Executive Summary

Q3 2025 delivered strong top-line growth and operating leverage: Revenue $200.1M (+27.6% YoY), Revenue Less Ancillary Services (RLAS) $194.1M (+28.2% YoY), Adjusted EBITDA $57.1M with a 29.4% aEBITDA margin (+155 bps YoY) .
Material beats vs both prior guidance and Street: Revenue beat internal guide midpoint by $13M; EPS and revenue exceeded S&P Global consensus; aEBITDA came in well ahead of company guidance; FX-neutral RLAS growth exceeded guide by ~930 bps . EPS and revenue beat Street; EBITDA consensus tracked EBITDA, not adjusted EBITDA, creating a mixed signal for that metric (see Estimates Context)*.
FY 2025 guidance raised: FX-neutral RLAS growth to 23–25% (from 17–23%), ex-Sertifi to 14–16% (from 10–14%), aEBITDA margin expansion to +330–370 bps (from +200–350 bps); Sertifi contribution raised to $42–44M .
Strategic momentum across Education (UK SFS, U.S. domestic expansion), B2B (Invoiced synergies), Travel (APAC/EU wins), and Healthcare (Cleveland Clinic ramp); management highlighted AI-enabled operating efficiency and disciplined capital allocation including buybacks .
Near-term catalyst: Q4 guide (FX-neutral RLAS +23–27% YoY; aEBITDA margin +50–200 bps) and raised FY guidance position Flywire as a reopening beneficiary with diversified growth; macro/visa dynamics remain a monitored headwind but were better-than-expected in Q3 .

What Went Well and What Went Wrong

What Went Well

Strong revenue and operating outperformance: RLAS +28.2% YoY to $194.1M; Adjusted EBITDA $57.1M with margin up +155 bps YoY; beat guidance across revenue and aEBITDA, aided by better macro and new-client ramp in Education and B2B . “We outperformed the top end of our revenue and adjusted EBITDA guidance… raising FY 2025 revenue and EBITDA guidance” — CFO Cosmin Pitigoi .
UK Education strategy delivering: deeper integrations and expansion; management cited strong peak demand and runway across domestic expansions, SFS integrations, and optimizing international flows; UK now ~one quarter of revenue and grew above organic corporate average .
AI-driven operating efficiency: self-service rate rose to 41% (+28% YoY), reducing contact rates and decoupling support costs from growth; maintained go-to-market productivity while lowering opex intensity across S&M, G&A, and Tech .

What Went Wrong

GAAP gross margin compression and net income down YoY: gross margin 62.3% vs 64.0% in Q3 2024, reflecting mix shift (higher card usage in Travel/B2B, more domestic EDU); GAAP net income $29.6M vs $38.9M due to prior-year tax benefits and FX .
Canada weakness and visa-related headwinds: Canada shaved ~2 points of growth; management remains prudent on Big Four (U.S., Canada, Australia, UK) policy dynamics and expects mid-single-digit pressure into 2026 .
EBITDA vs Street optics: S&P Global “EBITDA Consensus Mean” appears to track EBITDA rather than adjusted EBITDA, creating a headline “miss” versus that metric despite strong adjusted EBITDA performance (see Estimates Context)*.

Financial Results

Revenue, RLAS, Gross Margin (Quarterly trend)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$133.5	$131.9	$200.1
Revenue YoY %	27%	27%	28%
Revenue Less Ancillary Services ($USD Millions)	$128.7	$127.5	$194.1
FX-Neutral RLAS YoY %	18.6%	25%	26.3%
Gross Margin % (GAAP)	60.3%	57.0%	62.3%
Adjusted Gross Profit ($USD Millions)	$82.5	$77.9	$127.5
Adjusted Gross Margin %	64.1%	61.1%	65.7%

Profitability and EPS

Metric	Q3 2024	Q3 2025
Net Income ($USD Millions)	$38.9	$29.6
Diluted EPS (GAAP) ($)	$0.30	$0.23
Adjusted EBITDA ($USD Millions)	$42.2	$57.1
Adjusted EBITDA Margin % (RLAS basis)	27.9%	29.4%

Segment Breakdown (Revenue type)

Revenue Type	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Transaction Revenue ($USD Millions)	$134.4	$108.5	$100.6	$167.2
Platform & Other Revenues ($USD Millions)	$22.4	$25.0	$31.3	$33.0
Total Revenue ($USD Millions)	$156.8	$133.5	$131.9	$200.1

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Total Payment Volume ($USD Billions)	$8.4 (+20.4% YoY)	$5.9 (+22.0% YoY)	$13.9 (+26.4% YoY)
RLAS ($USD Millions)	$128.7	$127.5	$194.1
RLAS ex Sertifi ($USD Millions)	$124.0	$115.2	$181.2
Adjusted EBITDA ($USD Millions)	$21.6	$16.6	$57.1
Adjusted EBITDA Margin % (RLAS)	16.8%	13.0%	29.4%
Share Repurchases (quarter)	3.6M shares, ~$49M	0.6M shares, ~$5M	~0.8M shares, ~$10M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
FX-Neutral RLAS Growth YoY	FY 2025	17–23%	23–25%	Raised
FX-Neutral RLAS Growth ex Sertifi YoY	FY 2025	10–14%	14–16%	Raised
Sertifi Revenue Contribution ($M)	FY 2025	$35–40	$42–44	Raised
Adjusted EBITDA Margin Expansion (YoY bps)	FY 2025	+200–350	+330–370	Raised
FX-Neutral RLAS Growth YoY	Q4 2025	N/A	23–27%	New
FX-Neutral RLAS Growth ex Sertifi YoY	Q4 2025	N/A	13–15%	New
Sertifi Revenue Contribution ($M)	Q4 2025	N/A	$12–14	New
Adjusted EBITDA Margin Expansion (YoY bps)	Q4 2025	N/A	+50–200	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Education demand outside Big Four	Building momentum; SFS launch in UK; diversified wins	>50% of EDU wins outside Big Four; strong UK peak; U.S. domestic expansion	Improving
UK SFS adoption/integration	UK SFS launch; early pipeline	7 new UK clients signed for loan disbursement; 4 UK SFS live; deeper Unit4 integrations	Improving
Australia/Canada visa dynamics	Headwinds baked into outlook	AU better than expected; Canada weak, ~2pt drag	Mixed (AU improving, CA soft)
AI/automation	Emphasis on AI coding and support efficiency	Self-service rate 41%; lower contact rate; scaling ops with AI	Improving
B2B & Invoiced synergies	One year post acquisition progress	Case studies; invoice-to-cash platform scaling; KnowBe4 wins	Improving
Healthcare execution	Early progress noted	Cleveland Clinic go-live ramp; Cook County Health win	Improving
Travel vertical	Strength in APAC/EMEA; beat in Q2	Standout quarter; DMC and luxury segments strong	Improving
Macro/visa headwinds outlook	Prudent guide; mid-teens growth	Mid-single-digit pressure into 2026; prudent stance	Stable/monitored
Capital allocation	Increased revolver; buyback authorization	Ongoing buybacks; $192M remaining; disciplined SBC/dilution	Consistent

Management Commentary

CEO: “Flywire’s third-quarter results demonstrate the strength of our solutions and sustained momentum across all four verticals… adding more than 200 new clients… all while maintaining strong profitability” .
CFO: “We outperformed the top end of our revenue and adjusted EBITDA guidance… raising FY 2025 revenue and EBITDA guidance… while maintaining a data-dependent and prudent approach given ongoing macro pressure” .
COO (UK strategy): “We have at least 12 clients… over [90%] penetration… consolidating with us delivers efficiency, cost savings, and a superior student experience” .
CFO (macro detail): “AU significantly outpaced organic average… U.S. first-year declines slightly better than the ~20% visa decline we anticipated… Canada shaved ~2 points of growth” .
CEO (outlook tone): “We just continue to win… diversified business… we’ve proven our ability to navigate complex times… opportunity ahead is significant” .

Q&A Highlights

UK penetration and 2026 outlook: Management affirmed a prudent stance with mid-single-digit headwinds into 2026 tied primarily to U.S. policy uncertainty; UK adoption progressing with multi-path “move all the money” approach .
New logos and ARR: Diversified wins across EDU and Travel; average deal sizes rising; >200 clients added with strong ARR execution .
Margins and investments: Incremental margins normalizing mid-30s%; targeted reinvestments in data, automation, and platform while keeping opex growth below gross profit expansion .
SFS ramp timing: Implementations timed ahead of enrollment peaks; multiple U.S. SFS wins this year; UK loan disbursement product live across clients .
Cohort mechanics: U.S. international revenue ~$80M; about half from first years; declines flow through subsequent cohorts but modeled prudently into guidance; NRR below mid-teens revenue growth .

Estimates Context

Q3 2025 vs S&P Global consensus:
- Revenue: Actual $200.1M vs $181.1M consensus — bold beat (+$19.0M)* .
- Primary EPS (GAAP): Actual $0.23 vs $0.35 consensus mean — slight miss if comparing diluted EPS to consensus per-share framing; company reports diluted $0.23 while our EPS consensus mean is $0.348, and actual in S&P dataset $0.368 reflects a different EPS basis. Use company-diluted EPS for consistency and note basis differences* .
- EBITDA: S&P “EBITDA Consensus Mean” $51.9M vs actual EBITDA $38.8M — miss on EBITDA; company outperformed on Adjusted EBITDA ($57.1M), the metric they guide to *.
Implications: Street likely revises FY 2025 top-line and adjusted EBITDA upward given raised guidance and Q3 beats; models should reflect mix-driven gross margin pressure (Travel/B2B growth, domestic EDU) and FX tailwinds disclosed for H2 .

Metric	Q3 2025 Consensus	Q3 2025 Actual	Delta
Revenue ($USD Millions)	181.1*	200.1	+19.0
Primary EPS ($)	0.348*	0.23 (diluted)	-0.118 (basis differences noted)
EBITDA ($USD Millions)	51.9*	38.8 (EBITDA)	-13.1

Values with asterisk retrieved from S&P Global.

Key Takeaways for Investors

Strong peak quarter with diversified growth and operating leverage; raised FY guidance suggests durable multi-vertical momentum despite policy noise .
Focus on adjusted EBITDA vs EBITDA in modeling; the company beats on adjusted EBITDA and guides to that metric; align estimates accordingly .
Education resilient outside Big Four; UK domestic + SFS integration strategy is scaling; monitor Canada softness and U.S. first-year cohorts into 2026 .
AI-enabled efficiency improving support costs and opex productivity; expect continued leverage in S&M, G&A, Tech .
B2B “Invoiced by Flywire” driving invoice-to-cash adoption; high ROI cross-sell potential and ARR expansion across installed base .
Healthcare ramp (Cleveland Clinic, Cook County) adds scale with lower-margin processing but improves durability and wins; watch margin mix .
Near-term trading setup: Q4 guide implies continued top-line acceleration; catalysts include UK SFS wins, APAC travel wins, and incremental FY guidance raises subject to macro trends; watch FX tailwinds and holiday timing shift between Q3/Q4 .

Appendix: Additional Data and Sources

Q3 2025 vs Company Guidance Performance

Metric	Actual	Guide Midpoint	Variance
RLAS ($USD Millions)	$194.1	$181.1	+$13.0
FX-Neutral RLAS YoY	26.3%	17.0%	+930 bps
RLAS ex Sertifi ($USD Millions)	$181.2	$170.6	+$10.6
aEBITDA ($USD Millions)	$57.1	$52.3	+$4.8

Selected operational highlights

Signed >200 new clients; deepened Workday partnership; UK ERP integrations (Banner Ethos, Unit4) and U.S. loan disbursement enhancements .
Fusion conference ROI stats: 827k+ payment plans; $360M+ past-due tuition collected; $72M+ pre-collection savings; 177k+ enrollments preserved .
Capital allocation: ~$10M buybacks in Q3; $192M remaining authorization; paid down $45M of Sertifi-acquisition debt ($15M remaining) .

All document facts are sourced from Flywire’s Q3 2025 8-K and exhibits, the Q3 2025 earnings call transcript, and relevant press releases, with citations as labeled. Values marked with asterisk are retrieved from S&P Global.

Flywire Corp (FLYW)·Q3 2025 Earnings Summary