Flywire — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP Revenue increased 25.1% year-over-year to $250.3 million in Q3 2026, compared to $200.1 million in Q3 2025.
• Revenue Less Ancillary Services increased 26.0% year-over-year to $244.5 million in Q3 2026, compared to $194.1 million in Q3 2025.
• FX-Neutral Revenue Less Ancillary Services increased 26.0% year-over-year.
• GAAP Gross Profit increased to $152.7 million with a Gross Margin of 61.0%, compared to $124.7 million and 62.3% in Q3 2025.
• Adjusted Gross Profit increased 22.2% to $155.8 million, with an Adjusted Gross Margin of 63.7%, compared to $127.5 million and 65.7% in Q3 2025.
• Adjusted EBITDA increased 39.2% to $79.5 million, with an Adjusted EBITDA margin of 32.5%, compared to $57.1 million and 29.4% in Q3 2025.
• Net income was $74.5 million in Q3 2026, compared to $29.6 million in Q3 2025; this includes a non-cash income tax benefit of approximately $39.2 million from the release of the U.S. valuation allowance, which management states is not indicative of future results.
• Total Payment Volume increased 27.7% to $17.8 billion in Q3 2026, compared to $13.9 billion in Q3 2025.
• Cash and cash equivalents were $407.2 million as of September 30, 2026, compared to $330.3 million as of December 31, 2025.
• Deferred revenue was $23.1 million as of September 30, 2026, compared to $19.9 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $130.4 million, compared to $95.3 million in the same period in 2025.

Guidance and Future Outlook:

• Full-year 2026 FX-Neutral Revenue Less Ancillary Services growth guidance raised by 2 percentage points at the midpoint to 25-27% year-over-year.
• Full-year 2026 Adjusted EBITDA margin growth guidance raised by 30 basis points at the midpoint to 300-360 basis points year-over-year.
• Fourth Quarter 2026 FX-Neutral Revenue Less Ancillary Services growth guidance is 14-20% year-over-year.
• Fourth Quarter 2026 Adjusted EBITDA margin growth guidance is 330-530 basis points year-over-year.
• Management noted that Q4 outlook factors in prudent visa assumptions across the big 4 education markets and B2B payment trends.

Business Segments and Product Lines:

• Student Financial Software (SFS) expansion continued in the U.S. and U.K., with agreements signed with three prominent U.S. universities and one U.K. institution.
• Over 1 million payment plans have been activated by students at U.S. institutions using SFS since inception.
• Approximately 180 new clients were signed across 31 countries and all four verticals, prioritizing larger enterprise relationships.
• Hospitality business gained traction in APAC with a pilot with Langham Hospitality Group and expansion in Australia; secured approval for a 24-property rollout with Kingfisher in EMEA and won 23 Marriott Sign & Pay deals.
• B2B Enterprise scaling included a major win with Liquidity Services Inc. to power payments for its $1.5 billion global e-commerce marketplace.
• Healthcare expansion included a major upsell with Endeavor Health for the Integrated Financing solution.
• Completed an asset acquisition of customer relationships in Canada to transition a portfolio of higher education institutions to Flywire.
• Expanded local payment options in China, Japan, and Türkiye; deepened partnership with Antom to enable Alipay payments beyond education into cross-border travel.
• Launched real-time payment confirmations in India for high-value tuition payments.
• Became the Global Preferred Payment Partner for Kinetic Software, providing access to over 700,000 student bedrooms across more than 20 countries.
• Named a Leader in Nucleus Research's 2026 Accounts Receivable Technology Value Matrix for the Invoice To Cash Solution.

Market and Competitive Landscape:

• Flywire supports approximately 5,400 clients with diverse payment methods in more than 140 currencies across more than 240 countries and territories.
• The company leverages its proprietary global payment network and vertical-specific software to embed within A/R workflows across education, healthcare, travel, and key B2B industries.
• Integration with leading ERP systems, such as NetSuite, is utilized to optimize payment experiences.

Risks and Challenges:

• Forward-looking statements note risks including foreign exchange rate fluctuations, political and economic risks, and global events such as geopolitical conflicts.
• Risks include the ability to execute business plans, manage growth, and expand internationally.
• Potential impacts from changes in government policy regarding tariffs, immigration, and visa policies affecting higher education.
• Regulatory risks related to payments, financial services, taxation, privacy, and data protection.
• Risks associated with AI development, including operational challenges, legal liability, and fraud concerns.
• The one-time non-cash tax benefit from the release of the U.S. valuation allowance is not expected to recur.

Management Commentary and Tone:

• CEO Mike Massaro stated Q3 showed the sustainability of growth with strong top-line growth during the seasonal education peak and disciplined execution across all four verticals.
• Management highlighted that the financial profile reflects expanding adjusted EBITDA margins and record levels of profit and free cash flow.
• CFO Cosmin Pitigoi noted that the quarter marked a step change in the scale of GAAP profitability, even when adjusting for the one-time tax benefit.
• Management expressed confidence in raising full-year 2026 outlook across revenue growth and adjusted EBITDA margin expansion due to strong execution.

Other Key Points:

• Alex Finkelstein resigned from the Board of Directors effective October 29, 2026, after serving since 2011.
• Sabrina Farmer was appointed to the Board of Directors, bringing prior leadership experience at Google, GitLab, and Microsoft.
• The Company's share repurchase program does not expire and may be modified, suspended, or terminated at any time.
• For the nine months ended September 30, 2026, the Company repurchased common stock including related costs totaling $30.5 million and non-voting common stock repurchased and retired totaling $29.0 million.
• Flywire has not provided a quantitative reconciliation of forecasted FX-Neutral Revenue Less Ancillary Services Growth to forecasted GAAP Revenue Growth or forecasted Adjusted EBITDA Margin Growth to forecasted GAAP Net Income Margin Growth due to the inability to calculate certain reconciling items with confidence without unreasonable effort.