Group 1 - The MS&AD Insurance Group Holdings is conducting its Fiscal Year 2025 Second Information Meeting to provide updates and insights to stakeholders [1] - The meeting is hosted by Hayashi from the IR department, indicating a structured approach to investor relations [1] - Corrections have been made to the materials presented, specifically regarding information on Page 21 about a revision planned for January 2026 [2]

Summary of Flywire Conference Call Industry Overview - **Industry**: Cross-border education, domestic education, travel, healthcare, and B2B payments - **Company**: Flywire (NasdaqGS:FLYW) Key Points and Arguments Cross-Border Education Market - **International Student Enrollment**: New international student enrollment in the U.S. decreased by 17% year-over-year, slightly better than Flywire's expectation of a 20% decline [4][5] - **Higher Tuition Programs**: Performance in high-ticket programs (undergraduate) is better than lower-cost programs, contributing to a more favorable outcome in first-year payers [5] - **Retention Rates**: Improved retention rates among existing students are positively impacting overall business performance [5][6] - **Revenue Guidance**: Flywire's U.S. education business is expected to grow in the low single digits due to these dynamics [6] Revenue Growth Headwinds - **Geographical Impact**: Mid-single-digit revenue headwinds are anticipated from Canada, Australia, and the U.S. for 2025, with Canada being the largest contributor to this impact [9][10] - **Revenue Estimates**: The U.S. business generated approximately $80 million last year, with expectations of a more significant negative impact next year if trends do not improve [10][11] U.K. Market Insights - **Visa Trends**: U.K. visas for international students are flat to slightly up, with no significant negative impact from the political climate [14][15] - **Immigration Policy**: The U.K. is taking a balanced approach to immigration, which is beneficial for attracting international students [15] Cross-Border Payments - **WPM Integration**: Flywire is still in the early stages of monetizing the WPM acquisition, with only 12 clients in the U.K. processing 90% of their volume through Flywire [17][18] - **Growth Potential**: There is significant room for growth in cross-border payments, particularly as Flywire aims to integrate more schools into its system [18][20] Domestic Education Market - **Competitive Landscape**: Flywire competes with three incumbents in the U.S. domestic education market, leveraging its cloud-based software and vendor consolidation capabilities [26][27] - **Client Wins**: Winning larger institutions like Stanford and Penn State is expected to catalyze further client migrations [29][30] Travel Segment - **Growth Drivers**: The luxury travel segment is growing, driven by new client acquisitions and operational efficiencies [35][36] - **Market Position**: Flywire's software capabilities are crucial for managing complex travel transactions, enhancing its value proposition [36] Healthcare Vertical - **Cleveland Clinic Partnership**: The partnership with Cleveland Clinic is seen as a lighthouse client that could accelerate growth in the healthcare vertical [41][42] - **Growth Expectations**: Healthcare is expected to grow in the low teens this year, with potential for acceleration next year [42][43] Financial Performance and Profitability - **EBITDA Margin**: Flywire aims for a long-term EBITDA margin of over 25%, with indications of mid-30s incremental margins for the upcoming year [46][47] - **Cost Management**: The company plans to manage operating expenses effectively to ensure profitability [46][47] Student Retention Trends - **Retention Drivers**: Improved student retention is attributed to better user experience and relationships with banks in key markets like India [49][50] B2B Payments - **Invoice Acquisition**: The acquisition of invoice capabilities is expected to open up a $1 billion volume opportunity, enhancing Flywire's B2B offerings [52][53] Additional Important Insights - **Market Dynamics**: The company is observing a shift in international student flows as countries outside the Big Four are becoming more welcoming to international students [21][22] - **Software Integration**: Integrations with student information systems are not gating factors but can accelerate client acquisition [31][32] This summary encapsulates the key insights and data points discussed during the Flywire conference call, providing a comprehensive overview of the company's current market position and future outlook.

Core Insights - Flywire has partnered with TenPay Global to enhance payment options for Chinese students studying in South Korea and Malaysia, utilizing Weixin Pay for tuition payments [1][3] - The partnership aims to streamline the payment process, making it easier for Chinese students to pay in Renminbi (RMB) and ensuring institutions receive the full amount in local currency [3] Group 1: Partnership and Payment Experience - The collaboration with TenPay Global allows Flywire to integrate Weixin Pay directly into the payment journey for Chinese students, improving the overall payment experience [1][3] - This partnership is part of Flywire's strategy to digitize high-value payments in key educational markets, addressing the growing demand from Chinese students for localized payment solutions [3] Group 2: Market Dynamics - Chinese student enrollment in Malaysia has increased fivefold from 2019 to over 47,000 students in 2024, while South Korea hosts approximately 73,500 Chinese students in 2024, indicating a significant rise in student mobility within Asia [2] - Factors such as geographical proximity, cultural affinity, and affordability are driving this trend, making South Korea and Malaysia attractive destinations for Chinese students [2] Group 3: Company Overview - Flywire supports over 4,900 clients with diverse payment methods in more than 140 currencies across over 240 countries, showcasing its extensive global reach [6] - The company specializes in vertical-specific software and payment technology, integrating with leading ERP systems to optimize payment experiences for clients [5]

Core Viewpoint - Voss Capital's third-quarter 2025 investor letter indicates a significant underperformance of its funds compared to major indices, while expressing strong conviction in Flywire Corporation as a key investment opportunity due to its improving fundamentals and growth potential [1][2][3] Fund Performance - Voss Value Fund, LP and Voss Value Offshore Fund, Ltd returned +5.0% and +4.9% respectively in Q3 2025, underperforming the Russell 2000 Index (+12.4%), Russell 2000 Value Index (+12.6%), and S&P 500 Index (+8.3%) [1] - The Voss Value Master Fund had a total gross exposure of 205.4% and a net long exposure of 95.8% as of September 30, 2025 [1] - The top 10 long positions accounted for 77.8% of the fund, while the top 10 short positions represented -43.5% [1] Flywire Corporation Analysis - Flywire Corporation (NASDAQ:FLYW) is highlighted as a significant investment, representing approximately 10% of Voss Capital's portfolio, making it the largest position [3] - Despite a one-month return of -0.22% and a 39.30% decline over the past 52 weeks, Flywire's fundamentals are improving, with an ~8% revenue beat in the most recent quarter [2][3] - The company is experiencing a divergence between its stock price and fundamentals, presenting a buying opportunity [3] Market and Growth Potential - Concerns regarding international student enrollment caps affecting Flywire's revenue are deemed overstated, with a projected 2% revenue impact from a severe 25% decline in first-year US students [3] - Flywire's UK business is growing at ~40%, countering claims of limited growth potential [3] - New integrations with major ERP systems are expanding the Total Addressable Market (TAM) for Flywire's Student Financial Services platform, enhancing revenue opportunities [3] - The healthcare segment is expected to accelerate significantly in 2026 due to large contract wins, and the emerging B2B business is growing over 70% for the second consecutive year [3]

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]. - The company supports approximately 4,900 clients with diverse payment methods in over 140 currencies across more than 240 countries and territories [5]. Technology and Integration - Flywire leverages vertical-specific software and payments technology to integrate deeply within existing accounts receivable workflows for clients in education, healthcare, travel, and key B2B industries [4]. - The company integrates with leading ERP systems, such as NetSuite, to optimize the payment experience for customers while addressing operational challenges [4]. Upcoming Events - Flywire will attend the UBS Global Tech and AI conference in Phoenix, AZ, with a fireside chat scheduled for 7:35 am MST [1]. - The discussions will be webcast live from Flywire's investor relations website, with a replay available for 90 days following the event [2].

Flywire FY Conference Summary Company Overview - **Company**: Flywire (NasdaqGS:FLYW) - **Industry**: Payments and Fintech - **Key Verticals**: Education, Healthcare, Travel, B2B Core Insights and Arguments 1. **Strategic Transformation**: Flywire has evolved from a cross-border, education-focused business to a unified platform integrating software and payments, with significant diversification into travel, healthcare, and B2B sectors [2][3][4] 2. **Profitability and Scale**: The company has achieved nearly 20% margins, with expectations to exceed this in the coming year, indicating improved profitability and operational efficiency [4][11] 3. **Software as a Differentiator**: Flywire emphasizes that its software capabilities are foundational to its competitive edge, allowing deeper integration into clients' systems and enhancing long-term relationships [5][7][8] 4. **Operational Leverage**: The company has seen operational leverage gains, particularly in go-to-market strategies and product engineering, leading to improved margins as revenue scales [9][10][11] 5. **Market Dynamics**: The UK has overtaken the US as Flywire's largest market, contributing approximately 25% of revenue, with the US at 23%. The company is also expanding into continental Europe and Asia [12][14][18] 6. **Growth in Education Vertical**: Despite challenges in the US market, Flywire's education segment continues to grow, with non-big four markets growing faster than the company average [21][29][30] 7. **Domestic Business Expansion**: The domestic business in the US is growing rapidly, with a revenue of approximately $30 million last year, driven by modernization and vendor consolidation in universities [49][55] 8. **Student Financial Services (SFS)**: The SFS platform is a significant growth driver, offering schools a consolidated vendor solution that enhances economic efficiency and client stickiness [60][70][72] 9. **Travel Segment Growth**: Travel now represents a quarter of Flywire's revenue, with significant growth attributed to effective sales strategies and product resonance in the luxury travel market [85][91][101] 10. **B2B and Healthcare Verticals**: B2B is still small but growing rapidly at nearly 70%, while healthcare is expected to ramp up significantly with major clients like Cleveland Clinic [113][118][120] Additional Important Insights 1. **M&A Strategy**: Flywire's M&A strategy focuses on acquiring software companies to monetize payments, which has proven effective in driving growth [4][115] 2. **Market Challenges**: The company faces macroeconomic headwinds, particularly in Canada and the US, but maintains a positive outlook for growth in other regions [30][36][42] 3. **Future Outlook**: Flywire anticipates continued margin expansion and revenue growth, with a focus on maintaining operational efficiency and client retention [128][136] 4. **Stablecoin Partnership**: The partnership with BVNK for stablecoin transactions is seen as an incremental opportunity to expand into new markets and offer clients more payment options [144][150] This summary encapsulates the key points discussed during the Flywire FY Conference, highlighting the company's strategic direction, market performance, and future growth opportunities.

Group 1 - The company has been consistently acquiring around 200 clients per quarter, indicating a stable growth trajectory [1] - Client acquisition is diversified across four verticals, with travel and education being the largest contributors, showcasing a balanced portfolio [1] - The company is experiencing an increase in the size and strategic nature of deals, indicating a shift towards more significant and long-term relationships [1]

Flywire FY Conference Summary Company Overview - **Company**: Flywire (NasdaqGS:FLYW) - **Date of Conference**: November 18, 2025 Key Points Industry and Market Dynamics - **Client Acquisition**: Flywire signed over 200 clients in the quarter, maintaining a consistent pipeline across four verticals: travel, education, B2B, and healthcare [2][3] - **Revenue Sources**: The revenue growth is driven by both new client signings and existing clients, with a notable "land and expand" strategy in the education sector [4] - **Geographic Diversification**: The client base is diversified across various geographies, with significant contributions from both domestic and international markets [2][3] Vertical Performance - **Education Sector**: - Remains the largest vertical for Flywire, with strong growth in both traditional markets (U.S., U.K.) and emerging markets [5][10] - The U.S. education business is growing, with domestic revenue around $30 million last year, offsetting international pressures due to visa issues [9][10] - Non-Big Four markets are gaining traction, contributing to low to mid-teens share of overall revenue, growing above company average [20][21] - **Travel Sector**: - Expected to account for nearly a quarter of the business next year, with Certify integration driving growth [23][27] - Certify is growing over 30% year-over-year, with synergies expected to materialize in 2026 [23][27] - **Healthcare Sector**: - Significant growth anticipated with marquee clients like Cleveland Clinic, expected to accelerate revenue beyond low teens growth [28][29] - The healthcare vertical is transitioning from a drag on growth to a significant growth driver [29][30] Financial Performance and Guidance - **Revenue Growth**: Flywire is guiding for about 15% growth in fiscal year 2025, despite mid-single-digit headwinds primarily from Canada [14][15] - **Profitability**: The company expects gross margin pressure but aims for adjusted EBITDA margin expansion and GAAP profitability growth [34][35] - **Capital Allocation**: Focus remains on organic investments, with share buybacks being opportunistic due to stock price dislocation [36] Strategic Initiatives - **AI and Technology**: Flywire is investing in AI capabilities to enhance client services and internal efficiencies, with a focus on unique data applications across various sectors [31][32] - **Real-Time Payments**: The partnership with BVNK aims to leverage stablecoins for entering volatile currency markets, providing clients with more payment options [33] Risks and Considerations - **Visa and Immigration Policies**: Ongoing macro headwinds from visa policies are expected to impact revenue growth, particularly in the U.S. and Canada [14][17] - **Market Trends**: The company is monitoring trends in student applications to non-traditional markets, which may present new growth opportunities [20][21] Conclusion - Flywire is positioned for continued growth across its verticals, with a strong focus on client acquisition, technological innovation, and strategic partnerships. The company is navigating macroeconomic challenges while maintaining a disciplined approach to growth and profitability.

Group 1 - Flywire (FLYW) is effectively managing revenue challenges in its primary markets: the US, Canada, and Australia, particularly in the education sector due to stricter student visa regulations [1] - The combination of payment solutions and associated software is gaining traction in the market [1] Group 2 - The article reflects an individual investor's focus on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of personal capital investment experience and emphasizes the importance of identifying asymmetric investment opportunities for achieving market-beating returns [1]

Client Base and Market Presence - As of September 30, 2025, the company serves over 4,900 clients globally, including more than 3,100 educational institutions and over 100 healthcare systems[187]. - The company is diversifying its education client base internationally to reduce reliance on U.S. higher-education volumes[230]. Financial Performance - The total payment volume enabled by the company was approximately $29.7 billion, $28.2 billion, and $22.8 billion for the years ended December 31, 2024, and the nine months ended September 30, 2025 and 2024, respectively[188]. - The company generated revenue of $492.1 million and $403.1 million for the years ended December 31, 2024, and 2023, respectively, with a net income of $2.9 million for 2024[189]. - Revenue for the three months ended September 30, 2025, was $200.1 million, an increase of $43.3 million or 27.6% compared to $156.8 million in the same period of 2024[248]. - Revenue for the nine months ended September 30, 2025, was $465.5 million, an increase of $90.9 million or 24.3% compared to $374.6 million for the same period in 2024[262]. - Net income for the three months ended September 30, 2025, was $29.6 million, a decrease of $9.3 million or 23.9% compared to $38.9 million in 2024[248]. - Net income for the nine months ended September 30, 2025, was $13.5 million, a decrease of $5.3 million or 28.2% from $18.8 million in 2024[261]. Transaction and Payment Volume - The company achieved a 26.4% increase in total payment volume from $11.0 billion during the three months ended September 30, 2024, to $13.9 billion during the same period in 2025[188]. - Transaction revenue increased to $167.2 million for the three months ended September 30, 2025, up $32.7 million or 24.4% from $134.4 million in 2024, driven by growth in transaction payment volume[249]. - Transaction payment volume rose approximately 30.9% to $11.5 billion for the three months ended September 30, 2025, compared to $8.8 billion in the same period of 2024[249]. - Total payment volume for the nine months ended September 30, 2025, was approximately $28.2 billion, an increase from $22.8 billion in the same period in 2024, with transaction revenue contributing $22.9 billion and platform revenues $5.3 billion[279]. Expenses and Costs - Payment processing services costs were $72.3 million for the three months ended September 30, 2025, an increase of $17.7 million or 32.4% from $54.6 million in 2024, correlating with the increase in transaction payment volume[251]. - General and administrative expenses were $99.2 million for the nine months ended September 30, 2025, an increase of $4.6 million or 4.9% from $94.6 million in 2024[267]. - Interest expense increased to $3.0 million for the nine months ended September 30, 2025, compared to $0.4 million in 2024, reflecting a rise of $2.6 million or 650.0%[269]. - Cash used in investing activities for the nine months ended September 30, 2025, was $191.2 million, mainly due to the acquisition of Sertifi for $324.9 million, net of cash acquired[307]. Acquisitions and Investments - The company acquired Sertifi LLC for $330.0 million, aimed at accelerating its travel business and expanding offerings to over 20,000 hotel locations globally[193]. - The acquisition of Invoiced for approximately $51.7 million was intended to enhance the company's global expansion in the B2B vertical[194]. - The company plans to increase investments in technology and development, expecting expenses to rise but believing these will contribute to long-term growth and profitability[208]. Operational Challenges and Strategies - The company continues to face challenges in achieving profitability while focusing on expanding its client base and enhancing its payment solutions[191]. - The company implemented a restructuring plan in early 2025 aimed at improving operational efficiencies and reducing costs[241]. - The company expects to continue investing in technology and development to enhance client experience and attract new clients[237]. Market Conditions and Economic Impact - Seasonal fluctuations in revenue are expected, with the third quarter historically being the strongest due to the education peak season[210]. - A 40% reduction in international students in Canada has been reported since the implementation of a temporary intake cap on student permit applications[212]. - The Australian government has set a ceiling of 270,000 international students for 2025, which may adversely impact the company's business[213]. - The U.S. government's new $100,000 filing fee for H-1B visas could significantly increase personnel costs and affect hiring flexibility[218]. - The "One Big Beautiful Bill" in the U.S. may limit financial aid options, potentially reducing demand for higher education and impacting revenue[223]. - Inflation did not materially affect cash flows or operations during the three and nine months ended September 30, 2025[227]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $95.3 million, down from $127.2 million in 2024[301]. - The company may seek additional equity or debt financing in the future, depending on various factors including revenue growth and market conditions[299]. - Cash used in financing activities for the nine months ended September 30, 2025, was $53.9 million, primarily from the repayment of $110.0 million on the 2024 Amended Revolving Credit Facility[309].