Flywire (NasdaqGS:FLYW) FY Conference Transcript

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.