Flywire Q3 RLAS Rises 26% as Education and Travel Lift Results

Flywire Corp. (NASDAQ: FLYW) reported third-quarter 2026 revenue less ancillary services of $244.5 million, up 26.0% year over year, as strength in U.K. education and travel helped the payments company exceed its guidance. Adjusted EBITDA rose 39.2% to $79.5 million, reflecting the revenue outperformance and operating-cost discipline.

Revenue less ancillary services, or RLAS, was about $15 million above the midpoint of Flywire’s $230 million guidance, while both reported and foreign-exchange-neutral growth exceeded the company’s 19% midpoint forecast by roughly 700 basis points. Adjusted EBITDA was about $8 million above the guidance midpoint, and its margin expanded approximately 310 basis points year over year, compared with the 200-basis-point expansion contemplated at the midpoint.

Payment volume and profit increase

Total payment volume grew 27.7% to $17.8 billion in the quarter. GAAP revenue was $250.3 million, while GAAP gross margin was 61.0%.

Adjusted gross profit increased 22.2% to $155.8 million, representing 63.7% of RLAS. Adjusted EBITDA margin reached 32.5%, supported by the higher revenue base and operating leverage.

GAAP net income was $74.5 million. The result included a $39 million tax benefit related to the release of a valuation allowance, comprising a $25 million one-time benefit and $14 million reflected in the full-year effective tax rate. The quarter also included a $0.5 million foreign-exchange loss, compared with a $0.6 million loss a year earlier.

Flywire said it is pursuing productivity across technology, general and administrative, and sales and marketing functions. Its initiatives include using artificial intelligence in software development and sales coaching, moving toward a modular payment architecture, investing in data systems, automating support and compliance work, and prioritizing enterprise accounts with more than $100,000 of annual recurring revenue and low churn.

The company also reported two signed Student Financial Software deals during the quarter, alongside new live accounts and expansions with existing customers. Its U.S. student-finance platform has activated more than 1 million payment plans. Separately, Flywire said its digitized education-payment network had connected about 830 institutions and processed more than $11.5 billion since the launch of its 529 product in 2022, eliminating more than 1 million paper checks as of October 2026.

Fourth-quarter and full-year outlook

For the fourth quarter, management expects FX-neutral RLAS growth of 14% to 20% year over year and adjusted EBITDA margin expansion of 330 to 530 basis points. The estimated foreign-exchange benefit to RLAS is approximately zero to 1%, based on exchange rates as of September 30.

For full-year 2026, Flywire expects FX-neutral RLAS growth of 25% to 27% and adjusted EBITDA margin expansion of 300 to 360 basis points. The company estimates that currency movements will provide an approximately 2% benefit to full-year RLAS.

Flywire expects payment-processing ramps to contribute about 3% to 4% of 2026 revenue growth, while Sertifi’s inorganic contribution is expected to account for approximately 1.5% of total company growth. Management said improved productivity and operating leverage should allow operating expenses to grow more efficiently relative to gross profit.

The payment-processing ramps are also expected to weigh on profitability. Flywire projects its adjusted gross profit margin will decline by approximately 300 to 325 basis points in 2026. Excluding the ramps, the decline would be about 200 basis points, with the company expecting to exit into 2027 within its normal annual decline range of roughly 100 to 200 basis points.

Visa trends remain a key variable

Flywire’s education assumptions incorporate lower visa volumes in several markets. The company assumes U.S. visas will decline 30% and Canadian visas will fall by more than 10%, with new clients and domestic-payment upselling providing offsets. It expects U.S. education revenue to grow at a low-single-digit rate in 2026 and Canadian education revenue to increase by more than 10%.

In Europe, the Middle East and Africa, Flywire assumes U.K. revenue growth will remain below the company average and decelerate in the second half from the first half, while broader EMEA growth stays above the company average due to further market-share gains. In Australia, the outlook assumes visa volumes decline by about 20% but revenue still posts modest low-single-digit growth. Management is also monitoring tighter Australian visa requirements for Indian students.

Flywire ended September with $234 million of corporate cash and an undrawn $300 million credit facility, for total liquidity of $534 million. Third-quarter free cash flow was $72 million. The company had repurchased approximately $177 million of shares since its authorization began, leaving $123 million under the $300 million program, and expects buybacks to keep net dilution below 2% in 2026.

The outlook remains subject to foreign-exchange movements, education visa trends, payment-processing economics and execution of the company’s operating and portfolio initiatives. Flywire did not provide quantitative GAAP reconciliations for its forecast FX-neutral growth or adjusted EBITDA margin because certain items, including taxes affected by stock-price and currency fluctuations, cannot be projected with sufficient confidence.