Flywire Corporation FLYW has regained investor attention after a strong start to 2026 and wider reach across education, travel, healthcare and business-to-business payments. The company does not compete as a basic processor. It combines payment infrastructure with software built for complex, high-value transactions where compliance, reconciliation and system integration matter.
The stock’s rebound has been solid. So far in the year, Flywire shares were up more than 32% and more than 66% over the prior year, while Shift4 Payments, Inc. FOUR was down about 19% year to date, and DLocal Limited DLO was up around 5.4%. The rally is remarkable compared to its industry as well as the S&P 500 composite. Flywire also traded close to its 52-week high, showing investors have rewarded the earnings beat and improving profit profile. The question is whether the rally has moved faster than the business. Flywire’s growth, customer wins and rising margins support optimism, but its valuation leaves less room for mistakes. Let us now delve deeper to find the appeal of its niche model and the risks of buying after a strong run.
Year-To-Date Price Performance
Growth and Profitability Are Moving Together for FLYW
Flywire’s first-quarter results gave investors several reasons to stay positive. Revenues rose 41% year over year to $188.1 million, while revenue less ancillary services increased 43% to $184 million. Total payment volume climbed 36.5% to $11.4 billion, and adjusted EBITDA jumped 81.8% to $39.3 million. The adjusted EBITDA margin reached 21.4%, up 452 basis points. Management also raised its full-year outlook to 18%-24% FX-neutral growth in revenue less ancillary services and 175-375 basis points of adjusted EBITDA margin expansion.
The business is becoming more balanced. Flywire is expanding beyond international tuition through domestic education, healthcare, B2B and travel. Its Scholarship America partnership extends the platform into scholarship disbursements, while the Driftwood expansion places hospitality tools across nearly 90 U.S. hotels. Sertifi adds contract, authorization and payment workflows in hospitality, creating chances to attach more payment volume to existing software relationships.
A Sticky Model of Flywire With More Leverage
Flywire’s main strength is its place inside difficult customer workflows. Its platform supports payments from more than 240 countries and territories and connects with education, healthcare, travel and enterprise systems. Once these integrations are live, switching providers can be costly and disruptive. The company says enterprise revenue churn in education and travel is below 1%, supporting durable activity and client expansion.
Profitability is improving because operating expenses are growing more slowly than adjusted gross profit. AI-assisted support, automated internal processes and better sales productivity could add leverage. Management said around 40% of customer inquiries were being resolved automatically, while support handling time and cost per contact had fallen about 30%.
Flywire has also used its balance sheet to repurchase shares. It completed a roughly $29 million direct purchase of about 1.87 million shares and maintained its broader intention to repurchase up to $50 million under an existing authorization.
FLYW’s Estimate Revisions
While over the past 90 days, earnings estimates for both 2026 and 2027 have been revised upward, the consensus mark has remained unchanged in recent times. However, these figures suggest significant year-over-year growth.
FLYW: Magnitude – Consensus Estimate Trend
The Rally Raises the Bar for FLYW
The main concern is valuation. FLYW’s rally has already priced in a lot of optimism, so the company needs to keep delivering strong quarters. The stock trades at 2.90X forward 12-month sales per share. This is no longer cheap. It also trades at a premium to Shift4 Payments and DLocal. Shift4 Payments trades at 1.48X forward 12-month sales per share, while DLocal trades near 2.55X forward 12-month sales per share.
FLYW: Valuation
Moreover, adjusted gross margin fell to 60.1% from 64.1%, partly because domestic and large processing ramps carry lower margins. Growth is expected to slow after the strong first quarter as Flywire laps Sertifi and major healthcare and B2B ramps. Education is exposed to visa rules, enrollment and currencies, while travel can weaken with economic or geopolitical shocks.
Conclusion: Hold Flywire After the Rally
Flywire’s recent results show stronger growth, better execution and a clearer path to higher profitability. Its specialized software, global payment network and deep customer integrations offer advantages that Shift4 Payments and dLocal do not fully copy. New education and hospitality deals also support a long runway for expansion.
However, the stock’s rapid rise and premium valuation already reflect much of that progress. Slower second-half growth, lower gross margins and macro sensitivity could limit near-term upside. Therefore, it seems prudent for existing shareholders to hold and watch execution, while new investors may be better served waiting for a more attractive entry point.
At present, FLYW carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Research Chief Names “Stock Most Likely to Double”
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company’s customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Flywire Corporation (FLYW) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
DLocal Limited (DLO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
