Flywire surges 6% on Q4 beat, strong FY26 outlook
Payments software company raises guidance as revenue growth accelerates to 34%
Flywire shares jumped 5.6% on Tuesday after the payments enablement software company reported stronger-than-expected fourth-quarter results and raised its outlook for fiscal 2026, signaling accelerating momentum in its core cross-border payments business.
The Boston-based company delivered revenue of $157.5 million for the quarter, up 34% year-over-year, while adjusted EBITDA reached $25.4 million, a 52% increase from the prior-year period. The adjusted EBITDA margin expanded by 190 basis points to 16.6%, reflecting improving operating leverage as the company scales its platform.
Flywire's performance outpaced analyst expectations, with the company now projecting FX-neutral revenue growth of 15-21% for fiscal 2026, alongside expected EBITDA margin expansion of 150-350 basis points. The guidance upgrade comes as Flywire continues to benefit from increased demand for digital payment solutions in education, healthcare, and business-to-business transactions.
Chief Executive Officer highlighted the company's "durable top-line growth, expanding margins, and increasing free cash flow" as positioning Flywire with "strong confidence as we enter 2026." The comments underscore management's optimism about the company's ability to sustain growth rates that significantly exceed the broader software sector.
The earnings beat and guidance raise sent shares to $11.24 in afternoon trading, giving the company a market capitalization of approximately $1.3 billion. The stock remains below its 52-week high of $15.25 but has recovered sharply from its yearly low of $8.20, reflecting growing investor confidence in Flywire's business model.
Analysts maintain a generally positive outlook on the stock, with a consensus target price of $17.19, suggesting potential upside of roughly 53% from current levels. Of the 14 analysts covering Flywire, six rate it a buy or strong buy, while eight recommend holding. The company's strong institutional ownership, at nearly 95%, indicates confidence among large professional investors.
Flywire operates in the payments enablement space, providing software and payment processing solutions that help organizations manage complex cross-border transactions. The company's platform is particularly strong in the education sector, where it helps universities collect tuition payments from international students, and in healthcare, where it facilitates patient payments for providers globally.
The company's trailing twelve-month revenue of $583 million and recent quarterly growth acceleration demonstrate the expanding market opportunity for digital payment infrastructure. With international business travel and cross-border commerce continuing to recover from pandemic disruptions, demand for Flywire's specialized payment services has grown steadily.
The margin expansion in the fourth quarter suggests Flywire is achieving operating leverage as it scales its platform, a key metric for software companies. The company's ability to grow adjusted EBITDA faster than revenue indicates improving efficiency and productivity in its operations.
Looking ahead, investors will be watching for continued execution on the company's growth targets, particularly its ability to maintain the 34% revenue growth rate into fiscal 2026. The guidance range of 15-21% represents a more conservative outlook than the fourth-quarter performance, suggesting management is building in some caution despite its confident tone.
Key metrics to monitor in coming quarters will include customer acquisition costs, retention rates, and the company's progress in expanding beyond its core verticals. Flywire's ability to cross-sell its platform across different industries while maintaining margins will be critical to sustaining its growth trajectory and justifying its premium valuation.
The company's 52-week trading range of $8.20 to $15.25 reflects significant volatility, characteristic of growth-stage software companies. With Tuesday's gains, Flywire shares are now trading closer to the middle of that range, suggesting the market is still evaluating the company's long-term growth potential against near-term execution risks.