Global payments company Flywire (NASDAQ: FLYW) announced better-than-expected revenue in Q4 CY2025, with sales up 39.7% year on year to $157.5 million. Its GAAP loss of $0 per share was $0.01 above analysts’ consensus estimates.
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Flywire (FLYW) Q4 CY2025 Highlights:
- Revenue: $157.5 million vs analyst estimates of $144.1 million (39.7% year-on-year growth, 9.3% beat)
- EPS (GAAP): $0 vs analyst estimates of -$0.01 ($0.01 beat)
- Adjusted EBITDA: $25.4 million vs analyst estimates of $23.16 million (16.1% margin, 9.7% beat)
- Operating Margin: -0.6%, up from -5.1% in the same quarter last year
- Free Cash Flow Margin: 1.1%, down from 76% in the previous quarter
- Market Capitalization: $1.3 billion
Company Overview
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Flywire grew its sales at an exceptional 39.6% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Flywire’s annualized revenue growth of 26.2% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, Flywire reported wonderful year-on-year revenue growth of 39.7%, and its $157.5 million of revenue exceeded Wall Street’s estimates by 9.3%.
Looking ahead, sell-side analysts expect revenue to grow 13.4% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds.
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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 Q4 Results
We were impressed by how significantly Flywire blew past analysts’ EBITDA expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 11.9% to $12.58 immediately after reporting.
Flywire had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
