Flywire Corp

Q2 2026 total revenue less ancillary services was $164 million, up over 28% on a spot basis and 27% FX-neutral. Transaction revenue was $135.9 million, up 35% year over year, while platform and other revenue was $28 million, up 3% year over year. Adjusted gross profit was $93 million, up 19% year over year at spot, adjusted EBITDA was $24 million with a 14.6% margin, and adjusted gross margin was 56.6%, down about 450 bps. GAAP net loss was $8 million versus a $12 million loss a year ago. For full-year 2026, Flywire now expects FX-neutral revenue growth of 21% to 27%, about 200 to 400 bps of EBITDA margin expansion, adjusted gross profit growth in the high teens, GAAP net income of over $50 million, and free cash flow conversion of 70% to 75% of adjusted EBITDA. For Q3 2026, it expects FX-neutral revenue growth of 16% to 22% and adjusted EBITDA margin expansion of about 200 bps year over year.

Mike Massaro framed the quarter as evidence that Flywire’s model is compounding: larger signed deals, more client consolidation onto the platform, and improving quality of growth. He emphasized three long-term goals: reaching $1 billion in annual organic revenue, getting to a 30% adjusted EBITDA margin over the next few years, and growing free cash flow while keeping dilution disciplined. His tone was confident but measured; he repeatedly noted that macro conditions remain challenging, especially around visas and regulation, but argued that Flywire’s diversification, software depth, and AI-enabled productivity make the company less dependent on a macro recovery.

Cosmin Pitigoi focused on the financial beat, saying Q2 came in ahead of expectations because travel, education, health care, and B2B all contributed more than planned. He highlighted $164 million of revenue less ancillary services, $93 million of adjusted gross profit, $24 million of adjusted EBITDA, and a 14.6% margin, then explained that the 56.6% gross margin decline was driven by mix, FX, and temporary ramp activity rather than competitive pressure. On capital allocation, he said the company uses an IRR framework across organic investment, buybacks, and M&A, has about $167 million of corporate cash, targets stock-based compensation at about 10% of revenue, and is aiming for less than 2% dilution this year and less than 3% ongoing.

Analysts focused heavily on visa risk, especially the U.S. F-1 backdrop and the U.K. softness, asking whether proposed policy changes could cause demand destruction. Management said it is taking a prudent approach, assuming a 30% U.S. visa decline and a larger-than-mid-teens U.K. decline, but believes many headlines are worse than the eventual outcome and that the guide already reflects caution. Questions also centered on SFS growth, U.K. opportunities, the non-Big 4 education markets, and the $1 billion revenue / 30% margin target; management answered that SFS wins are being driven by enterprise full-suite deals and improving brand recognition, while non-Big 4 markets are growing faster and are still a relatively small but expanding part of the business. On M&A, management said it remains patient because it still sees attractive organic investment and share repurchase opportunities, and because two prior deals are still being integrated.