Flywire(US:FLYW)2025-05-06 20:59Flywire First Quarter 2025 Financial Results Financial & Business Highlights 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 verticals35 - 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 volume35 - Strengthened software integrations with leading ERPs like Ellucian, Workday, and Unit4 for the higher education industry35 - Appointed a Chief Payments Officer to drive product and payment innovation35 Business Outlook / Guidance 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 challenges6 Corporate Actions 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 - Approximately $57 million remains available in the share repurchase program as of the end of Q1 20255 - The repurchase program is flexible, with no obligation to purchase a specific number of shares, and can be modified or suspended at any time11 Consolidated Financial Statements 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 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 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 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 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 performance1314 - Revenue Less Ancillary Services: GAAP Revenue excluding pass-through costs and marketing fees1314 - Adjusted Gross Profit: Revenue Less Ancillary Services minus adjusted cost of revenue1314 - Adjusted EBITDA: Net income adjusted for interest, taxes, D&A, stock-based compensation, acquisition costs, and other specific items1314 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) |