Flywire Corp Q2 FY2025 earnings call

• Industry Trends: Organizations focus on efficiency, ROI, and platform consolidation, and Flywire's client-centric approach drives strong results.
• Product and Innovation: Added 20% more features year-over-year; payment platform upgrades, machine learning, AI, and DocVerify for automation.
• Vertical Performances:
  • Education: Strong momentum in global education with new clients and ARR records; SFS offering as a SaaS platform.
  • Travel: Expansion driven by Sertifi synergy, with cross-sell opportunities.
  • B2B: Migrated invoiced clients to Flywire's platform, enhancing monetization.
  • Healthcare: Signed Endeavor Health and a large hospital system, improving post-insurance collections.

Revenue less ancillary services was $127.5 million in Q2 2025, representing a 25% FX-neutral growth rate or 27.7% on a spot basis. Transaction revenue saw an 18% year-over-year increase, with approximately 6 percentage points attributable to Sertifi, driven by a 28% increase in transaction-related payment volume. Platform and other revenues increased 84% year-over-year, primarily due to Sertifi's contribution and improvements in the healthcare business. Adjusted EBITDA reached almost $17 million for the quarter, resulting in a 13% margin and an expansion of 723 basis points year-over-year. Sertifi contributed $12 million in Q2, adding approximately 12 points of growth.

• Full-year revenue guidance: FX-neutral revenue less ancillary services 10%-14% excluding Sertifi, 17%-23% including Sertifi.
• Q3 guidance: FX-neutral revenue growth excluding Sertifi 7%-13%, including Sertifi 13%-21%.
• Margin expansion guidance raised to 200-350 basis points.

• Macro headwinds in Canada and Australia, visa approval rate declines in APAC markets affecting education flows.
• FX losses on settlement impacting gross margins.

Q: John Davis asks about full-year guide and growth profile.

A: Cosmin Pitigoi and Michael Massaro respond about Australia pull forward, U.S. weakness, and growth algorithm.

Q: Cris Kennedy inquires about Sertifi's international sales activity.

A: Robert Orgel discusses Sertifi's international expansion and product platform capabilities.

Q: Dan Perlin asks about U.K. business trends and wallet share gains.

A: Robert Orgel talks about U.K. business growth, product offerings, and multiyear growth potential.

Q: Michael Infante asks about stable coin payments and U.S. education client conversations.

A: Michael Massaro and Mike Massaro discuss stable coin partnerships and client focus on solving real problems.

Q: Unidentified Analyst asks about U.S. education growth outlook and client conversations.

A: Cosmin Pitigoi and Michael Massaro address U.S. education client focus on efficiency and problem-solving.

Q: Jeff Cantwell asks about education expansion in non-big 4 markets and U.S. domestic land and expand opportunities.

A: Robert Orgel and Robert Orgel discuss expansion in non-big 4 markets and the effectiveness of domestic land and expand strategies.

Q: Tien-Tsin Huang asks about record ARR and resource allocation.

A: Robert Orgel comments on ARR sources and go-to-market resource allocation.

Q: Timothy Chiodo asks about hiring and compensation strategies.

A: Michael Massaro discusses pay-for-performance culture and incentive refinement for sales teams.