Flywire (FLYW) Q3 2026: Shares Jump 14% on Earnings Beat

Flywire raised its 2026 growth outlook after third-quarter revenue rose 25% to $250.3 million, and its shares climbed about 14% in after-hours trading.

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What Drove the Flywire Q3 Beat?

Growth across payment volume and profitability drove the beat. Revenue less ancillary services, the company's core measure, rose 26.0% to $244.5 million. Total payment volume increased 27.7% to $17.8 billion.

Adjusted EBITDA reached $79.5 million, up 39.2%. The margin of 32.5% was 310 basis points above the prior-year quarter. Management described the period as delivering more profit and free cash flow than at any point in company history.

How Much of the EPS Beat Was a One-Time Tax Gain?

A large share of the EPS beat came from a non-cash accounting item. Net income was $74.5 million, compared with $29.6 million a year earlier. That figure includes an income tax benefit of about $39.2 million from releasing a valuation allowance against U.S. deferred tax assets. The company said the benefit is not indicative of future results.

Without the tax release, net income would have been about $35 million, still above the prior-year figure. The operating beat is visible in revenue and adjusted EBITDA, which exceeded the company's own guidance of about $230 million in revenue less ancillary services and $72 million in adjusted EBITDA.

Strategic Context: Diversifying Beyond International Education

Flywire built its business on cross-border tuition payments, and that exposure remains a point of scrutiny. Immigration policy has tightened. U.S. student visas are down about 30%, Canadian visas more than 10% and Australian visas roughly 20%. Nearly half of revenue now comes from outside core international education, which cushions that pressure.

Management pointed to progress in several verticals:

• Education: expansion of student financial software in the U.S. and U.K., with more than 1 million payment plans activated by students.
• Healthcare: an integrated financing deal with Endeavor Health.
• Travel and hospitality: a 24-property rollout approved for Kingfisher in EMEA, 23 Marriott Sign & Pay deals and a pilot with Langham in Asia-Pacific.
• B2B: a contract with Liquidity Services to power a $1.5 billion global e-commerce marketplace.

What Is Flywire's 2026 Guidance?

Flywire now expects full-year 2026 FX-neutral revenue less ancillary services growth of 25% to 27%, up about 2 points at the midpoint from the prior range. It also expects adjusted EBITDA margin expansion of 300 to 360 basis points, up about 30 basis points at the midpoint.

For the fourth quarter, the company guided to FX-neutral growth of 14% to 20% and margin expansion of 330 to 530 basis points. The implied slowdown from the third quarter's 26% pace is the main variable investors will weigh.

Balance Sheet and Capital Returns

Operating cash flow for the first nine months totaled $130.4 million. Cash and equivalents rose to $407.2 million from $330.3 million at the end of 2025. The company repurchased $30.5 million of common stock over the period. Sabrina Farmer, a former Google vice president and Microsoft commerce platform leader, joined the board, replacing Alex Finkelstein.

Outlook

Flywire enters the fourth quarter with higher full-year targets, a stronger margin profile and a growing non-education revenue base. The Q4 guide implies slower growth, and student visa trends remain the main external risk. Trading on November 4 will show whether the after-hours gain holds above the prior 52-week high.