Flywire Corp (FLYW) Stock Forecast & Price Target

Flywire Corp has demonstrated a robust financial performance, with a gross profit of $75.6 million, reflecting a year-over-year increase of 19.1%, and significant gross margin improvement of approximately 90 basis points to 67.0%. The company’s strategic acquisition of Sertifi is anticipated to enhance revenue by $35 million to $40 million in FY'25, reinforcing its growth trajectory, particularly as the expansion of adjusted EBITDA is expected to range between 200 to 400 basis points during the same period. Additionally, Flywire projects continued strong organic revenue growth of 11% to 14% in the first quarter, alongside an expected 300 to 600 basis points of margin expansion, despite foreign exchange headwinds.

Flywire Corp's recent financial performance has been marred by a significant 50% year-over-year revenue decline in Canada, largely attributed to the cancellation of a fast-track study visa program, which incurred a $3 million negative revenue impact, compounded by $3.3 million in foreign exchange headwinds. Despite recent revenue growth, uncertainties remain regarding Flywire's ability to scale operations and profitability, raising concerns about future financial stability, especially in the education vertical where revenue visibility has diminished. Furthermore, the company's 1Q25 guidance indicates a growth projection of only 11%–14%, substantially lower than prior expectations, which highlights the risks associated with current policy changes affecting visa issuance in key markets.