Flywire (FLYW) Q3 2025: Platform Revenue Jumps 56% as Diversification Accelerates Margin Expansion
Flywire’s Q3 showcased the power of its diversified vertical model, with platform revenue up 56% and new client wins broadening outside core markets. The company’s disciplined cost structure and operational leverage are enabling margin gains even as new segments like travel and B2B outpace legacy education growth. With macro headwinds moderating and product innovation driving adoption, Flywire raised full-year guidance and signaled confidence in sustained high-margin growth into 2026.
Summary
- Vertical Diversification Drives Growth: Travel, B2B, and healthcare momentum offset regional education headwinds.
- Operational Leverage Expands Margins: Automation and disciplined cost control decouple growth from support costs.
- Guidance Raised on Strong Execution: Management signals ongoing margin expansion and resilient demand into 2026.
Performance Analysis
Flywire delivered 26% FX-neutral revenue growth in Q3, with platform and other revenues surging 56% year-over-year, driven by strong adoption of software-centric offerings and the contribution of Certify, its travel payments acquisition. Transaction revenue rose 24.4%, supported by 31% growth in transaction-related payment volume, reflecting both education seasonality and vertical expansion. Platform revenue—software subscription and usage-based fees—outpaced volume growth, highlighting the shift toward higher-value, recurring revenue streams.
Adjusted gross profit grew 25% with margin at 65.7%, down 170 basis points year-over-year as mix shifted toward faster-growing but lower-margin verticals like travel and B2B, and as domestic education payments gained share. Despite this, adjusted EBITDA margin climbed 155 basis points, reflecting cost discipline and operating leverage from automation and streamlined support. Notably, automation drove a 41% self-service rate (up 28% YoY), reducing contact rates and scaling support without proportional cost increases.
- Geographic Mix Shift: Australia and the UK outperformed, while Canada lagged due to international student softness.
- Certify Integration: Added $13 million revenue, with cross-sell momentum in travel and hospitality clients.
- Cash Flow and Capital Allocation: Flywire generated strong cash flow and repurchased $10 million in shares, keeping dilution below 3% for the year.
Flywire’s financial results highlight a business increasingly insulated from single-market risk, with robust growth across new and legacy verticals supporting durable margin expansion and capital return.
Executive Commentary
"Flywire continued to win where it matters the most, winning new clients, expanding existing client relationships, and doing so across verticals and across geographies. Our focus remains on three priorities, optimize go-to-market excellence, accelerate product innovation, and cultivate high-performing teams."
Mike Massera, Chief Executive Officer
"We exceeded the top end of our revenue and adjusted EBITDA guidance, supported by better than expected macro conditions across key education markets, including Australia and the US, as well as a stronger peak in the UK, upside in B2B, early go-lives, and operational excellence in our payments network."
Cosmin Pitikai, Chief Financial Officer
Strategic Positioning
1. Multi-Vertical Expansion
Flywire’s evolution from a cross-border education payments firm to a diversified platform is accelerating, with travel, B2B, and healthcare now outpacing legacy education growth. Travel delivered standout results, exceeding bookings plans and driving strong revenue from destination management and luxury accommodation clients. B2B invoice-to-cash solutions, bolstered by the Invoiced acquisition, are capturing both global and domestic clients, while healthcare added marquee clients like Cleveland Clinic and Cook County Health, validating the integrated payments and affordability platform.
2. Geographic Diversification
More than half of new education wins came from outside the traditional “big four” markets, as Flywire capitalized on shifting international student flows and policy uncertainty. The UK, now a quarter of revenue, grew above the corporate average, while Australia outperformed expectations despite visa fee hikes. Canada remained a drag, but Flywire’s expansion into Asia and EMEA (Europe, Middle East, Africa) is offsetting regional headwinds and broadening the revenue base.
3. Product and Platform Innovation
AI-driven automation and integrated software solutions are core to Flywire’s value proposition, enabling faster client onboarding, improved collections, and deeper wallet share. The Student Financial Software (SFS) platform is driving upsell and retention in education, while Certify’s automation features are unlocking new revenue streams in travel. Ongoing investment in platform capabilities is supporting both operational efficiency and differentiated client outcomes.
4. Operational Discipline and Cost Control
Flywire’s cost structure is scaling efficiently, with sales and marketing, G&A, and technology spend all declining as a percentage of revenue. Automation and data-driven targeting are enabling go-to-market investment where ROI is highest, particularly in travel, B2B, and domestic payments, while maintaining margin expansion and capital return discipline.
Key Considerations
Flywire’s Q3 results reflect a business executing on multiple fronts, with strategic investments in verticals, geographies, and automation supporting both growth and profitability.
Key Considerations:
- Vertical Outperformance: Travel and B2B are now meaningful contributors, with ARR and deal counts rising faster than education in some quarters.
- Regional Revenue Mix: UK and Australia drive growth, while Canada and US education face ongoing headwinds from international student visa policy.
- Product Stickiness: SFS and integrated payment solutions are deepening client relationships, increasing wallet share, and improving retention.
- Margin Management: Mix shift toward lower-margin verticals is offset by operational leverage and strict cost discipline, sustaining EBITDA margin expansion.
- Capital Allocation Flexibility: Strong cash flow enables buybacks, organic reinvestment, and selective M&A, supporting long-term shareholder value.
Risks
Flywire faces persistent macro and policy uncertainty, especially in US and Canadian education, where international student flows remain volatile. Margin pressure from mix shift toward travel and B2B could persist if these segments continue to outpace legacy education. Currency fluctuations and regulatory changes in cross-border payments also present ongoing operational risk.
Forward Outlook
For Q4 2025, Flywire guided to:
- FX-neutral revenue growth of 23–27% YoY (13–15% ex-Certify)
- Adjusted EBITDA margin up 50–200 basis points YoY
For full-year 2025, management raised guidance:
- FX-neutral revenue growth of 23–25% (14–16% ex-Certify)
- Adjusted EBITDA margin expansion of 330–370 basis points
Management highlighted:
- Continued investment in automation, platform integration, and targeted go-to-market expansion
- Prudent expectations for Canada and US education, with ongoing diversification to offset regional headwinds
Takeaways
Flywire’s Q3 demonstrates the resilience and scalability of a multi-vertical payments platform, with strong growth in travel and B2B driving both top-line and margin gains.
- Platform Revenue Acceleration: Software-centric growth and Certify integration are shifting Flywire toward higher-value, recurring revenue streams.
- Margin Expansion Despite Mix Shift: Operational leverage and automation are sustaining margin gains even as lower-margin verticals grow faster.
- Diversification Mitigates Regional Risk: Expansion outside the big four education markets and into new verticals is reducing single-market exposure and supporting long-term growth.
Conclusion
Flywire’s Q3 results confirm its transformation into a global, multi-vertical payments and software leader. Operational discipline, product innovation, and strategic diversification are driving both growth and profitability, positioning Flywire for continued outperformance as macro headwinds moderate and new verticals scale.
Industry Read-Through
Flywire’s results reflect a broader payments industry trend toward vertical integration and software-driven monetization, with platform revenue and automation emerging as key value drivers. The outperformance in travel and B2B signals strong demand for tailored, integrated payment solutions, while the education sector’s regional volatility highlights the need for geographic diversification. Competitors in payments, SaaS, and cross-border finance should note Flywire’s disciplined cost structure and ability to decouple growth from support costs as automation advances. The company’s capital allocation flexibility and focus on recurring revenue offer a blueprint for resilient, high-margin growth in a rapidly evolving payments landscape.