Flywire Corp (FLYW) Stock Forecast & Price Target

Flywire Corp demonstrates a robust financial trajectory with a gross profit of $75.6 million, reflecting a year-over-year increase of 19.1%. The recent acquisition of Sertifi is projected to contribute an additional $35 million to $40 million in revenue for FY'25, enhancing Flywire's growth potential as it outpaces the corporate average. Furthermore, Flywire's gross margins have improved by approximately 90 basis points to 67.0%, with expected adjusted EBITDA expansion of 200 to 400 basis points in FY'25, underscoring the company's operational efficiency and promising financial performance.

Flywire has experienced significant revenue decline, particularly in Canada, which saw a 50% year-over-year drop, largely attributed to the cancellation of a fast-track study visa program and adverse foreign exchange impacts. Despite past revenue growth, the company faces uncertainty regarding its ability to achieve profitability due to ongoing net losses from operations and a lack of visibility in its education vertical, resulting in a lowered 2025 growth outlook. Furthermore, the guidance for 1Q25 indicates a growth rate of only 11%-14%, significantly below prior market expectations, signaling potential long-term challenges for Flywire’s financial stability.