Flywire (FLYW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 27.2% year-over-year to $167.7M, driven by strong transaction volume growth, new client additions, and expanding deal sizes across all verticals.

• Adjusted EBITDA increased 44.5% to $24.0M, with margin expanding by 160 basis points to 14.6% year-over-year.

• Net loss narrowed to $8.1M from $12.0M in Q2 2025, reflecting improved operating leverage and cost controls.

• AI-driven digital transformation and automation delivered measurable productivity gains, with 45% of customer inquiries resolved automatically.

• Strong client wins and expansions across education, travel, and hospitality, with over 200 new clients signed in 45 countries.

Financial highlights

• Q2 2026 total revenue less ancillary services reached $163.8M, up 28.5% year-over-year (26.9% FX neutral).

• Transaction revenue was $135.9M, up 35.1% year-over-year, driven by 38.2% growth in total payment volume to $8.2B.

• Adjusted gross profit grew 19% year-over-year to $92.7M; adjusted gross margin was 56.6%, down from 61.1% due to business mix shifts.

• Adjusted EBITDA was $24.0M (14.6% margin), up from $16.6M (13.0% margin) in Q2 2025.

• Corporate cash and cash equivalents stood at $282.4M as of June 30, 2026, with no outstanding debt and $300M revolving credit facility fully available.

Outlook and guidance

• FY 2026 FX-neutral revenue less ancillary services expected to grow 21–27% year-over-year, with 3–4 points from payment processing ramps and 1.5 points inorganic contribution.

• Adjusted EBITDA margin expansion of 200–400 basis points expected, reaching ~23% at midpoint.

• Q3 2026 FX-neutral revenue less ancillary services growth expected at 16–22% year-over-year; adjusted EBITDA margin to expand 100–300 basis points.

• Free cash flow conversion targeted at 70–75% of adjusted EBITDA; GAAP net income expected to grow four-fold to over $50M.

• Guidance assumes moderate downward pressure on gross margins due to business mix, but absolute gross profit to grow.