Executive Summary

Q1 2025 delivered solid top-line and profitability: Revenue rose 17.0% to $133.5M, Revenue Less Ancillary Services (RLAS) rose 16.8% to $128.7M, and Adjusted EBITDA expanded to $21.6M with Adjusted EBITDA Margin (using RLAS) up 476 bps YoY to 16.8% .
Wall Street consensus was exceeded: Revenue beat by ~$9.5M and “Primary EPS” beat as reported by S&P Global; GAAP diluted EPS was -$0.03, while SPGI “Primary EPS” printed $0.12, reflecting non-GAAP adjustments; management reaffirmed full-year guidance .
Travel and Australian education outperformed, while Canada remained a headwind; more than 200 new clients signed, and 3.6M shares were repurchased for ~$49M, with $57M remaining in the buyback program .
Guidance maintained: FY 2025 FX-neutral RLAS growth guided to 17–23% including Sertifi (10–14% ex-Sertifi), with Q2 FX-neutral RLAS growth of 17–23% and Adjusted EBITDA margin growth of +150–350 bps YoY; Sertifi revenue expected at $35–40M for FY and $10–12M in Q2 .
Catalyst: Beat vs consensus and margin expansion, balanced by cautious U.S. education outlook (low-single-digit growth, F1 visas down YoY) and continued Canadian headwinds; travel momentum and software attach in education could drive estimate revisions .

What Went Well and What Went Wrong

What Went Well

Executed above plan: “First quarter 2025 performance meaningfully beat across both FX Neutral Revenue Growth and Adjusted EBITDA Margin Growth,” with disciplined OpEx and margin expansion .
New client momentum and vertical strength: “We signed more than 200 new clients,” with fast-growing Travel (luxury/boutique), UK domestic education, and Australia performing better than expected .
Strategic initiatives gaining traction: Accelerating payments strategy under new Chief Payments Officer, leveraging AI and data architecture to streamline onboarding/KYC and improve operational efficiency .

What Went Wrong

Canadian education remained a material headwind: Management cited macro/policy pressures shaving ~3 points of growth in Q1 and continued impacts into Q2 .
Gross margin pressured by mix: Adjusted Gross Margin declined ~110 bps YoY to 64.1% due to faster growth in travel and FX settlement effects; ex-Sertifi adjusted gross margin down ~150 bps .
GAAP EPS negative: GAAP diluted EPS was -$0.03, driven by restructuring ($7.3M) and acquisition-related costs ($2.5M), despite adjusted profitability improvements .

Financial Results

Consolidated performance vs prior periods

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$156.8	$117.6	$133.5
Revenue Less Ancillary Services ($USD Millions)	$151.4	$112.8	$128.7
Gross Profit ($USD Millions)	$100.3	$74.3	$80.5
Gross Margin (%)	64.0%	63.2%	60.3%
Adjusted Gross Profit ($USD Millions)	$101.9	$75.6	$82.5
Adjusted Gross Margin (%)	67.3%	67.0%	64.1%
Adjusted EBITDA ($USD Millions)	$42.2	$16.7	$21.6
Adjusted EBITDA Margin (using RLAS) (%)	27.9%	14.8%	16.8%
GAAP Diluted EPS ($USD)	$0.30	-$0.12	-$0.03
Total Payment Volume ($USD Billions)	$11.0	$6.9	$8.4

Actual vs S&P Global consensus (Q1 2025)

Metric	Consensus	Actual	Surprise
Revenue ($USD)	$123.9M*	$133.5M	+$9.6M (Beat)
Primary EPS ($USD)	$0.103*	$0.1195*	+$0.0167 (Beat)

Values marked with * retrieved from S&P Global. GAAP diluted EPS was -$0.03 , reflecting restructuring and acquisition-related costs; SPGI “Primary EPS” is a normalized/non-GAAP framework.

KPIs and capital allocation

KPI	Q1 2025
New clients added	>200
Shares repurchased	3.6M for ~$49M; $57M remaining authorization
Cash & Cash Equivalents	$190.5M

Guidance Changes

Metric	Period	Previous Guidance (Feb 25, 2025)	Current Guidance (May 6, 2025)	Change
FX-Neutral RLAS Growth (ex-Sertifi)	FY 2025	10–14% YoY	10–14% YoY	Maintained
FX-Neutral GAAP Revenue Growth (ex-Sertifi)	FY 2025	9–13% YoY	Not reiterated explicitly	N/A
Adjusted EBITDA Margin Growth (ex-Sertifi)	FY 2025	+200–400 bps YoY	+100–300 bps YoY (company-level including Sertifi)	Lowered midpoint; methodology now company-level
Sertifi Revenue	FY 2025	$30–40M	$35–40M	Raised low end
FX-Neutral RLAS Growth (incl. Sertifi)	FY 2025	Not provided	17–23% YoY	New
FX-Neutral RLAS Growth (incl. Sertifi)	Q2 2025	Not provided	17–23% YoY	New
Sertifi Revenue	Q2 2025	Not provided	$10–12M	New
Adjusted EBITDA Margin Growth	Q2 2025	Not provided	+150–350 bps YoY	New
FX-Neutral RLAS Growth (ex-Sertifi)	Q2 2025	Not provided	7–11% YoY	New

Context: Management maintained FY growth ranges despite macro uncertainty; Q2 guide embeds tougher laps and Canada pressure offset by travel/healthcare momentum .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
AI/data & payments ops	Scaling global payment network; local rails; APAC bank integrations	Operational review to optimize productivity; automation cost savings	Accelerating payments strategy; centralized payments org; AI to streamline onboarding/KYC; data architecture for real-time insights	Increasing focus and deployment
Education visas/macros	Canada headwind; Australia moderation; U.S. cautious visa trends	Canada down >50% YoY in Q4; Australia policy risk; U.S. F1 visas down ~10%	Canada shaved ~3pts from growth; U.S. low-single-digit growth expected; monitoring summer visa trends; Australia less negative than expected	Mixed: Canada/Australia headwinds persist; U.S. cautious
Travel vertical	Strong growth; luxury/ocean experiences; rapid implementations	Sertifi acquisition to expand hotel workflows; over 20,000 properties reach	Over $100M LTM travel business combining Sertifi; 21 luxury/boutique clients onboarded; monetization opportunities	Strengthening
UK domestic education	Strong growth; WPM integration leverage; expanding SFS	EMEA/UK growth near 60% YoY; domestic attach	UK now largest education market; SFS signed 4 new UK clients; University of Greenwich win	Strengthening
Healthcare	Return to modest growth (Banner One)	Landmark 8-figure client expected to ramp in H2 2025	“Turning the corner” with robust pipeline and integrations; H2 ramp reiterated	Improving
B2B	Organic growth above corp avg; “Invoiced” integration	Cvent partnership; integrated software + payments	Sojern win; cross-sell; embedded payments; automation	Strengthening
Capital allocation	Buybacks; cash for strategic M&A	$44M repurchases; ~$125M LOC draw for Sertifi, repayment plan	3.6M shares repurchased; $57M remaining; positive FCF conversion	Ongoing

Management Commentary

“We signed more than 200 new clients… and exceeded the high end of our FX Neutral Revenue Guidance, while expanding Adjusted EBITDA margins above our guidance mid-point.” — Mike Massaro, CEO .
“First quarter 2025 performance meaningfully beat across both FX Neutral Revenue Growth and Adjusted EBITDA Margin Growth… while maintaining our full-year 2025 financial outlook despite macroeconomic challenges.” — Cosmin Pitigoi, CFO .
“Combining our existing travel business with Sertifi, we now have an over $100 million travel business… with attractive unit economics.” — Rob Orgel, President & COO .
“We are actively utilizing data analytics and… leverage AI to streamline onboarding support in KYC processes.” — Mike Massaro, CEO .

Q&A Highlights

Cadence and reacceleration: Q2 slowdown (Canada timing, Easter effect) followed by H2 acceleration from easier comps, healthcare ramp, and client ramps; consistent with maintaining the 12% midpoint ex-Sertifi .
U.S. education demand and sales cycles: Despite visa uncertainty, institutions seek ROI and vendor consolidation; Flywire sees low churn and continued cross-border and domestic software attach .
UK mix and growth: UK is now the largest education market for Flywire, with strong SFS and StudyLink pipeline; differentiated software suite cited .
Travel implementation speed and backlog: Deployments measured in weeks; Sertifi unlocks hotel payments workflows and international expansion .
NRR trajectory: Headwinds (Canada/Australia) weigh on reported NRR; underlying drivers (adoption, product expansion, share of wallet) remain intact for normalized environments .

Estimates Context

Revenue and EPS beats: Q1 Revenue beat consensus by ~$9.6M; SPGI “Primary EPS” beat by ~$0.017; 13 and 7 estimates, respectively. Values retrieved from S&P Global.*
Implications: The beat and margin expansion support near-term upward tweaks to revenue/EPS models; management maintained FY guidance, citing prudence in travel and caution in U.S. education, which may cap aggressive upward revisions until summer visa data is clearer .

*Consensus values sourced from S&P Global via internal tool; see table above.

Key Takeaways for Investors

Quality beat: Broad-based outperformance with stronger Adjusted EBITDA and beat vs consensus — constructive for near-term sentiment and multiples .
Travel is a structural growth engine: Sertifi expands addressable hotel workflows and monetization; luxury/boutique momentum and rapid implementations underpin durability .
Education strategy offsets macro: UK domestic attach and SFS wins, StudyLink expansion, and agent network depth mitigate visa headwinds; Canada remains a drag near-term .
Margin expansion with discipline: Operational review, restructuring, automation and vendor optimization drive leverage; FY margin expansion intact despite reinvestment .
Capital returns and balance sheet flexibility: Continued buybacks ($57M remaining) and strong cash underpin shareholder returns while funding strategic initiatives .
Watch summer visa data and Q2 cadence: Q2 guide embeds tougher lapping and Canada timing; H2 acceleration depends on U.S. visa flows and healthcare ramp .
Model update: Raise Q1 actuals and near-term margin assumptions modestly; maintain FY growth ranges per company, with cautious U.S. education and restrained travel upside until macro visibility improves .

Flywire Corp (FLYW)·Q1 2025 Earnings Summary