Pomerantz Law Firm Announces the Filing of a Class Action Against Flywire Corporation and Certain Officers - FLYW

Core Viewpoint - A class action lawsuit has been filed against Flywire Corporation and certain officers for alleged violations of federal securities laws during the Class Period from February 28, 2024, to February 25, 2025, seeking damages for misleading statements regarding the company's revenue growth and business prospects [1][7]. Company Overview - Flywire operates as a payments-enablement and software company, facilitating payments across various industries, with a significant focus on the education sector [3][4]. - The company's financial performance is particularly important in the Americas and Asia-Pacific markets, utilizing non-GAAP financial measures such as revenue less ancillary services (RLAS) and foreign exchange neutral RLAS [4]. Market Challenges - The Canadian government imposed intake caps on international student permit applications starting January 2024, leading to a decrease in international student numbers and negatively impacting Flywire's payment flows [5]. - Similarly, Australia has tightened international student visa rules, further adversely affecting Flywire's business [5]. Misleading Statements - Throughout the Class Period, Flywire's executives allegedly overstated the sustainability of revenue growth and downplayed the negative impacts of permit and visa-related restrictions on the business [6][7]. - In November 2024, executives claimed Flywire would remain a "Rule of 40" company with strong revenue growth, projecting FX neutral RLAS growth in the low 20% range for FY 2025, which was later revised down significantly [6][9]. Financial Performance - Flywire reported a Q4 2024 loss per share of $0.12, missing consensus estimates, and revenue of $117.6 million, also below expectations [8]. - The company announced an operational review and restructuring affecting approximately 10% of its workforce due to a challenging macro environment [8]. Analyst Reactions - Following the disappointing Q4 results and revised forecasts, multiple analysts downgraded their recommendations and cut price targets for Flywire's stock [11]. - The company's stock price fell by $6.59, or 37.36%, closing at $11.05 per share on February 26, 2025, following these disclosures [12].