Strong Top-Line Growth
Q1 revenue of $184M, up 43% on a spot basis and 37% FX-neutral YoY; transaction revenue $155M, up 43% YoY; platform & other revenue $29M, up 40% YoY.
Flywire
· FLYW
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- +13.83%
- Next Earnings Date:
- 2026-08-11
Earnings Call Sentiment
PositiveThe call conveyed materially positive operating and financial momentum: strong double-digit top-line growth, sizable EBITDA margin expansion, upgraded guidance, major customer wins, geographic diversification, and measurable AI-driven efficiencies. Headwinds noted were largely described as temporary (ramp-related margin pressure, seasonality) or deliberate (investments to scale Sertifi and build data/AI infrastructure) and management provided context and mitigation timelines. Given the breadth of growth, profitability improvement and proactive capital allocation, the positives substantially outweigh the transitory lowlights.
Company Guidance
Flywire raised its 2026 outlook, now targeting FX‑neutral revenue growth of 18%–24% (with ~3–4 points from B2B/healthcare payment‑processing ramps concentrated in H1 and roughly 1.5 points of inorganic lift from Sertifi), adjusted gross profit growth of just above the mid‑teens at spot, and full‑year adjusted EBITDA margin expansion of ~175–375 basis points (about 22.8% at the midpoint). For Q2 the company expects FX‑neutral revenue growth of 18%–24% (about a 1‑point FX tailwind at current spot rates), mid‑teens gross‑profit dollar growth at spot (including a low‑single‑digit YoY FX‑on‑settlement benefit) and roughly +75 bps of adjusted EBITDA margin year‑over‑year at the midpoint; management cautioned H2 revenue growth will decelerate versus H1 as Cleveland Clinic and invoice ramps are anniversaryed (ramps largely complete by end‑2026). They also reiterated GAAP net income growth of ~3–4x for the year, target stock‑based compensation at ~10% of revenue, expect free‑cash‑flow conversion of 70%–75% of adjusted EBITDA, and noted ~$215M of corporate cash plus an up to $50M accelerated share‑repurchase (having deployed $128M in buybacks to date).
Robust Profitability and Margin Expansion
Adjusted gross profit $110.5M, up 34% YoY; adjusted EBITDA $39M with a 21.4% margin, expanding 452 basis points YoY; GAAP net income >$12M for Q1.
Raised Full-Year Guidance
FY2026 FX-neutral revenue growth guide raised to 18%–24% (including ~3–4 points from payment processing ramps and ~1.5 points inorganic from Sertifi); expects adjusted gross profit to grow just above mid-teens and full-year EBITDA margin expansion of ~175–375 bps to ~22.8% at the midpoint.
Strong Volume and Yield Dynamics
Transaction payment volume grew ~45% YoY; TPV-driven transaction revenue growth supporting revenue and gross profit upside, with blended yields noted as mix-dependent but pricing stable on a like-for-like basis.
Strategic Customer Wins and Expansion
Major enterprise wins and go-lives including Cornell (full student financial software), Penn State go-live, Flagler, University of Calgary go-live, and expanded healthcare client Endeavor Health; University of Edinburgh saved ~£1M in under a year after consolidation.
Geographic Diversification and Education Momentum
Education revenue outside the 'Big 4' grew >40% YoY; >60% of new education clients signed were outside the U.S./U.K./Canada/Australia; majority of Singapore universities now using Flywire.
Sertifi & Travel Acceleration
Sertifi contributed ~7 points of organic growth to revenue; hospitality/travel strength with increasing payment attachment, 15 luxury travel ARR deals >$100k in Q1, and an estimated $2.5B incremental volume opportunity within existing U.S. hospitality clients.
Capital Allocation & Balance Sheet Strength
Corporate cash of ~ $215M; announced up to $50M accelerated share repurchase (ASR) and have deployed $128M in total buybacks to date, reflecting confidence in intrinsic value while maintaining growth investment discipline.
Early, Measurable AI and Automation Benefits
AI initiatives are already delivering operational efficiency: ~40% of customer inquiries auto-resolved, ~30% reduction in support handling time and cost per contact, faster onboarding and increased engineering/product productivity.
Operator
Good day and welcome to Flywire's First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this call is being recorded. I would now like to turn the call over to Masha Kahn, Investor Relations. Please go ahead.
Maria Kahn
Thank you, and good afternoon. With us today are Mike Massaro, Chief Executive Officer; Rob Orgel, President and Chief Operating Officer; and Cosmin Pitigoi, Chief Financial Officer. Our first quarter 2026 earnings press release, supplemental presentation and when filed, Form 10-Q are available at ir.flywire.com. Today's call is being recorded and will be available for replay on our website. During the call, we'll be discussing certain forward-looking information. Actual results could differ materially from those contemplated by these statements. In addition, unless otherwise indicated, all financial measures discussed on this conference call are non-GAAP financial measures. Please refer to our press release and SEC filings for more information on the risks related to forward-looking statements and the required reconciliations of non-GAAP financial measures.
With that, I'll turn the call over to Mike.
Michael Massaro
Thank you, Masha, and thanks to everyone for joining us here today. It was a great quarter with significant growth and a beat on both the top and bottom line, with broad-based outperformance across education, travel, healthcare and B2B. We are building for scale while driving efficiencies into our operations. Our product and tech organization continues to generate high-quality, high-value, differentiated products and services. And our go-to-marke...
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