BTIG Reiterates Neutral Rating on Flywire (FLYW)

BTIG analyst Andrew Harte reiterated a Neutral rating on Flywire (NASDAQ: FLYW).

The analyst comments "WHAT YOU SHOULD KNOW: We hosted Flywire CFO Cosmin Pitigoi for a series of investor meetings following 4Q25 earnings. Focus areas for the day included: 1) drivers and assumptions of FY26 guidance, 2) Sertifi momentum, and 3) potential impacts from AI and stablecoin adoption. Following the meetings we are more constructive on FLYW's growth outlook. Furthermore, we are encouraged by FLYW's ability to grow independent of macro headwinds it is facing in key Education markets and appreciate management's continued prudent approach to guidance in those markets. ■ What is Driving FY26 Revenue Acceleration... B2B Migration and Healthcare One-Offs + Education/Travel Momentum. FY26 FXN revenue growth is guided to 15%-21% (14%-20% ex-Sertifi), which comps to 16.5% ex-Sertifi during FY25. There is a 2% benefit from a large B2B/Invoiced payments migration and ramp of the Cleveland Clinic. Management noted the B2B migration and Cleveland Clinic wins are exceptional and likely will create tough comps during FY27. As such, we think FLYW's core business is guided to grow ~15% organic (18% guidance midpoint less 1% Sertifi less 2% B2B/Cleveland Clinic). We think the implied 15% core growth rate sets up favorably in the year ahead and jibes with management's conservative approach; it is lower than ~18% organic growth during 2H25 amidst significant macro headwinds, while at the same time FLYW's business momentum appears strong as ever. ■ Assumptions of FY26 Guidance... Growth Despite Industry Headwinds. Puts and takes underlying FLYW's FY26 guidance, particularly as it relates to the Education vertical, were top of mind. Pitigoi reiterated the guidance assumptions from 4Q25 earnings (see Exhibit 1 on page 3), while highlighting FLYW's ability to grow in a given market despite visa-related headwinds. Within the US Education market, Pitigoi pointed to new client additions, gaining market share, and SFS as drivers of the company's ability to outperform visa issuance data (FY25 growth of 5%, vs. visa declines of high-teens %). When asked what could help FLYW achieve the highend of guidance, management pointed to an improving macro environment and continuing ramp of larger clients. As such, we think the recent news of improving Canada and India relations could be beneficial to FLYW's Canada Education vertical and growth outlook. Additionally, Pitigoi said FY26 guidance does not account for SFS uplift in the UK, which could serve as another source of upside. ■ Revenue Diversification Gives Confidence in Guidance. Management emphasized how FLYW has evolved from years past; cross-border Education now drives ~65% of revenue, compared to ~90%+ a few years ago. Additionally, when compared to 2021, FLYW is signing higher average ARR per deal with a larger contribution from software and domestic payments. (see page 4 for helpful chart of FLYW's diversification since 2021) ■ SFS Momentum. SFS has been key in offsetting revenue pressure FLYW has faced from visa-related headwinds. (Continue on page 3) ■ Valuation: We are Neutral-rated on FLYW. The company's current growth algorithm is challenged by macro dynamics and is too uncertain for us to be confident in growth trends in either direction."

For an analyst ratings summary and ratings history on Flywire click here. For more ratings news on Flywire click here.

Shares of Flywire closed at $13.56 yesterday.

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