Flywire Q2 revenue up 27.2%, beats analyst estimates

Overview

• Flywire Q2 revenue grows 27.2% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EBITDA for Q2 beats consensus, reflecting operational efficiency

• Co raises adjusted EBITDA margin guidance for fiscal yr 2025

Outlook

• Flywire reaffirms FY 2025 revenue guidance, raises aEBITDA margin by 75 bps

• Company expects FY 2025 FX-neutral revenue less ancillary services growth of 17-23% YoY

• Flywire anticipates Sertifi to contribute $35-40 mln in FY 2025 revenue

• Company raises full-year 2025 adj EBITDA margin outlook by 200-350 bps YoY

Result Drivers

• SERTIFI CONTRIBUTION - Sertifi acquisition added 12 points to revenue growth in Q2

• NEW CLIENTS - Nearly 200 new clients signed across all verticals, excluding Sertifi and Invoiced accounts

• TRAVEL VERTICAL - Scaled fast-growing travel vertical, expanding client roster and growing Sertifi's revenue by 35% year-over-year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for Flywire Corp is $13.79, about 25.1% above its August 4 closing price of $10.33

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 49 three months ago

Press Release: ID:nGNXQtjSX