Flywire expands payments reach, raises guidance, but margins slip
Open banking push into US and Canada Flywire widened its Trustly partnership to let US and Canadian payers approve transfers straight from their bank accounts. Fewer failed payments and less checkout friction should lift payment volume and demand for Flywire's services over time.
This is the period's main new business expansion, directly supporting future transaction volume.
Hospitality deals deepen and spread Flywire expanded its Davidson Hospitality partnership across the full hotel portfolio, signed 42 hospitality software deals in Europe and Asia, and added nearly 90 Driftwood US properties. Real product adoption in a new industry supports revenue growth beyond education.
Shows concrete new customer wins that broaden Flywire beyond its core education business.
Q2 growth strong, guidance raised Second-quarter revenue rose 27.2% to $167.7 million, payment volume jumped 38.2%, and adjusted EBITDA climbed 44.5%. Management raised full-year revenue and margin guidance, a sign the business is performing better than it expected.
Raised guidance is the clearest new signal of improving fundamentals behind the stock.
Margins shrink and losses persist Even with strong growth, gross margin fell to 53.4% from 57.0% and Flywire still lost $8.1 million on a GAAP basis. Management also flagged conservative education assumptions tied to visa policy. Weaker profitability and policy risk weigh on the stock.
This is the real counterweight: growth is not yet translating into stronger margins or profits.