1][2] - Virtuoso comprises 2,300 preferred suppliers across 100 countries, with member agencies generating an average of $35 billion in annual sales, positioning Flywire within a significant market [1][8] - Flywire's technology and payment solutions are designed to provide seamless and secure payment experiences for high-end travelers, supporting over 140 currencies and diverse payment methods [3][7] Company Overview - Flywire is a global payments enablement and software company that integrates its proprietary global payments network and vertical-specific software to manage complex payments for clients [4][5] - The company supports over 4,600 clients in more than 240 countries and territories, focusing on industries such as education, healthcare, and travel [7] Industry Context - Virtuoso is a leading global travel agency network specializing in luxury and experiential travel, with over 1,200 agency locations and more than 20,000 travel advisors [8] - The network provides exclusive amenities and privileged access to its upscale clientele, further enhancing the value proposition for Flywire as a preferred partner [2][8]

Core Insights - Flywire Corporation has enabled over 100 U.S. colleges and universities to collect more than $320 million in past-due tuition, helping to retain over 161,000 at-risk students [1][2] - The adoption of Flywire's Student Financial Software (SFS) is driven by the need for U.S. higher education institutions to create sustainable revenue streams and improve student affordability through dynamic payment plans [2] - Flywire's Collection Management offering has proven to be cost-effective, helping institutions avoid the average 20% fee associated with sending students to collections [2] Company Solutions - Flywire's SFS includes features such as automated communications and payment plans, which have helped Purdue University recover over $1 million in revenue and save more than 300 students from collections [2][3] - The company has digitized over $2 billion in tuition payments through its 529 disbursement solution, eliminating the manual processing of over 502,000 checks for U.S. institutions [3] - Flywire's third-party invoicing solution enhances the payment experience for sponsors paying student tuition and fees, further streamlining the payment process [3] Partnerships and Integrations - Flywire has partnered with leading education technology providers to enhance its offerings, including tuition insurance through GradGuard and streamlined payment experiences through BlackBaud [5] - The company integrates with major ERP systems like Ellucian and NetSuite, improving operational efficiency for educational institutions [4][8] - Flywire supports over 4,600 clients globally, providing diverse payment methods in more than 140 currencies across over 240 countries [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40430 FLYWIRE CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 27-0690799 (State or other jurisdiction ...

Flywire (FLYW) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Masha Kahn - Vice President of Investor RelationsMike Massaro - CEO & DirectorRob Orgel - President & COOCosmin Pitigoi - CFOJohn Davis - Managing DirectorTimothy Chiodo - Managing DirectorDan Perlin - Managing DirectorTyler DuPont - Equity Research Associate Conference Call Participants Tien-tsin Huang - Senior AnalystCristopher Kennedy - Research Analyst, Financial Services and TechnologyCharles Nabhan - Research Analyst Op ...

Financial Data and Key Metrics Changes - Revenue less ancillary services was $128.7 million in Q1 2025, representing a 16.8% year-over-year growth rate or 18.6% on an FX neutral basis [37] - Adjusted gross profit increased to $82.5 million during the quarter, up 14.6% year-over-year, with an adjusted gross margin of 64% [41] - GAAP net loss was $4.2 million, representing a year-over-year improvement of approximately $2 million [43] Business Line Data and Key Metrics Changes - Transaction revenue saw a 14% year-over-year increase, driven by a 28% increase in transaction-related payment volume [38] - Platform and other revenues increased by 35% year-over-year, primarily driven by platform fees and improvements in the healthcare business [40] - The travel vertical is experiencing strong momentum, with notable new clients and significant growth opportunities following the Certify acquisition [31][33] Market Data and Key Metrics Changes - The UK education segment is now the largest market for the company, with strong growth driven by new product offerings [68] - Australia and Canada are experiencing market uncertainty post-elections, but the company has seen resilience in Australia [29] - The international education market is expanding beyond traditional markets, with significant growth in Germany, France, Japan, and Singapore [20] Company Strategy and Development Direction - The company is focused on driving innovation, delivering exceptional value, and executing strategic initiatives despite macroeconomic challenges [4][5] - A digital transformation initiative is underway to enhance data analytics and system capabilities, aiming for operational efficiency and improved client insights [13][14] - The company is streamlining its structure and optimizing investments across products and geographies to drive greater efficiency [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macro environment but remains confident in the company's performance and future growth potential [4][5] - The company expects U.S. education revenue growth to be in the low single digits, with potential impacts from geopolitical tensions affecting international student demand [46][49] - The outlook for the healthcare business is positive, with expectations of strong growth driven by unique integrated solutions [35][36] Other Important Information - The company repurchased 3.6 million shares for approximately $49 million, with $57 million remaining in the current buyback program [43] - The company is maintaining its full-year 2025 revenue guidance for FX neutral revenue growth in the range of 10% to 14% excluding Certify [49] Q&A Session Summary Question: FX guidance and growth expectations for the second half - Management explained the expected slowdown in Q2 due to seasonal effects and macroeconomic factors, with a reacceleration anticipated in the second half driven by client ramp-ups and easier comparisons [55][57][59] Question: Impact of international student demand on sales cycles - Management noted that despite macroeconomic pressures, demand for international education remains strong, and clients are looking to improve their technology solutions [60][62] Question: Growth contribution from the UK market - The UK is now the largest market for the company, with strong growth driven by new product offerings and successful client acquisitions [68][70] Question: Sources of upside in revenue growth - Travel and Australia were highlighted as key drivers of growth, with strong performance in both sectors despite macroeconomic uncertainties [73][75] Question: Competitive positioning in the education sector - Management emphasized that the company competes on product performance and results, with a strong reputation in the market and continued client acquisition [92][93]

Flywire First Quarter 2025 Financial Results [Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) Flywire reported strong Q1 2025 results, driven by significant revenue and payment volume growth, expanded Adjusted EBITDA margins, and new client acquisition Q1 2025 GAAP Financial Highlights (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $133.5 million | $114.1 million | +17.0% | | Gross Profit | $80.5 million | $70.4 million | +14.3% | | Gross Margin | 60.3% | 61.7% | -1.4 p.p. | | Net Loss | ($4.2) million | ($6.2) million | Improved | Q1 2025 Key Operating & Non-GAAP Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Payment Volume | $8.4 billion | $7.0 billion | +20.4% | | Revenue Less Ancillary Services | $128.7 million | $110.2 million | +16.8% | | Adjusted EBITDA | $21.6 million | $13.2 million | +63.6% | | Adjusted EBITDA Margin (on RLAS) | 16.8% | 12.0% | +4.8 p.p. | - Signed over **200 new clients**, with strong performance in the Travel and Education verticals[3](index=3&type=chunk)[5](index=5&type=chunk) - Expanded in India by partnering with Avanse (a major non-banking financial company) and the State Bank of India to tap into education loan payment volume[3](index=3&type=chunk)[5](index=5&type=chunk) - Strengthened software integrations with leading ERPs like Ellucian, Workday, and Unit4 for the higher education industry[3](index=3&type=chunk)[5](index=5&type=chunk) - Appointed a Chief Payments Officer to drive product and payment innovation[3](index=3&type=chunk)[5](index=5&type=chunk) [Business Outlook / Guidance](index=3&type=section&id=Business%20Outlook%20%2F%20Guidance) Flywire reaffirmed its full-year 2025 guidance, projecting strong YoY growth in FX-Neutral Revenue Less Ancillary Services and Adjusted EBITDA Margin expansion Fiscal Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | FX-Neutral Revenue Less Ancillary Services Growth | 17-23% YoY | | FX-Neutral Revenue Less Ancillary Services Growth (ex-Sertifi) | 10-14% YoY | | Sertifi Revenue Contribution | $35-40 million | | Adjusted EBITDA Margin Growth | +100-300 bps YoY | Second Quarter 2025 Guidance | Metric | Guidance | | :--- | :--- | | FX-Neutral Revenue Less Ancillary Services Growth | 17-23% YoY | | FX-Neutral Revenue Less Ancillary Services Growth (ex-Sertifi) | 7-11% YoY | | Sertifi Revenue Contribution | $10-12 million | | Adjusted EBITDA Margin Growth | +150-350 bps YoY | - The company is maintaining its **full-year 2025 financial outlook**, citing effective execution, strategic investments, and operational efficiency as drivers for revenue growth and margin expansion, which helps offset macroeconomic challenges[6](index=6&type=chunk) [Corporate Actions](index=4&type=section&id=Corporate%20Actions) The company executed a share repurchase program in Q1 2025, buying back **3.6 million shares** for approximately **$49 million**, with **$57 million** remaining authorized for future repurchases - In Q1 2025, Flywire repurchased **3.6 million shares** of common stock for about **$49 million** (including commissions)[5](index=5&type=chunk) - Approximately **$57 million** remains available in the share repurchase program as of the end of Q1 2025[5](index=5&type=chunk) - The repurchase program is flexible, with no obligation to purchase a specific number of shares, and can be modified or suspended at any time[11](index=11&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section presents the detailed, unaudited GAAP financial statements for Q1 2025 and Q1 2024, including statements of operations, balance sheets, and cash flows [Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q1 2025, Flywire reported revenue of **$133.5 million**, with an increased loss from operations of **($11.0) million**, but a net loss narrowed to **($4.2) million** from **($6.2) million** in Q1 2024 Q1 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $133,452 | $114,103 | | Total costs and operating expenses | $144,440 | $120,066 | | Loss from operations | ($10,988) | ($5,963) | | Net Loss | ($4,160) | ($6,217) | | Net loss per share - basic and diluted | ($0.03) | ($0.05) | [Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Flywire's total assets were **$1.06 billion**, down from **$1.12 billion** at year-end 2024, primarily due to reduced cash, with total liabilities decreasing and goodwill/intangible assets increasing Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $190,507 | $495,242 | | Total Assets | $1,060,348 | $1,122,446 | | Total Liabilities | $276,083 | $307,679 | | Total Stockholders' Equity | $784,265 | $814,767 | [Statement of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities increased to **($78.9) million**, investing activities used **($237.9) million** for acquisitions, and financing provided **$11.6 million**, leading to a **$304.7 million** decrease in cash Q1 Cash Flow Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($78,890) | ($38,093) | | Net cash used in investing activities | ($237,872) | ($1,514) | | Net cash provided by financing activities | $11,639 | $2,249 | | Net decrease in cash | ($304,735) | ($35,594) | [Non-GAAP Financial Measures & Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) Flywire utilizes non-GAAP metrics like Revenue Less Ancillary Services, Adjusted Gross Profit, and Adjusted EBITDA to clarify core operational performance, providing detailed definitions and reconciliations to GAAP figures - Flywire uses non-GAAP measures to better understand and project financial performance[13](index=13&type=chunk)[14](index=14&type=chunk) - **Revenue Less Ancillary Services:** GAAP Revenue excluding pass-through costs and marketing fees[13](index=13&type=chunk)[14](index=14&type=chunk) - **Adjusted Gross Profit:** Revenue Less Ancillary Services minus adjusted cost of revenue[13](index=13&type=chunk)[14](index=14&type=chunk) - **Adjusted EBITDA:** Net income adjusted for interest, taxes, D&A, stock-based compensation, acquisition costs, and other specific items[13](index=13&type=chunk)[14](index=14&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Q1 2025, in millions) | Line Item | Amount | | :--- | :--- | | Net loss (GAAP) | ($4.2) | | Adjustments (Interest, Taxes, D&A, etc.) | $2.8 | | EBITDA | ($1.4) | | Further Adjustments (Stock Comp, FX, etc.) | $23.0 | | **Adjusted EBITDA (Non-GAAP)** | **$21.6** | Reconciliation of Revenue and Gross Profit (Q1 2025, in millions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Revenue | $133.5 | ($4.8) | $128.7 (RLAS) | | Gross Profit | $80.5 | $2.0 | $82.5 (Adj. GP) | | Gross Margin | 60.3% | | 64.1% (Adj. GM) |

1Q 2025 Earnings Supplement May 6, 2025 Disclosures This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this presentation, including statements regarding the outcome of the operational and portfolio reviews, the costs, cash outlays, benefits, timing and financial impacts of the actions that may b ...