NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Flywire Corporation (NASDAQ: FLYW). Shareholders who purchased shares of FLYW during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/flywire-corporation-loss-submission-form/?id=159966&from=3 CLASS PERIOD: Febru ...

NEW YORK, Aug. 7, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Flywire Corporation (NASDAQ: FLYW). Shareholders who purchased shares of FLYW during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/flywire-corporation-loss-submission-form/?id=159957&from=4 CLASS PERIOD: February 2 ...

Core Viewpoint - A lawsuit has been filed against Flywire Corporation and its senior executives for potential violations of federal securities laws, with claims related to the company's misrepresentation of its revenue growth and the impact of visa-related restrictions on its business [1][2][4]. Group 1: Lawsuit Details - Investors have until September 23, 2025, to request to lead the case, which is pending in the U.S. District Court for the Eastern District of New York [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Flywire securities [2]. Group 2: Company Background - Flywire operates as a payments-enablement and software company, primarily serving the education sector, which relies heavily on international enrollments and student preferences [3]. - The company has faced challenges due to tightening student visa and permitting rules implemented by the Canadian and Australian governments in late 2023 and early 2024 [3]. Group 3: Financial Misrepresentation - Despite facing headwinds, Flywire allegedly overstated the strength and sustainability of its revenue growth while downplaying the negative impacts of permit- and visa-related restrictions [4]. - On February 25, 2025, Flywire disclosed significant deterioration in its education sector business, citing "double digit declines in student visa issuance" and anticipated continued restrictions in 2025 [5]. Group 4: Stock Performance - Following the announcement of the negative impacts on its business, Flywire's stock price fell approximately 37%, from $17.64 per share on February 25, 2025, to $11.05 per share on February 26, 2025 [5].

Financial Performance - Total payment volume increased by approximately 22% year-over-year, reaching $5.9 billion for the three months ended June 30, 2025, compared to $4.9 billion for the same period in 2024[170]. - Revenue for the year ended December 31, 2024, was $492.1 million, up from $403.1 million in 2023, representing a growth of approximately 22%[171]. - Revenue for the three months ended June 30, 2025, was $131.9 million, an increase of $28.2 million or 27.2% compared to $103.7 million in the same period in 2024[224]. - Revenue for the six months ended June 30, 2025, was $265.3 million, an increase of $47.5 million or 21.8% compared to $217.8 million in 2024[238]. - Adjusted Gross Profit for Q2 2025 was $77.9 million, representing a 22.9% increase compared to $63.4 million in Q2 2024[261]. - Adjusted EBITDA for Q2 2025 was $16.6 million, significantly higher than $5.8 million in Q2 2024, reflecting a strong operational performance[261]. - The net loss for the three months ended June 30, 2025, was $12.0 million, an improvement from a net loss of $13.9 million in the same period of 2024[264]. Client and Market Growth - The company served over 4,700 clients globally as of June 30, 2025, including more than 3,100 educational institutions and over 100 healthcare systems[169]. - The annual net dollar-based retention rate was approximately 114% for the year ended December 31, 2024, indicating strong client retention and expansion[170]. - The company continues to see growth in new customers in the U.S., Canada, and Australia, which may help offset declines in international student growth due to government policy changes[201]. Acquisitions and Investments - The acquisition of Sertifi LLC for $330 million is expected to accelerate the company's travel business and expand offerings to over 20,000 hotel locations globally[175]. - The acquisition of Invoiced for approximately $51.7 million aims to enhance the company's B2B vertical and global expansion efforts[176]. - The company plans to continue investing in technology and development to enhance existing solutions and introduce new features, contributing to long-term growth[188]. Operational Efficiency and Restructuring - The company incurred restructuring charges of $1.4 million and $8.7 million during the three and six months ended June 30, 2025, respectively, as part of a plan to improve operational efficiencies[177]. - The company is implementing a restructuring plan to improve operational efficiencies and reduce operating costs, which includes workforce alignment with strategic priorities[215]. Financial Position and Cash Flow - As of June 30, 2025, there was $60.0 million outstanding under the 2024 Revolving Credit Facility, with no outstanding indebtedness as of December 31, 2024[217]. - The company believes existing cash will be sufficient to support working capital needs for at least the next 12 months[271]. - Cash used in investing activities for the six months ended June 30, 2025, was $196.4 million, primarily due to the acquisition of Sertifi for $319.8 million, net of cash acquired, and investments totaling $14.8 million[278]. - The company reported a net decrease in cash and cash equivalents of $245.5 million for the six months ended June 30, 2025, compared to a decrease of $115.3 million in the same period of 2024[273]. Market Challenges - Revenue from education clients in Canada has decreased by approximately 40% since the implementation of a temporary intake cap on international student permit applications[192]. - The Canadian government plans to reduce new study permits for international students by 10% from the 2024 target of 485,000 to 437,000 in 2025 and 2026[192]. - The Australian government has set a ceiling of 270,000 international students for the calendar year 2025, which is expected to adversely impact business[194]. - U.S. policy shifts have led to slower growth in the education market, with potential visa denials and increased scrutiny affecting international student enrollment[195]. - The "One Big Beautiful Bill" in the U.S. limits Pell Grant awards and eliminates the Grad PLUS program, which could adversely affect future demand for higher education[200]. Cost and Expense Management - Payment processing services costs were $53.9 million, reflecting a $14.0 million increase or 35.1% from $39.9 million, correlating with a 28% rise in transaction payment volume[226]. - Technology and development expenses increased to $17.1 million, up $1.3 million or 8.2% from $15.8 million, primarily due to higher personnel costs[227]. - Selling and marketing expenses were $38.4 million, an increase of $6.6 million or 20.8% compared to $31.8 million, driven by higher personnel costs and professional fees[228]. - General and administrative expenses decreased to $30.2 million, down $1.8 million or 5.6% from $32.0 million, mainly due to lower professional fees[229]. Foreign Exchange and Taxation - Gain from remeasurement of foreign currency increased to $3.9 million, up $2.9 million or 290.0% compared to $1.0 million, driven by fluctuations in exchange rates[234]. - Provision for income taxes was $7.0 million, an increase of $2.3 million or 48.9% from $4.7 million, primarily due to foreign subsidiary activities and U.S. state taxes[236]. - A foreign exchange impact increased reported revenue in U.S. Dollars by approximately $2.6 million compared to the prior year on a FX Neutral basis due to a weakening U.S. Dollar against several currencies, including the British Pound[293].

Shares of Flywire Corporation (NASDAQ: FLYW ) have been under pressure this year due to lower visa issuances for international students in its major Education segment markets. Despite assigning a Buy rating to the stock, I haveAn individual investor primarily focused on undercovered companies, with up to 100 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally ...

Core Insights - Flywire reported revenue of $127.5 million for the quarter ended June 2025, reflecting a year-over-year increase of 27.6% and a surprise of +6.3% over the Zacks Consensus Estimate of $119.95 million [1] - The company's EPS was -$0.09, an improvement from -$0.11 in the same quarter last year, although it fell short of the consensus estimate of -$0.07, resulting in an EPS surprise of -28.57% [1] Financial Performance Metrics - Total Payment Volume reached $5.9 billion, exceeding the average estimate of $5.65 billion from four analysts [4] - Revenue from transactions was $100.6 million, slightly above the estimated $99 million, but showed a year-over-year decline of -3% [4] - Revenue less ancillary services from transactions was $100.5 million, surpassing the average estimate of $95.88 million, marking an 18.1% increase year-over-year [4] - Revenue less ancillary services from platform and other revenues was $27.1 million, exceeding the average estimate of $21.52 million, with a significant year-over-year increase of 83.1% [4] - Revenue from platform and other revenues was $31.3 million, compared to the average estimate of $22.18 million, representing a year-over-year growth of 70.3% [4] Stock Performance - Flywire's shares have returned -13.3% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - A class action lawsuit has been filed on behalf of purchasers of Flywire Corporation securities between February 28, 2024, and February 25, 2025 [1][5] - Investors who purchased Flywire securities during the class period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2] - The lawsuit alleges that Flywire's revenue growth was overstated and that the negative impact of permit and visa-related restrictions on its business was understated [5] Group 2 - The Rosen Law Firm encourages investors to select qualified counsel with a successful track record in securities class actions [4] - The firm has achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time and has recovered hundreds of millions for investors [4] - Investors can join the class action by visiting the provided link or contacting the firm directly [3][6]

Financial Data and Key Metrics Changes - Revenue less ancillary services for Q2 2025 was $127.5 million, representing a 25% FX neutral growth rate or 27.7% on a spot basis, exceeding guidance [32] - Adjusted gross profit increased to $78 million during the quarter, up 23% year over year, with an adjusted gross margin of 61.1% [34] - Adjusted EBITDA reached almost $17 million for the quarter, resulting in a 13% margin, expanding by 723 basis points year over year [35] Business Line Data and Key Metrics Changes - Transaction revenue saw an 18% year-over-year increase, with a 28% increase in transaction-related payment volume, driven by Certify [33] - Platform and other revenues increased by 84% year over year, primarily due to platform fees and contributions from Certify [34] - Certify contributed $12 million in Q2, adding approximately 12 points of growth [32] Market Data and Key Metrics Changes - Revenue from outside the US, Canada, Australia, and the UK is growing well above the company average, with significant traction in markets like Singapore and Spain [14] - In the EMEA region, major wins included partnerships with institutions such as Bocconi University and Universidad Autonoma de Guadalajara [15][20] - The travel segment is seeing strong early traction, with Certify's revenue growing above 35% year over year [26] Company Strategy and Development Direction - The company is focused on diversifying its revenue mix and expanding client relationships through high-value software contracts [7] - The evolution to launch student financial services as a broader SaaS education platform aims to provide greater revenue visibility and durability [7] - The company is committed to capturing all money flows using industry-tailored software solutions powered by AI [9] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are increasingly focused on efficiency and return on investment, which aligns with Flywire's offerings [5] - The company remains confident in the long-term value of international education despite current visa approval challenges [40] - Management anticipates a mid to high single-digit headwind to organic revenue growth due to visa declines in major markets [43] Other Important Information - The company repurchased approximately $5 million of its shares and expanded its revolving credit facility from $125 million to $300 million [39] - The company is investing in data infrastructure, AI, and automation to enhance productivity and scale [36] - Stock-based compensation expenses are expected to be in the 12% to 13% range for the year, with expectations to trend down as revenue grows [37] Q&A Session Summary Question: Insights on full-year guidance - Management indicated that the strong Q2 results were offset by expected U.S. weakness in the latter half of the year, maintaining a cautious outlook [49][50] Question: Growth profile over the next three to five years - Management expressed excitement about the diversified growth and the potential to double the business, emphasizing strong unit economics [58][60] Question: Trends in the UK business - Management highlighted strong performance in the UK, with significant opportunities for revenue growth through deeper integrations and new product offerings [82][84] Question: U.S. education growth outlook amidst visa challenges - Management noted that domestic growth is offsetting international softness, with strong demand for the student financial services product [92][95]

2Q 2025 Earnings Supplement August 5, 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 ma ...

Exhibit 99.1 Flywire Reports Second Quarter 2025 Financial Results Second Quarter Revenue Increased 27.2% Year-over-Year Second Quarter Revenue Less Ancillary Services Increased 27.7% Year-over-Year Previous Fiscal Year 2025 revenue guidance reaf irmed, aEBITDA margin guidance raised by 75 bps at midpoint Boston, MA – August 5, 2025: Flywire Corporation (Nasdaq: FLYW) ("Flywire" or the "Company"), a global payments enablement and software company, today reported financial results for its second quarter ende ...