Flywire (FLYW) investor relations material

Executive summary

• Revenue grew 41% year-over-year to $188.1 million in Q1 2026, with net income of $12.5 million, driven by strong performance across education, travel, healthcare, and B2B verticals, and supported by the Sertifi acquisition.

• Adjusted EBITDA rose 81.8% to $39.3 million, with margin expanding by 452 basis points to 21.4%.

• Over 200 new clients were signed across all verticals, with notable expansion in education and hospitality sectors, including major universities and luxury travel deals.

• AI and digital transformation initiatives enhanced operational efficiency, reduced costs, and accelerated innovation, including a 20% reduction in payment processing time and 40% automation of customer inquiries.

• Completed a restructuring plan in 2025, resulting in improved operational efficiencies and cost alignment.

Financial highlights

• Q1 2026 GAAP revenue reached $188.1 million, up 41% year-over-year; transaction revenue was $155.2 million, up 43.1%.

• Adjusted gross profit was $110.5 million, with an adjusted gross margin of 60.1% (down from 64.1% year-over-year); gross margin was 56.8%.

• Adjusted EBITDA was $39.3 million (21.4% margin), up from $21.6 million (16.8% margin) in Q1 2025.

• Total payment volume rose 36.5% to $11.4 billion.

• Cash and cash equivalents stood at $311.9 million at quarter-end, with no outstanding debt under the $300 million revolving credit facility.

Outlook and guidance

• FY2026 FX-neutral revenue less ancillary services growth expected at 18–24% year-over-year, with Q2 guidance in the same range.

• Adjusted EBITDA margin expansion forecasted at 175–375 basis points for FY2026, with Q2 margin expansion up to 150 basis points.

• Guidance assumes continued productivity gains, operating leverage, and prudent macro assumptions, with margin expansion weighted to the back half of the year.

• Second half revenue growth expected to decelerate as large client ramps are lapped; seasonality expected with Q3 typically strongest due to education cycles.