Financial Data and Key Metrics Changes - Revenue less ancillary services for Q3 2025 was $194 million, representing a 26% year-over-year FX-neutral growth, or 28% on a spot basis [24] - Adjusted EBITDA increased to $57.1 million for the quarter compared to $42.2 million in Q3 2024, with an adjusted EBITDA margin up 155 basis points year-over-year [30] - Total payment volume climbed to $13.9 billion, 26% higher year-over-year, highlighting the growing strength and scalability of the platform [27] Business Line Data and Key Metrics Changes - The education vertical saw significant growth, with more than half of new education wins coming from outside traditional Big Four markets [4][17] - In the travel vertical, revenue growth was driven by continued momentum in destination management companies and luxury accommodations, significantly exceeding Q3 bookings planned [19] - Healthcare revenue growth approached the organic corporate average, driven by recent wins with large enterprise customers [5] Market Data and Key Metrics Changes - The U.K. market represented approximately one quarter of total revenues and grew above the organic corporate average growth rate in Q3 [11] - Australia’s performance was significantly better than expected, growing above the organic corporate average growth rate during the quarter [15] - In Canada, existing clients are increasingly expanding into domestic payment flows, helping diversify revenue [16] Company Strategy and Development Direction - The company focuses on optimizing go-to-market excellence, accelerating product innovation, and cultivating high-performing teams [3] - Flywire aims to deepen client relationships, expand market share, and drive durable, high-margin growth as it evolves from a cross-border payments company to a diversified global software and payments leader [7] - The strategy includes deeper integrations in the U.K. to position Flywire as the sole channel for all significant university payment flows [11] Management's Comments on Operating Environment and Future Outlook - Management noted that macro conditions were better than expected, supporting strong execution and client demand across markets [3] - The company anticipates sustained growth outside the Big Four markets, with strong momentum in APAC and EMEA regions [17] - Management expressed confidence in navigating complex times and highlighted the diversified business model as a strength [42] Other Important Information - The company raised its full-year revenue and EBITDA guidance based on better-than-expected macro conditions [24] - The balance sheet remains strong, ending the quarter with $212 million in cash and cash equivalents, with just $15 million of outstanding debt [31] - The company repurchased 0.8 million shares for approximately $10 million under its share repurchase program [32] Q&A Session Summary Question: Can you provide perspective on the U.K. client penetration metric? - Management indicated that 12 clients in the U.K. are at 90% penetration, which is a core element of their strategy to consolidate payment flows [38][39] Question: What is the preliminary outlook for 2026? - The outlook for 2026 includes mid-single-digit pressure primarily from the U.S., with Canada and Australia also expected to experience some negative impact [40][41] Question: How do geopolitical headwinds affect growth expectations? - Management acknowledged that while geopolitical headwinds have eased, they remain prudent in their growth expectations, particularly in the U.S. market [42] Question: What is the impact of new education wins outside the Big Four? - Management noted that while new wins outside the Big Four may be smaller in size, they are contributing meaningfully to growth and market share [56] Question: How does the company plan to balance investments in sales and marketing? - The company is focused on targeted investments in areas with growth potential while maintaining efficiency in spending [58]