Latest news with #FLYW
Yahoo
06-08-2025
- Business
- Yahoo
Flywire's (NASDAQ:FLYW) Q2: Strong Sales, Stock Jumps 20.3%
Cross border payment processor Flywire (NASDAQ: FLYW) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 27.2% year on year to $131.9 million. The company expects next quarter's revenue to be around $183.5 million, close to analysts' estimates. Its GAAP loss of $0.10 per share was 48.3% below analysts' consensus estimates. Is now the time to buy Flywire? Find out in our full research report. Flywire (FLYW) Q2 CY2025 Highlights: Revenue: $131.9 million vs analyst estimates of $125.4 million (27.2% year-on-year growth, 5.2% beat) EPS (GAAP): -$0.10 vs analyst expectations of -$0.07 (48.3% miss) Adjusted EBITDA: $16.6 million vs analyst estimates of $10.18 million (12.6% margin, 63.1% beat) Revenue Guidance for Q3 CY2025 is $183.5 million at the midpoint, roughly in line with what analysts were expecting Revenue Guidance for Q3 CY2025 is $183.5 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: -6.8%, up from -15.2% in the same quarter last year Free Cash Flow was $21.45 million, up from -$80.39 million in the previous quarter Market Capitalization: $1.26 billion Company Overview Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Flywire grew its sales at an impressive 31% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers. This quarter, Flywire reported robust year-on-year revenue growth of 27.2%, and its $131.9 million of revenue topped Wall Street estimates by 5.2%. Company management is currently guiding for a 17% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 16.8% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is noteworthy and implies the market sees success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Flywire's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a competitive market and must continue investing to grow. Key Takeaways from Flywire's Q2 Results Revenue and EBITDA beat by convincing amounts. Looking ahead, the company reaffirmed full-year revenue growth guidance but increased EBITDA margin guidance, which means there is increasing efficiency in the business. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 20.3% to $12.45 immediately after reporting. Flywire may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Washington Post
05-08-2025
- Business
- Washington Post
Flywire: Q2 Earnings Snapshot
BOSTON — BOSTON — Flywire Corporation (FLYW) on Tuesday reported a loss of $12 million in its second quarter. The Boston-based company said it had a loss of 10 cents per share. Losses, adjusted for restructuring costs, came to 9 cents per share. The results did not meet Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for a loss of 7 cents per share.
Yahoo
06-06-2025
- Business
- Yahoo
3 Cash-Heavy Stocks with Questionable Fundamentals
A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow. Just because a business has cash doesn't mean it's a good investment. Luckily, StockStory is here to help you separate the winners from the losers. Keeping that in mind, here are three companies with net cash positions to steer clear of and a few alternatives to consider. Net Cash Position: $195.3 million (15.8% of Market Cap) Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Why Are We Wary of FLYW? Gross margin of 63.6% reflects its relatively high servicing costs Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low Operating losses show it sacrificed profitability while scaling the business Flywire is trading at $10 per share, or 2.1x forward price-to-sales. Read our free research report to see why you should think twice about including FLYW in your portfolio, it's free. Net Cash Position: $26.47 million (16% of Market Cap) With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company. Why Does ZVIA Worry Us? Annual revenue growth of 2% over the last three years was below our standards for the consumer staples sector Revenue growth over the past three years was nullified by the company's new share issuances as its earnings per share fell by 27.1% annually Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Zevia's stock price of $2.52 implies a valuation ratio of 1.2x forward price-to-sales. To fully understand why you should be careful with ZVIA, check out our full research report (it's free). Net Cash Position: $379.5 million (7.8% of Market Cap) Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services. Why Do We Think LSTR Will Underperform? Customers postponed purchases of its products and services this cycle as its revenue declined by 16.5% annually over the last two years Flat earnings per share over the last five years underperformed the sector average Waning returns on capital imply its previous profit engines are losing steam At $140.01 per share, Landstar trades at 23.9x forward P/E. Check out our free in-depth research report to learn more about why LSTR doesn't pass our bar. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
FLYW Q1 Earnings Call: Revenue Beats, Margin Pressures, and Expansion in Education and Travel
Cross border payment processor Flywire (NASDAQ: FLYW) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 17% year on year to $133.5 million. The company expects next quarter's revenue to be around $124.4 million, close to analysts' estimates. Its non-GAAP profit of $0.11 per share was in line with analysts' consensus estimates. Is now the time to buy FLYW? Find out in our full research report (it's free). Revenue: $133.5 million vs analyst estimates of $127 million (17% year-on-year growth, 5% beat) Adjusted EPS: $0.11 vs analyst estimates of $0.12 (in line) Adjusted Operating Income: $19.9 million vs analyst estimates of -$29,580 (14.9% margin, significant beat) Revenue Guidance for Q2 CY2025 is $124.4 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: -8.2%, down from -5.2% in the same quarter last year Free Cash Flow was -$80.39 million compared to -$42.3 million in the previous quarter Billings: $133 million at quarter end Market Capitalization: $1.38 billion Flywire's first quarter results were driven by robust client acquisition, expansion in both core education and travel verticals, and a continued emphasis on software-driven payment solutions. Management detailed how new wins, particularly in the U.K. and non-traditional education markets, alongside the integration of recent acquisitions like Sertifi, contributed to revenue growth. CEO Mike Massaro highlighted, 'We continue to see huge demand for Flywire solutions as evident by our signing of 200 new clients this past quarter.' Looking forward, Flywire's outlook reflects cautious optimism, balancing positive trends in travel and healthcare with ongoing macroeconomic uncertainty, especially within North American education. The company maintained its full-year guidance, with CFO Cosmin Pitigoi emphasizing that operational efficiency measures and investments in automation are intended to drive margin expansion despite anticipated headwinds. Management also noted that upcoming quarters will depend on factors like visa policy changes and macro shifts in major student markets. Flywire's Q1 performance outpaced Wall Street's revenue expectations, underpinned by product expansion and geographic diversification. Management attributed growth to new client wins and product enhancements across its verticals, while also acknowledging pressures from macro trends and policy changes. Education Market Diversification: Flywire capitalized on shifts in international student flows, expanding beyond the U.S., U.K., Canada, and Australia into markets like Germany, France, Japan, and Singapore. New contracts and product integrations in these regions helped offset weakness in more traditional destinations. Product Suite Expansion: The company's introduction of new software products, such as StudyLink and Student Financial Services (SFS), drove deeper client engagement, particularly in the U.K. and U.S. Management highlighted that the attach rate for these services remains low, presenting ongoing growth opportunities. Travel Vertical Growth: Flywire's travel segment benefited from both organic growth and contributions from the Sertifi acquisition, which added software-driven payment capabilities and facilitated cross-selling. Integration efforts with Sertifi are yielding early wins and expanding the client base, especially among luxury and boutique hotels. Operational Streamlining: An ongoing operational and portfolio review resulted in cost optimization, restructuring, and centralization of payment strategies. Efforts included investments in procurement, automation, and digital transformation to drive efficiency and support future scalability. Resiliency Amid Macro Headwinds: Management emphasized Flywire's low churn rates, strong client retention, and the ability to adapt product offerings in response to evolving market conditions, particularly in education and healthcare sectors. Management's outlook for the remainder of the year is shaped by ongoing geographic expansion, product innovation, and operational discipline, but acknowledges risks from macroeconomic and policy uncertainty in key verticals. Geographic and Vertical Expansion: Growth in non-traditional education markets and the continued scaling of the travel segment, especially with Sertifi, are expected to drive future revenue. The healthcare vertical is also positioned for an uptick as new integrations and client wins materialize. Operational Efficiency Initiatives: The company is pursuing margin expansion through automation, vendor consolidation, and streamlining of global operations, with plans to reinvest savings into data, analytics, and product development. Macroeconomic and Policy Risks: Guidance assumes persistent headwinds in U.S. education due to visa policy changes and softer demand from international students, as well as anticipated declines in Australia and Canada. Management stated that 'all this will be data dependent as we balance hiring and additional OpEx levers.' John Davis (Raymond James): Asked about the drivers of revenue growth reacceleration in the second half; management cited easier year-over-year comparisons, normalization in Canadian education, and new client ramp-ups in healthcare and SFS. Timothy Chiodo (UBS): Inquired about U.K. education growth and its revenue contribution; CFO Cosmin Pitigoi confirmed the U.K. is now Flywire's largest education market, driven by new software product adoption. Tien-Tsin Huang (JPMorgan): Sought clarity on what fueled Q1 outperformance and management's confidence in maintaining growth; management pointed to travel and Australian education segments as key contributors, with a conservative outlook for the rest of the year. Dan Perlin (RBC Capital): Asked about Flywire's market penetration in the next 20 education markets and the timeline for converting travel customer backlogs; management noted strong addressable opportunities and faster deployment cycles in travel. Tyler DuPont (Bank of America): Requested updates on competitive dynamics in education and the status of operational reviews; management indicated that product quality remains the key differentiator and outlined progress on cost optimization and pricing strategies. In the upcoming quarters, the StockStory team will be watching (1) the pace of client adoption for Flywire's expanded software suite in education and travel, (2) the effectiveness of operational efficiency measures in supporting margin improvement, and (3) the impact of macro and visa policy developments on student flows in North America and Australia. Execution against these factors will be key to tracking Flywire's progress toward its full-year goals. Flywire currently trades at a forward price-to-sales ratio of 2.3×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
14-05-2025
- Business
- Yahoo
3 Russell 2000 Stocks with Mounting Challenges
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses. Picking the right small caps isn't easy, and that's exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here are three Russell 2000 stocks that don't make the cut and some better choices instead. Market Cap: $1.35 billion Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Why Do We Think Twice About FLYW? Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 63.6% Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low Historical operating losses show it had an inefficient cost structure while scaling Flywire's stock price of $11.18 implies a valuation ratio of 2.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FLYW. Market Cap: $612.4 million Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market. Why Should You Dump RGR? Annual revenue declines of 3.9% over the last two years indicate problems with its market positioning Earnings per share have contracted by 26.8% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance Eroding returns on capital suggest its historical profit centers are aging At $36.99 per share, Ruger trades at 11.4x forward EV-to-EBITDA. If you're considering RGR for your portfolio, see our FREE research report to learn more. Market Cap: $4.50 billion With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE:LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers. Why Should You Sell LUMN? Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.4% annually over the last five years 7.4 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results Lumen is trading at $4.40 per share, or 1.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LUMN in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
