Flywire(FLYW) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter revenue increased by 27.6% year-over-year to $200.1 million, compared to $156.8 million in the same quarter of 2024[4] - Revenue less ancillary services increased by 28.2% to $194.1 million in Q3 2025, compared to $151.4 million in Q3 2024[6] - Flywire reported Q3 2025 revenue of $200.1 million, a 27.5% increase from $156.8 million in Q3 2024[24] - Net income for Q3 2025 was $29.6 million, a decrease of 23.4% compared to $38.9 million in Q3 2024[34] - Adjusted EBITDA increased to $57.1 million in Q3 2025, compared to $42.2 million in Q3 2024, with an adjusted EBITDA margin of 29.4%[6] - Adjusted EBITDA for Q3 2025 reached $57.1 million, up 35.2% from $42.2 million in Q3 2024[34] - Net income for the nine months ended September 30, 2025, was $13.464 billion, down from $18.799 billion in 2024, representing a decrease of approximately 28.5%[28] - Revenue for the nine months ended September 30, 2025, increased to $465.5 million, a 24.2% increase from $374.6 million in 2024[30] - Adjusted gross profit for the nine months ended September 30, 2025, was $287.9 million, compared to $237.3 million in 2024, reflecting a growth of 21.4%[30] Client Acquisition and Growth - The company signed over 200 new clients across all verticals in Q3 2025, excluding Sertifi properties[6] - Sertifi contributed $12.9 million to revenue in Q3 2025, adding 8 points of revenue growth year-over-year[4] - Flywire anticipates FX-neutral revenue less ancillary services growth of 23-25% year-over-year for FY 2025[8] Expenses and Liabilities - Total operating expenses for Q3 2025 were $167.9 million, up from $136.5 million in Q3 2024, representing a 22.9% increase[24] - Flywire's total liabilities rose to $430.7 million as of September 30, 2025, compared to $307.7 million at the end of 2024[26] - The company paid down $45 million of debt related to the Sertifi acquisition, with $15 million remaining as of the end of Q3 2025[6] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $95.289 million, down from $127.221 million in 2024, a decrease of approximately 25.1%[28] - The company reported a net cash used in investing activities of $191.168 million for the nine months ended September 30, 2025, compared to $204.582 million in 2024[28] - The company acquired businesses net of cash acquired for $324.921 million during the nine months ended September 30, 2025, significantly higher than $45.438 million in 2024[28] Share Repurchase and Stock Performance - The company repurchased approximately 0.8 million shares for about $10 million, with $192 million remaining in the share repurchase program[6] - The company repurchased common stock amounting to $64.319 million during the nine months ended September 30, 2025, compared to $22.883 million in 2024[28] Market Outlook and Strategy - Flywire raised its FY 2025 revenue guidance by 400 bps at midpoint and adjusted EBITDA margin guidance by 75 bps at midpoint[1] - Flywire's Adjusted EBITDA margin growth expectations remain positive despite current market challenges[21] - The company is focusing on cross-border expansion and enhancing its client base in the business-to-business sector[21] - Flywire plans to continue developing new solutions and services to meet anticipated technology needs in the financial services sector[21]