Flywire Corp (FLYW) Stock Forecast & Price Target

Flywire Corp reported a gross profit of $75.6 million, reflecting a year-over-year increase of 19.1%, which underscores the company's robust operational performance. The recent acquisition of Sertifi, projected to contribute $35 million to $40 million in revenue in FY'25, is anticipated to grow above the corporate average, further enhancing Flywire's financial outlook. Additionally, the company expects adjusted EBITDA to expand by 200-400 basis points in FY'25, supported by improved gross margins and continued revenue growth, particularly in the EMEA sector and across its various verticals.

Flywire Corp's stock outlook is negatively impacted by a significant revenue decline in Canada, which fell 50% year-over-year, primarily due to the cancellation of a fast-track study visa program, causing a $3M revenue loss. Additionally, the company's guidance for FY25 indicates lower-than-expected growth in the education vertical, with an anticipated 10%-14% growth in constant currency compared to prior estimates of 21%-22%. This combination of external pressures and uncertainty surrounding profitability and EBITDA margins raises concerns about Flywire's ability to sustain revenue and navigate challenges in key markets.