Law Offices of Howard G. Smith Encourages Flywire Corporation (FLYW) Investors To Inquire About Securities Fraud Class Action
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN FLYWIRE CORPORATION (FLYW), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On February 25, 2025, after market hours, Flywire released its fourth quarter 2024 financial results, missing consensus estimates, citing 'a complex macro environment with significant headwinds' and stating that the Company's business in the education sector had significantly deteriorated due to worsening permit- and visa-related headwinds, including 'double digit declines in student visa issuance in our big four geographic markets,' with 'continued visa policy restrictions' anticipated in 2025. The Company further announced a restructuring plan that included a 10% reduction in its workforce. Additionally, the Company reduced its 2025 guidance.
On this news, Flywire's stock price fell $6.59, or 37.4%, to close at $11.05 per share on February 26, 2025, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the strength and sustainability of Flywire's revenue growth was overstated; (2) the negative impact that permit- and visa-related restrictions were having and were likely to have on Flywire's business was understated; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Flywire securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: howardsmith@howardsmithlaw.com
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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Butterfly devices are commercially available to trained healthcare practitioners in areas including, but not limited to, parts of Africa, Asia, Australia, Europe, the Middle East, North America and South America; to learn more about available countries, visit: Non-GAAP Financial Measures In addition to providing financial measures based on generally accepted accounting principles in the United States of America ('GAAP'), we provide additional financial measures that are not prepared in accordance with GAAP ('non-GAAP'). The non-GAAP financial measures included in this press release are adjusted gross profit, adjusted gross margin, adjusted EBITDA, and adjusted EPS. We present non-GAAP financial measures in order to assist readers of our financial statements in understanding the core operating results that our management uses to evaluate the business and for financial planning purposes. Our non-GAAP financial measures provide an additional tool for investors to use in comparing our financial performance over multiple periods. The non-GAAP financial measures included in this press release are key performance measures that our management uses to assess our operating performance. These non-GAAP measures facilitate internal comparisons of our operating performance on a more consistent basis. We use these performance measures for business planning purposes and forecasting. We believe that these non-GAAP measures enhance an investor's understanding of our financial performance as they are useful in assessing our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. The non-GAAP financial measures included in this press release may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same manner. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating the Company's performance, you should consider adjusted gross profit, adjusted gross margin, adjusted EBITDA, and adjusted EPS alongside other financial performance measures prepared in accordance with GAAP, including gross profit, gross margin, net loss, and EPS. The non-GAAP financial measures do not replace the presentation of our GAAP financial results and should only be used as a supplement to, not as a substitute for, our financial results presented in accordance with GAAP. In this press release, we have provided reconciliations of adjusted gross profit to gross profit, adjusted gross margin to gross margin, and adjusted EBITDA and adjusted EPS to net loss, the most directly comparable GAAP financial measures. Reconciliations of our non-GAAP financial measures to corresponding GAAP measures are not available on a forward-looking basis because we are unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in our working capital needs, variances in our supply chain, the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Forward Looking Statements This press release includes 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Our actual results may differ from our expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as 'expect,' 'estimate,' 'project,' 'budget,' 'forecast,' 'anticipate,' 'intend,' 'plan,' 'may,' 'will,' 'could,' 'should,' 'believe,' 'predict,' 'potential,' 'continue,' and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expectations with respect to financial results, future performance, commercialization and plans to deploy our products and services, including expectations regarding the launches of our Compass AI software, our P5 chip and fourth-generation technology, and the HeartFocus launch to Butterfly users, development of products and services, and the size and potential growth of current or future markets for our products and services. Forward-looking statements are based on our current beliefs and assumptions and on information currently available to us. These forward-looking statements involve significant known and unknown risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside our control and are difficult to predict. Factors that may cause such differences include, but are not limited to: our ability to grow and manage growth effectively; the success, cost, and timing of our product and service development activities; the potential attributes and benefits of our products and services; the degree to which our products and services are accepted by healthcare practitioners and patients for their approved uses; our ability to obtain and maintain regulatory approval for our products, and any related restrictions and limitations on the use of any authorized product; our ability to identify, in-license, or acquire additional technology; our ability to maintain our existing license, manufacturing, supply, and distribution agreements; our ability to compete with other companies currently marketing or engaged in the development of ultrasound imaging devices, many of which have greater financial and marketing resources than us; changes in applicable laws or regulations; the size and growth potential of the markets for our products and services, and our ability to serve those markets, either alone or in partnership with others; the pricing of our products and services, and reimbursement for medical procedures conducted using our products and services; our estimates regarding expenses, revenue, capital requirements, and needs for additional financing; our financial performance; our ability to attract and retain customers; our ability to manage our growth effectively; our ability to protect or enforce our intellectual property rights; our ability to maintain the listing of our Class A common stock on the New York Stock Exchange; and other risks and uncertainties indicated from time to time in our most recent Annual Report on Form 10-K or in subsequent filings that we make with the Securities and Exchange Commission. We caution that the foregoing list of factors is not exclusive. We caution you not to place undue reliance upon any forward-looking statements, which speak only as of the date of this press release. We do not undertake or accept any obligation or undertake to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. BUTTERFLY NETWORK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 148,136 $ 88,775 Accounts receivable, net of allowance for doubtful accounts of $2,726 and $2,583 at June 30, 2025 and December 31, 2024, respectively 24,527 20,793 Inventories 68,907 70,789 Current portion of vendor advances 4,555 5,547 Prepaid expenses and other current assets 7,622 6,709 Total current assets 253,747 192,613 Property and equipment, net 17,329 19,518 Intangible assets, net 8,216 8,916 Non-current portion of vendor advances 14,790 15,042 Operating lease assets 13,461 14,233 Other non-current assets 5,735 5,760 Total assets $ 313,278 $ 256,082 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 3,320 $ 4,250 Deferred revenue, current 15,642 16,139 Accrued purchase commitments, current 131 131 Warrant liabilities, current 1,239 — Accrued expenses and other current liabilities 24,334 27,695 Total current liabilities 44,666 48,215 Deferred revenue, non-current 7,231 7,315 Warrant liabilities, non-current — 2,685 Operating lease liabilities 19,097 20,398 Other non-current liabilities 9,478 8,637 Total liabilities 80,472 87,250 Commitments and contingencies Stockholders' equity: Class A common stock $.0001 par value; 600,000,000 shares authorized at June 30, 2025 and December 31, 2024; 224,609,833 and 188,626,154 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 22 19 Class B common stock $.0001 par value; 27,000,000 shares authorized at June 30, 2025 and December 31, 2024; 26,426,937 shares issued and outstanding at June 30, 2025 and December 31, 2024 3 3 Additional paid-in capital 1,062,712 970,940 Accumulated deficit (829,931 ) (802,130 ) Total stockholders' equity 232,806 168,832 Total liabilities and stockholders' equity $ 313,278 $ 256,082 Expand BUTTERFLY NETWORK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Six months ended June 30, 2025 2024 Cash flows from operating activities: Net loss $ (27,801 ) $ (37,467 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization, and impairments 4,442 5,217 Non-cash interest expense 713 607 Write-down of inventories 66 (81 ) Stock-based compensation expense 12,148 11,383 Change in fair value of warrant liabilities (1,446 ) (413 ) Other 172 462 Changes in operating assets and liabilities: Accounts receivable (3,909 ) (3,165 ) Inventories 1,816 (1,072 ) Prepaid expenses and other assets (874 ) 165 Vendor advances 1,244 (1,396 ) Accounts payable (927 ) (587 ) Deferred revenue (581 ) (908 ) Change in operating lease assets and liabilities (411 ) (348 ) Accrued expenses and other liabilities (3,496 ) (3,064 ) Net cash used in operating activities (18,844 ) (30,667 ) Cash flows from investing activities: Purchases of property, equipment, and intangible assets, including capitalized software (1,249 ) (1,872 ) Sales of property and equipment — 35 Net cash used in investing activities (1,249 ) (1,837 ) Cash flows from financing activities: Proceeds from exercise of stock options and warrants 274 — Proceeds from employee stock purchase plan 949 — Net proceeds from share offering 81,006 — Payments to tax authorities for restricted stock units withheld (2,775 ) — Net cash provided by financing activities 79,454 — Net increase (decrease) in cash, cash equivalents, and restricted cash 59,361 (32,504 ) Cash, cash equivalents, and restricted cash, beginning of period 92,790 138,650 Cash, cash equivalents, and restricted cash, end of period $ 152,151 $ 106,146 Expand BUTTERFLY NETWORK, INC. ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN (In thousands) (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue $ 23,383 $ 21,487 $ 44,608 $ 39,143 Cost of revenue 8,492 8,901 16,336 16,280 Gross profit $ 14,891 $ 12,586 $ 28,272 $ 22,863 Gross margin 63.7 % 58.6 % 63.4 % 58.4 % Add: Write-downs and write-offs of inventories 14 — 66 — Adjusted gross profit $ 14,905 $ 12,586 $ 28,338 $ 22,863 Adjusted gross margin 63.7 % 58.6 % 63.5 % 58.4 % Depreciation and amortization $ 1,138 $ 1,646 $ 2,541 $ 3,231 % of revenue 4.9 % 7.7 % 5.7 % 8.3 % Expand BUTTERFLY NETWORK, INC. ADJUSTED EBITDA AND ADJUSTED EPS (In thousands, except share and per share amounts) (Unaudited) Included on the condensed consolidated statements of operations and comprehensive loss as: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net loss Net loss $ (13,834 ) $ (15,706 ) $ (27,801 ) $ (37,467 ) Stock-based compensation R&D, S&M, and G&A 5,864 5,859 12,148 11,383 Write-downs and write-offs of inventories Cost of revenue 14 — 66 — Change in fair value of warrant liabilities Change in fair value of warrant liabilities (620 ) (620 ) (1,446 ) (413 ) Other Other 1,987 606 2,691 1,964 Other expense (income), net Other income (expense), net (531 ) 59 (2,906 ) 201 Adjusted net loss (7,120 ) (9,802 ) (17,248 ) (24,332 ) Interest income Interest income (1,503 ) (1,291 ) (3,155 ) (2,802 ) Interest expense Interest expense 368 309 715 609 Provision for income taxes Provision for income taxes 20 17 27 20 Depreciation and amortization Cost of revenue, R&D, S&M, and G&A 2,082 2,633 4,442 5,217 Adjusted EBITDA $ (6,153 ) $ (8,134 ) $ (15,219 ) $ (21,288 ) Adjusted EPS $ (0.03 ) $ (0.05 ) $ (0.07 ) $ (0.12 ) Weighted average shares used to compute adjusted EPS 248,393,811 211,663,554 241,695,884 210,268,501 Expand
